Module 4 Vocabulary

A fiduciary relationship between the client (principal) and the agent. Since the passage of BRDA, the only agency relationship is single agency.

Effective Oct 1, 1994 provides (4) types of authorized brokerage relationships that a real estate licensee may have with a consumer: transaction brokerage, single agency, no brokerage, and designated sales associate.

Relationship, licensee works for both the seller and buyer in a transaction in a fiduciary capacity

Allows licensee to provide limited representation to both parties without creating a fiduciary relationship.

Licensee who is authorized and consents to represent the interests of another person. In the real estate business, the firm's broker is the agent and he/she shares the responsibility with the licensees who work for the firm.

formerly known as broker-salesperson. A real estate practitioner who has a broker's license and works as a licensee for the brokerage firm.

The party who employs a licensee in an agency relationship. The licensee works for and represents this party (buyer or seller) in a fiduciary capacity. Single agency is only authorized brokerage relationship in which licensees have a client. Also called principal.

3rd party for whom some level of service is provided and is entitled to fairness and honesty, diclosure of material facts and accounting for all funds.

Broker may designate 2 sales associates employed by the same firm to represent different parties in the same transaction as single agents.

Illegal relationship in which the licensee represents both the buyer and seller in a fiduciary capacity.

Relationship of trust and confidence between the licensee as agent and the seller or buyer as principal (or Client).

Formerly known as salesperson a real estate pratitioner with a sales associate's license. Must be employed by a broker or owner-employer to provide services of real estate.

When a licensee represents, as a fiduciary, either the buyer or seller. As a single agent, a licensee may not represent both buyer and seller in the same transaction.

Licensee who provides limited representation to a buyer, a seller, or both. A transaction broker does not represent either party in a fiduciary capacity or as a single agent.

• 1) improved residential property of 4 units or fewer
• 2) unimproved residential property intended for use of 4 units or fewer
• 3) agricultural property of 10 acres or fewer

Is when in a brokerage firm, through one or more of its real estate licensee, acts as both listing and selling agent

System that disseminates information about listed properties and through which participants offer cooperation and compensation to other properties; it permits subagency but does not require it.