Chp 4 Agency

  1. The relationship between a principal and an
    agent wherein the agent is authorized to represent the principal in certain
  2. One who acts or has the power to act for
    another. A fiduciary relationship is created under the lay of agency 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.
  3. A residential real estate broker or salesperson
    who represents the prospective purchaser in a transaction. The buyers agent
    owes the buyer. The broker represents the buyer under the law of agency.
    Buyers’s agent
  4. The principal.
  5. The third party or nonrepresented consumer for
    whom some level of service is provided.
  6. A licensee authorized by a broker to act as the
    agent for a specific principal in a particular transaction.
    Designated agent
  7. 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 agent to represent the buyer.
    Designated agency
  8. Representing both parties to a transaction. This
    is unethical unless both parties agree to it, and it is illegal in many states.
    Dual agency
  9. An agency relationship based on formal agreement
    between the parties.
    Express agency
  10. An oral or written contract in which the parties
    state the contract’s terms and express their intentions in words.
    Express agreement
  11. One in whom trust and confidence is placed; a
    reference to a broker employed under the terms of a listing contract or buyer
    agency agreement.
  12. A relationship of trust and confidence, as
    between trustee and beneficiary, attorney and client, or principal and agent.
    Fiduciary relationship
  13. Deception intended to cause a person to give up
    property or a lawful right.
  14. One who is authorized by a principal to
    represent the principal in a specific range of matters.
    General agent
  15. Based  on
    the actions of the parties that imply that they have mutually consented to an
    agency relationship, an implied agency relationship is formed.
    Implied agency
  16. A contract under which the agreement of the parties
    is demonstrated by their acts and conduct.
    Implied agreement
  17. 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 latent defects.
    Latent defect
  18. See agency.
    Law of agency
  19. A contract between an owner (as principal) and a
    real estate broker (as 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.
    Listing agreement
  20. Occurs when the broker should have known that a
    statement about a material fact was false.
    Negligent misrepresentation
  21. An intermediary between a buyer and a seller, or
    a landlord and a tenant, who assist one or both parties with a transaction
    without representing either. Also known as a facilitator, transaction broker,
    transaction coordinator, and contract broker.
  22. (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 a 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.
  23. Exaggerated or superlative comments or opinions.
  24. One who is authorized by a principal to perform
    a single act or transaction: a real estate broker is usually a special agent
    authorized to find a ready, willing, and able buyer for a particular property.
    Special agent
  25. A person empowered  to do anything the principal could do personally.
    Universal agent
Card Set
Chp 4 Agency
Real Estate