Chapter 3 Agency, Brokerage and Ethical Flashcards
Regulations prohibiting price-fixing
Antitrust Law Also know as Sherman Antitrust Act
agent who takes a buyer as the principal
Buyer’s Broker
Broker’s usual compensation
They are usually are earned when…
commission
*the seller accepts the buyer’s offer without conditions.
paid within 10 days of receipt by the broker
third party in a transaction, not the principal
customer
revealing to another any pertinent information
Disclosure
brokers taking both parties as principal
Dual agency
one authorized to act for another
agent
person authorized to act under a power of attorney
attorney in fact
salesperson whose broker pays social security, regulates hours, etc
employee
trust and confidence between parties
fiduciary relationship
principal who engages and agent
client
one empowered for a wide range of actions
general agent
one who owes special duties to another
fiduciary
intentional or unintentional misleading of another who is harmed thereby
fraud
one authorize to act for another in real estate transactions
broker
written explanation of a business relationship
*They are usually required for transactions involving
consumer information statement
1 to 4 family dwellings.
one who works for both the seller and the buyer
Disclosed dual agent
agent of an agent
subagent
agreement between a buyer and seller on major points
meeting of the minds
contract by which the owner retains a broker to find a buyer
Listing agreement
harmless exaggeration as salesmanship
Puffing
illegal sharing of a commission with seller
Kickback
one authorized to act for another in a specific transaction
The legal relationship between a broker and seller is generally……
special agent
one qualified and prepared to purchase
ready, willing and able buyer
person licensed to assist a real estate broker
salesperson
salesperson who sets own hours, pays own estimated income taxes, etc.
independent contractor
problem not discoverable by normal prudent inspection
Latent defect
rules governing conduct of agents
law of agency
the one employing and agent; the client
Principle
the one who brings about a sell
Procuring cause
written authorization of agency
power of attorney
one who facilitates a transaction without functioning as an agent
Transaction Broker
legislation requiring that communities be alerted to the presence of sex offenders
Megan’s Law
competence normally expected
standard of care
fraud committed by someone who should have known better
Negligent misrepresentation
intentional fraud
fraudulent misrepresentation
member of private national organization
Realtor
designation awarded for advanced study
graduate Realtor institute
private nationwide organization of brokers and salespersons
national association of REALTORS
problem when serving best interests of both the client and oneself
conflict of interest
real estate equivalent of malpractice coverage
errors and omissions insurance
standards of conduct adopted by REALTORS
code of ethics
statewide group of real estate licensees who choose to join
New Jersey REALTORS
unintentional deception committed in ignorance
innocent misrepresentation
Agent to his principal fiduciary responsibilities
O-L-D-C-A-R
Obedience, loyalty, disclosure, confidentiality, accounting and reasonable care.
*The duty of loyalty forbids the seller’s broker to suggest an offer under the listed price.
“A broker must be employed to recover a commission for his of her services” means
someone must have agreed to pay a commission to the broker for selling the property.
NJ consumer fraud act
allows exemption from liability in some circumstances.
Off site conditions (two disclosures)
- new construction- 5 day period in which the purchaser may cancel the contract.
- existing properties- no such claim.
what are the three things taken place during a meeting of the minds?
price
down payment
financing method
