Chapter 23 Flashcards
agency
duties
the
legal obligations that real
estate agents owe to their
clients, including loyalty,
obedience, disclosure,
confidentiality, accounting,
and reasonable care
antitrust
Antitrust laws are regulations
designed to promote fair
competition in the
marketplace and prevent
monopolistic practices,
collusion, price-fixing, and
other forms of
anticompetitive behavior.
confidentiality
the
obligation to protect sensitive
or proprietary information
shared by clients or
customers and not disclose it
to third parties without
permission
conflict of
interest
A conflict of interest occurs
when an individual or entity’s
personal interests or
relationships interfere with
their ability to act in the best
interests of their client or
employer
ECOA
(Equal Credit
Opportunity
Act)
ECOA is a federal law that
prohibits lenders from
discriminating against
applicants based on race,
color, religion, national
origin, sex, marital status,
age, or receipt of public
assistance in any aspect of a
credit transaction
errors and
omissions
insurance
Errors and omissions (E&O)
insurance is a type of
professional liability
insurance that provides
coverage for claims alleging
negligence or mistakes in
professional services
provided
fair
housing
the
principle of equal opportunity
in housing and the
prohibition of discrimination
based on protected
characteristics such as race,
color, religion, national
origin, sex, familial status,
or disability
general
liability
refers to the
legal responsibility of
individuals or entities for
injuries or damages caused
to others as a result of
negligence or unsafe
conditions
risk
reduction
Risk reduction involves taking
measures to minimize the
likelihood or impact of
potential risks.
risk
retention
Risk retention is the decision
to accept and bear the
financial consequences of
potential risks rather than
transferring them to
another party
risk
transference
Risk transference involves
shifting the financial burden
of potential losses to another
party, typically through
contractual agreements or
insurance.
trust
fund
designated
account where funds are
held in trust by a real estate
broker or agent on behalf of
their clients, typically for
earnest money deposits or
other escrow funds related to
real estate transactions.
unauthorized
practice of law
refers to the provision of
legal advice or services by
individuals who are not
licensed attorneys, which is
prohibited by law.
What is the primary reason for mastering risk management in real estate?
To create a safety net for your business and build trust with clients