Please post the statement or question, followed by your substantive response. Substantive means, explaining your response in 2-3+ sentences or 100+ words. You are to cite your sources with in-text citations and a citation table at the end of your paper. Identify and explain the type of agency authority for each of the following three scenarios:
1. Susan signs a listing agreement with Broker Carol to sell Susan’s house for $325,000. Susan has given Broker Carol this kind of authority.
2. The listing agreement doesn’t mention printing flyers about Susan’s property to send to area brokerages, but this is a common practice in Broker Carol’s area. Broker Carol probably has this kind of authority to market Susan’s home
by printing and distributing flyers.
3. The listing agreement doesn’t authorize Broker Carol to sign a purchase agreement for Susan. However,
during a meeting, Susan watches as Broker Carol signs a purchase agreement with Buyer Alan on Susan’s
behalf. Later, Susan gets a better offer and wants to back out of the contract with Alan, claiming that
she never signed the purchase agreement and that Broker Carol had no authority to do so. Alan could
claim that Broker Carol had this kind of authority to sign the purchase agreement.
Creation and Termination of Agency Relationships
Post the following statements, followed by your T/F determination, explain your response in 1-2+ sentences or 100+ words. You are to cite your sources with in-text citations.
4. The primary test as to whether an agency relationship exists is the parties’ intent.
5. A seller’s payment of a broker’s commission proves that they had an agency relationship.
6. If an agency relationship doesn’t exist, but an agent takes actions that the principal later approves, then an agency is created through ratification.
7. An agency by estoppel is created when an agent leads a principal to believe that the agent represents him.
8. An express agency agreement must be in writing.
9. The parties to an agency may terminate their relationship by mutual agreement, but neither the principal nor the agent can terminate the agency unilaterally.
10. If an agency is terminated by renunciation, the agent may be liable to the principal for damages that result.
11. When a seller accepts a buyer’s offer, the listing broker’s agency relationship with the seller is immediately terminated by fulfillment of purpose.
12. A property manager’s agency would be terminated by the extinction of the subject matter if the principal sold the property.
Agency Disclosure Requirements
Copy the statement or question, followed by your substantive responses of 2-3+ sentences, one full paragraph, or 150+ Words. Cite your sources with proper in-text citations:
13. When buyers or sellers are talking to a real estate licensee, why is it important for them to understand whether the licensee is their own agent or the other party’s?
14. What’s the basic difference between the agency disclosure form and the agency confirmation statement?
15. What are the agency disclosure requirements in each of these situations?
• Melanie is giving a listing presentation to the Caldwells.
• A prospective buyer has just walked into Zenith Realty’s office and asked Miguel to help her start looking for homes.
• Debbie, the prospective selling agent, and Kevin, the listing agent, are at Kevin’s office with the seller. Debbie has just submitted her client’s offer to purchase to Kevin, and Kevin is about to present the offer to his client.
Disclosure of material facts
An agent is showing a buyer one of her listings. Which of the following circumstances involve
material facts that the agent would have to disclose to the buyer? Post each case, respond in a substantive response, 1-2 sentences, or 100+ words. Cite your sources with proper in-text citations.
Case 1: The agent knows that the previous resident was HIV-positive.
Case 2: The seller informed the agent that the roof leaks.
Case 3: The agent observed the roof leaking.
Case 4: The seller informed the agent that a prior resident was murdered in the house five years ago.
Case 5: The seller informed the agent that a prior resident was murdered in the house five years ago, and the buyer is now asking the agent whether she knows about any crimes committed on the property.
Case 6: There are cracks in the foundation that the seller failed to note in the transfer disclosure statement, but the agent noticed them when performing her property inspection.
