Key Terms Chapter 2 part 2 Flashcards
Sub-agent
An agent of a person already acting as an agent of a principal.
Misrepresentation
Making an intentionally false statement to induce someone to contract.
Vicarious Liability
A situation in which one party is held partly responsible for the unlawful actions of a third party.
Expressed Agency
An actual agency created by written or oral agreement between the principal and the agent.
Implied Agency
Form of agency that occurs when the words and actions of the parties indicate that there is an agency relationship.
Estoppel
The principle which prevents a person from asserting something contrary to what is implied by a previous action or statement of that person.
Price Fixing
Conspiring to establish fixed fees or prices for services or products.
Group Boycott
An agreement between members of a trade to exclude other members from fair participation in the trade.
Market Allocation
An agreement between members of a trade to refrain from competition in specific market areas.
Tie-in Arrangement
A contract where one transaction depends upon another.
Dual Agency
Representing both principals (seller and buyer) to a transaction.
Designated Sales Agent
Appointing one or more individual agents in a firm to represent only the interests of the seller and one or more different individual agents in the firm to represent only the interests of the buyer when a firm has an “in-house” dual agency situation.
Seller’s Agent
An agent who represents the seller of real property.
Buyer Agent
An agent who represents the buyer of real property.
Broker’s Agent
A broker’s agent is an agent that cooperates or is engaged by a listing agent or a buyer’s agent (but does not work for the same firm as the listing agent or buyer’s agent) to assist the listing agent or buyer’s agent in locating a property to sell or buy, respectively, for the listing agent’s seller or the buyer agent’s buyer.
Landlord’s Agent
A person who has oral or written authority, either express or implied, to act for or on behalf of a landlord.
Tenant’s Agent
A licensed real estate agent who acts on behalf of a tenant in a commercial property transaction.
Informed Consent
An agreement to do something or to allow something to happen only after all the relevant facts are disclosed.
Undisclosed Dual Agency
A relationship in which the real estate agent is found to be the agent of both the buyer and seller in a transaction, but without the knowledge and informed consent of both parties. Undisclosed Dual Agency is illegal in all states.
Designated Sales Agent
Appointing one or more individual agents in a firm to represent only the interests of the seller and one or more different individual agents in the firm to represent only the interests of the buyer when a firm has an “in-house” dual agency situation.
Advance Consent to Dual Agency
The seller or buyer agrees to dual agency before it occurs by indicating the same on the agency disclosure form.
Confidentiality
An agent is obligated to safeguard his/her principal’s lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal’s bargaining position.
Cooperating Agent
A real estate agent who sells a property. The selling agent may be (1) the subagent or listing agent of the seller; (2) a buyer’s agent; or (3) a dual agent. Also called a selling agent or participating agent.
Disclosure
The release of relevant information about a property that may influence the final sale, especially if it represents defects or problems.
Loyalty
An agent’s duty to place the client’s interest above those of all others, including the agent’s own self-interest.
Obedience
This fiduciary relationship obligates the agent to act in good faith at all times, obeying the client’s instructions in accordance with the contract.
Reasonable Care
The degree of caution and concern for the safety of himself/herself and others an ordinarily prudent and rational person would use in the circumstances. This is a subjective test of determining if a person is negligent, meaning he/she did not exercise reasonable care.
