Chapter 7 - Laws of Agency

Delegates to agent authority to represent principal

Relationship between principal & agent

Broker representing buyer or seller

Broker of seller, appoints other brokers to
assist in carrying out client-based functions on behalf of principal (An agent’s agent)

Care, Obedience, Accounting, Loyalty, Disclosure

Authorized to negotiate contracts for another (Property Manager)

Authorized to rep a principal in one specific
transaction

Rep both buyer & seller in a transaction, with
both consent (NOT legal in all states)

Buyer Agency Agreement

(Non-agent or Facilitator) May NOT disclose
confidential information to either party

Appoint agents w/I office to rep principal

Broker entitled to commission if after expired listing seller sells to someone agent originally introduced

Selling & Buying Brokers work together to bring
two principals together

Misrepresentation of facts known to be false w/ intent of deceiving an agent

Opinion or exaggeration that no one relies on
for decision making

Conspiracy among brokers to set prices for their services rather than negotiating their fees

To sell one product only if buyer purchases another product