3 Agency/Brokerage Flashcards
Fiduciary Elements
Care Obedience Loyalty Disclosure Accounting Confidentiality
Agency
Created when a person (principal) delegates to another (agent) the right to act on their behalf and with discretion.
Customer
3rd party in the transaction. Owed fair and honest dealing.
Latent Defect
A defect not seen by the naked eye.
Forms of Agency
Express Agency. Writing or verbal stated intentions.
Implied Agency. Created by actions.
Ostensible Agency. A principal through statements or actions leads a third party to believe someone is his agent and the third person relies on it.
Agent for the Seller
Present all offers.
Agents interest in the transaction, if any
Buyers intention to resell the property for profit.
Agent for the Buyer
Any property defects if known or should have been known by the agent
Reason owner is selling.
Provide buyer with comparisons of similar properties that have sold recently.
Universal Agent
Power of Attorney
General Agent
One who is authorized by the principal to act in a wide range of ongoing business activities.
Special Agent
Represents principal in just one business activity.
Designated Agent
The broker allowing one of their agents to act as the agent to one of the principals.
Subagency
An agent of an agent.
Single Agent
Representing one principal.
Dual Agent
One broker representing two principals in the same transaction.
Fraud
Misrepresentation with the intent of harming someone. Voidable by the innocent party.
Consent to Limited Representation
Must be signed before dual agency can be established. (North south exposure vs east west)
Innocent misrepresentation
An error or misunderstanding that may not have been caused intentionally. Seldom void contracts.
Puffing
An exaggeration of the facts, usually legal.
Stigmatized Properties
Properties that have psychologically impacted defects. Murder, death, suicide or other felonies. Sex offenders.
Procuring Cause
The unbroken chain of events that led to the completion of the transaction.
Commingling
Mixing trust account funds with brokers operating account.
Brokerage
One who acts as an intermediary between parties to a transaction.
Real Estate Broker
One who is licensed to sell, buy, exchange, or lease real property for others and collect compensation for their services.
Types of Brokers
Entity/Employing Broker. Corporation, partnership, sole proprietor that is licensed by the state to have a real estate company.
Designated Broker. A person who is responsible to the entity and oversees the daily activities and the supervision of everyone.
Associate Broker. One who is licensed as a broker but is not designated to authority and has the same privileges and responsibilities as other licensed sales associates.
Sherman Antitrust
Commission is negotiable Price Fixing Group Boycotting Allocation of customers and/or markets Tie-in agreements
