Vocabulary Study Cards Ch. 7 Flashcards
Agency
The relationship that exists in which one person is empowered to act on behalf of another.
Principal/Client
The principal is the person for whom the agent acts.
Agent
The party who acts on behalf of the principal. Can be a person, such as an agent, who actually lists the property on behalf of the firm, or the agent could be the firm itself.
Subagent/Subagency
The agent of the agent.
Third Party
The party that you do not represent.
Fiduciary
A relationship based on trust.
Customer
The person the agent does not represent, although the agent may have a relationship with this person.
Facilitator/Transactional Broker
Not allowed in N.C. but it is a non-agency relationship in which the licensee assists buyers and seller in a transaction but does not actually represent either party.
Universal Agency
Provides an agent the ability to have all-encompassing powers to make decisions and act on behalf of the principal.
General Agency
Gives the agent a broad scope of authority on the agent, but the authority is not as broad as the universal agency and is limited to some particular field.
Special or Limited Agency
Relationship based on one well-defined task. Once the task or time period has been fulfilled, the agency relationship will no longer exist.
Dual Agency Agreement
The firm is actually representing both the buyer and the seller.
Express Agency
Any oral or written agreement establishing a trust relationship between a principal and agent.
Estoppel
Occurs when an individual claims incorrectly that a person is his agent and a third party relies on the incorrect representation.
Implied Authority
Based on custom and may very well be the result of an expressed agreement.
Apparent Authority
Occurs when an agent gives the impression that she has certain authority that a third party might reasonably rely upon, when in fact the agent does not actually hold such authority.
Buyer Agency Agreement
The buyer is the broker’s principal and the agency relationship is between the buyer and the broker.
Breaches Agencies Duties
Termination of a listing agreement based upon an injured party of either the agent or principal.
First Substantial Contact
The flexible point in time in which an agent and a prospective buyer discuss in any detail the buyer’s interest in purchasing property.
Loyalty
Requires that the agent put the client’s interest above his own.
Disclosure of Information
The prompt and total communication to the principal by the agent of any information that is material to the transaction for which the agency was created.
Willful Misrepresentation
Intentionally informing the third party of something the agent knows to be false.
Negligent Misrepresentation
Unintentionally informing the third party of something that is false but the agent does not know to be false because he did not exercise proper skill, care, or diligence.
Willful Omission
Deliberately failing to inform the third party of a known defect in the property regardless of whether the agent was asked or not.
Negligent Omission
Unintentionally failing to inform the third party of something that the agent should have known but did not know because he did not exercise proper skill, care, or diligence. The fact the agent was not asked a question is irrelevant.
Omission
The failure to disclose information.
Caveat Emptor
Let the buyer beware. Does not relieve agent’s obligation of disclosing material facts.
Civil Penalty
Results from a suit for monetary damages or injunctive relief. If an agent’s action costs a client any financial loss, the injured party may sue to recover damages.
Misdemeanor
A criminal violation punishable by a fine and/or imprisonment. It is not considered as such a severe offense like a felony.
Employment Authority
A document or contract giving a real estate agent the right to act for a principal with certain specific guidelines in a real estate contract.
