C&t 02-2015 Nc Real Estate - Chapter 7

Front 1

The law of agency

Back 1

The law which governs the legal responsibilities of the broker to the people the broker represents

Front 2

Caveat emptor

Back 2

The common law doctrine which states "let the buyer beware"

Front 3

Agent

Back 3

A person authorized to act on behalf and represent the interests of another

Front 4

Subagent

Back 4

One who is employed by a person already acting as an agent, an agent of an agent

Front 5

Principal

Back 5

The person who hires and delegates to the agent through a brokerage contract the responsibility of representing that person's best interests (buyer, seller, landlord or tenant)

Front 6

Agency

Back 6

The fiduciary relationship between the principal and the agent

Front 7

Subagency

Back 7

The fiduciary relationship between the sub agent and the principal

Front 8

Fiduciary

Back 8

A relationship in which the agent is placed in the position of trust and confidence to the principal

Front 9

Client

Back 9

The principal; the party that the agent has been HIRED to do work for

Front 10

Customer

Back 10

The third party for whom some level of service is provided by an agent of another party, but who is not hired and therefore not represented by the agent;

Front 11

Customer

Back 11

A person who is 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

Front 12

Brokerage

Back 12

The business of bringing buyers and sellers together in the marketplace

Front 13

Broker

Back 13

A person who is licensed to list, lease, buy, exchange, auction, negotiate, or sell interest in real property for others and to charge a fee for services

Front 14

Provisional broker

Back 14

A Broker who must work under direct supervision of a broker in charge

Front 15

Universal agent

Back 15

A person who is empowered to do anything the principal could do personally

Front 16

General agent

Back 16

A person who may represent the principal in a broad range of matters related to a particular business or activity, such as a property manager

Front 17

Special Agent

Back 17

A person who is authorized to represent the principal in only one specific act or business transaction, and under limited, detailed instructions with no power to bind the principal; a real estate broker is usually this

Front 18

Ratification

Back 18

Apparent authority; by performing any act that accepts the conduct of the agent as that of an agent

Front 19

Express agreement

Back 19

An agreement where the terms have been expressed either in writing or orally

Front 20

Written (express) agreement

Back 20

In North Carolina, in order for a broker to be entitled to compensation, the broker must have this type of agreement

Front 21

Single agency

Back 21

An agency where the agent represents only one party in a single transaction

Front 22

Buyer agency

Back 22

When a person contracts with a firm or broker to locate property and represent his interests in the transaction whereby he is the principal to the firm or broker

Front 23

Seller subagency

Back 23

Created when one broker or firm, usually the seller's agent, appoints other brokers or firms to assist in performing client-based functions on the principal's behalf

Front 24

Dual agency

Back 24

An agency where neither side can be favored and must be given fair and equal representation, no help and no harm to either side

Front 25

Designated dual agency

Back 25

Typically used for in house sales, the broker in charge appoints different agents to the buyer and the seller and each agent fully represents their client

Front 26

First substantial contact

Back 26

Occurs when conversation between a broker and a consumer shifts from facts about the property to possible confidential information about the consumer's needs, wishes, and abilities; or when the consumer or broker begins to act as if there is a fiduciary relationship

Front 27

3 calendar days, and must review with them as soon after as possible

Back 27

If first substantial contact occurs other than at a face to face meeting, the broker must send the WREA brochure within this many days

Front 28

Oral buyer agency

Back 28

A non-exclusive agreement between agent and buyer considered to be of indefinite duration

Front 29

Honesty and fairness; material facts; compliance with real estate law and NCREC

Back 29

Duties and liabilities of agents to all customers and clients

Front 30

Loyalty (and confidentiality)
Obedience
Accounting
Disclosure
Skill, care and diligence

Back 30

Agent's responsibilities to principal

Front 31

Commingling

Back 31

The term used to describe when trust funds and the firm or broker's personal or business funds are placed in the same account

Front 32

Puffing

Back 32

Opinion statements that exaggerate a property's benefits; legal but must not constitute a misrepresentation of the property

Front 33

Fraud

Back 33

The intentional misrepresentation of a material fact in such a way as to harm or take advantage of another person; dishonesty calculated for advantage

Front 34

Material facts

Back 34

Any facts that might affect the principal's decision in a transaction

Front 35

Facts about the property itself
Facts relating directly to the property
Facts relating to ability of principles to act
Facts of specific importance to buyer

Back 35

Material facts are...

Front 36

Willful misrepresentation

Back 36

Intentionally misinforming any party involved in a transaction about a material fact

Front 37

Negligent misrepresentation

Back 37

Unintentionally misinforming any party involved in a transaction about a material fact

Front 38

Willful omission

Back 38

Intentionally failing to disclose a material fact to any party involved in a transaction

Front 39

Negligent omission

Back 39

Unintentionally failing to disclose a material fact to any party involved in a transaction

Front 40

Not a material fact requiring disclosure but if answer is given it must be truthful, broker can refuse to answer

Back 40

The fact that a registered sex offender resides in or near a property for sale or lease is or is not a material fact requiring disclosure?

Front 41

Not a material fact requiring disclosure and agent cannot disclose this condition, even if asked; agent is prohibited by law from answering the question

Back 41

The fact that an AIDS related illness or death occurred at a property for sale or lease is or is not a material fact requiring disclosure?

Front 42

Not a material fact requiring disclosure but if answer is given it must be truthful, broker can refuse to answer

Back 42

The fact that a death, even a violent death, occurred at a property for sale or lease is or is not a material fact requiring disclosure?

Front 43

Stigmatized properties

Back 43

Those properties branded by society as undesirable because of events that occurred there (not a material fact)

Front 44

Tort

Back 44

A wrongful act by an agent while representing the principal acting within the scope of the employment agreement that created the agency