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Session 3
Agency Basics
| Question | Answer |
|---|---|
| Accounting | An agency relationship, the agents fiduciary duty to the principal to strictly account for all monies received |
| Agency | a RELATIONSHIP of trust and confidence when one party gives another the right to represent him to a third party |
| Agent | The person representing the principal (Client) |
| Broker | A person licensed under the laws of the state to transact real estate business on behalf of another (Acting as an agent) |
| Client | A buyer or seller- or tenant or landlord- who is represented by an agent. also called principal |
| Confidentiality | The protection of the clients confidential information. |
| Customers | All parties involved in the transaction who are NOT represented by the agent. |
| Disclosure | Any information or report given to a party in a transaction |
| Employing Broker | An entity licensed by the Arizona department of real estate to operate a brokerage business |
| Fiduciary | A person in a position of trust, held by law to high standards of good faith and loyalty |
| Fiduciary Duties | OLD CAR Obedience/ Loyalty/ Disclosure/ Confidentiality/ Accounting/ Reasonable skill and care |
| Loyalty | A fiduciary duty that requires a real estate licensee to put the principals interest above all others interests including their own |
| Material Fact | Any fact that is relevant to a person making a decision; agent must disclose material facts to buyers |
| Obedience | A fiduciary duty that requires a licensee to follow the legal instructions of the principal. obey the parameters of the agency relationship, and not stray beyond the scope of authority |
| Principal | A buyer or seller- or tenant or landlord- who is represented by an agent. also called client |
| Reasonable Skill and Care | A fiduciary duty that requires agents to protect clients from foreseeable harm, act in accordance with the high standards set by their profession, and perform their duties as promised. |
| Who is the client when a property is listed? | Seller |
| OLD CAR | Obedience/ Loyalty/ Disclosure/ Confidentiality/ Accounting/ Reasonable skill and care |
| Attorney-In-Fact | A person specifically designated in an instrument to do something legally for another in their stead. |
| Bankruptcy | A court process that cancels some debt and provides some relief for creditors. |
| Conditional Release | A Mutual agreement by both parties to terminate a relationship when certain requirements have been met |
| Dual Agency | An agency relationship where the brokerage firm represents bot the buyer and the seller in the same transaction |
| Employee | One who is employed by the broker who can control the hour-by-hour work of the employee. |
| Errors and Omissions Insurance (E&O) | An insurance that protects real estate licensees from liability due to mistakes or negligence. |
| Expressed Agent | An agent whose authority is expressly communicated, in words or in writing, by the principal. |
| General Agent | An agent authorized to handle any and all of the principals affairs in a specified job or business area. |
| General Liability Insurance | A policy that insures against claims or lawsuits for property damage or bodily injury |
| Implied Agency | An agency relationship created through the behavior of one or both parties |
| Imputed Notice | notice to the agent is notice to the client |
| Independent Contractor | Self-Employed person paid for jobs completed rather than hours worked, and responsible for setting their own hours and paying their own taxes. |
| Power-Of-Attorney | A legal instrument that gives a person the authority to act for another as attorney-in-fact |
| Single Agency | An agency relationship in which the brokerage represents only one party in a transaction |
| Subagent | An agents agent. |
| Umbrella Insurance | An insurance policy that provides extra liability coverage above other policies limits, designed to protect the insured from major claims and lawsuits, and as a result, it helps protect assets |
| Unconditional Release | A mutual agreement by both parties to terminate a relationship without any required stipulations. |
| Universal Agent | An agent authorized to do everything that can be lawfully delegated to a representative; generally requires a power of attorney |
| Vicarious Liability | Principal is liable for acts of agent |
Created by:
Baayangle
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