Agency Terminology Flashcards
The Principal
The individual that authorizes another person to act on his or her behalf. This person may also be referred to as the client. The agent must be empowered by this individual to take the role of agent.
The Third Party
The individual with whom the agent and principal enter into real estate negotiations; he or she is sometimes referred to as the customer. This is the final variable to consider when an agency relationship is formed.
Universal Agent
This agent can do anything on the behalf of the principal that is allowed by law, such as enter into contracts for the principal and give gifts in the name of the principal.
General Agent
This agent has more limited authority than a universal agent but is usually authorized to manage all of the principal’s affairs in certain specified areas.
Special Agent
This agent has the most limited authority of any type of agent. This agent may not enter into sign contracts on behalf of his or her principal.
Authority
Having the power to perform certain actions for the principal.
Actual Authority
Being able to express agreements and some implies agreements.
Apparent Authority
When the actions or words of a principal can convince a third party that the agent has authority when in fact the agent has no authority.
Express Actual Authority
Actions within the scope of the agent’s authority. Duties that the principal specifically tells the agent to do.
Implied Actual Authority
Actions that are necessary to complete the duties that were expressly authorized. Actions that are customary for the business.
Express Agreement
Where the principal appoints an agent, and the agent accepts. This agreement does not have to be written to be valid.
Implied Agreement
When a party assumes consent to the relationship based solely upon inferences formed from communication with the other party. This is created by the actions, conduct and words of the parties.
Agent
An individual who is authorized to represent the interests of another is an __________.
Special Agent
A real estate agent is usually a _______ _____, Which means that he or she has limited authority in a specific transaction.
Client
The principal is also known as the ______.
Express Agreement
Implied Agreement
An agency relationship can be created by _______ _________ or _______ _________.
Third Party
The _____ _____ is also known as the customer.
Authority
_________ is the power to perform certain actions for the principal.
Consent
The only requirement for establishing and agency relationship is the _______ of both parties.
In Writing
Although not required, it is highly encouraged that the terms of agency relationships are expressed __ _______.
Express Agreement
Most agency relationships are formed by _______ _________.
Buyer
I am third party (customer).
Seller
I am principal (client).
Supervising Broker
I am, technically, the agent.
Salesperson
I am not technically the agent, but I have the authority to act as the agent.
The Agent
Any individual acting as a representative for another individual in dealings with a third party. This person is authorized by the person he or she represents to act on that person’s behalf.
