Chapter 2 unit 2 Types of Agency and Disclosure.
Types of Agency
Express Agency - written agreement, ie. listing
Implied Agency - actions create agreement (unintentionally, inadvertently or accidentally form the relationship.)
Agency Ratification and Estoppel - created by actions of the par...
Chapter 2 unit 2 Types of Agency and
Disclosure.
Types of Agency
Express Agency - written agreement, ie. listing
Implied Agency - actions create agreement (unintentionally, inadvertently or accidentally form the
relationship.)
Agency Ratification and Estoppel - created by actions of the parties
Classifications of Agency
Universal Agency - agent acts with power of attorney to make all decisions for the principal (called
attorney-in-fact) in real estate
General Agency - Has broad powers to act for the principal in matters associated with the continuing
operation of a particular enterprise.
Special Agency - The broker has limited, well-defined powers confined to a single transaction.
Agency Coupled with an Interest- agency relationship in which the agent has an interest in the property
that is being sold.
Additional Types of Agency
Dual Agency- representing both parties (agent owes all the fiduciary duties to both parties except full
disclosure, undivided loyalty, and exclusive representation of one principal's interests.)
Undisclosed Dual Agency - Both parties must agree in writing to the dual agency relationship.
Designated Agency - a broker may designate one or more licensees to act exclusively as the agent of the
seller or landlord, and designate one or more licensees to act exclusively as the agent of the buyer or
tenant in the same transaction. (written consent and considered "limited agency"
Non-agency - acts as a neutral party between both sides. Must inform that you are not an agent for
either side and shouldn't have confeditial info
No Subagency
Types of Disclosures
Substantive Contact
Oral Disclosure
, Dual Agent Disclosure
Facilitator Disclosure
Estoppel
is defined as a legal doctrine by which a person is prevented from asserting rights or facts that are
inconsistent with a previous position or representation made by act, conduct, or silence.
In Indiana, contractual relationships are always formed at
the managing broker level, never at the broker level.
On what classification of agency is most real estate brokerage based?
Special Agency
The agency relationship is vested only in whom?
The agent or agents named as the designated agent or agents
What is designated agency and why is it important?
Designated agency means that a broker may designate one or more licensees to act exclusively as the
agent of the seller or landlord, and designate one or more licensees to act exclusively as the agent of the
buyer or tenant in the same transaction. This arrangement must also be disclosed to both parties and
the broker must obtain the written consent of both the buyer and the seller.
This is important because it can eliminate the potential conflict involved in a consensual dual agency
arrangement.
Agency is obligated to all parities to a transactions for:
Patent - readily visible to any observer, or
Latent - hidden from normal view and, therefore, must be revealed.
Brokers are liable for what they:
Know from disclosure by the principal
Should know because of their skill and training
Should know by inspection of the property
According to Indiana law, a licensee must inform the consumer in writing of the following:
That a designated agency relationship exists, unless there is written agreement between the sponsoring
broker and the consumer providing for a different brokerage relationship.
The name or names of his or her designated agent or agents. This written disclosure can be included in a
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