Chapter 3-Law of Agency 2 Flashcards
(23 cards)
Agency
Relationship of trust created when one person (principal) gives another person (agent) the right to represent the principal in dealings with third parties.
Agency Disclosure Form
Form that states whether an agent is representing the seller, buyer, or both in a transaction.
Antitrust
A business activity that attempts to monopolize, contract, or conspire (or any these things together) in a way that impact’s negatively on another’s ability to do business.
Brokerage
The business of bringing together buyers and sellers of real property and assisting in negotiating such transactions.
Broker Protection Clause
Provides the broker is still entitled to commission if the property is sold during a certain time period under certain circumstances.
Broker’s Agent
Engaged and works directly for the broker-a broker’s agent is not a subagent of the seller or the buyer. Still owes the same fiduciary duty to the broker’s seller or buyer as the broker does.
Consensual Dual Agency
Occurs when 1. the broker and all licensees are dual agents for both parties in the transaction, or 2. the buyer and seller each appoint a designated agent, who fully represents them. The broker, however, would (with consent) act as a dual agent in the transaction.
Cooperating Broker
An outside broker from another company who brings the “other” party in a transaction.
Exclusive Agency
Listing agreement between a broker and seller that provides the broker the exclusive right to represent the seller in the sale of the seller’s property and the broker will be compensated if he or any other person or entity (excluding the seller) produces a purchaser in accordance with the listing agreement.
Exclusive Right to Sell
Listing agreement that entitles the broker to a commission if anyone, including the seller, finds a buyer for the property during the listing term.
First Substantive Contact
An event triggered agency disclosure (e.g. prior to entering into a listing agreement, prior to showing a property, an an open house when a buyer displays serious interest, etc.). 443 Disclusure.
Group Boycott
A boycott is a concerted refusal to deal with a particular party. Illegal.
Informed Consent
Written evidence that a client is aware of and has given permission to an agent to perform a specific action or take on a specific role in the client-agent relationship.
Listing Agreement
A written agency contract between a seller and a real estate broker, stating the broker will be paid a commission for finding (or attempting to find) a buyer for the seller’s real property.
Market Allocation
An antitrust violation where two or more brokers conspire to divide their customers in any way.
Net Listing
See Chap 2.
Offer of Compensation
The commission that will be paid on the sale of the property.
Offer of Cooperation
An open invitation to other brokers to sell property listed by another broker.
Open Listing
A nonexclusive listing given by a seller to as many brokers as he chooses. If the property is sold, the broker who was the procuring cause of the sale is entitled to the commission.
Price Fixing
An antitrust violation in which competitors set a standard commission rate.
Procuring Cause
The real estate agent who is primarily responsible for bringing about a sale such as by introducing the buyer to the property or by negotiating the agreement between the buyer and the seller. Sometimes more than one agent contributes to a sale.
Subagent
An agent of an agent; a person that an agent has delegated authority to, so that the subagent can assist in carrying out the principal’s orders/
Tie-in Arrangements
Requiring the consumer, as a condition of a transaction, to use, or not use a particular service or product. Illegal.
