Agency
The relationship between a real estate licensee (agent) and the parties represented by the agent in a real estate transaction
Law of
... [Show More] Agency
Defines the rights and duties of the principal and the agent wherein the agent is authorized to represent the principal in certain transactions.
Agent
the individual who is authorized and consents to represent the interest of another. (act on behalf of another)
Subagent
Is the agent of an agent. a person that an agent has delegated authority to, so that the subagent can assist in carrying out the principals orders.
Principal
the individual who hires the agent and delegates to that agent the responsibility of representing the principal's interests. (i.e. the buyer or the seller)
Fiduciary Relationship
one in which the agent is placed in the position of special trust and confidence to the principal
Client
the principal to whom the agent gives advice and counsel.
Customer
A person who is a consumer of real estate services, who is not a client of the real estate licensee. A customer receives customer-level services rather than client-level services, which means the customer is not being represented by the licensee as the principal in an agency relationship. Entitled to fairness and honesty.
Nonagent
An intermediary assists one or both parties with the transaction without representing either party's interests. also known as a facilitator, transaction broker, transaction coordinator, and contract broker.
Consumer
A person who is the recipient of any real estate service, as defined by Pennsylvania's licensing law. This person may receive client or customer services, depending on the nature of the relationship established with the real estate broker.
Express Agency
An agency relationship based on a formal agreement between the parties.
Implied Agency
An agency that arises by conduct or inference from other acts or circumstances, often creating an agency relationship when none was intended.
Listing Agreement
A contract between an owner (as principal) and a real estate broker (as agent) by which the broker is employed as agent to find a buyer for the owner's real estate on the owner's terms, for which service the owner agrees to pay a commission.
Buyer Agency Agreement
it stipulates the activities and responsibilities the buyer expects from the broker in finding the appropriate property for purchase or rent.
Agency Coupled with an Interest
An agency relationship in which the agent is given an estate or interest in the subject of the agency (the property).
Gratuitous Agency
An agency that exists when no fee is involved.
Compensation
The source of compensation does not determine agency.
6 Common-law Fiduciary Duties
(1)Care
(2)Obedience
(3)Accounting
(4)Loyalty
(5)Disclosure
(6)Confidentiality
Agent owes the principal these things in a fiduciary relationship.
Care
For an agent to use their skills and knowledge on the principals behalf while transacting business. The agent should know all facts pertinent to the principal's affairs.
Errors and Omissions Insurance (E&O)
policies that cover liability for errors and negligence in the listing and selling activities of a real estate licensee. [Show Less]