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Flashcards in Real Estate Brokerage Deck (51):
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Accountability

One of the duties of an agent of the law of agency that deals with the handling of escrow funds

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Agency

The relationship between one person ( principal ) and another ( agent ) who is authorized to act in the first person's behalf

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Agent

What it was authorized to act for another ; who is called the principal

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Attorney-in-fact

One who is authorized to act for another. In real estate transactions this is done through a power of attorney. Does not need to be in attorney-at-law

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Broker

An individual who for consideration sells, rents, exchanges or negotiates options of real estate

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Buyer agent

A real estate broker who represents the buyer not the seller and therefore has a fiduciary responsibility to the buyer

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Care

At part of the law of agency that requires that the agent use his /her expertise in the principles best interest

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Client

The one who has hired an agent to perform a service for a fee

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Co- mingling of funds

To combine deposit funds received as an agent with brokers business or personal funds

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Confidentiality

The part of the responsibility of loyalty and agency law that deals with matters of disclosure. The broker must disclose material facts about the property but not personal facts about the principle that may not be in the principals interest

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Customer

Third-party in law of agency between a principal and agent for whole some services is performed.performed. When a seller( principal ) hires a broker ( agent ) to sell a house; the buyer is the customer

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Designated agent

Agent appointed by another agent, within an office to represent either the seller Or buyer.

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Disclosure

One of the duties of the agency( also known as duty of notice) that requires an agent to keep his or her principal informed of any matter that is in the principals interest

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Disclose Dual agent

An agent of both parties to a Transaction who represents each one that has informed each of this relationship

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Duel agent

An agent of both parties to a transaction represents each one

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Escrow agent

A Neutral third-party in a transaction who holes documents or monies until certain acts are completed by the individuals involved in a contract

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Exclusive office listing

Owner gives one broker l the right to sell a parcel of property but retains the right to sell himself without paying a commission

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Exclusive right to sell

And only gives one broke with the right to sell a parcel property an agrees to pay commission went sold by anyone including owner.

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Express agency

An agency relationship created by mutual consent between a principal and agent. Maybe either oral or written.

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Facilitator

An agent who assist the seller and buyer in reaching an agreement but does not represent either the seller or buyer in the transaction

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Fiduciary

One who is in a position of trust and confidence

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General agent

One who represents a principle within a single broad area. Example property manager for an apartment building

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General Power of attorney

One who is authorized to act for another in all matters ( also known as universal power of attorney )

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Implied agency

An agency that results by deduction or inference as opposed to an Expressed (verbal or written ) Relationship

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Imputed notice

Knowledge by an agent that is binding on the principal do to the principa-l agent relationship even though the principal does not have first hand knowledge. Example notice under a purchase and sale agreement"As to buyers ability to obtain financing

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Independent contractor

One who is employed to perform an act but is not controlled as to how they accomplished the objective. Independent contract is not an employee and as such in real estate brokerage the principal( broker ) does not have to withhold taxes and Social Security

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Law of agency

The relationship between one person ( principal ) and another ( agent ) who is authorized to act in the first person's behalf

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Listing

Contract between Seller and broker for the sale of real property for a commission

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Loyalty

The part of law of agency that requires that the agent must act in the best interest of the principle. Even when that is not in the best interest of the agent

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Multiple listings

A listing Place in a multiple listing service ( MLS )where member brokers agree to share listings with other one

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Net listing

A listening where the seller is to receive a certain amount and the broker retains anything above that amount as a fee. ( illegal in Massachusetts

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Notice- Duty of notice

One of the duties of agency that requires an agent to keep his her principal informed of any matter that is in the principles Interest( also known as duty of notice)

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Obedience

The part of the law of the agency that requires that the agent follow the principles direction( Requirement to violate the law is excluded )

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Open listing

A type of listing where two or more Brokers given a listing. The selling broker receives the total commission. The seller remains the right to sell

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Option listing

A listing to sell property where broker retains the right to purchase the property

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Power of attorney

A written document authorizing one person to act for another to What ever extent specified

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Principal

1. One of the main parties in a transaction (As in seller and buyer )
2. in an agency relationship one who engages another( the agent ) to act in his/her behalf.
3. in financial matters the amount of debt owed which added to the interests constitute the amount paid

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Procuring cause

The effort that brings about the desired result. In real estate the broker in and open listening that brings about the ready willing and able buyer is the procuring cause and is entitled to the commission

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Puffing

Exaggerated representation

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Realtor

A registered trademark that may be used only by a licensed broker or salesman who is a member of the state and local real estate Board chartered by the national Association of realtors

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Seller's agent

A real estate broker who represents the seller not the buyer and therefore has a Fiduciary responsibility to the seller

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Sherman antitrust act

Federal Act passed in 1890 aimed at prohibiting monopolies and promoting competition in the marketplace

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Single agent

One who represents one principal ( buyer or seller) but not both

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Special power of attorney

One who is authorized to act for another in a limited range of matters

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Sub agent

One acting as an agent for someone who is already acting as an agent for a principal. In a co-broke situation where both brokers are sellers agents( the listing broker is the agent of the seller principal and the selling agent is the subagent

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Tristram's Landing

Massachusetts legal case that Defined" procuring cause " in matters of real estate brokerage

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Undisclosed dual agent

Agency with a real estate broker or salesperson represents both the Buyer and seller but has not disclose this to both parties ; illegal in Massachusetts

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Vicarious liability

The risk that a buyer or seller assumes when extending sub agency Representation in a transaction

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Estoppel

Agency established by a third party has a reason to believe that, do to actions of two parties in agency relationships exist. The court could then stop estoppel the principle from the Deying agency

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Special Agent

One who is authorized to perform one specific task

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Limited agency

A listing agreement between seller and broker to sell a parcel property would be a special agency and the broker would be a special agent also known as limited agency