Unit 4 Flashcards
Real Estate Agency
special relationship between broker and parties involved in transaction, governed by statutory law Art 15 of Real Estate Act of 2000
Agents and Clients
Agents - hired
Clients - those who hire
General Agency
relationship between broker and sponsoring broker
Agent
Individual authorized to represent interest of another person; principal hires the agent
Agency
Relationship in which consumer has given consent (implied or express) to licensee to represent them in real estate transaction
Brokerage Agreement
Agreement to provide brokerage services and receive compensation for those services
Client
person or entity licensee represents
Compensation
Payment for executing services
Consumer
a person for whom an agent provides services
Confidential info
info that can’t be shared without client authorization; must be shared by law or revealed by another person
Customer
person for whom services provided but not represented in agency relationship - NO advice or counsel given
E & O Insurance
Errors and omissions insurance purchased by sponsoring broker
IL Residential Real Property Disclosure
Required for seller to complete in 1-4 unit buildings
Accounting
Licensees must provide copies of signed sales contracts and documents within 24 hours; funds must be accounted for and specifically handled
Confidentialtity
Key element in fiduciary duties; can’t disclosure anything that would harm principal’s bargaining power