Chapter 6 Flashcards
100% Commission Plan
A method of compensating sales people were each sales person pays the broker a monthly fee for the use of office space, support services, and the brokers name, and in return the sales person keeps 100% of the commission.
Acceptable Buyer
A buyer whose offer is acceptable to the seller, though different from the terms in the brokers listing agreements
Actual Agency
An agency established by agreement, either written or verbal
Administration Law
The laws that are passed by elected legislatures
Agency
Agency asked to find under “BRRETA” means every relationship in which a real estate broker asked for or represents another by that person‘s express authority in a real estate transaction
Agency Coupled with an Interest
An agency in which the agent has a legal interest in the property of the principal. Cannot be revoked by the principal.
Agent
A person authorized to act on behalf of another.
As Is
A term used to describe property offered for sale in his present condition with no warranty provided by the owner. It does not confer immunity from liability of fraud
Attorney-in-fact
 One who has authority to act on behalf of another under a power of attorney
Automatic Renewal Clause
A provision in a listing agreement which allows the listing to automatically renew indefinitely until the property is either sold, or the agreement is canceled by the owner. Such provisions are not allowed in most states.
Brokerage
Under “BRRETA” a brokers is defined under Georgia law as anyone who is authorized to buy, sell, rent, manage, exchange or auction real property for another in return for a fee. Simply stated the brokerage business is the occupation of a real estate broker.
Brokerage Enjoyment
Under BRRETA, A brokerage engagement is an expressed contract either written or oral where the client, the principal, agrees to give the real estate broker valuable consideration upon the broker producing a seller, buyer, tenant, or landlord ready, willing and able to sell, by or rent a property
Brokerage Relationship
Under BRRETA, The brokerage relationship is the relationship that is formed as a result of the parties entering into a brokerage engagement
Buyer brokerage agreement
The contract that creates an agency relationship between a broker and a buyer
Caveat Emptor
Let the buyer beware
Client
A person who authorizes the agent, broker to act on his or her behalf. In real estate transactions, the client may be the seller also called the principal
Co-broker
A broker who assists the listing broker is securing a buyer
Commission
A brokers compensation for rendering a service to the principal as negotiated with the principal
Common law
A body of law based on custom in court decisions over time
Customer
Under BRRETA, A customer is someone who is working with a broker concerning real estate matters but has not entered into a brokerage engagement with the broker. In a situation where the broker works with a customer, this law allows the broker to perform “ministerial acts” for the customer while working with them in a specific real estate transaction
Designated Agent
An agent representing either buyer or seller in a transaction where both parties have agents who are with the same broker, and are delegated by the broker to continue serving their clients.
Dual Agency
Representing both the buyer in the seller in the same transaction. Does practice constitutes a violation of the License Law, unless both parties give their written consent.
Dual Agent
Under BRRETA, A dual agent is a broker who has entered into a brokerage engagement with both seller and buyer or landlord and tenant in the same transaction.
Due Diligence
A proper and fair degree of care a buyer might use in inspecting a proposed purchased, or the time period within which the buyer should have to make that inspection.
Equal Dignities Rule
A doctrine of law which states that the power of attorney or contract you used to appoint an agent, must have the same degree of formality as any document or form the agent is expected to sign.
Equitable title
The buyers interest in a property from the time he or she enters into a contract until legal title is conveyed at closing. The ultimate right to receive legal title.
Estoppel
A doctor of law which prevents a person from exercising rights that are not consistent with his or her prior conduct or words
Exclusive agency listing
A listing agreement in which the seller appoints only one broker to represent him or her in securing a purchaser. However, the seller reserves the right to sell the property himself or herself without being liable to the broker for commission.
Exclusive right to sell listing
A listing agreement which guarantees the broker a commission if the property is sold during the term of the listing, regardless of who sells it.
Fiduciary
A relationship of trust and confidence between a principal and agent; a person in a position of trust and confidence as between broker and seller
Forbear
To not act: to give up a right to which a person is entitled
Franchise
A right to use the name, logo (trademark or service mark) and service of another business
General Agent
One who has authority to bind his or her principal in a particular business
Guardian
One pointed by a court to take care of and manage property and affairs of another person judged legally incompetent
Implied authority
Authority of an agent arising from custom rather than expressed agreement
Independent contractor
One who contracts to do work according to his or her own methods and is responsible to his or her employer only as to the results of that work
Latent defect
Defects not readily apparent from an ordinary inspection of the property. Concealed defects that affect the value of the property and must be disclosed by the seller and broker when known or apparent to them and to third parties
Law of agency
That body of law that governs the relationship between principal, agent and third-parties
Listing agreement
A real estate brokers contract of employment with an owner. The agreement obligates the owner to pay the broker commission if the broker fines are ready, willing, and able buyer, but it does not obligate the owner to contract with the buyer.
Ministerial Acts
Under BRRETA, Minsterial Acts are acts that are broker or affiliated licensee performs for a person (customer) which do not require discretion or the exercise of judgment on the part of the licensee
Multiple listing service
A vehicle for sharing listings in seeking cooperation, used by brokers who are members of a multiple listing service
Net listing
A listing agreement which authorizes the broker to sell the property for any price possible, while the seller agrees to except a set amount. It is prohibited by the license law in most states.
Open Listing
An authorization made by an owner, either verbal or in writing which gives a broker the non-exclusive right to secure a purchaser. Search listings maybe given to any number of agents without liability to compensate anyone, except the one who first secures a buyer ready, willing, and able to meet the terms of the listing, or who for secures the sellers acceptance of an acceptable offer. The owner can sell and pay no commission.
Ostensible agency
An agency which is created when a principles expressed or implied actions indicate that a particular person is acting as his or her agent
Partnership
A working relationship of two or more persons where they unite skill, property, or labor to carry on a business and share in the profits or losses
Power of attorney
A written instrument which authorizes a person, called an attorney in fact, to act on behalf of the one granting the authority
Principal
Also called client. One who employs an agent to represent him or her
Procuring cause
The person who’s action is the primary reason for a sale taking place
Ratification
The acceptance of an agents unauthorized acts by direct confirmation or implication
Safety clause
A provision in a listing agreement that entitles the broker to a commission after the listing expires, provided the owner sells to one of the brokers prospects in certain other conditions are met
Special agent
One who was appointed to act on a particular occasion or for specific purpose. A person with limited authority.
Straw purchaser
One who buys property for another in order to keep the identity of the real purchaser confidential
Subagent
A co-broker who was working for the listing broker and sharing representation of the seller
Supervening illegality
 A method of terminating an agency due to a change of law causing the purpose of the agency to become illegal
Transaction broker
A licensee who has no agency relationship with either party in a transaction but is acting only as a facilitator, performing minsterial duties
Universal agent
One who has authority to perform any lawful act the principal could perform him or herself. An agent who has authority without limitations, usually granted by a general power of attorney
Vendor
A seller
