Real Estate Brokerage and Agency Flashcards
Agency
relationship between an agent and a principal
agency coupled with interest
an agency relationship where the broker has interest in buying the property
antitrust laws
designed to protect the free enterprise system by making price fixing illegal
COALD
The acronym for fiduciary duty - Care Obedience Accounting Loyalty Disclosure
commission
payment to a broker for services rendered
cooperating broker
the other broker in the transaction
dual agency
representing both parties in the transaction and must be disclosed and concented to by all parties
employee
someone who works under direct control of employer, employer pays taxes and social security
estoppel
legally prevented from denying that an agency agreement exists
express agreement
contract that is in words
fiduciary
someone placed in a position of trust for someone for something financial
fraud
intentional misrepresentation to take advantage or harm someone
general agent
authorized to represent for a number of transactions
implied agreement
inferred by your actions and conduct of the parties
independent contractor
someone who provides a service for someone not under their direct control, takes care of their own taxes
law of agency
the laws that govern the right and duties of principals and agents
listing agreement
contract between a seller and broker to sell a property in a set period of time
multiple listing
a listing share with other brokers to bring more buyers to the property
principal
the main party to the transaction, the guy who hires the agent
procuring cause of sale
an action that starts a chain of “continuous” events that results in the sale of real estate
puffing
exaggerated opinions or comments about property that are not necessarily true.
ratification
creating an agency relationship in which the principal confirms the conduct of someone who initially acted without authority
ready, willing, able buyer
ready and willing to take the steps, financially ready
special agent
authorized to represent for 1 transactions
subagent
the agent of an agent
assignment
transfer of the rights or duties to a contract
breach of contract
a violation of any of the terms of the contract
consideration
something of legal value that each party brings to the table as a promise to complete the transaction
contingency
something that must happen to make a contract valid
contract
a legally enforceable set of promises that there is a remedy for a default
counter offer
a new offer made in response to the original offer
default
any breach of the terms of a contract
equitable title
the right to gain title from / agreement to closing buyer / agreement to obtain absolute ownership
earnest money
an amount of money deposited by the buyer that applies to the contract if he closes or he forfeits the contracs
escape clause
clause in an agreement that allows an out
executory contract
something remains to be completed - PSA until closing
express contract
in words
implied contract
inferred by your actions
installment contract
owner carried note. Seller holds title until note is paid off
land contract
another name for installment contract, contract for deed. Owner carry
legality of object
contract must be for a legal purpose
legally competent parties
legal age, and sound mind
liquidated damages
an amount of money that is full compensation for a default
novation
substituting a new contract for the old one.
offer and acceptance
meeting of the minds come to an agreement
option
an agreement to keep open for a period of time, a price on a property for a fee
parol evidence rule
no oral evidence can refute a written contract
real estate sales contract
complete terms between a buyer and seller for the purchase of a property
specific performance suit
a legal action to compel a party in default to complete a contract
statute of frauds
real estate contracts must be in writing to be valid
unenforceable contract
something in it makes it where a court would not uphold it
valid contract
fully enforceable
void contract
has no force or effect
voidable contract
could be rejected by a party who would be harmed if it were enforced.
automatic extension
illegal - clause in listing agreement that extends the time of it does not sell in the time
CMA - Comparative Market Analysis
informal appraisal by the broker to help the seller set the listing price
exclusive agency listing
if the broker causes a sale broker gets the fee, if the seller sells himself get the fee
exclusive right to sell listing
no matter who sells the property, including the seller, broker still gets the commission
listing agreement
a contract between a seller and a broker to sell a property within a period of time.
market value
most probable price a property would bring in an open market
multiple listing service
an organization of brokers who share listings to bring amore buyers to the property
net listing
seller desires a net amount anything above that can be commission
option listing
a listing with an option for the broker to buy the property
open listing
any broker who brings a buyer would be paid
special agency
an agency relationship for 1 transaction
unilateral subagency
an offer made to the other brokers to sell the listing and represent the seller with that broker
