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40 Cards in this Set
- Front
- Back
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Agent |
One who asked for and with authority from another person (principal) |
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Principal |
Employer of an agent, one of the parties to the transaction |
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Agency |
Relationship between a principal and the agent of the principle that arises out of a contract, whether express or implied, written or oral, by which the agent is employed by the principal to do certain acts dealing with a third-party |
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Cooperating broker |
The broker who finds a buyer for property listed for sale by another broker. Can be; agent of listing broker, sub agent of the seller, agent of the buyer |
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Sub agent |
Person who works through agent on clients behalf |
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Pocket listing |
Marketed privately before entering the MLS, needs authorization from seller |
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Agency agreement |
Employment contract |
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Agency disclosure form |
Written statement required for a residential transaction involving property of 1 to 4 residential units. Using wording required by California Civil Code and signed by both buyer and seller in a transaction that explains the various relationships of those involved in a residential property sale |
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Attorney in fact |
Agent who has been granted power of attorney by a principal |
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How agency relationship is created |
1. Express agreement 2. Ratification 3.estopple |
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Express agreement |
An agreement established by written or oral communication of the parties that both parties acknowledge as their intention. Doesn't have to be in writing unless, the law requires or agent is to perform an act on behalf of principle that requires writing |
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Equal dignities rule |
Requires a writing if an agreement (such as a listing agreement) involves a transaction (such as the sale of real estate) that requires a writing |
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Statute of frauds |
A state law requiring certain contracts to be in writing and signed before they will be enforceable. I.e. Contract for sale of real estate 1. Employment agreement between a real estate broker at a sales person must be in writing 2. Contract for the sale of real estate or the least of real estate for longer than one year must be in writing 3.contract that authorizes an agent to find a purchaser or Leisy for more than one year of real estate a listing agreement must be written |
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Ratification |
The adoption or approval of an act by the person on whose behalf it was performed, as when a principal ratified conduct of an agent that was not previously authorized. |
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Estoppel |
A bar against future contact, by acting as if agency exists, a principal is prevented by estoppel from denying it in the future |
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Requirements for a valid contract |
1. Both parties must consent to charms 2. Contract must have a lawful objective 3. Must be consideration (obligation) |
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Bilateral contract |
Each party has a separate obligation to perform |
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Unilateral contract |
When only one party has an obligation to perform |
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Three types of authority an agent has |
Actual authority, inherent authority, apparent authority |
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Actual authority |
Specified an agency agreement |
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Actual authority |
Specified an agency agreement |
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Inherent authority |
Authority of agent to perform activities that are not specifically mentioned in the agency agreement that are necessary or customary to carry out an authorized act. |
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Apparent authority |
Authority to act as an agent that someone appears to have but does not actually have, which places no obligation on the party the agent claims to represent |
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Listing agreement |
Must be in writing 4 types 1. Open listing-nonexclusive 2. Exclusive agency listing 3. Exclusive authorization and right to sell listing 4. Net listing 5. Option listing |
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Open listing |
Commission earned only a broker is procuring cause of sale. Generally avoided in residential transactions more commonly used in commercial and industrial |
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Exclusive agency listing |
No other broker authorized, owner may sell without owning commission |
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Exclusive agency listing |
No other broker authorized, owner may sell without owning commission |
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Exclusive authorization and right to sell listing |
No other broker authorized, cooperating broker may be brought in, commission owed no matter who sells the property, most commonly used agreement |
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Safety clause |
Provision that protects a listing brokers commission in the event that property is sold within a stated period to someone who was first brought to the property during the term of the listing |
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Net listing |
No other broker authorized seller receives predetermined amount and broker receives excess. Agent must disclose the selling price and amount of their compensation |
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Option listing |
No other broker authorized, broker has the right to purchase the property. Full disclosure to seller if broker exercises option |
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Definite termination date |
Agreement must include this. |
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Fiduciary |
A person to come property or the power to act is interested on behalf of someone else |
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Fiduciary |
A person to come property or the power to act is interested on behalf of someone else |
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Agent owes principal OLD CAR |
Obedience Loyalty Disclosure
Confidentiality Accounting Reasonable care and skill |
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Material facts |
Anything that would affect the desirability of property. No need to disclose death on property if occurred more than three years ago and no need to reveal an occupant had or died from AIDS |
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Easton V Strassburger 1984 |
Agent has the duty to conduct reasonably competent and diligent inspection of property and to disclose to prospective purchasers |
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Real estate transfer disclosure statement |
Seller must provide. Details the mechanical and structural conditions of the property any form specified by the law. |
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Recovery account |
Helps to compensate victims of fraud, misrepresentation, deceit or conversion of trust funds when court order judgments against license he can't be collected. Funded by 5% of all real estate license fees. Limits are $50,000 per transaction $250,000 per licensee, regardless the number of victims. |
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Termination of agency |
1. Fulfillment of agency agreement 2. Expiration of agreement 3. Destruction of property 4. Death of principle or agent 5.incapacity of agent to act as agent, or incapacity a principle to enter into contract 6. Agreement of principal and agent 7. Operation of law, i.e. bankruptcy |
