Chapter 4

To create an agency relationship, you must have:

A Principal/client/s (or principals) A task to be done An Agent

limited representation

A transaction broker means a broker who provides ____________ to a buyer, a seller, or both, in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent.

Presumption of transaction brokerage

It shall be presumed that all licensees are operating as transaction brokers unless a single agent or no brokerage relationship is established, in writing, with a customer.

Florida law allows for four types of agency relationships. These are:

No Brokerage Relationship, Single agent broker, Transaction broker, Designated Sales Associate

There are various types of Agency Relationships:

No Brokerage Relationship, Single agent broker, Transaction broker, Designated Sales Associate

Attorney-in-Fact

The Universal agent has the Power of Attorney and is called an___________.

Statutory Law

The agency relationship is governed by _________ - meaning the laws that are currently on record in the country, and common law.

"The Law of Agency."

The law that defines agency relationships

There are four types of agency. These are:

Universal agent, General Agent, Agency coupled with an Interest, Special Agent

four types of agency:

Universal agent: handles all delegated business of the Principal. The Universal agent has the Power of Attorney and is called an Attorney-in-Fact. General Agent: handles multiple transactions of a principal/client. Agency coupled with an Interest: when the real estate licensee is a partner in the ownership of the property as well as represents the partners in an agency relationship. Special Agent: handles one transaction for one seller of one property. This is the most common type of real estate representation. The broker can represent several sellers on one house each at one time but never the seller and buyer for a transaction.

fiduciary relationship

When an agent represents the seller as a principal

There are three ways that an agency relationship is created:

Written or Expressed Agency,

There are three ways that an agency relationship is created:

Written or Expressed Agency, Implied Agency, Implied Agency,

There are three ways that an agency relationship is created:

Written or Expressed Agency, Implied Agency, Implied Agency, Ratification of Agency

There are three ways that an agency relationship is created:

Written or Expressed Agency, Implied Agency, Ratification of Agency

Agent

a person who is empowered by contract (or action) to represent the interest of someone (you) called a Principal or Client.

General Agent

handles multiple transactions of a principal/client. One example in real estate would be property management. All sales associates who work under a broker are general agents of that broker, meaning that they have a fiduciary responsibility and a loyalty to that broker.

Special Agent

handles one transaction for one seller of one property. This is the most common type of real estate representation. The broker can represent several sellers on one house each at one time but never the seller and buyer for a transaction.

Arms-Length-Transaction

is a transaction where the seller is informed and knowledgeable about what he is selling and the buyer is informed and knowledgeable about what he is buying.

Statute of Frauds

is an old English statute passed in 1677 which has been adopted in almost all of the United States. Its purpose is to prevent fraud among the parties by requiring that all contracts be in writing and signed by all the parties to be charged. This will be covered more in contract law.

Subagent

is one who assists in some or all of the duties as assigned by the Agent to do a job for a Principal. When a broker assumes the role of Agent, all sales associates under that broker take on the role of sub-agent.

The Broker's Relationship Act

is vastly important. Understand the intent of the law, and the provisions it provides in order to clarify the relationship of brokers to sellers and buyers.

Common Law

meaning procedures that have been set by precedent of cases that have gone before.

Disclosed dual agency

means both the seller and buyer are aware of the agency relationship and both agree to be represented equally and with all the requirements of agency all at the same time. This is illegal under Florida law.

Undisclosed dual agency

means one of the parties (either the buyer or seller) is unaware that a dual agency exists. This situation may lead to the unfair disclosure of information that one party does not want the other party to know. This is illegal under Florida law.

Dual agency

means representing both buyer and seller at the same time with the same commitment and dedication to both.

"Fiduciary Relationship"

one of utmost trust and loyalty.

Agency coupled with an Interest

when the real estate licensee is a partner in the ownership of the property as well as represents the partners in an agency relationship.