Chapter 5 (Agency)
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Agency relationship, on party (an agent) represent another party (the principal) in dealing with a 3rd party
What is the A-B-C of an Agency Relationship?
A-Agreement, agent acts on behalf of the principle
B-Benefit, the principle benefit from agent
C-Control, the principal sets boundaries for the agent, if the agent does not follow these boundaries, the principal can end agency relationship.--->limitation set up by principal
What is a fiduciary Relationship?
- Relationship of trust
- -agent act on the best interest of client.
if agent upset client---> affects PI and agency
The duties of fiduciary relationship are?
- G- Good faith
- O- Obedience
- L- Loyalty
- D- Disclosure
- C- Confidentiality
- A- Accounting
- R- Reasonable Care
- H- Honesty
- I- Integrity
Fiduciary relationship only exist in?
In a client not customer
-A customer is unrepresented by a licensee.
Seller's Agent (listing agent)
The broker who obtains the listing from the seller
is a broker who acts as an agent for the buyer not obtained through the MLS
Selling Agent (cooperating agent or participating agent)
Selling agent is a broker who represent the buyer which is obtained through the MLS.
serve principal in any capacity.
ex: general power of attorney
Represent the principal in particular business. Agency relationship is continuous.
Represent the principal in a particular activity or transaction. Relationship is not continuous.
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