Flashcards in Chapter 4 Deck (50)
what is agency?
describes that special relationship
What is agency governed by?
two kinds, common law, and statutory law
how is agency governed in IL?
It is governed by statutory law
how is law of agency defined in IL?
defines the rights and duties of the principal and the agent
what is a agent?
a person who is authorized and consents to represent the interest of another person. in the real estate business, a firm sponsoring broker is the agent and shares the responsibility with the broker who work for them.
what is agency?
a relationship in which consumer has given consent to real estate broker to represent the consumer in property transaction.
What is brokerage agreement?
a agreement made verbally set out in writing for an agent or firm to provide brokerage services to consumer and receive money for providing those services
who is the client?
the person that a licensee represent in real property transaction
who is the consumer?
a person for whom an agent provides services which are only tone provided by a broker or person or entity who seeks such services forma broker
What i confidential information?
information give by a client to broker during the term of a brokerage agreement
what are the three rules for the confidential information?
1. the client request the broker keep in confidence
2. relates to the client negotiating position
3. could damage to client negotiating position if disclosed. This information must not be share unless the client given permission
Who is customer?
a person for whom a broker is providing services buy who is not represented by the broker in an agency relationship
what is ministerial act?
clerical service provided by a broker to a consumer providing ministerial act is not equivalent to active representative
what is the memory tip COLDAC?
1. care 2. obedience 3. loyalty 4. disclosure 5. accounting 6. confidentiality
What is article 15 under the act?
this deals with brokers must do
what are the five rules for brokers?
1. perform the term of the brokerage agreement between a sponsor and client
2.promote the interest of the client
4. exercise reasonable skill and careen the performance of brokerages service
5.comply with all requirement of the Act and all applicable statutes regulations including fair housing and civil rights
what is the sub rules under 2?
1. Seeking a transaction at the price and terms stated in the brokerage agreement or at a price and terms otherwise acceptable to the client
2. disclosing to the client material facts concerning the transaction of which the license has actual knowledge, unless that information is confidential information
3. timely accounting for all money and property received in which the client has may have should have had an interest
4. obeying specific direction of the client that are not otherwise contrary to applicable status, ordinances, or rules
5. acting in manner consistent with promoting the clients best interest as opposed to a licensee or any other person self interest
What is material fact?
is any fact that is known might reasonably expected to affect the course of events
What is section 15-15 (C) of the act?
material facto do include the following lowing when located on or related to real estate that is not the subject of the transaction
What is the three rules?
1. physical condition that don't have substantial adverse effect on the value of the real estate
2. fact situations
What is puffing?
statement of must accurate, Exaggeration of a property benefits
what is fraud?
is the intentional misrepresentation of a material fact in such a way as to harm or take advantage of another person
What is negligent misrepresentation?
occurs when license should have known that a statement about a material fact was false
What is latent defects?
the seller has duty to disclose any know latent defect that threaten structure soundness or personal safety. A structure defect that would not normally be uncovered over the course of an ordinary inspection
What happen with Harkala v. wildwood?
which held that a broker or salesperson has no duty to discover "latent material defect" in property if a seller has not disclosed those defect to her to prior sale
What is stigmatize properties?
are those properties that society has branded undesirable because of event that occurred there
In IL what does article 15 of act states?
"no cause of action shall arise against a broker for the failure to disclose that an occupant of that property was afflicted with HIV or any other medical condition or that property was the sit elf an act or occurrence which had no effect on the physical condition of the property
What happen if the person discloses medical condition?
they could sent to prison put to five years
What is megan's law?
is known as the sexual offenders act of 1994 an requires persons convicted of sex crime against children to notify local law enforcement of any change of address or employment after release from jail