Unit 3-A Flashcards
In an agency relationship, the agents fiduciary duty to the principal to strictly account for all the monies received
Accounting
A relationship of trust between the principal and the agent in which the agent has the authority to act on behalf of the principal. Agency creates a fiduciary duty on the part of the agent to act in good faith
Agency
One who represents a principal. In AZ the employing broker is the agent of the principal.
Agent
A person licensed under the laws of the state to transact real estate business on behalf of another (acting as an agent) In AZ, a broker must have 3 yrs of experience and can be designated broker or an associate broker
Broker
A buyer or seller - or tenant or landlord - who is represented by an agent
Client (principal)
The protection of the client’s confidential information. This duty lasts even after the agency relationship has terminated
Confidentiality
A party to a transaction who is not the principal
Customer
Any information or report given to a party in a transaction
Disclosure
An entity licensed by the AZ dept. of Real Estate to operate a brokerage business
Employing Broker
A person in a position of trust, help by law to high standards of good faith and loyalty
Fiduciary Duties
A fiduciary duty that requires a real estate licensee to put the principal’s interest above all others’ interest included their own
Loyalty
Any fact that is relevant to a person making a decision; agents must disclose material facts to the buyers
Material Fact
A fiduciary duty that requires a licensee to follow the (legal) instructions of the principal, obey the parameters of the agency relationship, and not stray beyond the scope of authority
Obedience
Customer
Principal
A fiduciary duty that requires agent to protect clients from foreseeable hard, act in accordance with the high standards set by their profession, an perform their duties as promised.
Reasonable Skill and Care
