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Ch 4
Agency
Term | Definition |
---|---|
Agency | The relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions |
Agent | One who acts or has the power to act for another |
Buyer's agent | A residential real estate broker or salesperson who represents the prospective purchaser in a transaction. Owes the buyer-principal the common-law or statutory agency duties. |
Client | AKA principal |
Customer | 3rd party or nonrepresented consumer for whom some level of service is provided |
Designated agent | A licensee authorized by a broker to act as the agent for a specific principal in a particular transaction |
Designated agency | 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 to represent the buyer. |
Dual agency | Representing both parties to a transaction. This is unethical unless both parties agree to it, and it is illegal in many 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's terms and express their intentions in words |
Fiduciary | One in whom trust and confidence is placed; a reference to a broker employed under the terms of a listing contract or a buyer agency agreement |
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 | Based on the actions of the parties that 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 conducts |
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 inhabitants. Some states impose on sellers and licensees a duty to inspect for and disclose these. |
Law of agency | A fiduciary relationship is created under this 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 |
Listing agreement | A contract between an owner (principal) and real estate broker (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 |
Negligent misrepresentation | Occurs when the broker should have known that a statement about a material fact was wrong |
Nonagent | An intermediary between buyer/seller or landlord/tenant who assists one or both parties with a transaction without representing either. AKA facilitator, transaction broker, transaction coordinator, contract broker |
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 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 |
Puffing | Exaggerated or superlative comments or opinions |
Special agent | One who is authorized by a principal to perform a single act or transaction; a real estate broker is usually a ____ authorized to find a ready, willing, and able buyer for a particular property |
Universal agent | A person empowered to do anything the principal could do personally |