REP_OH.04 - REP 4 AGENCY 1 I AGENCY FIDUCIARY...

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1 REP 4 -- AGENCY I. AGENCY -- FIDUCIARY RESPONSIBILITY BETWEEN PRINCIPAL AND AGENT A. AGENT -- AUTHORIZED AND CONSENTS TO REPRESENT INTERESTS OF ANOTHER B. COMMON LAW 1. EVOLVED FROM MASTER-SERVANT RELATIONSHIP 2. SERVANT (AGENT) OWES ABSOLUTE LOYALTY C. STATUTORY LAW 1. INCREASINGLY SUPERSEDES COMMON LAW 2. VERY IMPORTANT IN REAL ESTATE II. RELATIONSHIPS A. PRINCIPAL HIRES AGENT 1. AGENT HAS FIDUCIARY RESPONSIBILITY TO PRINCIPAL 2. CONSENSUAL AGREEMENT 3. PRINCIPAL OFTEN AUTHORIZES USE OF SUBAGENTS B. PRINCIPAL OWES LEGAL DUTIES TO AGENT 1. COMPLY WITH AGENCY AGREEMENT 2. COOPERATE WITH AGENT IN GOOD FAITH 3. MUST COMPENSATE AGENT ACCORDING TO TERMS OF AGREEMENT C. AGENT OWES LEGAL DUTIES TO PRINCIPAL – COLD AC 1. CARE
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a. AGENT SHOULD KNOW ALL FACTS PERTINENT TO PRINCIPAL AND PRINCIPAL’S PROPERTY b. TO SELLER (1) HELP SELLER ARRIVE AT PRICE (2) REASONABLE EFFORTS TO MARKET PROPERTY (3) PROPER HANDLING OF OFFERS, PAPERWORK, ETC. c. TO BUYER (1) HELP LOCATE SUITABLE PROPERTY (2) EVALUATE VALUES, CONDITIONS (3) HANDLE FINANCING ALTERNATIVES AND OFFERS FOR BUYER d. FAILURE IN ABOVE SUBJECTS AGENT TO LEGAL NEGLIGENCE e. STANDARD OF CARE VARIES FROM MARKET TO MARKET 2. OBEDIENCE a. AGENT MUST ACT IN GOOD FAITH AT ALL TIMES b. MUST OBEY PRINCIPAL IN ACCORDANCE WITH CONTRACT c. IS NOT TO OBEY UNLAWFUL OR UNETHICAL INSTRUCTIONS 3. LOYALTY a. PRINCIPAL’S INTERESTS ARE FOREMOST b. CONFIDENTIALITY -- MAY NOT DISCLOSE FINANCIAL POSITION OF PRINCIPAL c. MUST DISCLOSE PERSONAL INVOLVEMENT IN ANY TRANSACTIONS (SALES OR PURCHASES BY AGENT)
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4. DISCLOSURE a.
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