Chapter Four Flashcards
one who acts or has the power to act for another. A fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be his or her…..?
agent
the principal
client
the third party or non-represented consumer for whom some level of service is provided. 46
customer
deception intended to cause a person to five up property or a lawful right. 59
fraud
an agency relationship based on a formal agreement between the parties. 47
express agency
a licensee authorized by a broker to act as the agent for a specific principal in a particular transaction. 53
designated agent
one who is authorized by a principal to represent the principal in a specific range of matters. 52
general agent
one in whom trust and confidence is placed; a reference to a broker employed under the terms of a listing contract or buyer agency agreement. 46
fiduciary
a relationship of trust and confidence, as between trustee and beneficiary, attorney and client, or principal and agent.48
fiduciary relationship
based on the actions of the parties that imply that they have mutually consented to an agency relationship.. 47
implied agency
a hidden structural defect that could not be discovered by ordinary inspection and that threatens the property’s soundness or the safety of its inhabitants. 60
latent defects
a contract between an owner (principal), and a real estate broker (agent) by which the broker is employed as agent to find a buyer for the owner’s real estate on the owner’s terms, for which service the owner agrees to pay a commission. 47
listing agreement
property that society has found undesirable because of events that occurred there or because a known sex offender lives in the area.
stigmatized property
occurs when the broker should have known that a statement about a material fact was false. 79
negligent misrepresentation
an intermediary between a buyer and a seller, or a landlord and a tenant, who assists one or both parties with a transaction without representing either. 46
non agent
a person empowered to do anything a principal could do personally. 52
universal agent
the relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions.
agency
one who is authorized by a principal to perform a single act or transactions; one authorized to find a ready, willing, and able buyer for a particular property. 52
special agent
representing both parties to a transaction. This is unethical unless both parties agree to it, and it is illegal in many states.
dual agency
the illegal act by a real estate broker of placing client or customer funds with personal funds. By law, brokers are required to maintain a separate trust or escrow account for other parties’ funds held temporarily by the broker. 184
commingling
completion, performance, or fulfillment of the purpose for which the agency was created, death or incapacity of either party, destruction or condemnation of the property, expiration of the terms of the agency, mutual agreement by all parties to cancel the contract, breach by one of the parties, by operation of law/bankruptcy. 52
all lead to Termination of Agency
1) a sum loaned or employed as a fund or an investment, as distinguished from its income or profits. 2) the original amount (as in a loan) of the total due and payable at a certain date. 3) a main party to a transaction - the person for whom the agent works. 46
principal
relevant information or facts that are known or should have been known. 50-51
disclosure
exaggerated or superlative comments or opinions. 59
puffing
Care, Obedience, Loyalty, Disclosure, Accounting, Confidentiality 50
Six common-law fiduciary duties:
a contract under which the agreement of the parties is demonstrated by their acts and conduct. 47
implied agreement
a residential real estate broker or salesperson who represents the prospective purchaser in a transaction in a transaction. 54
buyer’s agent
a process that accommodates an in house sale in which two different agents are involved. The broker designates one agent to represent the seller and one agent to represent the buyer. 55
designated agency
