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Flashcards in Chapter Four Deck (28):
0

the principal

client

1

one who acts or has the power to act for another. A fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be his or her.....?

agent

2

the third party or non-represented consumer for whom some level of service is provided. 46

customer

3

deception intended to cause a person to five up property or a lawful right. 59

fraud

5

an agency relationship based on a formal agreement between the parties. 47

express agency

7

a licensee authorized by a broker to act as the agent for a specific principal in a particular transaction. 53

designated agent

8

one who is authorized by a principal to represent the principal in a specific range of matters. 52

general agent

9

one in whom trust and confidence is placed; a reference to a broker employed under the terms of a listing contract or buyer agency agreement. 46

fiduciary

11

a relationship of trust and confidence, as between trustee and beneficiary, attorney and client, or principal and agent.48

fiduciary relationship

12

based on the actions of the parties that imply that they have mutually consented to an agency relationship.. 47

implied agency

13

a hidden structural defect that could not be discovered by ordinary inspection and that threatens the property's soundness or the safety of its inhabitants. 60

latent defects

14

a contract between an owner (principal), and a real estate broker (agent) by which the broker is employed as agent to find a buyer for the owner's real estate on the owner's terms, for which service the owner agrees to pay a commission. 47

listing agreement

16

property that society has found undesirable because of events that occurred there or because a known sex offender lives in the area.

stigmatized property

18

occurs when the broker should have known that a statement about a material fact was false. 79

negligent misrepresentation

19

an intermediary between a buyer and a seller, or a landlord and a tenant, who assists one or both parties with a transaction without representing either. 46

non agent

20

a person empowered to do anything a principal could do personally. 52

universal agent

22

the relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions.

agency

23

one who is authorized by a principal to perform a single act or transactions; one authorized to find a ready, willing, and able buyer for a particular property. 52

special agent

24

representing both parties to a transaction. This is unethical unless both parties agree to it, and it is illegal in many states.

dual agency

25

the illegal act by a real estate broker of placing client or customer funds with personal funds. By law, brokers are required to maintain a separate trust or escrow account for other parties' funds held temporarily by the broker. 184

commingling

26

completion, performance, or fulfillment of the purpose for which the agency was created, death or incapacity of either party, destruction or condemnation of the property, expiration of the terms of the agency, mutual agreement by all parties to cancel the contract, breach by one of the parties, by operation of law/bankruptcy. 52

all lead to Termination of Agency

27

1) a sum loaned or employed as a fund or an investment, as distinguished from its income or profits. 2) the original amount (as in a loan) of the total due and payable at a certain date. 3) a main party to a transaction - the person for whom the agent works. 46

principal

28

relevant information or facts that are known or should have been known. 50-51

disclosure

29

exaggerated or superlative comments or opinions. 59

puffing

30

Care, Obedience, Loyalty, Disclosure, Accounting, Confidentiality 50

Six common-law fiduciary duties:

33

a contract under which the agreement of the parties is demonstrated by their acts and conduct. 47

implied agreement

34

a residential real estate broker or salesperson who represents the prospective purchaser in a transaction in a transaction. 54

buyer's agent

36

a process that accommodates an in house sale in which two different agents are involved. The broker designates one agent to represent the seller and one agent to represent the buyer. 55

designated agency