Ch 4 - Agency

Front 1

the relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions

Back 1

agency

Front 2

what 2 laws govern agency

Back 2

common law
statutory law

Front 3

what law uses the rules of a society established by tradition and court decisions

Back 3

common law

Front 4

what law uses the laws, rules, and regulations enacted by legislatures and other governing bodies

Back 4

statutory law

Front 5

relationship between a real estate licensee and the person he/she represents

Back 5

agency

Front 6

what law is established by rules of a society established by tradition and court decisions

Back 6

common law

Front 7

what law is established by laws, rules, and regulations enacted by legislatures and other governing bodies

Back 7

statutory law

Front 8

the basic framework of the law that governs the legal responsibilities of the broker to the people he/she represents

Back 8

common-law law of agency

Front 9

defines the rights and duties of the principal and the agent

Back 9

law of agency

Front 10

principal and agent may enter into a contract in which the parties formally express their intention to establish in agency and state its terms and conditions; may be oral or written

Back 10

express agreement

Front 11

agency relationship between a seller and a broker is generally created by a written employment contract which authorizes the broker to find a buyer or tenant for the owner's property

Back 11

listing agreement

Front 12

express agency between a buyer and a broker

Back 12

buyer agency agreement

Front 13

type of agency created when the actions of the parties indicate that they have mutually consented to an agency

Back 13

implied agreement

Front 14

agency can exist even if no fee is involved

Back 14

gratuitous agency

Front 15

source of compensation does not determine...

Back 15

agency

Front 16

-individual who is authorized and consents to represent the interests of another person
-broker and salesperson

Back 16

agent

Front 17

-agent of an agent
-agents who work for a broker are considered agent of the broker, ie _________ of the client

Back 17

subagent

Front 18

-individual who hires the agent and delegates to him/her the responsibility of representing the principal's interest
-can be buyer or seller, landlord or tenant

Back 18

principal

Front 19

fiduciary relationship between the principal and the agent

Back 19

agency

Front 20

relationship in which the agent is held in a position of special trust and confidence by the principal

Back 20

fiduciary

Front 21

another name for client?

Back 21

principal

Front 22

the third party or nonrepresented consumer for whom some level of service is provided and who is entitled to fairness and honesty

Back 22

customer

Front 23

middleman between a buyer and seller (or landlord and tenant) who assists one or both parties with the transaction without representing either party's interests

Back 23

nonagent
-also referred to as a facilitator, intermediary, transactional broker, transactional coordinator, or contract broker
-licensees may be known as nonagents with a customer relationship

Front 24

person to whom the agent gives advice and counsel and is entrusted with confidential information

Back 24

client

Front 25

person entitled to factual information and fair and honest dealings as a consumer but does not receive advice and counsel or confidential information about the principal

Back 25

customer

Front 26

-a relationship of trust and confidence with the principal
-broker owes the principal certain specific duties

Back 26

fiduciary relationship

Front 27

under the common-law of agency, an agent owes the principal the six duties of.....

Back 27

care, obedience, loyalty, disclosure, accounting, and confidentiality

COLD AC

Front 28

7 ways an agency may be termianted

Back 28

-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 the contract
-breach by one of the parties
-by operation of law, as in bankruptcy

Front 29

-agency relationship in which the agent is given an interest in the subject of the agency, such as the property being sold
-cannot be revoked by the principal or be terminated upon the principal's death

Back 29

agency coupled with an interest

Front 30

-person empowered to do anything the principal could do personally
-authority to act on behalf the principal is virtually unlimited
-can be created by a general power of attorney, which makes the agent an attorney in fact

Back 30

universal agent

Front 31

may represent the principal in a broad range of matters related to a particular business or activity (represents principal generally)

Back 31

general agent

Front 32

authorized to represent the principal in one specific act or business transaction only, under detail instructions

Back 32

special agent (limited agent)

Front 33

-person authorized by the broker to act as the agent of a specific principal
-only agent in the company who has a fiduciary responsibility toward the principal

Back 33

designated agent

Front 34

-agent represents only one party in any single transaction
-agent owes either fiduciary or statutory duties exclusively to one principal, who may be either the buyer or the seller (or landlord or tenant) in a transaction
-customer is the party not represented by the agent

Back 34

single agency

Front 35

an agency created when on broker, usually the seller's agent, appoints other brokers (with the seller's permission) to help perform client-based functions on the principal's behalf

Back 35

subagency

Front 36

cooperating brokers in a subagency have the same ______ to the seller as does the listing broker, helping produce a ready, willing, and able buyer for the property

Back 36

fiduciary obligation

Front 37

if a seller contracts with a broker to market the seller's real estate, the broker becomes an _______ of the seller; the seller is the ______, the broker's _________.

Back 37

agent
principal
customer

Front 38

when a buyer contracts with a broker to locate property and represent his/her interests in a transaction, the buyer is the ________, the broker's ________. The broker, as _______, is strictly accountable to the buyer. The seller is the ________.

Back 38

principal
client
agent
customer

Front 39

-an arrangement when an owner may employ a broker to market, lease, maintain, or manage the owner's property
-broker is made an agent of the property owner through this agreement
-broker's responsibility is limited to finding suitable tenants for the owner's property

Back 39

property management

Front 40

-agent represents 2 principals in the same transaction
-because this agency originates with the broker, _______ agency arises when the broker is the agent of the buyer and either the agent or subagent of the seller
-salespersons, as agents of the broker, have fiduciary or statutory responsibilities to the same principals as well
-can never fully represent either party's interests

Back 40

dual agency (limited agency)

Front 41

process that accommodates an in-house sales where 2 different agents are involved

Back 41

designated agent

Front 42

a person not an agent of either party

Back 42

nonagent (transactional broker, facilitator, coordinator, or contract broker)

Front 43

what is the nonagent's job

Back 43

to help both the buyer and the seller with the necessary paperwork and formalities involved in transferring ownership of real property
(buyer and seller negotiate the sale without representation)

Front 44

if a state's agency law does not specifically replace the common law of agency, a licensee will be subject to the requirements of both the.....

Back 44

statute and common law

Front 45

duties to a customer include

Back 45

-reasonable care and skill in performance
-honest and fair dealing
-disclosures of all facts that the licensee knows or should reasonably be expected to know that materially affect the value or desirability of the property

Front 46

exaggeration of a property's benefits

Back 46

puffing
(is legal but licensees must ensure that none of their statements can be interpreted as fraudulent)

Front 47

intentional misrepresentation of a material fact in such a way as to harm or take advantage of another person

Back 47

fraud
(also includes intentionally concealing or failing to disclose important facts)

Front 48

when the broker should have known that a statement about a material fact was false

Back 48

negligent misrepresentation

Front 49

hidden structural defect that would not be discovered by ordinary inspection

Back 49

latent defect

Front 50

properties that society has branded as undesirable because of events that occurred there or because of a sexual offender who currently lives in an area

Back 50

stigmatized