Real Estate Brokerage Flashcards
Agency
The relationship between one person ( principal ) and another ( agent ) who is authorized to act in the first person’s behalf
Accountability
One of the duties of an agent of the law of agency that deals with the handling of escrow funds
Agent
What it was authorized to act for another ; who is called the principal
Attorney-in-fact
One who is authorized to act for another. In real estate transactions this is done through a power of attorney. Does not need to be in attorney-at-law
Broker
An individual who for consideration sells, rents, exchanges or negotiates options of real estate
Buyer agent
A real estate broker who represents the buyer not the seller and therefore has a fiduciary responsibility to the buyer
Care
At part of the law of agency that requires that the agent use his /her expertise in the principles best interest
Client
The one who has hired an agent to perform a service for a fee
Co- mingling of funds
To combine deposit funds received as an agent with brokers business or personal funds
Confidentiality
The part of the responsibility of loyalty and agency law that deals with matters of disclosure. The broker must disclose material facts about the property but not personal facts about the principle that may not be in the principals interest
Customer
Third-party in law of agency between a principal and agent for whole some services is performed.performed. When a seller( principal ) hires a broker ( agent ) to sell a house; the buyer is the customer
Designated agent
Agent appointed by another agent, within an office to represent either the seller Or buyer.
Disclosure
One of the duties of the agency( also known as duty of notice) that requires an agent to keep his or her principal informed of any matter that is in the principals interest
Disclose Dual agent
An agent of both parties to a Transaction who represents each one that has informed each of this relationship
Duel agent
An agent of both parties to a transaction represents each one
Escrow agent
A Neutral third-party in a transaction who holes documents or monies until certain acts are completed by the individuals involved in a contract
Exclusive office listing
Owner gives one broker l the right to sell a parcel of property but retains the right to sell himself without paying a commission
Exclusive right to sell
And only gives one broke with the right to sell a parcel property an agrees to pay commission went sold by anyone including owner.
Express agency
An agency relationship created by mutual consent between a principal and agent. Maybe either oral or written.
Facilitator
An agent who assist the seller and buyer in reaching an agreement but does not represent either the seller or buyer in the transaction
Fiduciary
One who is in a position of trust and confidence
General agent
One who represents a principle within a single broad area. Example property manager for an apartment building
General Power of attorney
One who is authorized to act for another in all matters ( also known as universal power of attorney )
Implied agency
An agency that results by deduction or inference as opposed to an Expressed (verbal or written ) Relationship
Imputed notice
Knowledge by an agent that is binding on the principal do to the principa-l agent relationship even though the principal does not have first hand knowledge. Example notice under a purchase and sale agreement”As to buyers ability to obtain financing
Independent contractor
One who is employed to perform an act but is not controlled as to how they accomplished the objective. Independent contract is not an employee and as such in real estate brokerage the principal( broker ) does not have to withhold taxes and Social Security
Law of agency
The relationship between one person ( principal ) and another ( agent ) who is authorized to act in the first person’s behalf
Listing
Contract between Seller and broker for the sale of real property for a commission
Loyalty
The part of law of agency that requires that the agent must act in the best interest of the principle. Even when that is not in the best interest of the agent
Multiple listings
A listing Place in a multiple listing service ( MLS )where member brokers agree to share listings with other one
Net listing
A listening where the seller is to receive a certain amount and the broker retains anything above that amount as a fee. ( illegal in Massachusetts
Notice- Duty of notice
One of the duties of agency that requires an agent to keep his her principal informed of any matter that is in the principles Interest( also known as duty of notice)
Obedience
The part of the law of the agency that requires that the agent follow the principles direction( Requirement to violate the law is excluded )
Open listing
A type of listing where two or more Brokers given a listing. The selling broker receives the total commission. The seller remains the right to sell
Option listing
A listing to sell property where broker retains the right to purchase the property
Power of attorney
A written document authorizing one person to act for another to What ever extent specified
Principal
- One of the main parties in a transaction (As in seller and buyer )
- in an agency relationship one who engages another( the agent ) to act in his/her behalf.
- in financial matters the amount of debt owed which added to the interests constitute the amount paid
Procuring cause
The effort that brings about the desired result. In real estate the broker in and open listening that brings about the ready willing and able buyer is the procuring cause and is entitled to the commission
Puffing
Exaggerated representation
Realtor
A registered trademark that may be used only by a licensed broker or salesman who is a member of the state and local real estate Board chartered by the national Association of realtors
Seller’s agent
A real estate broker who represents the seller not the buyer and therefore has a Fiduciary responsibility to the seller
Sherman antitrust act
Federal Act passed in 1890 aimed at prohibiting monopolies and promoting competition in the marketplace
Single agent
One who represents one principal ( buyer or seller) but not both
Special power of attorney
One who is authorized to act for another in a limited range of matters
Sub agent
One acting as an agent for someone who is already acting as an agent for a principal. In a co-broke situation where both brokers are sellers agents( the listing broker is the agent of the seller principal and the selling agent is the subagent
Tristram’s Landing
Massachusetts legal case that Defined” procuring cause “ in matters of real estate brokerage
Undisclosed dual agent
Agency with a real estate broker or salesperson represents both the Buyer and seller but has not disclose this to both parties ; illegal in Massachusetts
Vicarious liability
The risk that a buyer or seller assumes when extending sub agency Representation in a transaction
Estoppel
Agency established by a third party has a reason to believe that, do to actions of two parties in agency relationships exist. The court could then stop estoppel the principle from the Deying agency
Special Agent
One who is authorized to perform one specific task
Limited agency
A listing agreement between seller and broker to sell a parcel property would be a special agency and the broker would be a special agent also known as limited agency
