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© OnCourse Learning Chapter 21 : The Principal-Broker Relationship: Agency
Created when one person delegates to another the right to act on his behalf. General agency – the right to bind the principal to perform a particular act. Principal = Property owner Agent = Broker Client = Principal AGENCY © OnCourse Learning
Written – contractual agreement Implied – custom in the industry Ostensible – conduct of the parties Ratification – agency established after the fact Estoppel – due to principles failure to maintain due diligence over the agent who exercises powers not granted him. ESTABLISHING AUTHORITY © OnCourse Learning
Commission Skills and Knowledge Principal Agent AGENCY RELATIONSHIP © OnCourse Learning
C are O bedience A ccounting L oyalty (Competence and expertise) (Lawful instructions) (For funds received) (Principal’s interest first) BROKER’S OBLIGATION TO PRINCIPAL © OnCourse Learning
COMMINGLING When broker places money belonging to a client or customer in a personal account.
Said without checking the facts Not said and facts not checked Said wrongly to mislead Unsaid in order to mislead A Facts Broker Knows B Facts Broker Does not know DISCLOSURE LIABILITY © OnCourse Learning
“As Is” Puffing Lead-based paint disclosure on homes built prior to 1978 Home Inspections RED FLAGS © OnCourse Learning
The exact opposite theory from the traditional seller representation. Here the principal or client is the buyer! Agent owes the care of agency duties to buyer. BUYER AGENCY © OnCourse Learning
Agency relationships can be created without written agreements and consumers must be informed who the agent represents so there is a clear understanding of the agent’s role in a transaction. Many states now require disclosure forms. AGENCY DISCLOSURE © OnCourse Learning
Seller disclosure statements are a detailed disclosure of property defects (or lack thereof) on a form often produced by a real estate trade association. © OnCourse Learning SELLER DISCLOSURE STATEMENT
Owner disclosure information Interstate land disclosure statements Antitrust laws Price fixing Boycotting Errors and Omission insurance INFORMATION © OnCourse Learning
Key Terms Agent Boycotting Commingling Dual agency Middleman Ostensible authority Price fixing Principal Puffing Third parties © OnCourse Learning
Chapter 39: Agency.
Lecturer: Rowin Gurusami
Thomson/South-Western©2008 Chapter 20 The Principal-Broker Relationship: Agency _______________________________________.
© OnCourse Learning. All Rights Reserved. Laws and Regulations Governing Brokerage Relationships Learning Objectives Define the basic concepts of agency.
Copyright © 2008 by West Legal Studies in Business A Division of Thomson Learning Chapter 37 Agency Twomey Jennings Anderson’s Business Law and the Legal.
Texas Real Estate Contracts 4 th Edition © 2015 OnCourse Learning.
Florida Real Estate Principles, Practices & Law 38th Edition
© 2015 OnCourse Learning Texas Real Estate Brokerage and Law of Agency, 6 th Edition.
C O A L I T I O N Corner Agency Disclosure Coalition Corner: Business training tools for HR staff, real estate licensees and other service professionals.
Chapters 13 & 14: Brokerage Real Estate Principles: A Value Approach Ling and Archer.
Chapter 8 Real Estate Brokerage
Chapter 4: In This Chapter The Real Estate Licensee Compensation Referrals How to Find a Referral Partner Agency How Relationships Are Formed.
QUESTION 1 Can I sell my own listing as a Dual Agent? Next.
© 2012 Cengage Learning. The Principal–Broker Relationship: Agency Chapter 20.
South-Western Publishing©2002 By Charles J. Jacobus Real Estate Principles Ninth Edition Real Estate: An Introduction to the Profession Ninth Edition South-Western.
Chapter 5 Brokerage and Agency 2010©Cengage Learning. All Rights Reserved.
© 2010 Pearson Education, Inc., publishing as Prentice-Hall 1 AGENCY FORMATION AND TERMINATION © 2010 Pearson Education, Inc., publishing as Prentice-Hall.
LEARNING UNIT 5 LAW OF AGENCY. AGENCY An agreement 1 party another party (agent) performs (principal) a task Contract of MandateAgency.
Chapter 4 AGENCY AND ITS RESPONSIBILITY 83. I. AGENCY OVERVIEW Agency – is the authority (or power) to act for or in place of another, a principal (person.
Chapter 12 The Broker’s Role in the Transfer of Real Estate.
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