3455561
| Question | Answer |
| Agent | A person authorized to act on behalf of the principal in dealings with a third party, Ex: A sales associate of a real estate broker act as agents of broker |
| Principal | Individual who hires agent and delegates to that agent the responsibility of representing the principal's interests. |
| Agency | The fiduciary relationship between the principal and the agent by which the agent is authorized to represent the principal in one or more transactions |
| Fiduciary | The relationship in which the agent is held in a position of special trust and confidence by the principal. |
| Client | The principal in a real estate transaction for whom a real estate broker acts as agent. The term Client is also used when a broker represents someone in a relationship other than an agency |
| Customer | The third party or nonrepresented consumer who is not a principal but for whom some level of service may be provided and who is entitled to fairness and honesty. The customer may be represented by a separate agent. |
| Nonagent (Facilitator, intermediary, transactional broker, transaction coordinator, or contract broker) | Someone who works with a buyer and a seller (or a landlord and a tenant), assisting one or both parties with the transaction without representing either party's interests. A broker may be considered a non agent when dealing with a customer (someone other than the person the broker represents). |
| Single Agent | Works for the principal and with the customer. The agent represents only one of the parties to a transaction ex Seller or buyer. The agent supports and defends the principal's interests, not the customer's. The CLIENT is the PRINCIPAL to whom the agent gives advice and counsel. |
| Express Agency | An agency relationship created by an oral or written agreement between the parties. The employment agreement of broker and sales associate must be in writing (listing agreement). A relationship between a buyer and a broker is created by a buyer representation agreement. |
| Universal Agent | A person empowered to do anything the principal could do personally. |
| General Agent | Represents the principal in certain business matters; A broad range of matters related to a particular business or activity. |
| Special Agent | Limited agent, authorized to represent the principal in one specific act or business transaction only. Ex. A real estate broker is usually a special agent. |
| Seller Representation | If a seller enters a listing agreement with a broker to market the seller's real estate, the broker becomes an agent of the seller; the seller is the principal, the broker's client. |
| Dual Agencey | Agent represents two principals in the same transaction. |
| Termination of Agency | Agency may be terminated for the following reasons: - Completion, performance, or fulfillment of the purpose for which the agency was created - Death or incapacity of either party - Destruction or condemnation of the property -Expiration of the terms of the agency - Mutual agreement by all parties to cancel the contract - Breach by one of the parties - By operation of law, as in bankruptcy of the principal (bankruptcy terminates the agency contract and title to the property transfers to a court appointed receiver) |
| Puffing | Exaggeration of a property's benefits. |
| Fraud | Intentional misrepresentation of a material fact in such a way as to harm or take advantage of another person. |
| Negligent Misrepresentation | The real Estate professional should have known that a statement about a material fact was false. A real estate professional's lack of awareness of an issue is no excuse |
| Latent Defect | A hidden structural defect that would not be discovered by ordinary inspection. |
| Stigmatized Properties | Those that society has found undesirable because of events that occurred there or because of proximity of the property to a known nuisance. Ex. homicide or a criminal event |
| Megan's Law | Federal Legislation which promotes the establishment of state registration systems to maintain residential information on every person who kidnaps children, commits sexual crimes against children, or commits sexually violent crimes. |
| Transactional Brokerage | A broker who helps a buyer and a seller with paperwork but does not represent either party. |
Want to create your own Flashcards for free with GoConqr? Learn more.