AYPO Law of Agency (Questions & Answers) Rated 100% Correct!!

?Is an Agency Relationship Required - Technically, an agency relationship is not needed to assist a buyer during a transaction. Licensees can work with buyers informally as customers, eschewing any contractual agreement. Nor are agents of selling parties forbidden from providing assistance to buyers agents. However, seller's agents must not forget that dual agency is illegal in Texas. "Buyer Beware." - Historically real estate sales were performed under the concept of caveat emptor or "buyer beware." A listing agent will not usually have the following authority: - Sign sales contracts or lease agreements for the seller Initial any changes that are made to a purchase offer Accept offers on behalf of the seller Allow a buyer or tenant to occupy a property before the contract that authorizes possession of the property is consummated A person inadverdantely representing more than one agent - an undisclosed agent. A person or organization that a person interacts with while acting as an agent for a principal party - Third party A seller's disclosure is not required if: - -This is the sale of a new (never been occupied) dwelling. -The sale is done by a financial institution that acquired the property in a deal to avoid foreclosure. -The seller is a court appointee and not the owner. -The seller is a governmental agency. Academic ethics - focuses on how one determines what is ethical, and debates the advantages and disadvantages of the various types of ethical systems.Actual Authority - where it was known to exist by both the principal and agent-Under the laws of agency, actual authority may be either express or implied. Agent has two distinct meanings. - -An agent is a broker who is the representative of a seller, a buyer, a landlord, or a tenant. -An agent is also a sales agent who is the representative of the sponsoring broker he or she works for. All real estate contracts are required to: - contain a termination date. An employment agreement - a form of express agency. In this case, a business owner is establishing the person as an agent of the company with specific duties and responsibilities. Apparent Authority - stems from a third party working with an agent who does not actually have the authority that the third party is led to believe he or she has.-This kind of authority is often written into the contract that establishes the agency relationship.-Apparent authority is not expressly detailed in the contract that establishes the agency relationship. Appointed License Holder - An appointed license holder is a licensee agent of a broker who is acting as an intermediary in a transaction.-The assignment of an appointed license holder must be made in writing and must be approved by all parties to the transaction. Broker Associate - A broker associate is a real estate broker who works as an agent of a broker. The broker associate conducts business for the other broker (primary) and the primary broker takes responsibility for actions of the broker associate. Broker license was changed from 2 years in the 36 month before the application to: - 4 Years in the 60 months before application Broker Licensee - The broker licensee is the person who possesses a real estate broker's license from the Texas Real Estate Commission.Buyer Brokerage Agreement - this kind of agency relationship involves the real estate agent or firm acting as an agent representing the buyer in negotiating for the purchase of a property.- Works for the buyer and owes the buyer fiduciary duties buyer-representation agreements to employ brokers. - People looking to buy property -the broker does not earn the fees until the buyer or tenant becomes party to a contract to buy or lease a property. Buyer's Window to Respond - Once the buyer receives the seller's disclosure they have five business days to revoke the offer. Can I recover Commission? - A person may not maintain an action in this state to recover a commission for the sale or purchase of real estate unless the promise or agreement on which the action is based, or a memorandum, is in writing and signed by the party against whom the action is brought or by a person authorized by that party to sign the document Client - Someone who has formed a contractual agreement- Fiduciary duties are owed Common Law Principles - Common law refers to a judicial system where court decisions are based more on the earlier decisions of other courts rather than legislation