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16 Cards in this Set
- Front
- Back
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Agency relationships in real estate transactions are governed by three kinds of law |
•common law, the rules established by tradition and court decisions; •statutory law, the laws enacted by the legislature; and •administrative law, the rules and regulations created by real estate commissions and departments, as authorized by the legisla |
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caveat emptor |
"let the buyer beware" (1950s, the common law doctrine) |
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Agent |
the individual who is authorized and consents to represent the interests of another person in dealings with a third person |
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Agency relationships |
One party employs another to act in their behalf |
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Parties to an agency relationship |
Principal: employs; may or may not pay the agent Agent/fiduciary: employed to represent a principal Third party: anybody outside of an agency relationship Facilitator or transaction broker: provides services, not representation Common law of agency: specifies fiduciary duties to principal (OLD CAR)
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Soecial agenc |
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Express Agency |
An agency relationship based on a formal agreement between the parties. |
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Implied Agency |
If the actions of the parties imply that they have mutually consented to an agency relationship, an implied agency relationship is formed. |
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The fiduciary responsibilities of an agent to the principal under the common law of agency include |
disclosure of material facts that the agent knows. |
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Evidence of an agency relationship can be found in |
the conduct of the parties. |
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A real estate broker hired by an owner to sell a parcel of real estate must comply with |
all lawful instructions of the owner. |
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The rules of a society established by tradition and court decisions are found in |
Common law |
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Statements of opinion are permissible |
if there is no intention to deceive |
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The federal legislation known as Megan's Law has promoted the establishment of |
state registries of residential information on sex offenders. |
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When considering whether or not to reveal information regarding a stigmatized property, a real estate professional should be aware of |
any relevant state laws. |
