Section 4: Georgia Agency Basics

Group Boycotting
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Terms in this set (36)
An antitrust violation that involves two or more businesses conspiring against another. This can occur, for instance, when two or more brokers or agents refuse to cooperate and split commissions with one another, or when several brokerages in a certain area agree to stop running advertisement in a local newspaper.
An antitrust violation that involves competitors agreeing to not do business in one another's areas. This occurs when real estate professionals from competing firms agree to divide their market - by geography, price range, property type, etc. - and then refrain from competing for business. Ex: agreeing with a competitor to divvy up a market.
An antitrust violation predicates one service on the other company purchasing another service. This is when the providing of one service is made dependent on the customer or client obtaining another. For instance, an agent cannot tell a seller " I can only offer this commission rate if you use the title company/inspector/mortgage broker I recommend." This violation may also be negative: " I can only work with you if you agree not to use XYZ title company."
A deliberate deception intended to secure an unfair or unlawful gain.What is fraud?A relationship in which one party (the principal) authorizes another party (the agent) to act as the principal's representative in dealing with third parties.What is agency?Care, obedience, loyalty, disclosure, accounting, confidentiality, honesty, integrity.What are fiduciary duties?A written contract in which the seller or buyer becomes the broker's client and promises to pay the broker a valuable consideration or agrees that the broker may receive a valuable consideration from another for producing a prospective buyer or seller, or performing other brokerage services; also called a listing or agency agreement.What is brokerage engagement?A real estate broker who finds a buyer for a property that another broker has listed.What is a cooperating broker?Laws that encourage competition in the marketplace.What is antitrust?Price fixing, market allocation, tie-in arrangements, group boycotting.What are the four antitrust violations seen most often in real estate?A licensee from another firm who assists the buyer but represents the listing agent and the seller.What is a sub-agent?A broker or salesperson engaged by and representing only one party in a real estate transaction.What is a single agent?One broker representing both the buyer and the seller in a single transactionWhat is a dual agent?A licensee authorized by a broker to act as the agent for a specific principal in a particular transaction.What is a designated agent?A broker helps a buyer and a seller with paperwork but does not represent either party.What is transactional brokerage?Confidentiality and accountingWhich two duties to a client survive agency termination?An agency relationship based on a formal agreement between the parties. They may be written or unwritten, but written express agreements are ideal. They establish an agency relationship because they spell out the duties and responsibilities for both you (the agent) and your client.What is express agency?An agency relationship created by the act or conduct of the parties involved, as opposed to express agency. This type of relationship may be created without anything in writing, or even without verbal agreement. This exist when you act on behalf of a consumer in such a way that the consumer believes you are their agent.What is implied agency?RatificationThis is acceptance after the fact, sometimes in contrast to a prior agreement. This term may occur through contractual paperwork or the parties' actions.EstoppelA legal doctrine that says that a person is stopped from a certain rights or facts that are consistent with a previous statement, position, or behavior.Errors and Omissions Insurance (E&O)To protect themselves from possible legal action, all licenses should have this type of insurance. This type of insurance protects licenses in the event of an inadvertent omission or error in real estate practice that causes a consumer financial harm. Can be purchased from a commercial insurance provider for a relatively small annual fee and may be used to cover legal costs in the event of a lawsuit. Covers: Inadvertent acts, attorney fees & court costs, negligence or misrepresentation in personal property transactions.Finder or MiddlemanIntroduces the parties; does not form an agency relationship with either party. Collects a finder's fee. Doesn't owe fiduciary duties to either party (again, is not an agent). Doesn't require a real estate license.What are the four duties that a client owes to the agent?Compensation, information, indemnification, and availability.What two things survive the termination of an agency agreement?Accounting and confidentiality. Accounting for all money and other property receive during the relationship, and not disclosing confidential information.What are the ways in which agency may be terminated in Georgia?Completion of the agency agreement, expiration, up other authorized termination such as mutual agreement, or force of law.If a brokerage engagement does it include a termination date, when will it legally expire?One year after starting datePer seGuilt that is established on the face of the circumstances - no need to prove intent. If you do certain things, BAM! You're guilty. It means that no defense, justification, or excuse will be permitted.What are the different forms of an agreement?Written document, verbal exchange, or inferred from conduct (such as a meeting between competitors followed by joint conduct). Without an agreement, there is no violation.Why were activities that encourage monopolies to form made illegal?They limit consumer choice.