An agency can be classified as ___
Based on the extent of the agents authority
What does the agent authority represent?
The principal can either be broad, or can include only a certain type of activity, or a specific transaction
Universal agent
A person empowered to do anything the principal could do personally
A court-appointed guardian
Will have the authority granted by the court, which includes caring for both the person and the property of the guardians ward
A real estate professional ___ have authority over universal agent
Does NOT
General agent
One who is authorized by a principal to represent the principal in a specific range of matters
Example of a general agent
Bind the principal to any contract within the scope of the agent’s authority
An entertainer may employ more than 1 general agent to find work
As well as a business manager to hire and supervise staff
A property manager
Hired by the owner of income-producing property is typically the general agent of the employing broker
Special agent
Also known as limited agent, is authorized to represent the principal in one specific act or business transaction only
A real estate broker is typically
A special agent
If hired by a seller
The broker is limited to finding a ready, willing, and able buyer for the seller’s property
A special agent for a buyer
Would have the limited responsibility of finding a property that fits the buyer’s criteria
A special agent for a tenant
Will find a property that meets the client’s requirements
As a special agent
The real estate broker may not bind the principal to any contract
Real estate professionals are ___ the parties they represent
Required to disclose
Mandatory agency disclosure
Laws now exist in every state
These laws stipulate
What agency alternatives exist
Good benefits practice is to
Make the disclosure of agency before any confidentially information is disclosed
The laws might require
Some alternatives being explained
Single agency
The agent represents only one party to a transacton
The real estate agent ___ fiduciary ___ or ___ exclusively to one principal within the transactions
Must provide; common law; statutory duties
The customer is the ___ not represented by ___
Party; agent
The broker cannot represent both
The buyer and seller under single agenc
Single agency avoids conflicts and results
In client-based service and loyalty to only one principal
If a seller enters a listing agreement with a broker to manager the seller’s real estate
The broker becomes an agent of the seller; the seller is the principal, the brokers client
The broker is strictly accountable
To the principal
___ the document that usually forms the agency relationship of broker and seller
The listing contract
Dual agency
The agent represents two principals in the same transaction
Dual agency requires
Equal loyalty to 2 different principals at the same time
The challenge is to
Fulfill the fiduciary obligations to one principal without compromising the interests of the other
Implied agency
When the buyer indicate the duties of loyalty and confidentiality to the principal- seller
An undisclosed dual agency can violate licensing laws by
The result of a rescission of the sales contract, fixture of a commission, a lawsuit for damages, and possible license problems
Designated agency
Also called assigned agency or appointed agency, is available in some states to accommodate an in-house sale in which 2 sales associates of the same broker are involved
Designated agent
Or designated representative, is the only sales associate in the company who has a fiduciary responsibility toward the principal
Non-agent
Also called a transaction broker, facilitator, transaction coordinator, or contract broker is NOT an agent of either party
Transaction broker
Helps both the buyer and seller with paperwork and formalities in transferring ownership of real property, but who is not an agent of either property
What is the job for non-agent’s
To simply help both the buyer and seller with the necessary paperwork and formalities involved in transferring ownership of real property
What treatments do non-agent give
Honesty and commentary, to locate qualified buyers or suitable properties, to help the parties arrive at mutually acceptable terms without acting on behalf of either side, and to assist in the closing of the transaction
An agency may be terminated for any of the following reasons
* completion, performance or fulfillment of the purpose for which the
agency was created
* death or incapacity of either party
*
destruction or condemnation of the property
* expiration of the
terms of the agency
* mutual agreement by all parties to cancel
the contract
* breach by one of the parties
* by operation
of law, as in bankruptcy of the principal (bankruptcy terminates the
agency contract and title to the property transfers to a
court-appointed receiver)
An agency coupled with an interest cannot be ___by the principal acting alone, and is NOT ___ upon death
Revoked; terminated
When a realtor is made a ___ of a property that is subject of a transaction
Party-owner
Even though the relationship is ___ the fiduciary responsibilities of the agent, such as the duty of confidentiality, might continue
Terminated