California Real Estate Principles(13Th Ed.) Ch. 5

Front 1

Agency

Back 1

A legal relationship in which the principal authorizes an agent to act as the principal's representative when dealing with third parties.

Front 2

Fiduciary Relationship

Back 2

The relationship between agent and principal where the agent is in a position of trust or confidence with the principal and owes the principal certain ___________ duties.

Front 3

Special Agent

Back 3

An agent employed to perform a specific task.

Front 4

Actual Authority

Back 4

The level of authority given to an agent by the principal in a written agreement.

Front 5

Special Power of Attorney

Back 5

A written document authorizing the agent to do certain specific acts on behalf of the principal.

Front 6

General Power of Attorney

Back 6

A written document allowing the agent to transact all the business of the principal. The agent is then known as an attorney in fact.

Front 7

Single Agency

Back 7

When a broker represents only the buyer or seller in a transaction.

Front 8

Dual Agency

Back 8

When one broker represents both principals in the transaction.

Front 9

Listing Agent

Back 9

A broker who obtains a listing from a seller to act as an agent for compensation.

Front 10

A Listing

Back 10

A contract between an owner of real property and an agent who is authorized to obtain a buyer.

Front 11

Subagent

Back 11

A broker delegated by the listing agent(if authorized by the seller) who represents the seller in finding a buyer for the listed property.

Front 12

Buyer's Agent

Back 12

A broker employed by the buyer to locate a certain kind of real property.

Front 13

Dual Agent

Back 13

A broker acting as agent for both the seller and the buyer in the same transaction.

Front 14

Selling Agent

Back 14

The broker who finds a buyer and obtains an offer for the real property. Usually a cooperating broker.

Front 15

Cooperating Broker

Back 15

A selling agent who assists another broker by finding a buyer.

Front 16

Sales Associate(associate licensee)

Back 16

A Licensed real estate salesperson or broker whose license is held by an employing licensed broker.

Front 17

Agency Relationship Disclosure Act

Back 17

A law requiring that an agent supply a written document called Disclosure Regarding Real Estate Agency Relationships, explaining the nature of the agency. Must be made PRIOR to taking a listing or writing an offer.

Front 18

Steps In The Disclosure Process

Back 18

DEC
Disclose
Elect
Confirm

Front 19

Express Agreement

Back 19

Written agreement

Front 20

Listing Agreement

Back 20

A written contract by which a principal, or seller, employs a broker to sell real estate.

Front 21

Ratification

Back 21

Acceptance of an act already performed.

Front 22

Estoppel

Back 22

A legal bar that prevents a person from asserting facts or rights that are not consistent with what was implied by the person's previous behavior.

Front 23

An Agency Coupled With An Interest

Back 23

An agency in which the agent gets an interest in the property.

Front 24

Exclusive Authorization and Right To Sell Listing

Back 24

An exclusive contract where the seller must pay the listing broker a commission if the property is sold within the time limit by the listing broker, any other broker, or even the owner.

Front 25

Exclusive Agency Listing

Back 25

An exclusive contract where the seller must pay the listing broker a commission if any broker sells the property.

Front 26

Open Listing

Back 26

A listing agreement that gives any number of brokers the right to sell a property.

Front 27

Procuring Cause

Back 27

Refers to a broker who produces a buyer ready, willing, and able to purchase the property for the price and on the terms specified by the seller, regardless of whether the sale is completed.

Front 28

Net Listing

Back 28

A listing agreement in which the commission is not definite.

Front 29

Option Listing

Back 29

A type of listing giving the broker the right to purchase the property that is listed.

Front 30

Duties an Agent Owes to a Principal

Back 30

COALD
Care
Obedience
Accounting
Loyalty
Disclosure

Front 31

Definite Termination Date

Back 31

Every exclusive listing must specify

Front 32

Commingling

Back 32

The illegal practice of depositing a client's funds in a broker's personal or general business account.

Front 33

Conversion

Back 33

When a broker uses the client's money.

Front 34

Material Fact

Back 34

Any fact that would seem likely to affect the judgment of the principal in giving consent to the agent to enter into the particular transaction on the specified terms.

Front 35

Misrepresentation

Back 35

Making a false statement or concealing a material fact.

Front 36

Innocent Misrepresentations

Back 36

Statements not known to be untrue at the time they are made, and usually carry no criminal liability for an agent.

Front 37

Negligent Misrepresentations

Back 37

Untrue statements made without facts to back them up in circumstances where care should have been taken.

Front 38

Fraudulent Misrepresentations

Back 38

Untrue statements made by an agent who knows that he or she is not telling the truth. The agent may be liable for committing fraud.

Front 39

Puffing

Back 39

A statement of opinion that is not factual about a piece of property.

Front 40

Tort

Back 40

A violation of a legal right or a civil wrong, such as negligence, libel, or nuisance.

Front 41

Safety Clause

Back 41

Protects the listing broker's commission, if the owner personally sells the property to someone who has shown the property or made an offer during the term of the listing.