Chapters 2-4 - Law of Agency Flashcards Preview

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Flashcards in Chapters 2-4 - Law of Agency Deck (51)
1

Accountability

Documentation! Right everything down.

2

Actual Fraud

Intentional fraud - knowingly making false statements

3

Agency

Trust created when one person gives another the right to represent them in dealings with third parties.

4

Agency Disclosure Form

Form stating who agent is representing in a transaction

5

Agency Relationship

Representation of a party in a real estate transaction

6

Antitrust

x

7

Brokerage

Business of bringing buyers and sellers together and assisting in sale of real estate.

8

Broker's Agent

Works directly for the broker - not a subagent of the principal but still owes them the same fiduciary duties

9

Broker Protection Clause

Provides broker is still entitled to commission if the property is sold in a certain amount of time under certain circumstances

10

Buyer Broker Contract

Written agreement between buyer and broker stipulating broker will receive a commission when the buyer purchases real estate.

11

Buyer's Agent

Represents/owes all loyalty to buyer

12

Client

Principal

13

Confidentiality

x

14

Consensual Dual Agency

Buyer and seller consent to representation by the same agent or broker

15

Constructive Fraud

Intentional concealment - knowingly failing to disclose

16

Cooperating Broker

Broker from another company who brings the other party to the transaction.

17

Customer

Third party in transaction - agent does not have fiduciary duty but agent must still be fair and honest with them

18

Designated Agency

When supervising broker assumes role of dual agent and each affiliated licensee represents their own client

19

Disclosure

Points or facts in a real estate transaction that must be revealed.

20

Dual Agency

Representing both the principal and customer - ok as long both parties agree in writing.

21

Estoppel

Legal doctrine preventing person from asserting rights inconsistent with earlier actions/statements

22

Exclusive Agency

Provides that broker will receive commission if any broker finds a buyer (will not if the buyer finds buyer on their own)

23

Exclusive Right to Sell

Listing agreement entitling broker to commission if anyone (including seller) finds a buyer

24

Expressed Agency

Agency relationship based on an expressed agreement - written or spoken.

25

Fiduciary Duties

OLDCAR:
Obedience
Loyalty
Disclosure
Confidentiality
Accountability
Reasonable Care

26

Fiduciary Relationship

Relationship of trust and confidence, where one party owes the other loyalty and a higher standard of good faith than owe to third parties.

27

First Substantive Contact

Event that triggers agency disclosure

28

Fraud

Intentional or negligent misrepresentation or concealment of a material fact (fact that would greatly affect decision-making)

29

General Agent

Authorized to represent the principal in a range of matters.

30

Implied Agency

Agency created by actions and or behavior

31

Listing Agreement

Written agreement between agent and seller stating the agent will receive a commission for selling the seller's property

32

Loyalty

x

33

Misrepresentation

False or misleading statements - fraud.

34

Negligence

Failure to exercise adequate care.

35

Net Listing

Seller sets amount they'd like to make and agent keeps everything above that - ILLEGAL in New York.

36

Nonsolicitation Orders

Prohibits the solicitation of residential property listings and applies to all brokers and agents.

37

Obedience

x

38

Offer of Compensation

Commission to be paid by property's sale.

39

Open Listing

Nonexclusive listing given by seller to multiple brokers. Commission goes to agent who sells the property (procuring cause).

40

Ostensible Agency

Occurs when agent is perceived as fiduciary by a third party and principal does not say otherwise.

41

Price Fixing

Setting a standard rate of commission amongst agents - ILLEGAL

42

Principal

Person who grants agent the authority to represent them in dealings with third parties.

43

Procuring Cause

Agent who is primarily responsible for bringing about a sale.

44

Renunciation

Someone who has been granted something gives it up - EX: agent withdraws from relationship with principal

45

Revocation

Someone who granted/offered something withdraws it - EX: principal withdraws authority granted to agent.

46

Self-Dealing

Broker has an undisclosed interest in the property.

47

Stigmatized

x

48

Subagent

Broker and seller agree that other MLS members will be working for the seller - some fiduciary responsibility.

49

Tie-In Arrangement

Requires consumer to use or not use certain services

50

Undisclosed Dual Agency

Dual agency without consent from both parties

51

Undivided Loyalty

Given up by buyer and seller when they consent to dual agency