Section 4 - Chapter 4 Flashcards Preview

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Flashcards in Section 4 - Chapter 4 Deck (27):
1

Agency is:

special word to describe relationship between agent, buyer, seller, and transaction itself; consumer has given consent to a real estate licensee to represent them in a real estate transaction

2

agency is governed by two types of law:

common and statutory (statutory in illinois)

3

law of agency defines

rights and duties of principal and the agent

4

"general agency"

relationship between broker and sponsoring broker

5

an agent is:

the individual who is authorized to represent another; sponsoring broker is agent and shares responsibilities with licensees

6

brokerage agreement is:

verbally or in writing, agent/firm to represent consumer and to be paid

7

client

person or entity that a licensee represents

8

consumer

a person or entity for whom an agent provides services, which are only to be provided by a licensee, or a person or entity who seeks such services from a licensee

9

customer

person or entity for whom a licensee is providing services but who is not represented by the licensee in an agency relationship

10

an agent works:

for the client and with the customer

11

under the common law of agency, an agent owes the principal:

duties of care, obedience, loyalty, disclosure, accounting, and confidentiality

12

commingling:

grouping escrow funds with licensee's personal or business funds; illegal

13

conversion;

practice of licensee using escrow funds as his own money; illegal

14

puffing:

exaggeration of a property's benefits

15

fraud:

intentional misrepresentation of a material fact

16

negligent misrepresentation:

when the licensee should have known that a statement about a material fact was false

17

latent defect:

a structural defect not normally uncovered during an ordinary inspection

18

exclusive brokerage contracts must

be in writing

19

gratuitous agency is:

agency existing even if no fee involved

20

termination of agency via:

death/incapacity of either party, destruction/condemnation of property, expiration of terms of agency, mutual agreement by all parties to the contract, breach by one of the parties in which the breaching party may be liable for damages, operation of law (like bankruptcy), completion of project

21

agency coupled with interest:

agency where agent has an interest in the property

22

universal agent:

person empowered to do anything the principal could do personally

23

a general agent:

represents the principal in a variety of matters

24

a special agent:

authorized to represent principal in one specific act or business transaction only

25

designated agent:

person authorized by sponsoring broker to act as the agent of a specific principal

26

single agency:

when an agent represents only one party in a transaction

27

dual agency

agent represents two principals in the same transaction