Vocabulary: Chapter 12-Agency Flashcards Preview

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Flashcards in Vocabulary: Chapter 12-Agency Deck (24)
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1

Agency

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

2

Agent

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

Buyer's Agent

A residential real estate broker or salesperson who represents the prospective purchaser in a transaction. The buyer's agent owes the buyer-principal the common[law or statutory agency duties

4

Client

The principal

5

Customer

The third party or non-represented consumer for whom some level of service is provided

6

Designated Agent

A licensee authorized by a broker to act as the agent for a specific principal in a particular transaction

7

Designated Agency

A process that accommodates an in-house sale in which two different agents are involved. The broker designates on agent to represent the seller and an agent to represent the buyer

8

Dual Agency

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

9

Express Agency

An agency relationship based on a formal agreement between the parties

10

Express Agreement

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

11

Fiduciary

One in whom trust and confidence is placed; a reference to a broker employed under the terms of a listing contract or buyer agency agreement

12

Fiduciary Relationship

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

13

Fraud

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

14

General Agent

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

15

Implied Agency

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

16

Implied Agreement

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

17

Latent Defect

A hidden structural defect that could not be discovered by ordinary inspection and that threatens the property's soundness or the safety of its inhabitant. Some states impose on seller and licensees a duty to inspect for and disclose latent defects

18

Listing Agreement

A contract between an owner (as principal) and a real estate broker (as agent) by which the broker is employed as agent 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

19

Negligent Misrepresentation

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

20

Nonagent

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

Principal

(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 the agent works

22

Puffing

Exaggerated or superlative comments or opinions

23

Special Agent

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

24

Universal Agent

A person empowered to do anything the principal could do personally