Chapter 7

Estoppel

Occurs when an individual claims incorrectly that a person is his agent and a third party relies on the incorrect representation

willful omission

A deliberate failure to inform a party of a known of a known defect in the property regardless of whether the agent was asked or not

willful misrepresentation

Intentionally misinforming any party involved in a transaction about a material fact.

Special/limited agency

Limited to one well-defined task one time.

List of duties of agent to a principal

Loyalty, obedience, confidentiality, skill,care,and diligence, disclosure of information, accounting

Apparent Authority

Occurs when an agent gives the impression that she has certain authority that a third party might reasonably rely upon, when in fact the Agent does not actually hold such authority

Third Party (Customer)

Party that you do not represent

agent

Party who acts on behalf of the principal

principal

Person for whom the agent acts

Universal Agency

Provides for an agent to have all-encompassing powers to make decisions and act on behalf of the principal

Law of Agency

The body of laws and regulations that govern the relationship of agents to their principals and to one another

Buyer agency agrrememt

The buyer is the brokers principal, and the agency relationship is between the buyer and the broker.

Puffing

Exaggerated or superlative comments or opinions.

Dual Agency Agreement

The firm is actually representing both the buyer and the seller.

agency

The relationship that exists in which one person is empowered to act on behalf of another

Implied Agency

When the actions of the principal and agent indicate that they have an agency agreement. Also known as ostensible agency

List of brokers duties to third party

Honesty, basic fairness, disclosure of known material facts.

Fiduciary

A position in trust in confidence for someone else above all others including myself

Designated agency

A process that accommodates an in-house sale in which two different agents are involved. The broker designates one agent to represent the seller and one agent to represent the buyer.

Subagent

Agent of the agent

Material Fact

Any fact about a property that might influence the decision of a purchaser

Implied Authority

Based on custom and may very well be the result of an expressed agreement

Misrepresentation

Communication of false or incorrect information

General agency

Confers a broad scope of authority on the agent, but the authority is not as broad as the universal agency and is limited to some particular field.

negligent omission

Unintentionally failing to inform the third party of something they should have know but didn't because they didn't practice proper skill,care, or diligence

Negligent Misrepresentation

Unintentionally misinforming any party involved in a transaction about a material fact because the agent didn't practice proper skill,care, or diligence.

caveat emptor

let the buyer beware, seller has no disclosure of information obligation to the buyer. Meaning you as an agent need to let the buyer beware

Single Agency

the agent represents only one party to a transaction.