unit 5 Flashcards
laws that are made by the COURTS. Based on the concept that it is unfair to treat similar facts differently and diff occasions
common law
non-representation relationship
involves real estate prof working with a party to trade in real estate but not acting on behalf of them
customer
individual who has contacted but not engaged a real estate prof
representation relationship
real estate prof acts for one of the parties to a trade in real estate
client
inidivdual who has entered into a service agreement with a real estate prof
t/f written disclosure should be timely , and should occur before consumers are led to believe that a representation relationship exists
true
If an individual declines to provide written disclosure
you should make a note of the refusal in the file and include date, time and reason
customer acknowledgement form
the consumer chooses to be a customer and signs this form .
For non-representation
written service agreement
the consumer chooses to be a client and signs this form
For representation
if changes are made on a form what needs to happen
must be initialed by client and industry member
what are the five D’S
discuss, determine, document,disclose,do
real estate prof will not provide customers with
any confidential info, services that include judgement,
general obligations to CUSTOMERS
act honestly, exercise care and skill
omission
commission
failing to do something
doing something that shouldn’t be done
type of civil wrong that arises from legal assumption that a party must adhere to a standard of care while performing acts that have the potential to harm another party
tort law
clients can also be called
customers can be called
real estate prof can be called
principle
third party
agent
express authority
describing orally or in writing
implied authority
in order to have implied authority you must have received express authority
widely accepted way of behaving or performing an action
customary authority
law decides whether or not the responsibilities imposed by statue and the law of agency have been fulfilled
creation of law
fiduciary duties
legal duty requiring an agent to act at all times in the best interest of the principle
by estoppel
principal acts in a way that leads a third party to believe an agent said so .
operation of law
agent takes immediate action to save the property or prevent danger
competing interest
interests of client represented by the same brokerage compete with each other. (two buyers want same property)
opposing interest
interest of clients represented by same brokerage oppose one another (seller wants high price, buyer wants lower price)
prevents brokerages from being able to meet their agency responsibilities when representing multiple clients in same transaction
attributed knowledge
1st degree
2nd degree
3rd degree
partners, siblings,children
grandparents, aunts, uncles, halfsibilinngs, step siblings
first cousins, great grandparents , great grandchildren
real estate prof registered with brokerages practicing this do not share info and advice, do not have knowledge of confidential info concerning clients.
designated agency
alters the representation relationship that exist by modifying or abrogating the agency responsibilities that cannot be fulfilled
transaction brokerage
mandate
authorization to act in a particular way
when are fiuciary duties owed by a real estate prof
as soon as they recieve confidental info from client
