The principal is also known as
client
fiduciary relationship
a relationship founded on trust and confidence
Agency Relationship
Exists
... [Show More] when one person (the agent) acts for, or on
behalf of another person (the principal).
the principal
is the one who hires and gives authority to the agent
Texas Real Estate License Act TRELA
Was passed 1939. The purpose is to protect the public against unscrupulous brokers and sales agents.
Texas Real Estate Commission TREC
Was created to enforce and administer TRELA in 1949. The purpose of this act is to protect the public against unscrupulous brokers and sales agents.
A licensed broker may not pay a commission to or otherwise compensate a person directly or indirectly for performing an act of a broker unless the person is...
a license holder or a real estate broker licensed in another state
TRELA may suspend or revoke a license or take other disciplinary action if the license holder, while engaged in real estate brokerage engages in...
conduct that is dishonest or in bad faith or that demonstrates untrustworthiness
a broker works FOR
a client
a broker works WITH
a customer
how does a buyer become a client
by entering into a buyer representation agreement with the broker
Subagent
A license holder not associated with the seller's broker, but who is representing the seller through a cooperative agreement, often through membership in a Multiple Listing Service (MLS), with the seller's broker.
An agency relationship exists when one person, the _____ acts for, or on behalf of another person, the ______
agent, principal
which of the following is grounds for suspension or revocation of license by TREC?
splitting commission with a person other than a license holder
The commission can deny licensure to an applicant based on the applicant's _______________________
moral character
Ostensible Agency
exists when actions lead another person to assume that one is an agent.
Agency by Ratification
Occurs when an agent acts without prior authorization, and the principal, upon learning of this action, accepts it.
agency coupled with an interest
When a broker is the owner of a property that is being sold, or when a broker is interested in buying a property, we have agency coupled with an interest
Agency Authority
or rights, may also be a result of "the norm", or what is considered customary in the business
Implied Authority
an agent's authority to do things not specifically authorized in order to carry out express authority
Fiduciaries
are held to the highest amount of good faith, are required to exclude all selfish interest, are prohibited from putting themselves in positions where personal interest and representative interest will conflict and must, in any direct dealing with the principal, make full disclosure of all relevant facts and give the latter an opportunity to obtain independent advice
General Agent
has less authority than the universal agent. Has the right to represent his or her principal in a particular type of transaction or business. One common example of a general agent in real estate is the property manager.
As agents, our fiduciary duties and responsibilities include
OLD CAR
Obedience
Loyalty
Disclosure
Confidentiality
Accounting
Reasonable care
Obedience
an agent is obligated to follow all o the lawful instructions of a client
The commission may suspend or revoke a license or take other disciplinary action if the license holder, while acting as a broker or sale agent...
commingles money that belongs to another person with the license holders own money
The disclosure of representation may be done
orally or in writing
When an agent and potential party enter into a "substantive" discussion of a real estate transaction,
the party must be provided with a TREC-prescribed agency information form
Does a substantive discussion always occur at the first face to face meeting
NO
When should the Information About Brokerage Services IABS form be provided to a seller
prior to a listing presentation, and should be provided to a buyer prior to discussion of a possible purchase [Show Less]