1151 Law of Agency (PDF with Quizzes)
Agency relationships are the foundation of most real estate transactions. The relationship between a licensee and his or her client is considered a fiduciary relationship, meaning that the client places trust in the licensee to fulfill certain duties towards the client. A broker or licensee can act as a seller’s agent, a buyer’s agent, a subagent or an intermediary, and each of these four types of agency relationships has its own set of guidelines, as well its own ethical issues. Licensees who understand both the basics of agency law as well as the specific laws of agency in the state of Texas will be able to serve their clients and customers to the best of their abilities and avoid litigation.
The beginning of this course covers the basics of agency law in general, including the brief history of real estate agency, the definition of agency, the parties involved in the relationship, the types and degrees of authority and the role of agency in real estate. Then, the course covers all relevant sections of the Texas Real Estate License Act and the Rules of the Texas Real Estate Commission. In addition, the student will learn about the creation and termination of agency relationships, the rules for agency disclosure, the duties required of agents, the agent’s liability, the Texas Deceptive Trade Practices Act, and the different types of agency agreements.
As the student completes this module, he or she should attempt to fit the information in with the big picture of the real estate profession. The conclusion of the module will assist in drawing the information together by presenting real world practice, comprehension questions and case studies for the student’s consideration.