Section 4 - Chapter 4 Flashcards
Agency is:
special word to describe relationship between agent, buyer, seller, and transaction itself; consumer has given consent to a real estate licensee to represent them in a real estate transaction
agency is governed by two types of law:
common and statutory (statutory in illinois)
law of agency defines
rights and duties of principal and the agent
“general agency”
relationship between broker and sponsoring broker
an agent is:
the individual who is authorized to represent another; sponsoring broker is agent and shares responsibilities with licensees
brokerage agreement is:
verbally or in writing, agent/firm to represent consumer and to be paid
client
person or entity that a licensee represents
consumer
a person or entity for whom an agent provides services, which are only to be provided by a licensee, or a person or entity who seeks such services from a licensee
customer
person or entity for whom a licensee is providing services but who is not represented by the licensee in an agency relationship
an agent works:
for the client and with the customer
under the common law of agency, an agent owes the principal:
duties of care, obedience, loyalty, disclosure, accounting, and confidentiality
commingling:
grouping escrow funds with licensee’s personal or business funds; illegal
conversion;
practice of licensee using escrow funds as his own money; illegal
puffing:
exaggeration of a property’s benefits
fraud:
intentional misrepresentation of a material fact
negligent misrepresentation:
when the licensee should have known that a statement about a material fact was false
latent defect:
a structural defect not normally uncovered during an ordinary inspection
exclusive brokerage contracts must
be in writing
gratuitous agency is:
agency existing even if no fee involved
termination of agency via:
death/incapacity of either party, destruction/condemnation of property, expiration of terms of agency, mutual agreement by all parties to the contract, breach by one of the parties in which the breaching party may be liable for damages, operation of law (like bankruptcy), completion of project
agency coupled with interest:
agency where agent has an interest in the property
universal agent:
person empowered to do anything the principal could do personally
a general agent:
represents the principal in a variety of matters
a special agent:
authorized to represent principal in one specific act or business transaction only
designated agent:
person authorized by sponsoring broker to act as the agent of a specific principal
single agency:
when an agent represents only one party in a transaction
dual agency
agent represents two principals in the same transaction
