For example Buyer Mary calls salesperson Jim to show her a home She assumes

For example buyer mary calls salesperson jim to show

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For example, Buyer Mary calls salesperson Jim to show her a home. She assumes then that he is her agent. In reality, Jim is the listing agent for the home he showed. An implied agency could be created if Jim does not correct Mary’s assumption that he is now her agent. 18 . Types of Agency
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And in this example, an unintended dual agency relationship could be formed – causing conflict for all parties. Note: Whether intended or accidental, the creation of implied agency obligates the agent to fiduciary duties and professional standards of care. If these are not fulfilled, the agent may be held liable. End of Page Agency Ratification and Estoppel This agency relationship arises by the actions of the parties involved , rather than by a written agreement. For example, Charles is the owner of a vacant property he is selling himself. He knows that broker Hal is showing the property to prospective buyers without the authority to do so. If Charles doesn’t stop Hal from doing the showings, the law considers that the prospective buyers have the right to believe that Hal is Charles’ agent. This agency is also known as ostensible agency because on the surface an agency relationship appears to exist . In the example above, once this type of agency is created, Charles is prevented by estoppel* from denying its existence. *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. Taking the scenario above a bit further, ratification is the adoption or confirmation of an act already performed on behalf of a person without prior authorization. So in our example above, if one of broker Hal’s buyers indicates an interest in purchasing the property, Broker Hal will contact Charles. If Charles agrees to sell, he "ratifies" an agreement to pay a commission. End of Page An agency relationship is terminated when one of the following occurs (whichever occurs first or earliest): Performance, which means the licensee has performed the tasks set forth in the agency agreement – that is, helped the buyer find a home for purchase or helped the seller find a ready, willing, and able buyer to purchase his or her home. Expiration of the agreement term, which is stated in writing when the relationship is initiated. 19 . Types of Agency 20 . Termination of Agency
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Termination of the relationship by mutual agreement of the parties. Termination of the relationship by one party , in which case the terminating party must provide notice to the other party that he or she is terminating the relationship. Note: This type of termination does not affect either party’s rights under their contract. End of Page Sometimes an agency relationship is terminated even though the parties may not wish it to happen, in other words involuntarily. Some reasons why an agency relationship may terminate in this way include:
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