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Unit 10: Agency
Real Estate
| Term | Definition | Key Points |
|---|---|---|
| Agency | The fiduciary relationship between the principal and the agent by which the agent is authorized to represent the principal and one or more transactions | |
| Agent | The individual who is authorized and consents to represent the interests of another person and dealings with a third person | |
| Buyer's agent | A real estate professional who is under contract to locate property for a buyer and represent the buyer's interest in a transaction | |
| Buyer's representation agreement | A principal-agent relationship and which the real estate professional acts on behalf of the buyer usually as an agent with fiduciary responsibilities to the buyer | |
| Client | The principal in a real estate transaction for whom a real estate broker acts as agent | |
| Customer | The third party or non-represented consumer who is not a principle but for whom some level of service may be provided and who is entitled to fairness and honesty | |
| Designated agent | One or more of a Brokers license e-cigs Affiliates assigned by the broker to represent one client to the exclusion of all other clients in the same transaction as well as to the exclusion of all other licensees affiliated with the broker | |
| Designated agency | A process that accommodates and in-house cell in which two different agents are involved | The broker designates One agent to represent the seller and one agent to represent the buyer |
| Dual agency | Representing both parties to a transaction | -this is unethical unless both parties agree to it -it is illegal in some states |
| Express agency | An agency relationship based on a formal agreement between the parties | |
| Express agreement | An oral or written contract in which the parties State the contract terms and express their intentions in words | |
| Fiduciary | The relationship in which the agent is held in a position of special trust and confidence by the principal | |
| Fiduciary relationship | A relationship of trust and confidence as between trustee and beneficiary attorney and client or principal and agent | |
| Fraud | Deception intended to cause a person to give up property or a lawful right | |
| General agent | One who is authorized by a principal to represent the principal in a specific range of matters | |
| Implied agency | If the actions of the parties imply that they have mutually consented to an agency relationship | |
| Implied agreement | A contract under which the agreement of the parties is demonstrated by their acts and conduct | |
| Latent defect | A hidden structure defect that could be discovered by original inspection and that threatens a properties soundness or the safety of its inhabitants | |
| Law of agency | ||
| Listing agreement | A contract between an owner and a real estate professional by which the real estate professional is employed to find a buyer for the owner's real estate on the owners terms for which service the owner agrees to pay a commission or other form of compensation | |
| Negligent misinterpretation | Occurs when the real estate professional should have known that a statement about a material fact was false | |
| Non agent | Is not an agent of either party | Facilitator, transaction coordinator, contract broker,transaction broker -job is to help both the buyer and the seller with the necessary paperwork and formalities involved in transferring ownership of real property/Minstrel Acts |
| Principal | The individual who hires the agent and delegates to that agent the responsibilities of representing the principles interest | in a real estate transaction in which a agency relationship is established the principal is the buyer or the seller or the landlord or the tenant the broker is the principal and dealings with cell Associates |
| Puffing | Exaggerated or superlative comments or opinions | |
| Single agency | Agency relationship in which the agent represents only one party to a transaction | |
| Special agent | 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 specific agent authorized to find a suitable property when representing a buyer |
| Transaction broker | ||
| Universal agent | A person and power to do anything the principal can do personally | |
| Common law | The rules establish by tradition and court decisions | |
| Statutory law | The law and knocked by the legislature | |
| Administrative law | Rules regulations created by real estate commission and departments as authorized by the legislature | |
| Disclosure | The agent's duty to keep the principal informed of all facts or information that might affect a transaction including relevant information material facts | Revealing to a prospective buyer that the agent is related to the property seller |
| Loyalty | The agent place the principles interest above those of all others including the agents own self-interest | Refusing to withhold an offer from a seller until a second offer is received |
| Obedience | Acting in good faith at all times obeying the principles lawful instructions in accordance with the contract | -Following a buyer's instructions as to the type of property that is sought -the agent may not obey instructions that are unlawful or unethical |
| Care | Using a responsible degree of skill and Enterprise and acting on a principal's behalf | |
| Accounting | The agent must be able to report the status of all funds received from or on behalf of the principal | Following state law regarding the receipt of funds from clients and customers |
| Confidentiality | Keeping the principles personal information private |
Created by:
Jackeeking30
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