Il Real Estate Ch# 4

Front 1

Based on Il law & the Residental real Property Disclosure Report, what must a seller disclose?

Back 1

latent and material defects

Front 2

Name 5 fiduciary responsibilities an agent owes the principal

Back 2

Care
Obedience
Accounting
Loyalty
Disclosure

Front 3

Name 4 types of angency relationships

Back 3

1)universal
2)general
3)special
4)designated

Front 4

Define agent:

Back 4

an idiviual who is authorized and consents to represent the interests of another person

Front 5

Define customer:

Back 5

a consumer for whom some small level of service is provided and who is entitled to fairness and honesty

Front 6

Define fiduciary:

Back 6

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

Front 7

Define agency:

Back 7

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

Front 8

Define principal:

Back 8

the individual who hire the agent and delegates hi/her the responsibility of representing the princials interest

Front 9

Define client:

Back 9

teh principal-the individual to whom fiduciary duties of loyalty,care,obediance,duligence, and accounting are owed

Front 10

Define fraud:

Back 10

the intentional misrepresentation of material facts in such a way as to harm or take advantage of anther person

Front 11

Define puffing:

Back 11

Exaggeration of a properties benefits (legal)

Front 12

Define latent defect:

Back 12

a hidden structural defect that would not be discovered by ordinary inspection

Front 13

Define negligent misrepresentation:

Back 13

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

Front 14

Define agency coupled with an interest:

Back 14

an agency relationship in which the agent is given an estate or interest in the subject of the agency(the property)

Front 15

Define brokerage agreement:

Back 15

a written or oral agreement for brokerage services to be provided to comsumer in return for compensation or the right to receive compensation from another

Front 16

Define buyer agency:

Back 16

a contract where a broker works on behalf of the buyer and not the seller

Front 17

Define buyer agency agreement:

Back 17

a principle-agent relationship in which the broker is the agent for the buyer,with fiduciary responsibilities to the buyer

Front 18

Define commingling:

Back 18

the illegal act by areal estate broker placing client or customer funds with personal funds

Front 19

Define common law of agency:

Back 19

the traditional law governing the principal-agent relationship, superseded by statue in IL

Front 20

Define confidentiality:

Back 20

agent may not disclose the principal's personal,confidential, or financial affairs without the principal's consent

Front 21

Define co-op commission:

Back 21

commission paid by the lising broker to the buyer's broker

Front 22

Define designated agent:

Back 22

a licensee authorized by a broker to act as the agent for a specific principal in a particular transaction

Front 23

Define dual agency:

Back 23

resprenting both parties to a transaction; in IL, this is illegal unless both parties agree to it in writing

Front 24

Define express agency:

Back 24

a contract in which the parties formally express thier intentions to establish an agency and state its terms and conditions

Front 25

Define general agency:

Back 25

working for an owner ina property management agreement

Front 26

Define general agent:

Back 26

one who is authorized by a principal to represent the principal in a specific range of matters

Front 27

Define gratuitous agency:

Back 27

agency where no fee or commission exists

Front 28

Define implied agency:

Back 28

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

Front 29

Define consumer:

Back 29

a person or entity who seeks goods and services

Front 30

Define listing agreement:

Back 30

a written contract between the seller and the broker that authorizes the broker to find a buyer or tenant for the owner's property

Front 31

Define material fact:

Back 31

any fact that,if known, might reasonably be expected to affect the course of events

Front 32

Define ministerial acts:

Back 32

those acts that licensee may perform for a consumer that are informative or clerical in nature and do not rise to the level of active representation on behalf of a consumer

Front 33

Define special agent:

Back 33

an agent that is authorized to represent the principal in one specific act or business transaction only, under detailed instructions

Front 34

Define subagent:

Back 34

one who is employed by a person who is already acting as an agent

Front 35

Define universal agent:

Back 35

a person empowerd to do anything the principal could personally; the agent's authority to act on behalf of the principal is virtually unlimited--usually not a real estate agent

Front 36

According to Article 15 of the Real Estate License Act of 2000, what 5 statutory duties must an agent do?

Back 36

1)perferm the terms of the brokerage agreement
2)promote the best interests of the client
3)excerise reasonable skill and care in the performance of brokerage services
4)keep confidential all confidential information received by the client
5)comply with all the requirements of the law, including fair housing and civil rights