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Real Estate Course
Chapter 2 - Law of Agency
| Term | Definition |
|---|---|
| Agent | One who undertakes to transact some business or to manage some affair for another by authority of the latter. |
| Broker's Agent | A broker’s agent is an agent that cooperates or is engaged by a listing agent or a buyer’s agent (but does not work for the same firm as the listing agent or buyer’s agent) to assist the listing agent or buyer’s agent in locating a property to sell or buy |
| Buyer Agent | An agent who represents the buyer of real property. |
| Client | The one by whom a broker is employed. |
| Implied Agency | Form of agency that occurs when the words and actions of the parties indicate that there is an agency relationship. |
| Landlord's Agent | A person who has oral or written authority, either express or implied, to act for or on behalf of a landlord. |
| Principal | The employer of an agent or broker; the broker’s or agent’s client. |
| Seller's Agent | An agent who represents the seller of real property. |
| Sub-agent | An agent of a person already acting as an agent of a principal. |
| Tenant's Agent | A licensed real estate agent who acts on behalf of a tenant in a commercial property transaction. |
| Confidentiality | An agent is obligated to safeguard his/her principal's lawful confidences and secrets. Therefore, a real estate broker must keep confidential any information that may weaken a principal's bargaining position. The duty of confidentiality precludes a broker |
| Disclosure | The release of relevant information about a property that may influence the final sale, especially if it represents defects or problems. |
| Fiduciary | A person who on behalf of or for the benefit of another transacts business or handles money or property not the person’s own; such relationship implies great confidence and trust. |
| Fiduciary Duties | The legal duty of a fiduciary to act in the best interests of the beneficiary. One common duty includes confidentiality. |
| Obedience | The fiduciary relationship obligates the agent to act in good faith at all times, obeying the client’s instructions in accordance with the contract. |
| Undivided Loyalty | The fiduciary duty that prohibits the agent from advancing any interests adverse to the principal’s interest or conducting the principal’s business in such a way as to benefit a customer, a sub-agent, the agent or any other party to the detriment of the p |
| General Agent | An agent with the full authority over one property of the principal, such as a property manager. |
| Special Agent | An agent with limited authority to act on behalf of the principal, such as created by a listing. |
| Informed Consent | An agreement to do something or to allow something to happen only after all the relevant facts are disclosed. |
| Misrepresentation | Making an intentionally false statement to induce someone to contract. |
| Sub-agent | An agent of a person already acting as an agent of a principal. |
| Misrepresentation | Making an intentionally false statement to induce someone to contract. |
| Vicarious Liability | A situation in which one party is held partly responsible for the unlawful actions of a third party. |
| Expressed Agency | An actual agency created by written or oral agreement between the principal and the agent. |
| Implied Agency | Form of agency that occurs when the words and actions of the parties indicate that there is an agency relationship. |
| Estoppel | The principle which prevents a person from asserting something contrary to what is implied by a previous action or statement of that person. |
| Price Fixing | Conspiring to establish fixed fees or prices for services or products. |
| Group Boycott | An agreement between members of a trade to exclude other members from fair participation in the trade. |
| Market Allocation | An agreement between members of a trade to refrain from competition in specific market areas. |
| Tie-in Arrangement | A contract where one transaction depends upon another. |
| Dual Agency | Representing both principals (seller and buyer) to a transaction. |
| Designated Sales Agent | Appointing one or more individual agents in a firm to represent only the interests of the seller and one or more different individual agents in the firm to represent only the interests of the buyer when a firm has an "in-house" dual agency situation. |
| Seller's Agent | An agent who represents the seller of real property. |
| Buyer Agent | An agent who represents the buyer of real property. |
| Broker's Agent | A broker’s agent is an agent that cooperates or is engaged by a listing agent or a buyer’s agent (but does not work for the same firm as the listing agent or buyer’s agent) to assist the listing agent or buyer’s agent in locating a property to sell or buy |
| Landlord's Agent | A person who has oral or written authority, either express or implied, to act for or on behalf of a landlord. |
| Tenant's Agent | A licensed real estate agent who acts on behalf of a tenant in a commercial property transaction. |
| Informed Consent | An agreement to do something or to allow something to happen only after all the relevant facts are disclosed. |
| Undisclosed Dual Agency | A relationship in which the real estate agent is found to be the agent of both the buyer and seller in a transaction, but without the knowledge and informed consent of both parties. Undisclosed Dual Agency is illegal in all states. |
| Designated Sales Agent | Appointing one or more individual agents in a firm to represent only the interests of the seller and one or more different individual agents in the firm to represent only the interests of the buyer when a firm has an "in-house" dual agency situation. |
| Accountability | To be responsible. |
| Advance Consent to Dual Agency | The seller or buyer agrees to dual agency before it occurs by indicating the same on the agency disclosure form. |
| Cooperating Agent | A real estate agent who sells a property. The selling agent may be (1) the subagent or listing agent of the seller; (2) a buyer's agent; or (3) a dual agent. Also called a selling agent or participating agent. |
| Loyalty | An agent’s duty to place the client’s interest above those of all others, including the agent’s own self-interest. |
| Reasonable Care | The degree of caution and concern for the safety of himself/herself and others an ordinarily prudent and rational person would use in the circumstances. This is a subjective test of determining if a person is negligent, meaning he/she did not exercise rea |
Created by:
drister05
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