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|  Understanding Agency, Introduction Component 1: Facilitator Talking Points Component 2: Agenda Component 3: Handout 1, How is an Agency Relationship Created? Component 4: Activity 1, Does This Make You an Agent Quiz Component 5: Activity 1, Answer Sheet for Agent Quiz Component 6: Handout 2, The Fiduciary Duties of an Agent Component 7: Handout 3, Types of Agency Brokerage Relationships with Consumers Component 8: Handout 4, Creating a Company Policy on Agency Component 9: Activity 2, What Sellers’ Subagents Can and Can't Do for Buyers Explanation Sheet Component 10: Activity 3, Scenarios for Recognizing Breaches in Fiduciary Duties Component 11: Activity 3a: Explanations of Scenarios on Fiduciary Duties Component 12: Other Resources | Understanding Agency Relationships Activity 1: Does This Make You An Agent? Quiz Answer Key Please note that although other legal issues may be raised by the scenarios presented in these questions, the quiz is designed to focus on the principal issue involved to make presentation easier. 1. False. An agency relationship can exist without either a written or an oral contract. Of course, having a written contract to establish an agency relationship is the best practice to follow. (Note that the answer to this question may be True if a written contract is required in your state.) 2. True. Compensation or the absence of compensation does not influence whether or not an agency relationship exists. Likewise, a buyer’s agent is often compensated by the sellers as a part of the transaction, but still remains an agent of the buyer. 3. False. By providing real estate services on your cousin’s behalf, you have, in effect, created an implied agency relationship between yourself and your cousin. Under implied agency, an agency relationship may be established if both parties act like an agency relationship exists, even if they have no contract and even if they have agreed that this relationship does not create agency. 4. False. An agent relationship is only established if a licensee consents to the relationship. If you do not take the listing and do not work with the prospective seller further, you do not have an agency relationship. Component 6: The Fiduciary Duties of an Agent This information provides general legal information and should not be relied upon as legal guidance. Before acting, both the relevant laws and legal counsel should be consulted. This information should not be construed as specific legal advice nor as an opinion on particular facts, cases, or situations. |