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The Principal - Broker Relationship: Agency Ch. 21 Jacobus 1. Agency Law a. Common Law - i. the historical viewpoint - Presumption of employment ii. Common law duties: Fiduciary Responsibilities: COALD b. Statutory Law - the modern trend. 2. Creation of Agency a. Created when one person delegates the right to act on the principal's behalf. i. Express through contractual agreement ii. Implied authority arising by custom and behavior. iii. Ostensible authority iv. Ratification. v. Estoppel. b. Termination c. Types of Agency Relationships i. Universal agent: ii. General agent: iii. Special agent: 4. Modern Statutory Real estate agents: a. Statutory Single Agents. b. Dual Agents. c. Designated. d. Subagents. 5. Agent's obligations a. Duties towards Clients b. Duties towards Customers i. Disclosure of known facts that materially affect the value ii. Environmental hazards including lead paint iii. Facts: (1) Puffing. (2) Fraud (a) A misrepresentation (b) Representation was known to be false (c) Intended to deceive the hearer (d) Hearer relied on representation (e) Hearer was damaged (3) Negligent misrepresentation (4) Defects (a) Latent. (b) Patent. (c) Sale of properties on an "As Is" basis (5) Stigmatized Properties 6. Principal's obligations a. To agent. b. To other party honesty and fair dealing