BUS 23 Chapter Notes - Chapter 4: Fiduciary, Real Estate
5 Dec 2020
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Document Summary
Real estate brokers are agents because they rep an interest other than their own (buyer/seller: written agency contract (listing) exists, which they can receive compensation if there"s a sale. Agency relationship requires parties to be fiduciary and competent. Fiduciary - person acting in position of trust and confidence in a business relationship. "fiduciary relationship" requires highest good faith from agent to the principal. Agents of parties must disclose material facts - facts that are so important that failure to disclose may affect financial decisions of parties of transaction. Third parties: honest - disclose material facts, honesty - disclose material facts, utmost care, reasonable skill and care, integrity - accounting for actions, loyalty, obey - lawful instructions, no secret profits, fair dealing, good faith. Broker (agent) work for principal and forms a fiduciary relationship with him/her. Real estate agency relationship disclosure act (civil code) became law in 1988.
