Real Estate: Texas Law of Agency Questions with Certified Solutions

Real Estate: Texas Law of Agency Questions with Certified Solutions Agency A relationship established between a principal and a real estate agent Agent The person who is authorized to represent and act on the behalf of another person Brokerage Agreement A written or oral agreement for brokerage services in exchange for compensation Client A person who is being represented by an agent Consumer A person requesting or receiving licensed services Customer A person who is not represented by an agent, but receiving ministerial acts Ministerial Acts Acts performed by a licensed agent for a customer that are informative or clerical in nature Fiduciary Relationship A relationship in which one party places special trust, confidence, and reliance in another Principal The person who hires the agent and delegates to the agent the responsibility of representing the principal's interests Universal Agent the principal empowers the agent to perform any and all actions that may be legally delegated to an agency representative. The instrument of authorization is the power of attorney. General Agent the principal delegates to the agent ongoing tasks and duties within a particular business or enterprise. Such delegation may include the authority to enter into contracts. Special Agent also known as a specific agent. Under a special agency agreement, the principal delegates authority to conduct a specific activity, after which the agency relationship terminates. In most cases, the special agent may not bind the principal to a contract. In most instances, real estate brokerage is based on a special agency. Agency coupled with an interest an agency relationship in which the agent has an interest in the property that is being sold. This type of agency cannot be revoked by the principal, nor is it terminated if the principal dies. Real estate brokerage is based on what kind of agency? Special Agency What is a duty agent? The person who is given the opportunity to answer the phones or greet someone walking off the street in an attempt to find leads What are the fiduciary duties assigned to do? Place the client's needs above the desires of the brokers and salespeople Single Agency when a licensee represents a either a seller/landlord or a buyer/tenant directly and exclusively as an agent. This relationship is normally bound by a written agency agreement, or listing agreement having a specified and limi