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Real Estate - Exam 3
Chapter 12
| Term | Definition |
|---|---|
| Broker license | The authority granted by a state for one to own and operate a real estate brokerage business; the most complete type of real estate license |
| Buyer agency agreement | A contract for real estate brokerage services between a buyer and a real estate agent. The broker receives compensation for successfully locating a property for the buyer to purchase |
| Commission | Payment a real estate salesperson receives for services rendered, usually expressed as a percentage of the property sale price and not usually paid until the transaction is closed |
| Designated agent | In case a brokerage firm is agent for both a seller and a buyer, the firm sometimes designates one salesperson to serve the buyer and one to serve the seller. The two salespersons are presumed to maintain the privacy, and serve the interest of the party |
| Discrimination in housing | Federal and state laws prohibit discrimination in housing on the basis of race, color, religion, national origin, sex, familial status, and handicap |
| Dual agency | A situation in which a person or firm has an agency and fiduciary relationship to both parties -seller and buyer - of a transaction |
| Errors and omission insurance | A type of insurance that indemnifies professionals if they make an error in their profession or if the omit something important from their analyses |
| Exclusive right of sale listing | An agreement between a seller of property and a broker in which the broker is assured of receiving a commission if the broker or anyone else, including the owner, finds a buyer during the period of the agreement |
| Fiduciary relationship | The special duties and obligations to a principal required of an agent, including complete loyalty, confidentiality, obedience, disclosure, accounting, care, skill, and due diligence |
| General agent | One who is empowered to represent a principal, often a business firm, in its business relationships. A general agent can contract and bind the principal within the confines of the business or employment relationship |
| Internet marketing | Use of the internet to advertise real estate services, to market properties, and to provide info about specific properties. While few properties are sold exclusively through the internet, it has become a central tool to real estate marketing today |
| Law of agency | The legal rights, duties, and liabilities of principal, agent, and third parties as a result of the agency relationship between them |
| Licensing laws | State laws that authorize persons who meet specified qualifications to engage in a business or profession |
| Listing contract | An agreement between an owner of real estate and a real estate broker that obligates the broker to attempt to sell the property under specified conditions and terms. Must pay commission to broker |
| Market segmentation | Identification and delineation of submarket |
| Multiple listing service (MLS) | Sharing of property sales listing by a number of real estate brokers with an agreement as to how costs and commissions are to be shared |
| National Association of Realtors | A principal trade or professional organization of real estate brokers. Members agree to abide by a code of ethics |
| Net listing | Type of contract in which sellers specify the amount they will accept from the sale, with brokers keeping all proceeds in excess of that amount |
| Open listing | Agreement between the seller of property and a broker that provides for the broker to receive a commission if he or she sells the property. No exclusive protection is provided to the broker |
| Principal | In brokerage, the person giving authority to an agent; in finance, the amount borrowed and owed on a loan |
| Real estate commission | Appointed commission responsible for overseeing the implementation and administartion of a state's real estate license law |
| Recovery fund | Reserve of funds collected from real estat license fees to pay for losses to clients legally judged to have been caused by a licensed salesperson or broker. The existence of such funds varies from state to state |
| Salesperson license | Authority granted by a state to engage in the real estate brokerage business as an employee or agent of a real estate broker |
| Special agent | A person to whom a principal has granted authority to handle a specific business transaction or to perform a specific functio. Real estate brokers and salespersons are special agents |
| Subagency | The agency role of a broker is extended to one or more additional brokers, who also become a fiduciary of the principal and are empowered to act on his or her behalf |
| Submarket | Segment or portion of a market in which all of the properties are considered to be close substitutes by a relatively homogeneous group of potential buyers; properties that provide similar utility or satisfaction |
| Transaction broker | One who facilitiates a real estate transaction but who is not an agent of either buyer or seller. Required to deal honestly and fairly with both parties and to exercise skill, care, and diligence in carrying out his or her duties |
| Universal agent | One to whom a principal delegates the power to act in all matters that can be delegated in place of the principal. |
Created by:
drewmad5
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