Instructions for Court Case Study
Begin with your name, date, and class number at the top of the paper.  You must include the headings shown.  Select one case from the 22 landmark real estate cases in the textbook to read and analyze.  Summarize the case and identify the textbook concepts as they apply to your selected case.  Then, you will support the viewpoints of the plaintiff, defendant, and judge with textbook citations. You will write 5 total paragraphs.  Each paragraph must be 5 complete sentences.  Each paragraph will include a citation from the textbook, with the page number.  Spelling, punctuation, and grammar count!  Remember to capitalize “I”.
TIP: How to include a textbook citation: (author last name(s), year textbook published, page number).  Refer to the following examples.

Citation from one page of the textbook: (Huber & Tyler, 2019, p. 34).
Citation from multiple pages of the textbook: (Huber & Tyler, 2019, pp. 34-35)
Victor Valley College
BRE – 110 Real Estate Law
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The function of education is to
teach one to think intensively
and to think critically.
Intelligence plus character –
that is the goal of true
education.
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Introduction to Agency Law
“Educating Generations, Building Communities”
I.
Agency
II.
How An Agency is Created
III. Real Estate Agency Relationships
IV. Terminating An Agency
V.
California Real Estate Law
VI. Commissions
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Part I.
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Agency
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“Educating Generations, Building Communities”
? An AGENT is someone who is authorized to represent or act for
another person in dealings with third parties
? PRINCIPAL is the person who hires an agent
? THIRD PARTIES are others who are involved in a contract with the
principal and agent
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“Educating Generations, Building Communities”
? Actual Authority
? Express Authority
? Implied Authority
? Ostensible Agency
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? General Agent
? Special Agent
?
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Real Estate agents are usually special agents
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Part II.
How An Agency is Created
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“Educating Generations, Building Communities”
A. Express Agreement
?
Power of Attorney
?
Written listing agreement
B. Ratification
?
Ratified
? Estoppel (Ostensible) Agency
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Part III.
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Real Estate Agency
Relationships
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“Educating Generations, Building Communities”
A. Salesperson: The Broker’s Agent
?
Liabilities to Third Parties
?
Employee or Independent Contractor
B. Cooperating Brokers
?
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Associate Licensee
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Part IV.
Terminating An Agency
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“Educating Generations, Building Communities”
A. Accomplishment of Purpose
B. Expiration
C. Mutual Agreement
D. Renunciation (Agent)
E. Revocation (Principal)
F. Operation of Law
G. Agency Coupled with an Interest
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Part V.
The California Real Estate
Law
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“Educating Generations, Building Communities”
A. Licensing
1. Obtaining and Maintaining a License
B. Record Keeping
C. Trust Funds
?
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Commingling
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Part VI.
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Commissions
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“Educating Generations, Building Communities”
A. Commission Amount
B. Earning a Commission
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“Educating Generations, Building Communities”
1. Types of Listing Agreements
?
Exclusive Right to Sell
?
Exclusive Agency
?
Open Listing
?
Extender Clause
C. Salesperson’s Commissions
1. Finder’s Fee
D. Statewide Buyer and Seller Advisory (SBSA)
?
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Advises the buyer to conduct thorough investigations of the property and
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the seller to disclose any know “material facts” that affect the value or
desirability of the property
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“Educating Generations, Building Communities”
I. Agency
II. How An Agency is Created
III. Real Estate Agency Relationships
IV. Terminating An Agency
V. California Real Estate Law
VI. Commissions
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“Educating Generations, Building Communities”
? Read Next Chapter
? Write Reflection Summary
? Study for Quiz
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“Educating Generations, Building Communities”
? Schedule 1 hour of study every day
? Plan to be early!
? Always be ready
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Only what you put into it!
? Take Notes
? Stay Engaged
? Think of How to Apply
? Ask Questions
? Participate / Share
? Do Activities
? Be Grateful
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“Educating Generations, Building Communities”
? Educate yourself by attending class
? Assignments & Activities
? Read every day
? Never stop learning!
“The more you LEARN the more you EARN.”
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Student Learning Objectives met
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Victor Valley College
Victor Valley College
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Nothing will work unless
you do.
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Agency Duties and Disclosures
(for Clients and Customers)
“Educating Generations, Building Communities”
I.
II.
III.
IV.
V.
Agency Disclosure
The Agent’s Duties to the Principal
The Agent’s Duties to Third Parties
Penalties for Breach
of Agent’s Duty
Disclosures Required of a
Seller and/or Broker/Agent
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Part I.
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Agency Disclosure
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“Educating Generations, Building Communities”
? In 1988, the California Legislature enacted an agency disclosure
statute that applies to residential transactions involving 1- 4
dwelling units or mobilehomes
? Under the statute, a real estate agent owes a duty to both the
seller and the buyer to let them know which party the agent is
representing in the transaction
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“Educating Generations, Building Communities”
? Delivery of the Agency Disclosure Form
? Agency Election
? Agency Confirmation
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“Educating Generations, Building Communities”
? A broker who represents both the buyer and seller in a
transaction
? Legislation
? Inadvertent Dual Agency
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Part II.
The Agent’s Duties to the
Principal
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“Educating Generations, Building Communities”
A. Reasonable Care and Skill
1. Alleging Expertise
2. Unauthorized Practice of Law
B. Diligence, Good Faith, and Loyalty
1. Diligence
2. Loyalty
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“Educating Generations, Building Communities”
C. Disclosure of Material Information
1. Property Value
2. Present All Offers
3. Buyer’s Financial Information
D. Secret Profit and Self Dealing
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Part III.
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The Agent’s Duties
to Third Parties
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A. Disclosure to the Buyer
?
Caveat Emptor
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1. Broker’s Duty to
Disclose Material Facts
a. Easton v.
Strassburger
b. Transfer Disclosure
Statement
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“Educating Generations, Building Communities”
c. Agent’s Duty of Inspection
?
(Civil Code Sections 2079 – 2079.6)
1.Property Covered by the Visual Inspection
2.Property Not Covered by the Visual Inspection
3.Agent’s Standard of Care
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“Educating Generations, Building Communities”
d. Transfer Disclosure Statement
(Civil Code Sections 1102 – 1102.17)
1. The Statutory Form
2. When Transfer Disclosure Statement is Not Required
3. The Procedure
4. Delivery and Confirmation
5. Protection from Liability
6. Other Required Disclosures Unrelated Directly to Structure or
Land
7. No Warranty to Buyer
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The Agent’s
Duties
to Third
Parties
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The Agent’s
Duties
to Third
Parties
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The Agent’s
Duties
to Third
Parties
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“Educating Generations, Building Communities”
B. Statute of Limitations – 2 years
C. Buyer’s Duty to Use Reasonable Care
“YOU ARE STRONGLY ADVISED TO INVESTIGATE THE CONDITION
AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY. IF YOU DO
NOT DO SO, YOU ARE ACTING AGAINST THE ADVICE OF
BROKERS.”
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“Educating Generations, Building Communities”
E. Fraud
1. Actual Fraud
? Negligent
Misrepresentation
? Mutual Agreement
2.
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3. Opinion, Prediction, and
Puffing
4. “As is” Clause
Constructive Fraud
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Part IV.
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Penalties for Breach
of Agent’s Duty
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“Educating Generations, Building Communities”
C. Criminal Prosecution
D. Action By The Real Estate Commissioner
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Part V.
Disclosures Required of a
Seller and/or Broker/Agent
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“Educating Generations, Building Communities”
A. Earthquake Guides
B. Smoke Detection Statement of Compliance
C. Disclosure Regarding Lead-Based Paint Hazards
D. California’s Environmental Hazard’s Pamphlet
E. Delivery of Structural Pest Control Inspection
F. Energy Conservation Retrofit and Thermal Insulation
Disclosures
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“Educating Generations, Building Communities”
H. Foreign Investment in Real Property
I. Notice and Disclosure to Buyer of State Tax Withholding on
Disposition of California Real Property
J. Furnishing Controlling Documents and a Financial Statement for
Common Interest Developments
K. Notice Regarding the Advisability of Title Insurance
L. Certification Regarding Water Heater’s Security Against
Earthquake
M. Database Regarding Location of Registered Sex Offenders
(Megan’s Law)
N. Gas Transmission Pipelines
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“Educating Generations, Building Communities”
I.
Agency Disclosure
II.
The Agent’s Duties to the Principal
III. The Agent’s Duties to Third Parties
IV. Penalties for Breach
of Agent’s Duty
V.
BRE – 110 Real Estate Law
Disclosures Required of a
Seller and/or Broker/Agent
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“Educating Generations, Building Communities”
? Read Next Chapter
? Write Reflection Summary
? Study for Quiz
BRE – 110 Real Estate Law
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“Educating Generations, Building Communities”
? Schedule 1 hour of study every day
? Plan to be early!
? Always be ready
BRE – 110 Real Estate Law
8/19/2021
41
Only what you put into it!
? Take Notes
? Stay Engaged
? Think of How to Apply
? Ask Questions
? Participate / Share
? Do Activities
? Be Grateful
BRE – 110 Real Estate Law
8/19/2021
42
“Educating Generations, Building Communities”
? Educate yourself by attending class
? Assignments & Activities
? Read every day
? Never stop learning!
“The more you LEARN the more you EARN.”
BRE – 110 Real Estate Law
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Student Learning Objectives met
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BRE – 110 Real Estate Law
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Victor Valley College