Unit 7 Creation and Termination of Agency

Express

Created when a principal employs an agent to act for him

Gratuitous

Brokerage service provided without charging a fee

Ostensibe

Based of a third party being led to believe that a licensee was acting on behalf of another party

By ratification

Occurs when a principal benefits from a previously unauthorized act of an agent and accepts those benefits.

Implied

Occurs when there is no express agreement that the broker will act for a party

Accomplishment

A property sold a week after it was put on the market

Breach of agents duty

A broker does not act within his clients best interest throughout the course of a listing agreement

Renunciation

A broker decides to no longer represent a seller

Abandonment

During the term of the listing agreement, the broker was never available to show the property to perspective buyers

Expiration

A listing agreement was arranged for six months- during that time, the property didn’t sell

Revocation

A seller instructed her broker not to act on her behalf anymore stop showing the house