Agency
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Agency PowerPoint PPT Presentation


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Agency. Law of Agency. Creation of agency Express agency listing agreement or buyer-agency agreement Implied agency Compensation The source of compensation does not determine agency See book for important definitions. Fiduciary Responsibilities. Client vs. Customer Care Obedience

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Agency

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Agency

Agency


Law of agency

Law of Agency

  • Creation of agency

    • Express agency

      • listing agreement or buyer-agency agreement

    • Implied agency

  • Compensation

    • The source of compensation does not determine agency

  • See book for important definitions


Fiduciary responsibilities

Fiduciary Responsibilities

  • Client vs. Customer

  • Care

  • Obedience

  • Accounting

  • Loyalty

    • confidentiality is a big part of loyalty

  • Disclosure

  • See the book for comparison between client-services and customer-services.


Termination of agency

Termination of Agency

  • Death or incapacity

  • Destruction or condemnation of the property

  • Expiration of the agency agreement

  • Mutual agreement

  • Breach

  • Operation of law

  • Completion, performance, or fulfillment


Types of agency agreements

Types of Agency Agreements

  • Universal agent – can do everything the principal could do personally

  • General agent – represents the principal in a specific business or project only (property manager)

  • Special agent – represents the principal on one specific project and has no authority to bind the principal in a contract. Must have specific instructions.

    • Designated agent – recent development


Single agency

Single Agency

  • Seller or buyer may be principal

  • Subagency – very dangerous and not used much any more


Dual agency

Dual Agency

  • Now the confusion kicks into full gear!

  • In Alabama – limited consensual dual agency

  • Disclosed dual agency

  • Undisclosed dual agency – sometimes created unintentionally through ignorance

  • See Alabama forms

  • See book for examples


Customer level services

Customer-Level Services

  • Reasonable skill and care in performance

  • Honest and fair dealing

  • Disclosure of all facts that the licensee knows or should reasonably be expected to know that materially affect the value or desirability of the property

  • Do you see any potential problems or judgment calls?


Some things to consider

Some Things to Consider

  • Opinion vs. fact

    • puffing

    • fraud

    • negligent misrepresentation

  • A contract obtained by fraud can be disaffirmed or renounced by the purchaser

  • Latent defects – sellers can be liable for damages if they don’t disclose – see book

  • Stigmatized properties – be careful!


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