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Real Estate > Chapter 6: Agency > Flashcards

Chapter 6: Agency Flashcards

1
Q

What is the principal or client?

A

Someone who authorizes another person or entity to act on their behalf

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2
Q

What is the definition of an agent?

A

the person engaged to act on the behalf of another

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3
Q

What is the third party or customer?

A

the person the agent interacts with

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4
Q

What is a fiduciary relationship?

A

one that implies trust and confidence

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5
Q

What are the 2 factors affecting liability that are inherent in agency?

A

Principal is accountable for agents words & agent owes loyalty to client

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6
Q

What is a universal agent?

A

authorized to perform any act the principal could perform (not in RE)

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7
Q

What is a general agent?

A

Has the authority to bind principal in ongoing conduct of a business

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8
Q

What are the 3 types of agents?

A

universal, general, special/limited agent

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9
Q

What is a special/limited agent?

A

appointed for a particular purpose or act

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10
Q

What are the 3 types of agency?

A

actual agency, ostensible agency, implied agency

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11
Q

What is actual agency?

A

arises when parties agree to relationship intentionally . verbal or written

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12
Q

What is ostensible agency?

A

when 3rd party (client) relies on a principal ‘s implied or expressed representation that a person is their agent

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13
Q

what is implied agency?

A

(from broker or buyer) occurs when an agent by their words and actions leads a buyer to feel the broker is acting on their behalf

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14
Q

What is a power of attonrey?

A

a document authorizing one person to act on behalf of another

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15
Q

What is an an attorney in fact?

A

the actual person chosen to be a power of attorney

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16
Q

What is implied authority?

A

an agent’s implied authority can arise out of custom and common usage (everyone puts signs in their yards)

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17
Q

What are the 6 obligations an agent is owed to the principal? (POLAND)

A

personal performance, obedience, loyalty, accountability, notice and due care

18
Q

What are 4 duties the principal owes to the agent?

A

indemnification, performance, reimbursement, compensation

19
Q

What are 10 ways to agency agreement can be terminated?

A

performance, expiration, revocation, renunciation, abandonment, agreement, death, incapacity, supervening legality, extinction

20
Q

What are latent defects?

A

defects that are hidden and not readily apparent

21
Q

What are patent defects?

A

defects that are visible and easily discovered

22
Q

What does a Sole proprietorship consist of?

A

owner runs the business and can pocket profits. personal liability for business possess

23
Q

What do partnerships consist of?

A

partners are personally liable for business loses

24
Q

What does a corporation consist of?

A

mostly eliminates personal liability. profits are taxed at corporate and personal levels

25
Q

What does s corporation consist of?

A

popular for small business. provides liability protection but profits and losses flow through

26
Q

What does limited liability company consist of?

A

personal liability is limited, profits aren’t taxed at corporate level

27
Q

What is involved in an open listing?

A

owner promises a commission to a broker who produces buyer at named price(express, unilateral contract)

28
Q

What is involved in an exclusive agency?

A

only one broker can market property but owner can sell themselves. (express, bilateral, executory contract)

29
Q

What is involved in an exclusive right to sell listing?

A

the broker has the right to market exclusively and commission is assured (express, bilateral, executory contract)

30
Q

What is involved in net listing?

A

when seller has amount in mind and authorizes broker to market property at any price and pocket difference

31
Q

what are the 4 types of listing?

A

open listing, exclusive agency listing, exclusive right to sell listing, net listing

32
Q

What is a procuring cause?

A

the broker who began an uninterrupted chin of events that result in sale

33
Q

What is a selling agent?

A

the broker working with the buyer

34
Q

What does subagency consist of?

A

involves two different brokers that represent the seller

35
Q

What are ministerial acts?

A

act that dont require judgment and dont amount to advising or counseling

36
Q

What does the brokerage relationship in real estate transaction act involve? (BRRETA)

A

governs relationships between licensees and their clients or customers

37
Q

What is a brokerage engagment?

A

a written agency relationship between broker and client

38
Q

What are material facts?

A

facts a party does not know, could not discover and would want to know

39
Q

What is a buyer brokerage argreement?

A

contract of employment, similar to listing, buyer is client

40
Q

What is a designated agency?

A

both parties are represented by the same broker but different agent in it

Real Estate (13 decks)

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