Chapter 7 Flashcards
fiduciary relationship between an agent and principal
Agency
a person authorized by another to act on his/her behalf
Agent
a fact situation that creates the appearance of an agent’s authority
Apparent Authority
violation
Breach of Duty
a contract in which a buyer engages an agent to act on the buyer’s behalf in purchasing a property
Buyer Agency Agreement
buyer beware
Caveat Emptor
person you work for
Client
person you work with
Customer
prompt and total communication to the principal by the agent of any info that is material fact to the transaction
Disclosure of Information
A type of dual agency where two licensees in the same firm are designated by the BIC to represent a seller and a buyer in the same transaction
Designated Dual Agency
agents of the same firm represent the seller/buyer with limitations on disclosing personal and confidential information
Dual Agency
a document or contract giving real estate agents the right to act for a principal with certain specific guidelines
Employment Agreement
oral or written agreement establishing a trust relationship between principal and agent
Express Agency
authority specifically granted in a contract
Express Authority
Fiduciary
Trust
First Substantial Contact
when a customer shares personal, motivational, confidential, or financial information for the first time; agent must provide agency disclosure with WWREA
full authority over one field of business or aspect of personal affairs of principal (property management)
General Agency
assumed agency based on an agent’s actions
Implied Agency
OLDCAR
Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable skill and care
important facts that may effect a person’s decision to buy or sell property
Material Fact
criminal violation punishable by fine and/or imprisonment
Misdemeanor
giving false information to a principal about a material fact
Misrepresentation
giving false information about a property because one didn’t do their job
Negligent Misrepresentation
failure to disclose information
Omisson
failing to disclose material facts because one didn’t find the information
Negligent Omission
Principal
Client
saying how “good” a house looks
Puffing
this NC act requires the seller to delver to the buyer disclosure form prior to an offer being presented.
Residential Property Disclosure Act
setting yourself up with a sell/buying a property where you make a profit undisclosed to the principal
Self-dealing
limited authority to act on behalf of a principal
Special Agency
agent of an agent
Subagent
person in a transaction that’s not the principal or agent
Third Party
complete authority; power of attorney; not seen in real estate
Universal Agency
deliberately providing false information
Willful Misrepresentation
deliberately leaving out material facts
Willful Omission
