Podcast
Questions and Answers
The main forms of real estate agency in California are seller agency, buyer agency, and dual agency.
The main forms of real estate agency in California are seller agency, buyer agency, and dual agency.
True (A)
A buyer’s agent has no fiduciary duties to the buyer.
A buyer’s agent has no fiduciary duties to the buyer.
False (B)
The law requires disclosure of all problems, whether observable or not, in a property.
The law requires disclosure of all problems, whether observable or not, in a property.
False (B)
Dual agency occurs when one agent represents both the buyer and the seller in a transaction.
Dual agency occurs when one agent represents both the buyer and the seller in a transaction.
The required agency confirmation disclosure may be included in any section of the purchase agreement.
The required agency confirmation disclosure may be included in any section of the purchase agreement.
What is implied agency?
What is implied agency?
How can a principal terminate an agency relationship?
How can a principal terminate an agency relationship?
What does vicarious liability refer to in the context of agency?
What does vicarious liability refer to in the context of agency?
What can protect a principal from claiming a lack of agency?
What can protect a principal from claiming a lack of agency?
Which of the following is NOT a way that agency can be created?
Which of the following is NOT a way that agency can be created?
Match the following types of agency relationships with their descriptions:
Match the following types of agency relationships with their descriptions:
Match the following agency duties with the corresponding party they are owed to:
Match the following agency duties with the corresponding party they are owed to:
Match the following methods of creating agency relationships with their definitions:
Match the following methods of creating agency relationships with their definitions:
Match the following aspects of agency law with their key points:
Match the following aspects of agency law with their key points:
Match the following agency disclosure requirements with their consequences:
Match the following agency disclosure requirements with their consequences:
Flashcards
Dual Agency
Dual Agency
A real estate agent representing both the buyer and seller in the same transaction.
Imputed Knowledge
Imputed Knowledge
The agent's knowledge is considered to be the knowledge of their client, regardless of whether the agent actually told the client.
Buyer Agency
Buyer Agency
A type of real estate agency in California where an agent represents only the buyer.
Fiduciary Duty
Fiduciary Duty
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Agency Disclosure
Agency Disclosure
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Imputed Knowledge Rule
Imputed Knowledge Rule
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Vicarious Liability
Vicarious Liability
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Joint and Several Liability
Joint and Several Liability
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Agency by Implication
Agency by Implication
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Agency by Estoppel
Agency by Estoppel
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Study Notes
Real Estate Agency Relationships - Learning Objectives
- Students should be able to discuss real estate agency law and the duties associated with fiduciary relationships.
- Explain ways agency relationships can be created and terminated.
- Describe agency disclosure requirements and disclosure forms, and understand potential penalties for failing to disclose information in a timely manner.
- Students will identify different types of agency relationships.
- Summarize the practical aspects of agency relationships in daily business activities, highlighting potential disciplinary actions or penalties.
Suggested Lesson Plan
- Review Chapter 1 (Real Estate Agency Relationships) and the learning objectives.
- Students complete Exercise 1.1 to assess baseline understanding of the issues.
- Present the following lesson content:
- Agency and agency law
- Agency relationships
- Agent's duties to the principal
- Agent's duties to third parties
Agent's Duties to Third Parties
- Agent's duties to third parties include:
- Reasonable care and skill
- Good faith and fair dealing
- Disclosure of material facts
- Visual inspection of properties, disclosing material facts and latent defects.
Agency Relationships
- Agents can act as:
- Seller agents
- Buyer agents
- Dual agents (representing both buyer and seller)
- Finders or middlemen
How Agency is Created
- Agency relationships can be created by:
- Express agreement (listing agreement, buyer representation, or property management agreement)
- Ratification
- Implication
- Estoppel
How Agency is Terminated
- Agency relationships can be terminated by:
- Action by the parties involved (mutual agreement, revocation, or renunciation)
- Operation of law (expiration, fulfillment of purpose, death or incapacity, or extinction of subject matter)
Agency Disclosure
- California law requires specific disclosures in real estate transactions.
- Agents must give consumers specific forms (such as C.A.R. Form AD, Agency Disclosure Form and C.A.R. Form AC, Agency Confirmation Statement) and these must be done at certain times—specifically before the agreement is signed.
- Key agency duties (e.g., utmost care, loyalty, honesty, accounting, disclosure of material facts) require careful consideration
- Agent must follow ethical standards to avoid penalties. Different types of agency relationships are defined, including finder, dual agent, buyer agent, and seller agent.
- Disclosure forms are required for residential real estate involving one to four-unit properties.
- Agency relationships can be complex, and agents need to be aware of their obligations to both parties.
- Agent must disclose latent defects, material facts affecting value, written offers, and conflicts of interest promptly.
- Disclosure must be honest, clear, and delivered to the parties at the appropriate time.
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Description
This quiz covers the key concepts outlined in Chapter 1 of Real Estate Agency Relationships. Students will explore agency law, the creation and termination of agency relationships, and the duties owed to both principals and third parties. Test your understanding of disclosure requirements and potential penalties within real estate practices.
