Key Terms - Chapter 7 Flashcards

1
Q

agent

A

the party who acts on behalf of the principal

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2
Q

apparent authority

A

occurs when an agent gives the impression that she holds certain authority that a third party might rely upon, when in fact the agent does not actually hold such authority

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3
Q

breach of duty

A

agency can be terminated by either the principal or the broker for breaches of duty

loyalty
obedience
confidentiality
skill, care, and diligence
disclosure of information
accounting
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4
Q

buyer agency agreement

A

the buyer is the broker’s principal (client)

the agency relationship is between the buyer and the broker

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5
Q

caveat emptor

A

Literally “let the buyer beware:’ Does not relieve agent’s obligation of disclosing material facts.

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6
Q

civil penalty

A

Payment or redress for a private civil wrong imposed by a civil, not a criminal, proceeding.

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7
Q

client

A

The principal, to whom the agent owes fiduciary duties.

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8
Q

customer

A

the person the agent does not represent

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9
Q

disclosure of information

A

The prompt and total communication to the principal by the agent of any information that is material to the transaction for which the agency was created.

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10
Q

dual agency agreement

A

the firm represents both buyer and seller

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11
Q

employment authority

A

A document or contract giving a real estate agent the right to act for a principal with certain specific guidelines in a real estate contract (i.e., a listing contract or a buyer’s agency contract).

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12
Q

estoppel

A

occurs when an individual claims incorrectly that a person is his agent and a third party relies on the incorrect information

the person making the incorrect statement is stopped and prohibited from later claiming that the agency relationship does not exist

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13
Q

express agency

A

when the actions of the principal and the agent indicate that they have an agency agreement

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14
Q

facilitator

A

not allowed in NC

the licensee assists buyers and sellers in a transaction but does not actually represent either party

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15
Q

fiduciary

A

the agent is entrusted to represent the best interest of the principal client

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16
Q

first substantial contact

A

A flexible standard that typically occurs when an agent and a prospective buyer discuss in any detail the buyer’s interest in purchasing property.

17
Q

general agency

A

Full authority over one particular field of business or aspect of personal affairs of the principal (e.g., a property manager managing an apartment complex for the owner).

18
Q

implied authority

A

based on custom and may very well be the result of an expressed agreement

19
Q

loyalty

A

An absolute duty of an agent to a principal to serve the best interest of the principal.

20
Q

misdemeanor

A

A criminal violation punishable by a fine and/or imprisonment. It is not considered as severe an offense as a felony

21
Q

negligent misrepresentation

A

An unintended misrepresentation of a material fact that the party did not make knowingly but should have known the truth by exercising due skill, care, and diligence

22
Q

negligent omission

A

An unintended failure to communicate a known material fact. An unintended failure to communicate unknown material fact by a person responsible for disclosing it because this person did not exercise the due skill, care, and diligence that would have revealed the fact.

23
Q

omission

A

The failure to disclose information.

24
Q

principal

A

the person for whom the agent acts

25
Q

special or

limited agency

A

limited to one well-defined task one time

26
Q

subagent

A

the agent of the agent

27
Q

third party

A

the party that you do not represent

28
Q

transactional broker

A

Not allowed in North Carolina

a type of “nonagency” relationship in which the licensee assists buyers and sellers in a transaction but doesn’t represent either party

29
Q

universal agency

A

provides for an agent to have all-encompassing powers to make decisions and act on behalf of the principal

30
Q

willful misrepresentation

A

A deliberate false statement concerning a material fact by one who knows the true fact and is responsible for disclosing it.

31
Q

willful omission

A

A deliberate failure to inform a party of a known material fact when one has an obligation to that party to relay all material facts.