Unit 9 Key Terms Flashcards
The relationship between the principal and the agent wherein the agent is authorized to represent the principal in certain transactions.
Agency
One who acts or has the power to act for another.
Agent
A principal-agent relationship in which the real estate professional acts on behalf of the buyer, usually as an agent, with the fiduciary responsibilities to the buyer.
Buyer representation agreement
A real estate professional who is under contract to locate property for a buyer and represent the buyers interest in a transaction
Buyer’s agent
The principal in an agency relationship or other form of representation.
Client
The third party or non-represented consumer for whom some level of service if provided.
Customer
A process that accommodates and in-house sale in which two different agents are involved. The broker designates one agent to represent the seller and one agent to represent the buyer.
Designated agency
A real estate professional authorized by a broker to act as the agent for a specific principal in a particular transaction.
Designated agent or assigned agent or appointed agent
Representing both parties to a transaction. This is unethical unless both parties agree to it, and it is illegal in some states.
Dual agency
An agency relationship based on a formal agreement between the parties.
Express agency
An oral or written contract in which the parties state the contracts terms and express their intentions in words.
Express agreement
One in whom trust and confidence is placed; a reference to a real estate professional employed under the terms of a listing contract or buyer representation agreement.
Fiduciary
A _____ is created under the Law of Agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be his or her agent. A prospective property buyer may authorize a real estate broker to act as the buyer’s agent to find a suitable property.
Fiduciary relationship
Deception intended to cause a person to give up property or a lawful right.
Fraud
One who is authorized by a principal to represent the principal in a specific range of matters.
General agent
If the actions of the parties imply that they have mutually consented to an agency relationship, and ____ is formed.
Implied agency
A contract under which the agreement of the parties is demonstrated by their acts and conduct.
Implied agreement
A hidden structural defect that could not be discovered by ordinary inspection and that threatens a property’s soundness or the safety of its inhabitants.
Latent defect
Includes the following definitions: Agent, Principal, Agency, Fiduciary, Client, Customer, Non-agent.
Law of agency
A contract between an owner (as principal) and a real estate professional (as representative of the owner) By which the real estate professional is employed to find a buyer for the owners real estate on the owners terms, for which service the owner agrees to pay a commission or other form of compensation.
Listing agreement
Occurs when the real estate professional should have known that a statement about a material fact was false.
Negligent misrepresentation
An intermediary between a buyer and a seller, or a landlord and a tenant, who assists one or both parties with a transaction without representing either.
Nonagent or Facilitator or Transaction Broker or Transaction Coordinator or Contract Broker
1) A sum loaned or employed as a fund or an investment, as distinguished from its income or profits. 2) The original amount (as in a loan) of the total due and payable at a certain date. 3) A main party to a transaction- the person for whom an agent works.
Principal
Exaggerated or superlative comments or opinions about a property.
Puffing
Agency relationship in which the agent represents only one party to a transaction
Single agency
One who is authorized by a principal to perform a single act or transaction; a real estate professional is usually a ________ authorized to find a ready, willing, and able buyer for a particular property, when representing a seller, or a _______ authorized to find a suitable property, when representing a buyer.
Special agent
Helps both the buyer and the seller with paperwork and formalities in transferring ownership of real property, but who is not an agent of either party.
Transaction broker
A person empowered to do anything the principal could do personally.
Universal agent
