Chapter 8 Flashcards
A legal relationship between a principle and an agent
Agency
The party authorized to conduct business on the principle’s behalf
Agent
The illegal practice of encouraging property owners to sell their homes when minorities begin moving into an area
Blockbusting
An intermediary who brings together buyers and sellers, assists in negotiating agreements between them, executes their orders, and receives compensation for services rendered
Broker
The legal agreement between a buyer and a broker hired to represent the buyer’s interests
Buyer Representation Agreement
A broker who is legally obligated to represent a buyer’s interest
Buyer’s Agent
The compensation received by a broker for services rendered
Commission
An agreement between a seller and a broker for the payment of a commission if the broker is successful in locating a buyer for the seller’s property
Commission Agreement
An agent who attempts to work in the best interest of two parties on opposing sides of a transaction
Dual Agent
An agreement between a property owner and a single broker authorizing that broker to seek a buyer for the property in exchange for compensation
Exclusive-Brokerage Listing
A listing agreement that guarantees the broker’s right to a commission if the property is sold by the seller or any licensed real estate broker or salesperson
Exclusive-Right-to-Sell Listing
Laws that protect the rights of certain citizens in housing transactions
Fair House Laws
A person who is obligated to act in the best interest of another
Fiduciary
A false statement made with the intention to mislead, that is material to a transaction, that is justifiably relied on by a client, and that results in injury to the client
Fraud
An agreement between a property owner/seller that authorizes a broker to perform certain tasks to seek a buyer for the property
Limited-Service Listing
The legal agreement between a broker and a property owner that authorizes the broker to attempt to sell the property
Listing Agreement
The broker who negotiates the listing agreement with the seller
Listing Broker
A false statement that is material to a transaction, that is justifiably relied upon by a client, and that results in injury to the client
Misrepresentation
An agreement in which brokers share their listings with other brokers in exchange for a share of the commission generated by a transaction
Multiple Listing Service
A listing agreement in which the broker is entitled to receive as commission any amount above a base price
Net Listing
A listing agreement in which a broker is entitled to receive a commission only in the event the broker procures a buyer for the property
Open Listing
The person who authorizes an agent to conduct business on his or her behalf
Principle
An individual licensed by a state to represent others in real estate transactions in exchange for compensation
Real Estate Broker
A real estate broker who is obligated to represent the best interest of the seller
Seller’s Agent
The broker who actually locates a buyer for a property
Selling Broker
The illegal practice of steering potential homebuyers into certain areas to influence the racial or ethnic composition of the areas
Steering
An agent of an agent of a principle
Subagent
A broker who provides limited representation to a seller or buyer in a real estate transaction
Transaction Broker
