Chapter 4 - Learning Objectives & Key Terms Flashcards
Agent
One who acts for and with authority from another called the principal.
Caveat Emptor
“Let the buyer beware”.
Consent to Transition
The provision within Florida Law that allows real estate licensees acting as single agents to change from a single agent relationship to a transaction brokerage relationship.
Customer
A buyer or seller of real property not be represented by a real estate licensee. Once the customer enters into an agency agreement they become a client.
Designated Sales Associate
wo licensees acting as single agents representing the buyer and the seller in non-residential transactions under the direction of one broker; both buyer and seller must verify that they have assets of more than $1 million.
Dual Agent
An agency relationship in which the agent acts for both of the principals in a transaction. This is prohibited in Florida
Fiduciary
A person in a position of trust and confidence, as between principal and broker under the rules of agency.
General Agent
An agent authorized to perform acts related to one property of the principal, such as a property manager.
Limited Representation
Representation in a real estate transaction without fiduciary obligation.
Non Representation
A legal brokerage relationship in which brokers do not represent either buyers or sellers in a transaction. All brokers under Florida law are presumed to be transaction brokers by default.
Principal
The employer of an agent, such as a buyer or seller.
Residential Sale
The sale of one to four units of improved residential property, or property that is currently unimproved but destined to be one to four residential units, or the sale of 10 acres or less of agricultural property.
Single Agent
An agent who works only for the buyer or the seller.
Special Agent
An agent with limited authority to act on behalf of the principal, such as created by a listing contract.
Subagency
A licensee who assists the agent when they are acting for a Principal. When a broker is the agent, all sales associates supervised by that broker become sub-agents.
Transaction Broker
Limited representation in a real estate transaction without representing either seller or buyer in a fiduciary capacity.
Universal Agent
*A universal agent is the broadest form of agency
An agent who is authorized to perform all acts or duties his/her principal is empowered to perform.
Example: Power of Attorney
A power of attorney is a written instrument whereby a principal gives authority to an agent, The agent acting under such a grant is sometimes called an Attorney in Fact
General Agent
*An agent with full authority over one property of the principal
A general agent is given the authority to perform several tasks on a continuous long-term basis
Example: A common example of a general agent is a real estate licensee acting as a property manager for a building owner
Special Agent
Example : Real estate brokers/Sales Associates operate as a special agent
Unlike a universal or general agent , a special agent performs limited performs limited duties and whose relationship with the principal is not meant to be continuous
In the case of a real estate broker, special agency is created through the signing of a listing contract, and ends when the contract is fully performed