5 Written questions
5 Matching questions
- What are the legal effects of agency?
- Estoppel (relating to an agency relationship)
- What is an inadvertent dual agency?
- Is the broker responsible for the salesperson's conduct, even if he or she is an independent contractor?
- In-house transaction
- a WATCH OUT LISTING AGENT! Don't get too buddy-buddy with the buyer. Many dual agency lawsuits involve unintended dual agency, in which the seller's agent's conduct with the buyer created an agency by implication be- tween the agent and buyer.
- b The principal is bound by acts of the agent that are within the scope of the agent's authority.
- c The most common dual agency situation is an in-house transaction, in which two different salespersons, representing the buyer and seller, both work for the same broker.
- d Even if a salesperson is considered an independent contractor for tax purposes, the broker is still considered responsible for supervising the salesperson's actions and may be liable for a salesperson's misconduct.
- e Principal allowed third party to believe agency relationship existed; unfair to not allow
5 Multiple choice questions
- Under general agency law, the principal may be held liable for his agent's wrongful acts. This is known as vicarious liability. Thus, a buyer or seller may be liable for the acts of his broker or a salesperson working for that broker.
- HECK NO! But it is allowed, PROVIDED, there is a written consent from BOTH parties.
- For listing agreements with this term, a buyer's agent who finds a buyer is STILL a subagent of the seller, rather than agent for the buyer.
- Real estate brokers are virtually always independent contractors in relation to their principals. And most real estate salespersons and associate brokers are independent contractors in relation to their brokers, although in rare instances they're classified as employees.
- Real estate salesperson is broker's agent (broker being principal). Broker's principal is the seller/buyer, so a salesperson representing a broker is a "subagent", aka an agent of an agent
5 True/False questions
Are latent defects to be disclosed, even if the property is listed "as is?" → The seller and his agent have a duty to disclose any known latent defects in the property to the buyer, even if the property is listed "as is." A latent defect is one that would not be discovered in a typical inspection of the property by the buyer. A broker should refuse to take a listing if the seller insists that she must conceal any latent defects.
What are Agency Disclosure Requirements? → Think of this as Washington's requirement that ALL the cards be put on the table: Washington law requires real estate agents in residential transactions to make agency disclosures to both the buyer and seller informing them which party (or parties) they represent.
What are the four ways that a principal agent relationship can be formed? → Agent - authorized rep; Principal - controller of agent's acts; People outside the relationship are third parties. Principal who engages agent's services is the "client", but a mere third party is a "customer."
Revocation by principal → YOU'RE FIRED!!! The principal may revoke the agency by firing the agent whenever she wishes. The principal may be liable for any damages caused by the breach.
What are latent defects? Should they be disclosed by the agent? → Think of this as Washington's requirement that ALL the cards be put on the table: Washington law requires real estate agents in residential transactions to make agency disclosures to both the buyer and seller informing them which party (or parties) they represent.