Chapter 04 - Brokerage Relationships and Ethics Flashcards
Agent
A person entrusted with another person’s business. An agent is authorized by the principal to act on the principal’s behalf.
At arm’s length
People dealing at arm’s length conduct negotiations on their own behalf without trusting the other’s fairness or integrity and without being subject to the other’s control or influence.
Customer
A member of the public who is or may be a buyer or seller of real property and may or may not be represented by a real estate licensee in an authorized brokerage relationship.
Designated sales associates
Two real estate licensees designated to represent the buyer and the seller as single agents in a nonresidential transaction. The buyer and seller must have assets of $1 million or more and sign disclosures stating that their assets meet the required threshold.
Dual agent
A broker who represents as a fiduciary both the buyer and the seller in a residential real estate transaction; dual agency is illegal in Florida.
Fiduciary
A relationship of trust and confidence with the broker as agent and the seller or the buyer as principal.
Fraud
The intent to misrepresent a material fact or to deceive to gain an unfair advantage or to harm another person.
General agent
A general agent is authorized by the principal to perform acts associated with the continued operations of a particular job or a certain business of the principal.
Misrepresentation
A misstatement of fact or the omission or concealment of a factual matter.
Principal
The seller (or the buyer, but not both) agent relationship. The principal authorizes the agent to act on the principal’s behalf; the principal is responsible for the actions of the agent.
Residential sale
The sale of improved residential property of four or fewer units, the sale of unimproved residential property intended for use as four or fewer units, or the sale of agricultural property of ten or fewer acres.
Single agent
A broker who represents either the buyer or seller (but not both) and has a fiduciary relationship with the party represented.
Special agent
One authorized by a principal to perform a particular act or transaction, without contemplation of continuity of service as with a general agent.
Subagent
A person authorized to assist and represent the agent. A subagent has the same duties as the agent.
Transaction broker
A broker who provides limited representation to a buyer, a seller, or both in a real estate transaction, but does not represent either in a fiduciary capacity or as a single agent.
