Essential Terms and Agency Flashcards
License Law
Chapter 339 of the Missouri Revised Statutes
Licensee
Any person who performs ANY act, acts, or transactions as a licensed real estate salesperson or a licensed broker under the Missouri Real Estate License Code
Real Estate Broker
The intermediary in real estate who is paid to sell, exchange, purchase, manage, lease real estate, or other actions relating to real estate .
Real Estate Salesperson
The intermediary in real estate who is paid to sell, exchange, purchase, manage, lease real estate, or other actions relating to real estate. This is the same as the broker except a salesperson cannot exist independently of a broker.
Owner of Property
Someone who owns property. They can sell their property without a license. Remember this by thinking about Exclusive Seller Agency agreements.
Real Estate
Interest in a land or estate. Not to be confused with real property which is strictly about land and improvements attached to land. This also includes Leases of real property, which is technically personal property.
Adverting
Any communication between someone with ANY type of real estate license or on a real estate licensee’s behalf.
Business cards, signs, letterheads, radio, TV, etc.
The Commission
AKA Missouri Real Estate Commission
AKA MREC
Correspondance
Any written or electronic communication excluding those which are “ephemeral in nature”
Exclusions include like snapchat videos
Commercial Real Estate
Real estate that is for commercial use, like retail properties or factories. This excludes residential propertys with less than 5 units and agriculture & horticultural properties.
Residential Real Estate
Real estate meant for living by people. Like condos, coops, or vacant land designed for living. This excludes residential properties with more than 4 units.
Confidential Information
Information that is meant to be kept secret because the client designated them as such or because Missouri Law requires they be kept secret. Think of things that can compromise your client’s buying position that ARE NOT material fact.
Customer
Term used when talking about a 3rd party to a fiduciary relationship. This 3rd party is someone who is involved with the transaction and is owed some services, but is not a client nor agent in the specific fiduciary relationship
Designated Broker
A broker who acts on behalf of a bigger entity, like theyre appointed by a broker or some other bigger company. They provide broker services. Don’t confuse with designated agent, someone who is appointed by the designated broker to represent a client.
Transactional Broker
Licensee who acts as a neutral 3rd party in a transaction. They have no fiduciary relationship in the context of that particular transaction they are supporting. They must get consent and give notice to both seller and buyer to begin their job.
Designated Transaction Broker
The broker who is named to assist parties as a transaction broker, neutral 3rd party.
Designated Agent
Licensee named by broker to be a limited agent for a client. No dual agencies for these agents
Agent
Someone who consents to and acts for the benefit of another, the principal, in an agency relationship. In real estate, this is often your real estate agent
Dual Agency
Licensee represents two parties to a single transaction. Must have written consent from all parties in the transaction.
Exclusive Brokerage Agreement
Written agreement where broker has sole right to act as agent of a client. This means that the broker gets a sale if anyone, besides the client, gets a sale finished.
Ministerial Acts
Acts that can be done without creating an Implied Agency.
Some examples:
Answering calls about pricing, property, location.
Attending Open House and answering home questions
Scheduling view appointments
Answer general inquiries about services and properties
No License Required for these folks
Some people can do real estate business without a license if it involves their property. These people can include:
Lawyers, auctioneers, estate administrators, federal agency representatives, public utility representatives, banks, developers, company employees, and neighborhood associations for some cases.
Single Agent
Agent who represents only one party in a transaction
Buyer’s Agent
Single Agent of Buyer
Landlord’s Agent
Single Agent of landlord
Seller’s Agent
Single Agent of Seller
Tenant’s Agent
Single Agent of Tenant
