© 2015 OnCourse Learning Texas Real Estate Brokerage and Law of Agency, 6 th Edition

CREATION OF THE AGENCY RELATIONSHIP © 2015 OnCourse Learning Chapter 2

When And How An Agency Relationship Is Created Relationship between principal and agent is a fiduciary one Fiduciary relationship arises early in the transaction, when confidences are exchanged – which can occur prior to any employment contract or express agency relationship. © 2015 OnCourse Learning

Agency Cases: Wilson v. Donze Kelly v. Roussalis Canada v. Kearns © 2015 OnCourse Learning

Agency Agreements Agency by Actual Authority – either expressed or implied Agency by Ostensible Authority Agency by Ratification © 2015 OnCourse Learning

Special Rules For Real Estate – Licensure The License Act is a general law that applies to all persons who engage in real estate Intent is to avoid fraud on public by requiring a license of anyone who deals in real estate for others © 2015 OnCourse Learning

Broker Definition A real estate broker is defined by the Texas Real Estate License Act as follows: – Review Section © 2015 OnCourse Learning

“Real estate broker” means a person who, for another person and for a fee: sells, exchanges, purchases, rents, leases (or offers to) real estate; negotiates or attempts to negotiate the listing, sale, exchange, purchase, rental, or leasing of real estate; lists real estate for sale, rental, lease, exchange, or trade; © 2015 OnCourse Learning

Real Estate Broker, etc. auctions, or offers to auction, real estate; deals in options on real estate; aids, attempts, or offers to aid in locating real estate; procures or assists in the procuring of prospects; © 2015 OnCourse Learning

Real Estate Broker, etc. procures or assists in procuring property ; controls the acceptance or deposit of rent; provides a written analysis, opinion, or conclusion relating to the estimated price of real property; © 2015 OnCourse Learning

TREC frequently revises its regulations which are available on TREC Web site. Here are some of them: § Nonresident Agents §535.5 License Not Required for Principal §535.4 Managing Rentals, Sales, for Corporations, and Negotiations © 2015 OnCourse Learning

TREC Regulations, cont’d § Net Listings § Broker Price Opinion or Comparative Market Analysis § Valuable Consideration § Exemptions: Attorney at Law © 2015 OnCourse Learning

TREC Regulations, cont’d Exemptions: Attorneys in fact § Public Officials § Exemptions: Salesperson’s Employed by an Owner of Land and Structures Erected by the Owner © 2015 OnCourse Learning

Pertinent Cases of Licensure Collins v. Beste Gamble v. Norton, Friendswood Development Company v. McDade + Company, Warner Communications, Inc. v. Keller Trammel Crow Company No. 60, et al. v. William Jefferson Harkinson, © 2015 OnCourse Learning