Unit 10 Vocabulary Flashcards
Agent
A real estate professional can represent a client as an
fiduciary
ut in addition to the parties’ assumptions and expectations, the real estate professional acts as a
agency
relationships in the real estate business, including that of sales associate to the employing broker
Principal
the individual who hires the agent and delegates to that agent the responsibility of representing the principal’s interests. In a real estate transaction in which an agency relationship is established, the principal is the buyer or the seller or the landlord or the tenant. The broker is the principal in dealings with sales associates.
Client
the principal in a real estate transaction for whom a real estate broker acts as agent. The term client is also used when a broker represents someone in a relationship other than an agency.
Customer
the 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 fairness and honesty. The customer may be represented by a separate agent.
Nonagent
also referred to as a facilitator, intermediary, transactional broker, transaction coordinator, or contract broker) someone who works with a buyer and a seller (or a landlord and a tenant), assisting one or both parties with the transaction without representing either party’s interests. Nonagents are often subject to specific statutory responsibilities. A broker may be considered a nonagent when dealing with a customer (someone other than the person the broker represents).
implied agency.
agency relationship may also result from the parties’ behavior by an
express agreement
which the parties formally express their intention to establish an agency and state its terms and conditions.
listing agreement
An agency relationship between a real estate seller and a broker is generally created by a written employment contract, commonly called a
buyer representation agreement
An express agency relationship between a buyer and a broker is created by a
implied agreement.
An agency may also be created by
buyer’s agent
could instead be paid directly by the buyer
fiduciary relationship
of trust and confidence means that the real estate broker owes the principal certain duties.
universal agent
is 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, is authorized to represent the principal in one specific act or business transaction only
single agency
agent represents only one party to a transaction
dual agency,
the agent represents two principals in the same transaction
Designated agency
also called assigned agency or appointed agency, is available in some states to accommodate an in-house sale in which two sales associates of the same broker are involved.
designated agent
or designated representative, is the only sales associate in the company who has a fiduciary responsibility toward the principal.
transaction broker
facilitator, transaction coordinator, or contract broker) is not an agent of either party
puffing
Exaggeration of a property’s benefits is called
Fraud
is the intentional misrepresentation of a material fact in such a way as to harm or take advantage of another person.
negligent misrepresentation
occurs when the real estate professional should have known that a statement about a material fact was false.
