Principle 6 Flashcards
Agent
Represents a principal in dealing with a third person
Agency
The act of representing someone else
Special agent
Is one appointed to carry out a single act or transaction.
Principal
Can be anyone who has the ability to enter into a contract.
Cooperating broker
Are agents who try to sell a property that is currently listed for sale by a broker but who work for someone other than the listing broker.
Subagent
Any agent appointed by the previous agent to act on their behalf due to their absence.
Cooperating split
The cooperating broker’s share of the commission.
Multiple listing service (MLS)
Is an organization of real estate agents that receives information from individual members on their property listings and makes that information available to participating members.
Single agency
An agent represents only one principal.
Dual agency
The same agent represents two principals in the same transaction.
Before entering into dual agency you must what?
Inform both parties and obtain their written consent to the dual representation.
Attorney at law
Is someone licensed by the state to practice law.
Attorney-in-fact
Is an agent who has been granted a power of attorney by a principal.
Power of attorney
Authorizes an agent to act in the capacity of the principal.
Express agreement
Is established by an act of the parties that both parties acknowledge.
Commingling
- Occurs if the agent places client or customer funds in the agent’s personal account.
- placing funds in inappropriate account instead of a trust account
Escrow
The deposit instruments, funds (with instructions), or both with a neutral third party to carry out the provisions of an agreement or a contract
Open listing
- Also called a nonexclusive listing, provides for a commission to the broker if the broker is the procuring cause of a sale.
- only the first person to get a willing buyer gets the commission
Exclusive agency listing
Property owner cannot list the property with another broker at the same time. If another broker finds a buyer the seller’s broker can still get a share of the commission.
Exclusive authorization and right-to-sell listing
The broker is entitled to a commission no matter who sells the property, even if the owner appears to find a buyer without the broker’s assistance.
Multiple listing clause
Part of the exclusive authorization and right-to-sell listing allows the property to be made available to other brokers participating in the MLS.
Net listing
A listing agreement providing that the agent may retain as compensation for her services all sums received over and above a net price to the owner.
Option listing
- gives the broker the right to purchase the property.
- if the option is exercised the principal should be informed of the broker’s profit in the transaction and agree to it in writing.
Material Facts
Can be anything that would affect the value or desirability of the subject property.
Recovery account
-established to help compensate victims of fraud, misrepresentation, deceit, or conversion of trust funds when they cannot collect a court-ordered judgement against a real estate licensee.
Ways to terminate an agency
- Fulfillment of the agency agreement
- Expiration of the term of the agreement
- Destruction of the property
- Death of either the principal or agent
- Incapacity of the agent to act as an agent, or incapacity of the principal to enter into a contract
- agreement of the principal and agent
- by operation of law, as in a bankruptcy
