Unit 9: real estate agency Flashcards
agency
The relationship between a principal and an agent where in the agent the agent is authorized to represent the principal in certain transactions.
agent
one who acts or has the power to act for another fiduciary relationship 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.
boycott
When individuals or businesses withhold their patronage to a business as a protest or to reduce competitions.
branch office
A secondary place of business apart from the principal or main office from which real estate business is conducted. A branch office usually must be run by a licensed real estate professional.
buyer representation agreement
A principal-agent relationship in which the real estate professional acts on behalf of the buyer, usually as an agent, with fiduciay responsibilities to the buyer.
buyer’s broker
A residential real estate professional who represents prospective buyers exclusively.
buyer’s agent
A real estate professional who is under contract to locate property for a buyer and represent the buyer’s interests in transaction.
common law
The body of law based on custom, usage, and court decisions.
client
The principal in an agency relationship or other form of representation
consent
Expressing or implying permission, approval, or agreement of an action or decision.
conversion
The illegal use of money recieved on behalf of the principal
Customer
The third party or nonrepresented consumer for whom some level of service is provided.
designated agency
A process that accommodates an 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 agent
A real estate professional authorized by a broker to act as the agent for a specific principal in a a particular transaction; also may be called assigned agent or appointed agent.
deisclosure
Relevant information or facts that are know should have been known.
dual agency
Representing both parties to a transaction. This is unethical unless both parties agree to it, and it is illegal in some states.
express agency
An agency relationship based on a formal agreement between the parties.
express greement
An oral writtern contract in which the parties state the contract’s terms and express their intentions in words.
fiduciary relationship
A relationship of trust and confidence, as between trustee and beneficiary, attorney and client, or principal and agent.
fraud
Deception intended to cause a person to give up property or a lawful right.
general agent
One who is authorized by a principal to represent the principal in a specific range of matters..
implied agency
If the actions of the parties imply that they have mutually consented to an agency relationship, an implied agency relationship is formed.
implied agreement
A contract under which the agreement of the parties is demonstrated by their acts an conducts.
latent defect
A hidden structural that could not be discovered by ordinary inspection and that threatens a property’s soundness or the safety of its inhabitations. Some states impose on property sellers and real estate professionals a duty to inspect for and disclose latent defects.
Listing agreement
A contract between an owner (as principal and real estate professional as representative of the owner) by which the real estate professional is employed to find a buyer for the owner’s real estate on the owner’s terms, for which service the owner agrees to pay a commission or other from of compensation.
negligent misrepresentation
Occurs when the real estate professinal should have known that a statement about a material fact was false
Megan’s Law
Federal legislation that promotes the establishment of state registration systems to maintain residential information on every person who kidnaps children’s, commits sexual crimes against children, or commits sexually violent crimes.
ministerial acts
The necessary paperwork and formalities involved in transferring ownership of relax property.
nonagent
an intermediary between a buyer and a seller, or a landlord and tenant, who assists one or both parties with a transaction without representing either. Also known as a facilitator, transaction broker, transaction coordinator and contract broker.
principal
A sum loaned or employed as a fund or an investment, as distinguished from its income or profits.
puffing
Exaggerated or superlative comments or opinions.
rules and regulations
Real estate licensing authority orders that govern real estate professionals’ activities, having the same force an effect as statutory law.
single agency
Agency relationship in which the agent represents only one party to a transaction.
special agent
One who is authorized by a principal to perform a single act or transaction; a real estate professional is usually a special agent authorized to find a ready, willing, and able buyer for a particular property, when representing a seller, or a special authoized to find a suitable property, when represening a buyer.
stigmatized property
A property that has acquired an undesirable reputation due to an event that occurred on or near it such such as violent crime, gang-related activity, illness, or personal tragedy, some states restrict the disclosure of information about stigmatized properties.
subagent
a property that has acquired an undesirable reputation due to an event that occurred on or near it, such as violent crime, gang-related activity, illness, or personal tragedy. Some states restrict the disclosure of information about stigmatized properties.
subagent
A cooperating agent working with the broker on behalf of the broker’s client.
transaction broker
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.
universal agent
A person empowered to do anything the principal could do personally.
