Real Estate Agency Flashcards
Common Law
rules established by tradition and court decisions
Statutory Law
laws enacted by the legislature
Administrative Law
rules and regulations created by real estate commissions and departments, as authorized by the legislature
Caveat Emptor
“let the buyer beware”
Agent
the individual who is authorized and consents to represent the interests of another person in dealings with a third person
Principal
individual who hires the agent and delegates to that agent the responsibility of representing the principal’s interests
Agency
the fiduciary relationship in which the agent is held in a position of special trust and confidence by the principal
Client
the principal in a real estate transaction for whom a real estate broker acts as agent; also used when a broker represents someone in a relationship other than an agency
Customer
third party or nonrepresented consumer who is not a principal but for whom some level of service may be provided and who is entitled to fiarness and honesty
Nonagent
(facilitator, intermediary, transactional broker, etc) someone who works with a buyer and a seller assisting one or both parties with the transaction without representing either party’s interests
Express Agreement
the parties formally express their intention to establish an agency and state its terms and conditions; can be oral or written unless required by law
Listing Agreement
(seller representation agreement) a written employment contract that establishes an agency relationship between a real estate seller and a broker
Buyer Representation Agreement
express agency relationship between a buyer and a broker
Implied Agreement
when the parties act as though they have mutually consented to an agency, even if they have not entered into a formal agency agreement; can be created unintentionally, accidentally or inadvertently
Gratuitous Agency
agency that exists even if no fee is involved
Fiduciary Relationship
a relationship of trust and confidence where the broker owes the principal certain duties
Duties of Agency (COLD-AC)
care, obedience, loyalty, disclosure, accounting and confidentiality
Universal Agent
a person empowered to do anything the principal could do personally
General Agent
may represent the principal in a broad range of matters related to a particular business or activity
Special Agent
(limited agent) authorized to represent the principal in one specific act or business transaction only
Single Agency
the agent represents only one party to a transaction
Dual Agency
the agent represents two principals in the same transaction
Designated Agency
(assigned or appointed agency) accomodates an in-house sale in which two sales associates of the same broker are involved
Nonagent / Transaction Broker
not an agent of either party; helps both the buyer and the seller with the necessary paperwork and formalities involved in transferring ownership of real property
Termination of Agency
completion, death or incapacity, destruction or condemnation of property, expiration of terms, mutual agreement, breach, bankruptcy
Puffing
exaggeration of a property’s benefits
Fraud
the intentional misrepresentation of a material fact in such a way as to harm or take advantage of another person
Negligent Misrepresentation
when the real estate professional should have known that a statement about material fact was false; lack of awareness of an issue is no excuse
Culpable
subject to liability
Latent Defect
a hidden structural defect that would not be discovered by ordinary inspection
Stigmatized Properties
those that society has found undesirable because of events that occurred there or because of proximity of the property to a known nuisance
Megan’s Law
promotes the establishment of state registration system to maintain residential information on every person who kidnaps children, commits sexual crimes against children or commits sexually violent crimes
