TX 3.0 hours Avoiding Common Mistakes Course Syllabus
3.0 Elective Hours
Some of the most common mistakes a real estate licensee can face involve agency and types of agency. A clear understanding of agency is a must to avoid costly mistakes.
An agent is a person who is a real estate professional employed by another person. An agent also has the authority to act for that person and has the authority to exercise some discretion while acting for another person. A principal is the person who hires or appoints an agent to act on their behalf. The relationship between the agent and their principal is called agency.
Fiduciary responsibility is the duty that a licensee has to their principal which includes loyalty, disclosure of material facts, confidentiality and trust, accounting of all funds handled and reasonable care and not to be negligent.
When an agency relationship is created, the agent is bound by a fiduciary responsibility to their client. An agency can be created in two different ways expressed agency and implied agency. Expressed agency is the creation of an expressed agency can be oral or written but is usually written. Implied agency is created through words or actions.
The course defines an agent and a principal and their relationship. It then presents detailed definitions and the fiduciary duties for a real estate professional in relation to both. Also discussed are agency and how it can be created.