Responsibilities in The Relationship

Legal duties owed by an agent (licensee) to their clients, usually involving a higher standard of care and loyalty.

A legal relationship where one party (the agent) acts on behalf of another party (the principal) with the authority to bind the principal.

The legal principle that dictates the duties owed by an agent to their principal, customers, and third parties.

The duty of an agent to disclose all relevant information to their clients and other parties involved in a transaction.

Information that could significantly impact a buyer's or seller's decision to proceed with a transaction.

Disclosures about the type of agency relationship that exists between a licensee and the parties involved in a transaction.

The point in time when a real estate licensee has a substantive conversation with a potential client, establishing an agency relationship.

Consent given by a client, after being fully informed about the agency relationship, to proceed with the transaction.

A state-mandated form that licensees use to disclose agency relationships to consumers, outlining different roles and responsibilities.

The section within the Consumer Notice where the consumer acknowledges receipt of the form by signing and dating it.

An agent representing the seller, working exclusively in the seller's best interest, primarily to find a buyer.

An agent representing the buyer, working exclusively for the buyer's best interest, primarily to find a property.

An agent representing both the seller and buyer in the same transaction, requiring careful disclosure of potential conflicts of interest.

The licensee and their company's commitment to act diligently and honestly in representing the seller's interests.

The licensee and their company's commitment to act diligently and honestly in representing the buyer's interests.

The agent's obligation to keep confidential information shared by the client private, except for known material defects about the property.

The agent's commitment to disclose any known material defects about the property to both parties, ensuring transparency in the transaction.

An agent working under the supervision of a licensed broker or other principal broker, sharing the same responsibilities as the primary agent.

The licensee's obligation to keep a copy of the completed Pennsylvania Consumer Notice for at least six months.

Transparency about any potential conflicts of interest that could impact the agent's representation of the client, a key aspect of ethical conduct.

A licensee's obligation to reveal any ownership interest, personal relationships, or material facts that could affect their duties to all parties involved in a real estate transaction.

Situations where a licensee's position in a transaction may be compromised, potentially affecting their ability to act in the best interests of all parties.

The ability of a buyer to secure financing for a purchase, a material fact that a seller needs to know when evaluating an offer.

The licensee's responsibility to inform all parties involved about any potential conflicts of interest as soon as they become aware of them.

The legal responsibility of a licensee to reveal all relevant information to clients and other parties in a transaction.

The legal principle that assumes buyers are responsible for inspecting properties and are ultimately responsible for their own purchasing decisions.

A real estate transaction where the property is sold in its current condition, with no warranties or guarantees.

Sharing information about a buyer's financial condition or motivation that could potentially affect the seller's negotiating position.

The duty of a licensee to disclose ownership interests, relationships, or material facts that could impact their duties to all parties in a transaction.

When a licensee has a personal interest that could potentially affect their ability to act impartially in the best interest of all parties.

The licensee's responsibility to inform all parties involved about any potential conflicts of interest as soon as they become aware of them.

An agent must not engage in deceptive behavior while interacting with customers or third parties.

An agent must perform to the standards expected of all licensed real estate professionals, including interactions with customers and third parties.

An agent must disclose material facts to third parties, even if they may not be disclosing everything to their client.

A principal (client) must cooperate with the agent and support their work by being available, providing direction, and ensuring property access.

A principal must compensate the agent for their services according to the agency agreement.

A principal must indemnify the agent for liability incurred while acting on behalf of the principal, unless caused by gross negligence or a willful act by the agent.

The duty to follow the client's instructions in a real estate transaction, unless those instructions are illegal or unethical.

The duty of a real estate agent to prioritize the client's best interests above all else, even over their own.

The duty to inform the client of all material facts relevant to a real estate transaction, including those that might not be obvious.

The duty to keep confidential any information shared by the client, including personal details, financial information, and negotiations.

The duty to account for all funds received and disbursed on behalf of the client, including income and expenses.

The duty to act with reasonable care, skill, and diligence in representing the client, using professional knowledge and expertise.

The fiduciary duties owed to the client by a broker extend to all of the broker's sponsored agents representing that client.

The fiduciary duties go beyond the basic requirements of contract law, aiming for the highest level of client representation.

Fiduciary duties are rooted in the trust and confidence the client places in the agent, who acts as their representative.

The agent must prioritize the client's best interests, even if it means sacrificing their own.

An illegal instruction from a client, such as discrimination based on race or religion, would not obligate the agent to comply.

The agent must use their expertise to help the client determine the appropriate listing price, but the client has ultimate control over the price.

The agent must inform the client about any known material facts, even if those facts are not readily apparent.

The duty to disclose extends to known material facts, as well as those the agent should have known through their due diligence.

The duty to disclose applies to all information that would be relevant and beneficial to the client, including property condition, value, and any known issues.

The legal responsibility of a real estate agent to keep private information shared by their client confidential. This duty applies even after the agency relationship ends.

Combining a client's funds with an agent's personal funds, which is illegal and a breach of fiduciary duty.

The obligation of a real estate agent to handle their client's finances with care and transparency, ensuring proper record-keeping and separate accounts for client funds.

The duty of a real estate agent to use their expertise and skills ethically and diligently for the benefit of their client.

The duty of a real estate agent to disclose material facts about a property to both the buyer and seller, even without an agency relationship.

The duty of a real estate agent to be honest and treat all parties fairly, regardless of whether they have an agency relationship.

The duty of a real estate agent to exercise reasonable care and skill in their interactions with customers and third parties, even without a formal agency agreement.

The duty of a real estate agent to handle customer funds with care and transparency, ensuring proper record-keeping and separate accounts for client funds, even without an agency relationship.

An exemption to the confidentiality rule, allowing an agent to disclose information if the client instructs them to do so.

An exemption to the confidentiality rule, allowing an agent to disclose information that is requested under a court order or subpoena.

An exemption to the confidentiality rule, that requires an agent to disclose material facts about a property even if they are confidential.