Real Estate Agency Flashcards
Real estate agency relationships are governed by
Common Law
hired by a principal to act on the principal’s behalf
An Agent
fiduciary relationship in which the agent is held in a position of special trust and confidence by the principal.
Agency
In a real estate transaction, the principal is the
client
the nonrepresented party for whom some level of service is provided and who is entitled to fairness and honesty.
customer
also known as a facilitator, intermediary, transaction broker, transaction coordinator, or contract broker
nonagent
assists one or both parties with the transaction without representing either party’s interests and often is subject to specific statutory responsibilities.
nonagent
The relationship between principal and agent must be
Consentual
express agreement between agent and principal
Express agency
agency created when the actions of the parties indicate that they have mutually consented to an agency
Implied agency
agency may exist even if no compensation is involved
gratuitous agency.
six common-law fiduciary duties can be remembered as COLD-AC
Care Obedience Loyalty Disclosure Accounting Confidentiality
empowered to do anything the principal could do personally.
universal agent
represents the principal in a broad range of matters.
general agent
represents the principal in one specific act or business transaction only, under detailed instruction.
special agent
one in which an agent represents only one party in a transaction.
single agency
represents a buyer as an agent to find property that meets the buyer’s specifications, as set out in the buyer representation agreement.
Buyers broker
one in which an agent represents two principals in the same transaction
Dual agency
Dual agency, where allowed by state law, requires what from both parties
Informed consent
may occur inadvertently, can result in rescission of the sales contract, forfeiture of a commission, a lawsuit for damages, and possibly license suspension or revocation.
undisclosed dual agency
sales associate authorized by the broker to represent one party to a transaction, while a different sales associate in the same firm represents the other party to the transaction.
designated agent
cannot be revoked by the principal or terminated upon the principal’s death.
agency with interest
legal exaggeration of a property’s benefits,
puffing
the intentional misrepresentation of a material fact to harm or take advantage of another person.
fraud
when a real estate professional should have known that a statement about a material fact was false and the real estate professional’s misrepresentation was due to culpable (careless) negligence rather than simple (accidental) negligence.
negligent misrepresentation
requires states to make available to the public information about how they can determine where persons convicted of sexual offenses live in the community.
megans law
The basic framework of the agency law that governs the legal responsibilities of real estate brokers to the people they represent is known as
common law
Real estate agency relationships are governed by which kinds of law?
Common law, statutory law, and administrative law
A real estate agent’s duty of confidentiality usually extends for how long?
The period of time specified in state law
The agent is held in a position of special trust and confidence by the principal when the agent is considered
fiduciary
In a real estate transaction, the term fiduciary typically refers to
the agent’s relationship to the principal.
In MOST situations, the relationship between real estate broker and seller is what type of agency?
special
Designated agency is MOST likely to occur when
the buyer and the seller are represented by the same company.
A facilitator functions as
nonagent
The rules established by tradition and court decisions are found in
common law
Properties that are considered undesirable because of events that occurred there or because a known sex offender lives in the area are considered
stigmatized properties
When the broker should have known that a statement about a material fact was false, it is considered
negligent misrepresentation
A broker taking a listing is generally
a special agent
