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Flashcards in Law Of Agency 1 Deck (109)
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1

fiduciary:

an individual upon whom is placed the highest levels of trust and confidence when acting on behalf of another; specific fiduciary duties include obedience, loyalty, disclosure, confidentiality, accountability, and reasonable care

2

TRELA is a

law passed by the Texas Legislature to govern Texas real estate.

3

TREC is a

government agency created by the Texas Legislature to enforce TRELA.

4

Principal: A major

party to a real estate transaction (buyer, seller, landlord, tenant) or an individual who authorizes an agent to represent their interests as a client in a real estate transaction

5

Client: A person who has

signed an agency agreement with you as their agent a.k.a your principal

6

Customer: A person on

the other side of the transaction with whom the license holder does not have an agency relationship

7

Third Party: A third party is any person

involved in a real estate transaction who is not your client

8

Ostensible Agency:

When a principal allows a license holder to act in such a way as to cause a third party to believe that license holder is the principal’s agent

9

Agency by Estoppel:

Agency imposed by law when it is determined that ostensible agency existed; used to create legal accountability for the agent or the principal on whose behalf the agent acted

10

Agency by Ratification:

Created when a license holder acts on behalf of but without prior authorization of a principal and that principal accepts the license holder's action after the fact

11

Agency Coupled with Interest:

When an agent is involved in a real estate transaction with a personal interest (either for themselves, a family member, or a business interest)

12

Agency by Actual Authority:

Actions taken by an agent for which they have permission, whether given through express or implied authority by a principal

13

Express Authority:

When a principal gives an agent authority to act on their behalf by mutual consent, either by written or oral agreement

14

Implied Authority:

When an agent takes actions that are considered customary for the profession in order to represent their agent's interests

15

Agency by estoppel occurs in an environment of

ostensible agency.

16

Agency by estoppel is created to address any of the following issues of liability:

To hold the agent accountable to the principal for their actions

To hold the principal accountable to a third party for the actions of the agent

17

Special agency

A form of agency relationship in which agents are limited in scope and are only authorized to perform acts permitted by their principal (Broker-Client)

18

General agency

A form of agency relationship in which the principal is responsible for the acts of their agent as long as the agent is acting within the scope of their duties (Broker-Sales Agent)

19

Universal agency

A form of agency relationship in which agents have a very broad and general scope of power to act on behalf of the principal — agents have the general power of attorney (Child-Parent)

20

special agents are unable to make decisions that may

bind or obligate their principals.

21

Third party

Any individual in a real estate transaction who is not your client

22

Innocent misrepresentative

Occurs when an agent communicates false information that the agent is not aware is false

23

Negligent misrepresentation

Occurs when an agent fails to disclose significant property flaws out of ignorance

24

Fraudulent misrepresentation

Occurs when an agent purposely and deliberately hides a property flaw or feature to make the sale

25

A defect is an item that was

installed or is attached to the home and has an imperfection.

26

A malfunction is when something is

designed or built to perform a certain function and no longer does so.

27

Stigmatized Property:

A property on which an event has occurred that is affecting the perceived value of the property

28

murder disclosure is

Required

29

Net listing

An agreement in which the seller names an amount they want their property to sell for, and then the broker tries to sell it for more because they receive the difference (the dollar amount above what the owner wants) as their commission

30

Procuring cause

The defining actions that brought a buyer to purchase a property