Podcast
Questions and Answers
Agency relationships are created under which of the following concepts?
Agency relationships are created under which of the following concepts?
The employment contract between the broker and affiliated licensees should include:
The employment contract between the broker and affiliated licensees should include:
An agency relationship is NOT terminated:
An agency relationship is NOT terminated:
Which is FALSE regarding agency?
Which is FALSE regarding agency?
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California Civil Code 2079 does NOT require:
California Civil Code 2079 does NOT require:
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In addition to compliance with the terms of an agency agreement, the agent:
In addition to compliance with the terms of an agency agreement, the agent:
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Which one of the following is TRUE about a California salesperson?
Which one of the following is TRUE about a California salesperson?
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Which one of the following is TRUE about a California real estate broker?
Which one of the following is TRUE about a California real estate broker?
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Which one of the following is FALSE regarding dual agency?
Which one of the following is FALSE regarding dual agency?
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An exclusive agency listing can best be described as:
An exclusive agency listing can best be described as:
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Study Notes
Agency Relationships
- Agency relationships can be established through various methods: express agency, implied agency, ostensible agency, agency by estoppel, agency by ratification, and agency by necessity.
Employment Contracts
- Employment contracts between brokers and affiliated licensees must clearly define all responsibilities, duties, and authority granted to the licensee in both office and field settings.
Termination of Agency Relationships
- An agency relationship is not automatically terminated when a suit for specific performance is initiated, as these relationships are personal service contracts.
Misconceptions of Agency Terms
- Terms like agent, broker, salesperson, and REALTOR® are not synonymous. A REALTOR® is a member of the National Association of REALTORS®, while legal agency status is not guaranteed by state licensing or REALTOR® membership.
California Civil Code 2079
- California Civil Code 2079 mandates agency disclosure forms for certain transactions but does not require them for raw land and business opportunity transactions.
Agent Responsibilities
- Agents must comply with agency agreements, provide principals with opportunities for independent advice, disclose all relevant facts, and adhere to fiduciary responsibilities, ensuring good faith and avoiding conflicts of interest.
California Salesperson Agency
- A California salesperson acts as an agent of the broker and also as a subagent of the client, representing dual agency relationships.
Broker Responsibilities
- California brokers are required to establish a Policy and Procedure Manual and must actively supervise their agents, who can be employees or independent contractors.
Dual Agency Requirements
- Any agency relationship, including dual agency, mandates written disclosure of the agency relationships, contrary to the belief that verbal explanation suffices.
Exclusive Agency Listing
- An exclusive agency listing is a contract wherein the seller agrees to pay a commission to the broker unless they find the buyer themselves. While it grants exclusive marketing rights to one broker, it allows the seller to sell independently without owing a commission to the broker.
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Description
Explore the nuances of agency relationships, including various methods of establishment such as express and implied agency. Understand the critical elements of employment contracts in real estate and the implications of California Civil Code 2079. Test your knowledge on misconceptions surrounding agency terminology and termination criteria.
