Chapter 9 Review Notes Flashcards
Agent
Is hired by principal ti act on the principals befalf
Agency
The fiduciary relationship in which the agent is held in a position if special trust and confidence by the principal
Principal
A client
Customer
Non-represented party for whom some levels of service is provided and who is entitled to fairness and honesty
Subagent
Authorized to work with the agent on the behalf of the client
Non agent/ transaction broker/ facilitator/intermediary/ transaction coordinator/contract broker
Assists one or both parties with the transaction without representing either party’s interests and is often subject to specific statutory responsibilities.
Express agency
Is based on an express agreement between the agent and the principal
Express agreement
An agreement between the parties that is expressed in words- written or oral.
Implied agency
Created when the actions of the parties indicate that they have mutually consented to an agency
Gratuitous agency
Agency that exists with no compensation involved
Agent fiduciaries
Care, obedience, loyatly, disclosure, accounting, confidentiality
Universal agent
Is empowered to do anything the principal could do personally
General agent
Represents the principal in a broad range of matters
Special agent
Represents the principal in one specific act or business transaction only, under detailed instruction
Single agency
An agent represents only one party in a transaction
Buyers broker
Represents a buyer ad an agent to find property that meets the buyer’s specifications, as set out in the buyer representation agreement.
Dual agency
An agent represents two principals in the same transaction
Informed consent
consent signed by both parties that the listing agent and buyer’s agent may act as a dual agent for that seller/landlord and a buyer/tenant for residential real property which is the subject of a listing agreement.
Undisclosed dual agency
May happen on accident, but can result in rescission of the sales, forfeiture of commission, a lawsuit for damages, and possibly license suspension or revocation
Designated agent
Sales associate authorized by the broker to represent one party to a transaction, while a different sales associate in the same firm represents the other party in the transaction
Puffing
Legal exaggeration of a property’s benefits
Fraud
The intentional misrepresentation of a material fact to harm or take advantage of another person
Negligent misrepresentation
Occurs when a real estate professional should have known that a statement about a material fact was false and the real estate professional’s misrepresentation was due to careless negligence rather than accidental negligence.
Latent
A hidden structural defect that could not be discovered by ordinary inspection snd that threatens the a property’s soundness or the safety of its inhabitants.
