Chapter 3: Agency, brokerage and ethical considerations Key Terms Part 2 Flashcards Preview

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Flashcards in Chapter 3: Agency, brokerage and ethical considerations Key Terms Part 2 Deck (16):
1

Independent contractor

Sales person who sets own hours, pays own estimated income taxes, etc.

2

Kickback

Illegal sharing of commission, to seller or any person.

3

Latent defect

A problem not discoverable by normal prudent inspection.

4

Law of agency

Rules governing conduct of agents

5

Listing agreement

Contract by which the owner retains a broker to find a buyer.

6

Meeting of the minds

Agreement between a buyer and seller on major points.

7

Megan's Law

Legislation requiring that communities be alerted to the presence of sex fenders.

8

Power of attorney

Written authorization of agency.
A legal written authorization that stipulates the specific areas of authority in which the agent may act.
Giving your power to another to act on your behalf.
The agent acting in such a capacity is known as an attorney in fact.

9

Principal

The one employing an agent, the client!

10

Procuring cause

The person who brings about a sale.

11

Puffing

Harmless exaggeration as salesmanship.

12

Ready, willing and able buyer

One qualified and prepared to purchase.

13

Salesperson

A person licensed to assist a real estate broker.

14

Special agent

A person authorized to act for another in a specific transaction.
Authorized to represent the principal in one specific capacity only.

15

Subagent

The subagent is an agent of an agent.

16

Transaction broker

A licensed agent who facilitates a transaction without functioning as an agent. For example a property manager who collects rents.