South Carolina Real Estate "AGENCY" Chapter One
Terms
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- The agent of an agent, appointed by an agent
- AGENCY
- A consensual, fiduciary relationship where the principal authorizes the agent to represent them in business with third parties
- AGENCY RELATIONSHIP
- The one who does not have a signed relationship with the agent-the one the agent works with to meet the objective of the principal
- CUSTOMER
- One who retains or employs another to represent him in legal dealings with third parties
- PRINCIPAL
- One who gives personal services to his employer and is under control, direction and supervision of his employer
- SERVANT
- The written contract giving authority for the agent to act on behalf of the client
- POWER OF ATTORNEY
- The agent who is in position of loyalty, trust and confidence of the principal
- FIDUCIARY
- The client is the Principal. The one who hires the agent to do professional services (also the broker, boss, is the agent's principal
- CLIENT
- One authorized and empowered to perform actions for another-represents the interest in the principal
- AGENT
- Person authorized by another (in writing) to represent another of act in their place
- ATTORNEY IN FACT
- One person authorizes another to represent them in legal or business transactions
- AGENCY RELATIONSHIP
- A relationship where there is mutual exchange of trust and confidence.
- FIDUCIARY RELATIONSHIP
- The principal (the client) is one who retains the services of an agent to represent him in legal and business dealings with third parties
- PRINCIPAL
- Also called the principal retains the agent for dealing with third parties
- CLIENT
- Authorized and empowered to perform actions for the principal
- AGENT
- The agent of the agent- the power to appoint subagents comes from the agent's principal
- SUBAGENT
- The agent is trying to do business with the third party while representing his client.
- THIRD PARTY
- Buyer or seller who has made the informed decision to represent themself
- CUSTOMER
- THE AGENCY RELATIONSHIP CONSISTS OF FIVE ITEMS
-
1 CONTRACTUAL
2 PERSONAL
3 FIDUCIARY
4 CONFIDENTIAL
5 EMPLOYMENT - DUAL AGENCY CONSISTS OF:
- 1 COMPANY AND 2 CLIENTS
- UNDISCLOSED DUAL AGENCY CONSISTS OF:
-
SELLER-CLIENT
REPRESENT BOTH OF THEM AND HIDE IT, CAN LOSE LICENSE, COMMISSION - UNDISCLOSED DUAL AGENCY AND RESULT IN HINT (5)
-
Forfeit commission
Punitive Damages
Contract Rescission
Fraud charges
Loss of license - DISCLOSED DUAL AGENCY CAN BE:
-
used with a specific transaction
prior informed and written consent - DESIGNATED AGENCY CAN DO WHAT?
- Represent clients on the same house with equal treatment as a single agency
- what is CUSTOM?
- Custom allows the broker to turn over the handling of authority to the agent
-
RESPONSIBILITIES OF AGENT TO PRINCIPAL C
O
A
L
&
D -
c-CARE, be careful
O-obedience-follow instructions
A-accounting-earnest money
L-loyalty
D-disclosure, keep client informed -
TWO TYPES OF AGENCY AUTHORITY
EXPRESS- want
IMPLIED- don't want -
EXPRESS-all terms of employment are clearly stated
IMPLIED-OSTENSIBLE--based on behavior imply they're in your best interest -
CONFIDENTIALLY
Agents may disclose if--- -
1 seller client gives consult
2 it's required by law
3 for agents defense for the commission or professional association -
Principal's 5 obligations to agent
What the client owes us -
1 compensation
2 reimbursement
3 opportunity
4 indemnity
5 good faith - Agents to 3rd parties (the parties we don't represent)
-
1 present all offers
2 full accounting
3 provide explanation of agency
4 provide explanation of scope of service - 2 TYPES OF AUTHORITY OF AGENT
-
1. Express authority-all terms are clearly stated
2. Implied Authority(ostensible) based on custom or behavior -
RESPONSIBILITIES OF AGENT
COAL&D -
C-careful
O-obedience
A-accounting
L-loyalty
D-disclosure - OBLIGATIONS OF PRINCIPLE TO AGENT (6)
-
1. COMPENSATION
2.REIMBURSEMENT
3.OPPORTUNITY
4.GOOD CONDUCT
5.INDEMNITY -you're held harmless against uncontrollable actions
6. good faith - AGENTS RESPONSIBILITIES TO THIRD PARTIES (4)
-
1. present all offers
2. full accounting
3. provide explanation of agency
4.explain offered services, give advice - 13 REASONS TO TERMINATE AGENCY
-
1. expiration
2. death
3. loss of qualification
4. destruction of property
5. loss of title
6. performance of authorized act
7. bankruptcy
8. change of law
9. mutual agreement
10. revocation by principal
11. abandonment or neglect by agent
12. disloyalty of agent
13 completion of deal - 4 TYPES OF SC AGENCY
-
1. SELLERS
2. BUYERS
3. SUBAGENCY
4. DISCLOSED DUAL AGENCY - DESIGNATED AGENCY
-
Licensee represents both clients must be dual agent.
All affiliated licensees in office remain dual agents.
BIC can't be designated agent personally lists property or represents buyer. - TORTS
- CIVIL WRONG!! you're liable for the people you empower
- Dangers for an agent to do:
-
Choosing helpers (inspectors, bankers)
"AS IS " condition
MASKING- an agent knowing someone is doing something illegal
Seller's Disclosure Statement - BROKER
- person who is engaged in activities relating to the transfer, rental or maintenance of real estate
- BUYER'S BROKER
- broker retained by buyer
- DISCLOSED DUAL AGENCY
- fully disclosed that the agency is representing both the buyer and seller
- CONTRACTEE
- employer who contracts for the services of an independant contractor
- COOPERATING BROKER
- has contractual relationship with the listing broker or the buyer but not the seller
- DISCLOSED PRINCIPAL
- principal in an agency relationship whose identity is made known to third persons dealing through the agent
- EMPLOYING BROKER
- the (broker, principal ) real estate firm who's responsible for the supervision of those he employs as his subagents
- EXPRESS AGENCY
- agency relationship wherein the scope of the agent's authority to act for the principal is explicitly described
- EXPRESS AUTHORITY
- the authority which is explicitly set forth as instructions by the principal in the agency agreement
- GENERAL AGENT
- one given broad authority to act on behalf of his principal
- UNDISCLOSED DUAL AGENCY
- represent buyer and seller and don't let them know-can be sued or worse
- IMPLIED AGENCY
- created by the principal and the agent, as evidenced by their acts and conduct
- IMPLIED AUTHORITY
- express authority conferred on the agent by the acts of conduct of the principal
- INDEMNIFY
- to compensate for incurred damage
- INDEPENDANT CONTRACTOR
- one who contracts to provide a service for another
- LISTING BROKER
- the agent hired by the seller to represent him in a principal-agent relationship relative to a listing contract
- OSTENSIBLE AGENCY
- agency created by force of law, without the voluntary assent of either the principal or the agent
- OSTENSIBLE AUTHORITY
- authority which a principal holds his agent responsible as possessing, even though such authority was never actually granted
- PARTIALLY DISCLOSED PRINCIPAL
- when an agent, in his dealings with third persons, reveals the existence of an agency relationship without divulging the identity of his principal
- PROXY
- one acting as the agent of another, usually at some meeting --substitute for an agent
- SPECIAL AGENT
- one whose authority is confined to a special task. real estate agent usually normally act in the capacity of special agents
- THIRD PARTY
- one who is not a party to a contract but who made be affected by it
- UNDISCLOSED PRINCIPAL
- principal in an agency relationship whose identity or the fact that an agency relationship exists, is not disclosed by the agent in dealings with third parties