Chapter 4 - Real Estate Brokerage and Law of Agency Flashcards
One authorized by a principal to perform a single act or transaction; a special agent for a seller is authorized to find a ready, willing, and able buyer for a particular property; a special agent for a buyer is authorized to assist a buyer in locating and negotiating the purchase of a property.
special agent
A license holder who represents a principal through cooperation with & consent of a broker representing the principal & who is not sponsored by or associated with the principal’s broker.
subagent
Makes it illegal to use false, misleading, or deceptive acts or practices in the advertising, offering for sale, selling, or leasing of any real or personal property.
Texas Deceptive Trade Practices - Consumer Protection Act (DTPA)
One who acts or has the power to act for another. A fiduciary relationship is created under the laws of agency when a property owner, as the principal, executed a listing agreement or management contract authorizing a licensed real estate broker to be her agent.
agent
An agency relationship is established after the fact.
agency by ratification
The relationship between a principal (client) and an agent wherein the agent is authorized to represent the principal in certain transactions.
agency
An agency is created by acts or words of principal & agent; an agency inferred by circumstances.
implied agency
Someone retained to perform a certain act but who is subject to the control and direction of another only as to the end result & not as to the way in which she performs the act. Unlike an employee, an independent contractor pays for all her expenses, both SS & income taxes & received no employee benefits. Most RE sales agents are independent contractors.
independent contractor
One who acts or has the power to act for another. A fiduciary relationship is created under the laws of agency when a property owner, as the principal, executed a listing agreement or management contract authorizing a licensed real estate broker to be her agent. (agent definition)
law of agency
An unintentional misstatement of fact; incorrect or misleading representation.
misrepresentation
The effort that brings about the desired result. Under an open listing, the broker who is the procuring cause of the sale receives the commission.
procuring clause
One who is prepared to buy property on the seller’s terms and is ready to take positive steps to consummate the transaction.
ready, willing, and able buyer
Exaggerated or superlative comments or opinions not made as representation of facts and thus not grounds for misrepresentation.
puffing
A broker who is employed to negotiate a transaction between both parties & who for that purpose may be an agent of both parties to the transaction, acting fairly so as not to favor one party over the other.
intermediary broker
A contract between a landowner ( a principal) & a licensed real estate broker (as agent) by which the broker is employed to sell real estate on th owner’s terms within a given time, for which service the landowner agrees to pay commission.
listing agreement
1) A sum lent or employed as a fund or investment, as distinguished from its income or profit. 2) The amount of the note due and payable. 3) A main party to a transaction - the person for whom the agent works.
principal
Laws designed to preserve the free enterprise of the open marketplace by making illegal certain private conspiracies’ & combinations formed to minimize competition. Violations of antitrust laws in real estate business generally involve price fixing, allocation of customers or markets, or agreement to boycott competitions. 1) Set fixed compensation rates, 2) limit areas of trade or dealing to certain areas or properties.
antitrust laws
A license holder associated with and appointed by an intermediary broker to communicate with, carry out instructions of, and provide opinions & advise to the parties to whom the license holder is appointed.
appointed license holder
For a commission or fee, bringing together parties interested in buying, selling, exchanging, or leasing real property.
brokerage
A contract that established a broker-buyer agency relationship.
buyer representation agreement
Latin phrase meaning “let the buyer beware”.
caveat emptor
The person who employs an agent to perform a service for a fee. (also principal)
client
The illegal act of a real estate broker who mixes the money of other people with his own instead of maintaining a separate trust account for other parties funds held temporarily by the broker.
commingle
Payment to a broker for services rendered, such as the sale or purchase of real property; usually a percentage of the selling price of the property.
commission
