chapter 2 : Real Estate Agency Flashcards
sub-agency
seller agency agreement vs buyer agency agreement
fiduciary relationship
the law of agency
defines the rights and duties of the principal and the agent
agency refers to
relationship that a broker, managing broker or residential leasing agent, may have with buyers sellers, landlord, or tenant 
those who hire are
clients
those who are hired are
agents
A real estate license sea becomes an Agent 
through a contractual agreement, whether expressed or implied 
agent
The individual who is authorized and consents to represent the interest of another person 
agency
relationship in which a customer has giving consent, express or implied to a real estate licensee to represent the consumer in a real property. Transaction consent may be given to a licensee directly or through, and I ciliated licensee. 
brokerage agreement 
and agreement made verbally, or sit out in writing for an agent, or firm to provide a brokerage services to a consumer, and to receive compensation for providing those services 
client
The person or entity that are licensee represents in a real property transaction 
 compensation
payment monetary or otherwise made to a person or entity for executing services for clients or customers 
 consumer
A person or entity, for whom, and Asian provide services, which are only to be provided with a licensee or a person or entity, who seek such services from a licensncy 
 customer
A person or entity, for whom a licensee is providing services, excluding menace to the real acts, but who is not represented by the licensee in an agency relationship 
ministerial acts

informative or clerical service provided by a licensee to a consumer providing Ministerial acts is not equivalent to active representation 
confidential information
- The client‘s request in writing, or verbally
- relates to the clients negotiating position
- could you damage to the client negotiating position if disclosed
Confidential information must not be shared, unless 
- The client gives authorization for the licensee to share the information. 2. The information must be shared by law
- The information is revealed by some person or entity, other than the licensee 
principles primary duties
comply with the brokerage agreement and cooperate with the agent 
The six common law fiduciary duties
COLD AC
Care
Obedience
loyalty
disclosure
accounting
confidentiality
Under section 1545(2)(c) of the act material facts do not include the following when located or related to real estate that is not the subject of the transaction
• physical conditions that do not have a substantial adverse effect in the value of real estate
• fact situations
• occurrences
opinions are permissible only as long as they are…
offered as opinions and without any intention to deceive
exaggeration of a property’s benefits is called
puffing
negligent misrepresentation occurs when…
the licensee should have known that a statement about a material fact was false
licensees must ensure none of their statement can be i reforested as…
fraudulent
fraud is…
the intentional misinterpretation of a material fact to take advantage of another person
if a lease is obtained by fraudulent misstatements the lease may be renounced by the renter resulting in
•losing commission
•liable for damages
if a lease is obtained by fraudulent misstatements based in owners own inaccurate statements
the licensee would not be liable for any damages
latent defect
a structural defect that would not normally be uncovered by an ordinary inspection
stigmatized properties
properties that society has branded undesirable because of events that occurred there
licensees should seek legal counsel when dealing with a
stigmatized property
express agency
chapter 2 page 36
an express agency
chapter 2 page 36
implied agency
by implied agreement occurs when the actions of the parties indicate that why have mutually consented to an agency relationship
an agency may be terminated for any of the following reasons
• death or incapacity of either party
• destruction or condemnation of the property
• expiration of the terms of the agency
• mutual agreement by all parties to the contract
• breach by one of the parties that in which case the breaching party might be liable for damages
• by operation of law as in bankruptcy
• completion, performance or fulfillment of the purpose for which the agency was created
universal agent
a person empowered to do anything the principal could do personally
express agency
The principal, landlord and agent sponsoring broker, may enter into an express agreement, in which the party‘s formally expressed their intention to establish an agency and state its terms and conditions, either oral or written 
general agent
May represent the principal in a broad range of Matters related to a particular business or activity 
the property management agreement
spells out the various contracts and documents, which the sponsoring broker is empowered to sign for the landlord 
single agency
when an agent represents only one party exclusively in a real estate transaction 
