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