Unit 9: Real Estate Agency- 8% Flashcards Preview

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Flashcards in Unit 9: Real Estate Agency- 8% Deck (26)
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1
Q

Agency

A

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

2
Q

Agent

A

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.

3
Q

Buyer Representation Agreement

A

A principal-agent relationship in which the real estate professional acts on behalf of the buyer, usually as an agent, with fiduciary responsibilities to the buyer.

4
Q

Buyer’s Agent

A

A real estate professional who is under contract to locate property for a buyer and represent the buyer’s interests in a transaction.

5
Q

Client

A

A person who has entered into a brokerage relationship with a broker licensee.

6
Q

Customer

A

The third party or nonrepresented consumer for whom some level of service is provided.

7
Q

Designated Agency

A

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.

8
Q

Designated Agent

A

A real estate professional authorized by a broker to act as the agent for a specific principal in a particular transaction; also may be called assigned agent or appointed agent.

9
Q

Dual Agency

A

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

10
Q

Express Agreement

A

An oral or written contract in which the parties state the contract’s terms and express their intentions in words.

11
Q

Fiduciary

A

One in whom trust and confidence is placed; a reference to a real estate professional employed under the terms of a listing contract or buyer representation agreement.

12
Q

Fiduciary Relationship

A

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

13
Q

Fraud

A

Deception intended to cause a person to give up property or a lawful right.

14
Q

General Agent

A

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

15
Q

Implied Agency

A

If the actions of the parties imply that they have mutually consented to an agency relationship, an implied agency relationship is formed.

16
Q

Implied Agreement

A

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

17
Q

Latent Defect

A

A hidden structural defect that could not be discovered by ordinary inspection and that threatens a property’s soundness or the safety of its inhabitants. Some states impose on property sellers and real estate professionals a duty to inspect for and disclose latent defects.

18
Q

Listing Agreement

A

A contract between an owner (as principal) and a real estate professional (as representative of the owner) by which the real estate professional is employed 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 or other form of compensation.

19
Q

Negligent Misrepresentation

A

Occurs when the real estate professional should have known that a statement about a material fact was false.

20
Q

Nonagent

A

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. Also known as a facilitator, transaction broker, transaction coordinator, and contract broker.

21
Q

Principal

A

(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 an agent works.

22
Q

Puffing

A

Exaggerated or superlative comments or opinions.

23
Q

Single Agency

A

Agency relationship in which the agent represents only one party to a transaction.

24
Q

Special Agent

A

One who is authorized by a principal to perform a single act or transaction; a real estate professional is usually a special agent authorized to find a ready, willing, and able buyer for a particular property, when representing a seller, or a special agent authorized to find a suitable property, when representing a buyer.

25
Q

Transaction Broker

A

Helps both the buyer and the seller with paperwork and formalities in transferring ownership of real property, but who is not an agent of either party.

26
Q

Universal Agent

A

A person empowered to do anything the principal could do personally.