Champion School of Real Estate- Law
of Agency
Broker - ANSA Properly Licensed party who serves a principal in an agency relationship
Agency - ANSA fiduciary relationship between a broker and a principal or a broker and a
client
Fiduciary - ANSA Party acting for another in a position of trust-a broker or agent
Fiduciary Relationship - ANSThe relationship based on trust-the relationship governed by
the law of the agency between a broker and a principal
Principal - ANSA party represented by a broker in an agency relationship-also called a client
Client - ANSA Party represented by a broker in an agency relationship-also called a principal
Customer - ANSA third party-one a broker is working with, but who is not represented by that
broker
Buyer Representation Agreement - ANSAn employment contract obligating a broker to act
as a fiduciary to a buyer
Listing Agreement - ANSAn employment contract obligating a broker to act as a fiduciary to
a seller
Management Agreement - ANSAn Employment contract obligating a broker to act as a
fiduciary to a property owner
Public Responsibilities - ANSThe responsibilities a broker has to customers or third partyies
including-Honesty, Fairness and disclosure to material facts
Fiduciary Responsibilities - ANSThe responsibilities a broker has to clients in an agency
relationship-includes placing the interest of the client first, full disclosure of all facts, material
and other, and giving advice and opinions
Oral Agency - ANSAn agency relationship created by an oral or spoken agreement
Implied Agency - ANSAgency as a result of customary, usual or typical conditions
Ostensible Agency - ANSAgency as a result of the actions of an agent and the response of
others to those actions
, Agency by Ratification - ANSAgency established when an agent acts without permission of
the principal and the principal accepts or ratifies those actions
Agency by Estoppel - ANSA principal fails to maintain due diligence over his agent and as a
result the court prevents the principal from denying the agency relationship
Universal Agency - ANSA principal gives an agent the power to transact matters of all types
for him
General Agency - ANSA principal gives an agent the power to bind him in a particular trade
or business
Special Agency - ANSA principal gives an agent the power to perform specific acts, but not
to bind the principal-also called limited agency
Limited Agency - ANSA principal give an agent the power to perform specific acts, but not to
bind the principal-also call Special Agency
Duties of an Agent - ANSAn Agent owes his client obedience, loyalty, disclosure,
confidentiality, accounting and reasonable care
OLDCAR - ANSObedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable
Care-Duties of an agent
Duties of a Principal - ANSA principal owes his agent compensation, reimbursement,
indemnification and performance
CRIP - ANSCompensation, Reimbursement, Indemnification and Performance-duties of a
Principal or client
Blind Ad - ANSAn advertisement that does not clearly indicate the licensed status of the
party placing the ad-real estate licensees are prohibited from placing blind ads
Dual Agent - ANSA broker who has the written permission of both the buyer and the seller to
represent both parties in a single transaction
Designated Agent - ANSA licensee appointed by a broker in a dual agency situation to work
with either the buyer or the seller in the transaction
Intermediary - ANSA broker in Texas who has the written permission of both the buyer and
the seller to represent both parties in a single transaction
Appointed Associate - ANSA licensee appointed by a broker in Texas in an intermediary
situation to work with either the buyer or the seller in the transaction
Open Listing - ANSA listing where a seller reserves the right to list with as many brokers as
he chooses-he also reserves the right to sell the property himself-only a broker who brings a
contract to the seller will earn a commision
of Agency
Broker - ANSA Properly Licensed party who serves a principal in an agency relationship
Agency - ANSA fiduciary relationship between a broker and a principal or a broker and a
client
Fiduciary - ANSA Party acting for another in a position of trust-a broker or agent
Fiduciary Relationship - ANSThe relationship based on trust-the relationship governed by
the law of the agency between a broker and a principal
Principal - ANSA party represented by a broker in an agency relationship-also called a client
Client - ANSA Party represented by a broker in an agency relationship-also called a principal
Customer - ANSA third party-one a broker is working with, but who is not represented by that
broker
Buyer Representation Agreement - ANSAn employment contract obligating a broker to act
as a fiduciary to a buyer
Listing Agreement - ANSAn employment contract obligating a broker to act as a fiduciary to
a seller
Management Agreement - ANSAn Employment contract obligating a broker to act as a
fiduciary to a property owner
Public Responsibilities - ANSThe responsibilities a broker has to customers or third partyies
including-Honesty, Fairness and disclosure to material facts
Fiduciary Responsibilities - ANSThe responsibilities a broker has to clients in an agency
relationship-includes placing the interest of the client first, full disclosure of all facts, material
and other, and giving advice and opinions
Oral Agency - ANSAn agency relationship created by an oral or spoken agreement
Implied Agency - ANSAgency as a result of customary, usual or typical conditions
Ostensible Agency - ANSAgency as a result of the actions of an agent and the response of
others to those actions
, Agency by Ratification - ANSAgency established when an agent acts without permission of
the principal and the principal accepts or ratifies those actions
Agency by Estoppel - ANSA principal fails to maintain due diligence over his agent and as a
result the court prevents the principal from denying the agency relationship
Universal Agency - ANSA principal gives an agent the power to transact matters of all types
for him
General Agency - ANSA principal gives an agent the power to bind him in a particular trade
or business
Special Agency - ANSA principal gives an agent the power to perform specific acts, but not
to bind the principal-also called limited agency
Limited Agency - ANSA principal give an agent the power to perform specific acts, but not to
bind the principal-also call Special Agency
Duties of an Agent - ANSAn Agent owes his client obedience, loyalty, disclosure,
confidentiality, accounting and reasonable care
OLDCAR - ANSObedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable
Care-Duties of an agent
Duties of a Principal - ANSA principal owes his agent compensation, reimbursement,
indemnification and performance
CRIP - ANSCompensation, Reimbursement, Indemnification and Performance-duties of a
Principal or client
Blind Ad - ANSAn advertisement that does not clearly indicate the licensed status of the
party placing the ad-real estate licensees are prohibited from placing blind ads
Dual Agent - ANSA broker who has the written permission of both the buyer and the seller to
represent both parties in a single transaction
Designated Agent - ANSA licensee appointed by a broker in a dual agency situation to work
with either the buyer or the seller in the transaction
Intermediary - ANSA broker in Texas who has the written permission of both the buyer and
the seller to represent both parties in a single transaction
Appointed Associate - ANSA licensee appointed by a broker in Texas in an intermediary
situation to work with either the buyer or the seller in the transaction
Open Listing - ANSA listing where a seller reserves the right to list with as many brokers as
he chooses-he also reserves the right to sell the property himself-only a broker who brings a
contract to the seller will earn a commision
