Unit 9: Real Estate Agency- 8% Flashcards
Agency
The relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions.
Agent
One who acts or has the power to act for another. A 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.
Buyer Representation Agreement
A principal-agent relationship in which the real estate professional acts on behalf of the buyer, usually as an agent, with fiduciary responsibilities to the buyer.
Buyer’s Agent
A real estate professional who is under contract to locate property for a buyer and represent the buyer’s interests in a transaction.
Client
A person who has entered into a brokerage relationship with a broker licensee.
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 particular transaction; also may be called assigned agent or appointed agent.
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 Agreement
An oral or written contract in which the parties state the contract’s terms and express their intentions in words.
Fiduciary
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 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 and conduct.
Latent Defect
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. 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 a 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 form of compensation.
Negligent Misrepresentation
Occurs when the real estate professional should have known that a statement about a material fact was false.
Nonagent
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. Also known as a facilitator, transaction broker, transaction coordinator, and contract broker.
Principal
(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.
Puffing
Exaggerated or superlative comments or opinions.
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 agent authorized to find a suitable property, when representing a buyer.
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.
