Agency Basics
This is the fiduciary relationship in which one person represents another in dealings with third parties.
This duty requires an agent to place the client's interests above all others.
What is loyalty?
This agency relationship exists when a broker represents only the seller.
This written agreement commonly creates an agency relationship between a seller and a broker.
What is a listing agreement?
This informs consumers whom the real estate licensee represents.
What is agency disclosure?
The person who authorizes an agent to act on their behalf.
Who is the principal?
This duty requires an agent to obey all lawful instructions from the principal.
What is obedience?
This agency relationship exists when a broker represents only the buyer.
What is buyer agency?
This agreement establishes agency between a broker and a buyer.
What is a buyer representation agreement?
Agency disclosure should generally occur at this stage of a transaction.
What is at the first substantive contact (or as required by state law)?
The person authorized to represent the principal.
Who is the agent?
An agent must reveal all known material facts because of this fiduciary duty.
What is disclosure?
This occurs when one brokerage represents both buyer and seller in the same transaction with informed consent.
What is dual agency?
Agency automatically ends when this happens to the property owner.
What is the death of the principal?
This type of agent has authority to perform only a specific act for the principal.
What is a special agent?
In real estate, this individual is the principal in dealings with sales associates.
Who is the broker?
This duty requires an agent to safeguard money and property entrusted by a client.
What is accounting?
This agency relationship allows a broker to assist both parties without acting as a fiduciary for either.
What is transaction brokerage (nonagency/facilitator relationship, where allowed)?
Agency ends when the purpose of the agency has been completed through this event.
What is performance (completion of the transaction)?
This type of agent has broad authority to conduct a wide range of business for the principal.
What is a general agent?
These three sources make up the legal foundation of agency law.
What are common law, statutory law, and administrative law?
The acronym OLD CAR represents these six fiduciary duties.
What are Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care?
This occurs when a principal's actions lead others to reasonably believe an agency relationship exists, even if none was formally created.
What is agency by estoppel (ostensible agency)?
This occurs when both the broker and the client agree to end the agency relationship before its scheduled expiration.
What is mutual agreement (mutual rescission)?
Failure to properly disclose an agency relationship can result in this type of legal consequence for the licensee.
What is disciplinary action, civil liability, or loss of commission?