Chapter 4 - Agency and its Responsibilities Flashcards
commingling
the mixing of funds held in trust with personal funds
open listing
authorization from a property owner giving a real estate agent the non exclusive right to secure a purchaser. Other Brokers, or the owners themselves, may also solicit a purchaser
conversion
the unlawful taking and use of another’s property placed in your trust, as an agent, by that person.
principal
the person who employs a real estate agent usually through a listing company
agency
the relationship between the principal and the principal’s agent that arises out of a contract, either expressed or implied, written or oral, where in the agent is employed by the principal to do certain acts dealing with a third party.
subagent
a person upon whom the powers of an agent have been conferred, not by the principal, but by an agent authorized by the principal.
verisign
a free service for CAR/NAR members to Auto sign documents so they can be emailed without actually having to meet the signer in person
estoppel
the theory of law that states a person cannot suddenly after a legal right when that person has neglected to asserted previously. For example: if someone claims to be your agent and you know about it and don’t stop that person, you can’t later claimed that person was not acting on your behalf.
independent contractor
a person who acts for another, selling final results and using his or her own judgment to achieve those results.
ratification
the approval of an act performed on behalf of a person without previous authorization, such as the approval by a principal of a previously an authorized act of an agent.
dual agency
an agency relationship in which the agent act concurrently if you’re both the principles (buyer and seller) with their consent in a transaction
multiple listing service
an association of real estate agents that provides a pooling of listings and the sharing of commissions
third party
any party to a transaction other than the principal with whom you have an agency relationship
attorney in fact
one who is authorized to perform any act for another under a power of attorney
exclusive agency listing
a listing agreement employing a broker as a sole agent for the seller of real property, under the terms of which the broker is entitled to a commission unless the homeowner sells the property.
exclusive right to sell
a listing agreement employing a broker to act as an agent for the seller of real property. Under the terms of this agreement, the broker is entitled to a commission if the property is sold during the duration of the listing by the broker or by the owner without an agent.
net listing
a listing that provides for the agent to retain, as a compensation for his or her services, all sums received over and above and net price to the owner.
secret profit
an agent’s making of additional money in a real estate transaction without disclosing it to the principal and third party.
innocent misinterpretation
making false statements about a property, without realizing it.
negligent misinterpretation
making false statements regarding a property that could have been checked out or verified.
transfer disclosure statement
a form that notifies buyers of any physical defects to a property and requires the seller and the agent to list any evidence of defects of which they are aware.
agency disclosure form
a form presented to the principles in a transaction stating exactly who the agent is working for: the buyer or the seller or both
fiduciary relationship
the relationship between the agent and the principle that requires the highest level of trust and good faith
employee
one who works directly for another person, is told what to do, and is controlled and how they do it.
policy manual
a written book of procedures explaining how a broker expects the agents working under him or her to conduct business and handle routine problems.
special attorney in fact
someone authorized to represent a principal in a specific tasks, such as selling a property.
REALTOR domain
a domain suffix available only to REALTORS
