Real Estate Test Unit 9 Flashcards
agency
the relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions
agent
one who acts or has the power to act for another. a fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be his or her agent. a prospective property buyer may authorize a real estate broker to act as the buyer’s agent to find a suitable property
boycott
when individuals or businesses withhold their patronage to a businesss as a protest or to reduce competition
branch office
a secondary place of business apart from the principal or main office from which real estate business is conducted. a brunch office usually must be run by a licensed real estate professional
buyer representation agreement
a principal-agent relationship in which the real estate professional acts on behalf of the buyer, usually as an agent, with fiduciary responsibilities to the buyer
buyer’s broker
a residential real estate professional who represents prospective buyers exclusively
buyer’s agent
a real estate professional who is under contract to locate property for a buyer and represent the buyer’s interests in a transaction
common law
the body of law based on custom, usage, and court decisions
client
the principal in an agency relationship or other form of representation
consent
expressing or implying permission, approval, or agreement of an action or decision
conversion
the illegal use of money received on behalf of the principal
customer
the third party for nonrepresented consumer for whom some level of service is provided
designated agency
a process that accommodates an in-house sale in which two different agents are involved. the broker designates one agent to represent the seller and one agent to represent the buyer
designated agent
a real estate professional authorized by a broker to act as the agent for a specific principal in a particular transaction; also may be called assigned agent or appointed agent
disclosure
relevant information or facts that are known or should have been known
dual agency
representing both parties to a transaction. this is unethical unless both parties agree to it, and it is illegal in some states
express agency
an agency relationship based on a formal agreement between the parties
express agreement
an oral or written contract in which the parties state the contract’s terms and express their intentions in words
fiduciary relationship
a relationship of trust and confidence, as between trustee and beneficiary, attorney and client, or principal and agent
fraud
deception intended to cause a person to give up property or a lawful right
general agent
one who is authorized by a principal to represent the principal in a specific range of matters
implied agency
if the actions of the parties imply that they have mutually consented to an agency relationship, an implied agency relationship is formed
implied agreement
a contract under which the agreement of the parties is demonstrated by their acts and conduct
latent defect
a hidden structural defect that could not be discovered by ordinary inspection and that threatens a property’s soundness or the safety of its inhabitants. some states impose on property sellers and real estate professionals a duty to inspect for and disclose latent defects
