Wednesday, October 6, 2010

Studying Real Estate Law: Agency

I've had another busy day. I got some stuff worked out with the online class. I resolved one technical glitch, but then another one showed up. Eventually I know that things will work out; I just need to be patient.

In the meantime, I did get some studying done. The main topic for me today was the law of agency. I remember some of the material from my business law class, but it was interesting to see the real estate aspect of it all.

There's a lot to learn. When I was studying about agency, I got overwhelmed with all the details. I've been studying the national aspects of it, and I think getting to Colorado law will be interesting, too.

Here's an important point: first of all, the law of agency concerns the relationship between a client and his/her agent. It sounds simple, but it gets complicated when one person is the agent for two clients vying for the same thing. This can happen by accident or intentionally, and it can be illegal in some states. (But I don't know yet which ones.) For example, if I have agreed to sell a house for someone, he/she is my client. I have certain obligations to that person, such as getting the best deal possible. However, if I have another client for whom I have agreed to find a house to buy, AND I take them to the seller's house, then I could be an agent for the buyer and seller at the same time. How do I protect both parties at the same time and make sure each party gets the best deal?

If I see that possibility, I am obligated (possibly legally, and certainly in my mind) to let both parties know about the other relationship if I am going to work with them together on a property. That way either party can choose to work with me or not work with me.

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