Ch. 10 Real Estate Agency Flashcards
agency
The relationship between the principal and the agent
agent
one who acts or has the power to act for another . A fiduciary relationship is created under the law of agency.
buyer representation agreement
express agency relationship between a buyer and a broker/stipulates the activities and responsibilities the buyer expects from the broker in finding the appropriate property for purchase or rent
buyer’s agent
A real estate professional who is under contract to locate property for a buyer and represent the buyer’s interest in a transaction
client
the principal in a real estate transaction for whom a real estate broker acts as agent. The term client is also used when a broker represents someone in a relationship other than an agency
customer
the third party or nonrepresented consumer who is not a principal but for whom some level of service may be provided and is entitled to fairness and honesty.
designated agency
A process that accommodates an inhouse sale in which two different agents are involved. The broker designates one agent to represent the seller and one to represent the buyer
designated agent
A real estate professional authorized by a broker to act as the agent for a specific principal in a particular transaction; also may be called assigned agent or appointed agent
dual agency
Representing both parties to a transaction. This is unethical unless both parties have agreed to it, and illegal in some states
express agency
An agency relationship based on a formal agreement between the parties
express agreement
parties formally express their intention to establish an agency and state its terms and conditions. either oral or written.
fidicuary
the relationship in which the agent is held in a position of special trust and confidence by the principal
fiduciary relationship
COLD-AC responsibilities to the principal
Care, Obedience, Loyalty, Disclosure, Accounting, and Confidentiality
fraud
Deception intended to cause a person to give up property or a lawful right
general agent
One who is authorized by a principal to represent the principal in a specific range of matters.
implied agency
If the actions of the parties imply that they have mutually consented to an agency relationship, an implied agency relationship is formed.
implied agreement
when the parties act as though they have mutually consented to an agency, often done unintentionally, inadvertently, or accidentally by their actions.
latent defect
A hidden structural defect that could not be discovered by ordinary inspection and that threatens a property’s soundness or the safety of its inhabitants.
law of agency
The law of agency is an area of commercial law dealing with a set of contractual, quasi-contractual and non-contractual fiduciary relationships that involve a person, called the agent, that is authorized to act on behalf of another (called the principal) to create legal relations with a third party.
listing agreement
seller representation agreement, authorizes the broker to find a buyer or a tenant for the owner’s property
negligent misrepresentation
occurs when a real estate professional ‘should have known’ a statement about a material fact was false
nonagent
An intermediary between a buyer and a seller, or a landlord and a tenant, who assist one or bother parties with a transaction without representing either. Also known as a facilitator, transaction broker, transaction coordinator, and contract broker
principal
the individual who hires the agent and delegates to that agent the responsibility of representing the principal’s interest. In a real estate transaction in which an agency relationship is established, the principal is the buyer or the seller or the landlord or the tenant. The broker is the principal in dealing with sales associates.
puffing
exaggerated or superlative comments or opinions
single agency
Agency relationship in which the agent represents only one party to a transaction
special agent
(limited agent) One who is authorized by a principal to perform a single act or transaction; a real estate professional is usually a special agent authorized to find a ready, willing, and able buyer for a particular property,
transaction broker
helps both the buyer and the seller with paperwork and formalities in transferring ownership of real property, but who is not an agent of either party
universal agent
person empowered to do anything the principal could do personally
