Modern Real Estate Practice 17th Edition

4 Agency

“ He who pays the piper calls the tune”

Modern Real Estate Practice 17th Edition

4 Agency

4 Agency

Modern Real Estate Practice 17th Edition

Real Estate Agency Common-law history Definitions:

Agent Subagent Principal Agency Fiduciary Client Customer Nonagent

4 Agency

Modern Real Estate Practice 17th Edition

Fiduciary Duties of an Agent

CareObedienceLoyaltyDisclosureAccountingConfidentiality

4 Agency

Modern Real Estate Practice 17th Edition

Creation

Express Agency

Implied Agency

Termination Completion,

performance or fulfillment

Death or incapacity Destruction or

condemnation of the property

Expiration Mutual agreement Breach Operation of law

4 Agency

Modern Real Estate Practice 17th Edition

Limitations on Authority

Universal Agent

Empowered to doanything theprincipal coulddo personally

General Agent

Represents theprincipal in abroad range ofmatters relatedto a particularbusiness oractivity

Special Agent

Authorized torepresent theprincipal in onespecific act orbusiness trans-action underdetailedinstructions

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Modern Real Estate Practice 17th Edition

Types of Agency Relationships

Single Agency Subagency Seller Representation Buyer Representation Owner as Principal

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Modern Real Estate Practice 17th Edition

Types of Agency Relationships

Dual AgencyDisclosed Dual AgencyDesignated AgencyUndisclosed Dual Agency

Disclosure Laws Nonagency Agency Statutes

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Modern Real Estate Practice 17th Edition

Customer-Level Services

Reasonable care and skill in performance Honest and fair dealing Disclosure of all facts the licensee knows (or

should be expected to know) that materially affect the value or desirability of the property

State law may require additional services or disclosures

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Modern Real Estate Practice 17th Edition

Puffing

Exaggeration of aproperty's benefits

Misrepresentation

Fraud: Intentionalmisrepresentation of amaterial fact to harm ortake advantage of another

Negligent Misrepresentation:Broker should have known astatement was false

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Modern Real Estate Practice 17th Edition

Property Conditions Latent Defect

A hidden structural defect that would not be discovered by ordinary inspection

Stigmatized Property Properties branded “undesirable”

because of actual or rumored criminal, tragic or scandalous events that occurred on the property