Key Terms - Chapter 7 Flashcards
agent
the party who acts on behalf of the principal
apparent authority
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
breach of duty
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
buyer agency agreement
the buyer is the broker’s principal (client)
the agency relationship is between the buyer and the broker
caveat emptor
Literally “let the buyer beware:’ Does not relieve agent’s obligation of disclosing material facts.
civil penalty
Payment or redress for a private civil wrong imposed by a civil, not a criminal, proceeding.
client
The principal, to whom the agent owes fiduciary duties.
customer
the person the agent does not represent
disclosure of information
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.
dual agency agreement
the firm represents both buyer and seller
employment authority
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).
estoppel
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
express agency
when the actions of the principal and the agent indicate that they have an agency agreement
facilitator
not allowed in NC
the licensee assists buyers and sellers in a transaction but does not actually represent either party
fiduciary
the agent is entrusted to represent the best interest of the principal client