12 Dec Which of the following Best Defines Law of Agency
# 11. ABC Realty`s Babs broker works for Beth Buyer = buyer`s exclusive agency and sells Beth a house listed by XYZ Realty. Sabrina Seller pays Bab`s commission through Sabrina`s listing agent at XYZ Realty, Lois Lister. Which statement is true? Now, let`s take a closer look at how different roles play in agency relationships. When creating express agencies, two main documents are used: registration contracts and buyer representation contracts. While we will discuss them in more detail in a later lesson, now let`s look at how they are used to establish an express agency. A. is no longer allowed in NC, since the buyer`s agency contracts must be drawn up in writing from the outset B. The disclosure of the information could establish a fiduciary relationship with the purchaser and thus create a situation of unauthorized double representation. No matter how an implicit agency is formed, it`s always best to avoid it, and the way to avoid it is to always make sure you and the client are clear about the nature of the relationship. In order to completely avoid implicit capacity to act, it may also be important to indicate when there is no agency relationship. Often, a potential buyer can understand that your helpful advice means you`re “on their side” and owe them a fiduciary responsibility. By making it clear that you work for the seller and that even if you want to help the buyer, your ultimate loyalty rests with the seller, you inadvertently avoid entering an implied agency that would result in an undisclosed dual agency.
An agency relationship in which the agent acts simultaneously for both principals in a transaction. The definition of agent law deals with the agent-principal relationship and it is a relationship in which one party has the legal authority to act in the place of another. D. Rite Stuff can offer exclusive buyer representation, dual agency or appointed agency to potential buyers of their homes #24. All of the following are TRUE with respect to the North Carolina Working With Real Estate Agents brochure, except: If an agency relationship exists, the principal is also liable for any breach caused by the agent to other parties. This may include violations of the financial interests of third parties, emotional or physical injuries. D. There is no provision that allows an orally appointed duel agency to exist The express agency is the clear version of the agency relationship; This is the case if the agency relationship has been established by an oral or written agreement between the client and the agent. When a broker and a seller both sign a registration agreement, they have entered into an explicit agency relationship in which the broker is the agent and the seller is the principal. The registration agreement serves as a contract that clearly establishes the agency relationship and even sets an end date for the duration of that relationship. #27. All of the following apply to the Residential Property and Owners Association statement, except: The next type of agency is the double agency.
Unlike a single agency, where a broker agrees to represent a buyer or seller as principal, but never both at the same time in the same transaction, a dual agency creates a situation where a person enters into an agency relationship between two principals who are opposite sides of the same transaction. In the case of real estate, this mainly occurs when a broker or seller acts simultaneously as the broker of the seller of a property and the buyer of the same property. Agencies are essential to the functioning of businesses. Without them, a company could do nothing. When forming an agency relationship, the hope is that the agency will benefit both the client and the agent, who is usually paid for his work in a business context. An agency relationship can also be a way for a business to get the expertise it needs but doesn`t otherwise have. A buyer representation agreement works in the same way as a registration agreement, but establishes the express agency relationship between the broker as agent and the buyer as a client. If the representative has real or apparent authority, he or she is not responsible for acts performed under that authority, as long as the Agency`s relationship and the identity of the client have been disclosed.
However, if the agency is not disclosed or only partially, the agent and the client are liable. If the client is not bound because the representative has no real or apparent authority, the alleged representative is liable to the third party for the breach of the implied warranty of the power of attorney. #7. A real estate agent made an offer to the owner during the registration period for the indicated price, payable in cash without contingencies and a deposit of 10%. The offer met all the conditions of the registration agreement. Which of the following statements is correct in this situation? There is a specific IRS law that states that a licensed real estate professional with whom a business has a written independent contractor contract and who is paid on the basis of commissions rather than hourly wages is considered an independent contractor. #22. All of the following situations end an entry, SAUF: #21. Which of the following is NOT an appropriate measure for the broker when acting as a selling sub-agent? While a listing agreement has many important elements, it establishes an explicit agency relationship because it determines what the broker will do as a special agent for the seller. All responsibilities and expectations of the agent in representing the principal will be clearly stated and the financial compensation due by the principal to the agent after the success of a sale will be indicated. There will also be an end date for a registration agreement that would result in the termination of the agency relationship unless there is a sale or renewal, and there may be other possible reasons that would terminate the relationship included in the registration. If the Agency is explicit, it shall be created by document, orally without writing or in writing.
If the agency is implicit, it can be inferred from the relationship between the parties and the type of employment (without explicit proof of appointment). Agreements leading to the formation of agency-type relationships may be implied or expressed, and the principal and agent may be an entity (e.g., a partnership or corporation) or an individual. Because of the significant legal consequences of agency relationships, it is important to know how to terminate an agency relationship. There are seven main ways to end an agency relationship. Let`s take a look at each of them. C. should not be used if the client wants a verbal buyer agency To be called an agent, it refers to a relationship, this relationship is called an agency. Free will is the relationship between the so-called principal and the agent. The Customer employs the Agent and the Agent performs certain specific actions by dealing with a third party on behalf of the Customer who engaged them. #5.
According to general management principles, if a licensee acts on behalf of a client and acts improperly, who is liable for the licensee`s actions? #5. An agent`s obligations to the principal include all of the following exceptions: The agency refers to an expressly stated or implied agreement whereby a party, called the principal, entrusts the management of a company to another party, the so-called agent, to carry out transactions on its account or on its behalf, and the agent accepts, executes the transaction and reports on its procedures. Commercial agency law is an area of commercial law that deals with a number of contractual, quasi-contractual and non-contractual fiduciary relationships involving a person, called an agent, who is authorized to act on behalf of another (the principal) in order to establish legal relationships with a third party.  In short, it can be described as the relationship of equality between a principal and an agent, where the principal expressly or implicitly authorizes the agent to work under his control and on his behalf. The entrepreneur is therefore obliged to negotiate for the customer or bring him with third parties into a contractual relationship. This branch of law separates and regulates the relationship between: most often, the agent is paid on the basis of a percentage of the total closing costs, whether it is a sale, rental or lease. However, in the real estate world, there is no standard commission. It is always a point of negotiation between a client and his agent.