Agency Law Chap 4 Flashcards
Principal
Is the party who owns property and employs the agent to locate a buyer or lessee, or is the party who employs the agent to find property to buy or lease.
Broker
A person who is licensed by a state to act for property owners in real estate transactions, within the scope of state law.
Universal agent
A general agent, one to whom have been delegated powers to act for the principal in all businesses and in all matters rather than in a particular business.
Salesperson
A person who is licensed to deal in real estate or perform any other act enumerated by state real estate license law, while in the employ of a broker licensed by the state.
Importance: the salesperson must have a sponsoring broker.
Realtor
Is a broker or salesperson who is a member of the national association of realtors (NAR), which is a trade association.
National association of realtors
An organization devoted to encouraging professionalism in real estate activities. (NAR) provides educational training , economic data, and political lobbying.
Fiduciary
A person who, on behalf of or for the benefit of another, transacts business or handles money or property not his/her own. Founded on trust; the nature of trust.
Dual agency
Occurs when a broker or the brokerage firm represents apprising parties (both the buyer and seller) in the same transaction.
Transaction brokerage
Occurs when the broker does not represent either party but, instead, provides services and general information to either party, without looking out for the interests of a particular party.
No-brokerage agency
May occur when parties to a transaction have reached agreement but seek help, such as how to fill out a contact for sale.
Importance: written disclosure should be provided to both parties so all can understand and agree to the broker’s role.
Listing
A written employment contract between a principal and an agent authorizing the agent to perform services for the principal involving the latter’s property; (2) a recorded of property for sale by a Brythonic has been authorized by the owner to sell;
Exclusive agency listing, exclusive right to sell listing , net listing, open listing.
Open listing
Gives the owner the right to list the property with more than one broker. The broker who sell the property earns the commission.
Exclusive agency listing
Allows only one broker to sell, but the owner may sell through his own efforts without paying a commission.
Multiple listing service (MLS)
Is a local organization in which many brokers participate. The listing broker brings the listing into a pool, through which all listings are known to members. The listing broker usually shares the commission with the selling broker.
Net listing
Is one in which a minimum selling price is specified. The broker’s commission is the amount above the net price specified. Net listings are frowned upon or illegal in most states because in some contracts for sale, the broker’s interest may be opposed to the owner’s.
