Types of Agency Relationships Ch. 4

designated agency

a process that accommodates an in-house sale in which two different agents are involved; not legal in all states, and does not apply to a single agent who represents both parties

dual agency

agent represents two principals in the same transaction with both parties consenting in writing; this is illegal in some states

special agent

aka limited agent is authorized to represent the principal in one specific business transaction only; this is the usual for a real estate broker or agent

nonagent

also called a transactional broker, facilitator, coordinator, or contract broker is not an agent of either party but simply helps both the buyer and seller with paperwork and formalities involved in transferring ownership of real property; the b and s negotiate the sale without representation.

universal agent

like a conservator; empowered to do anything the principal could do personally; very rare for real estate licensee

designated agent

person authorized by the broker to act as the agent of a specific principal

general agent

represents the principal in a broad range of matters related to a particular business or activity; agent is general agent of broker or a broker could be general agent to high profile client

single agency

the agent represents only one party in any single transaction

undisclosed dual agency

violates licensing laws and can result in the recission of the sales contract, forfeiture of commission, lawsuit for damages and possible license problems.

property management

when an owner employs a broker to market, lease, maintain or manage an owner's property; has same fiduciary responsibility to client-owner

disclosed dual agency

when the principals in a transaction agree to representation by one broker; this must be carefully explained to the parties in order to establish informed consent