Chapter 3 Agency, brokerage and ethical considerations Key terms part 1 Flashcards Preview

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Flashcards in Chapter 3 Agency, brokerage and ethical considerations Key terms part 1 Deck (17):
0

Agent

One authorized to act for another.

1

Antitrust laws

Regulations prohibiting price-fixing

2

Attorney-in-fact

A person authorized to act under a power of attorney.

3

Broker

One authorized to act for another in real estate.

4

Buyer's broker

An agent who takes a buyer as the principal.

5

Client

Principal who engages an agent.

6

Commission

A brokers usual compensation.

7

Consumer information statement.

Written explanation of a business relationship.

8

Customer

Third-party in a transaction not the principal.

9

Disclosed dual agent

One who works for both the seller and the buyer.

10

Disclosure

Revealing to another any pertinent information.

11

Dual agency

Brokers taking both parties as principles.

12

Employee

A sales person who's broker pay Social Security, regulates hours, etc.

13

Fiduciary

One who gives special duties to another.
Fiduciary responsibilities include care, obedience, accounting, loyalty (confidentiality), and disclosure.
These duties are easily remembered by the acronym COALD.

14

Fiduciary relationship

The trust and confidence between parties.
This falls within the requirements of the law of agency.
The agent is responsible for the money and/or property of others.

15

Fraud

Intentional or unintentional misleading of another, who is harmed by these actions.

16

General agent

A person empowered to represent the principal in a broad range of matters and actions.