Chapter 6: Agency

Front 1

Acceptable Buyer

Back 1

A buyer whose offer is acceptable to the seller, though different from the terms in the brokers' listing agreements.

Front 2

Actual Agency

Back 2

An agency established by agreement, either written or verbal.

Front 3

Agency

Back 3

Agency as defined under "BRRETA" means every relationship in which a real estate broker acts for or represents another by that person's express authority in a real estate transaction.

Front 4

Agency Coupled with an Interest

Back 4

An agency in which the agent has a legal interest in the property of the principal.

Cannot be revoked by the principal.

Front 5

Agent

Back 5

A person authorized to act on behalf of another.

Front 6

As Is

Back 6

A term used to describe property offered for sale in its present condition with no warranty provided by the owner. It does not confer immunity from liability of fraud.

Front 7

Attorney-in-Fact

Back 7

One who has the authority to act on behalf of another under a power of attorney.

Front 8

Automatic Renewal Clause

Back 8

A provision in the listing agreement which allows the listing to automatically renew indefinitely until the property is either sold, or the agreement is canceled by the owner. Such provisions are not allowed in most states.

Front 9

Broker

Back 9

An individual or legal entity (corporation or partnership) licensed to act as the agent of another in buying, selling, exchanging, renting, leasing, managing, or auctioning real estate for another.

Front 10

Brokerage

Back 10

Under "BRRETA" a brokerage is defined under GA Law as anyone who is authorized to buy, sell, rent, manage, exchange or auction real property for another in return for a fee. Simply stated, the brokerage business is the occupation of a real estate broker.

Front 11

Brokerage Engagement

Back 11

Under "BRRETA", a brokerage engagement is an expressed contract (written or oral) where the client (Principle) agrees to give the real estate broker valuable consideration upon the broker producing a seller, buyer, tenant, or landlord ready, willing and able to sell, buy or rent the property (i.e. Listing Contracts, Buyer Representation Agreements, Management Contracts and Lease Contracts).

Front 12

Brokerage Relationship

Back 12

Under "BRRETA" the brokerage relationship is the relationship that is formed as a result of the parties entering into a brokerage engagement.

Front 13

Caveat Emptor

Back 13

Latin - Let the Buyer Beware

Front 14

Client

Back 14

Under "BRRETA" the client is the person or entity who has entered into a contractual relationship (brokerage engagement) with the broker.

The person who authorizes the agent (broker) to act on his/her behalf. In real estate transactions, the client may be the seller (principle).

Front 15

Co-Broker

Back 15

A broker who assists the listing broker in securing a buyer.

Front 16

Commingling

Back 16

Mixing funds held in trust with the broker's personal or business accounts

Front 17

Commission

Back 17

A broker's compensation for rendering a service to the principle as negotiated with the principle (seller).

Front 18

Customer

Back 18

Under "BRRETA" a customer is someone who is working with a broker concerning real estate matters but has not entered into a brokerage engagement with the broker. In a situation where the broker works with a "customer," this law allows the broker to perform "Ministerial Acts" for the customer while working with them in a specific real estate transaction.

Front 19

Dual Agent

Back 19

Under "BRRETA", a dual agent is a broker who has entered into a brokerage engagement with both seller and buyer or landlord and tenant in the same transaction.

Front 20

Dual Agency

Back 20

Representing both the buyer and the seller in the same transaction. This practice constitutes a violation of the License Law, unless both parties give their written consent.

Front 21

Equal Dignities Rule

Back 21

A doctrine of law which states that the power of attorney or contract you use to appoint an agent, must have the same degree of formality as any document or form the agent is expected to sign.

Front 22

Estoppel

Back 22

A doctrine of law which prevents a person from exercising rights that are not consistent with his/her prior conduct or words.

Front 23

Exclusive Agency Listing

Back 23

A listing agreement in which the seller appoints only one broker to represent him/her in securing a purchaser. However, the seller reserves the right to sell the property himself/herself without being liable to the broker for commission.

Front 24

Exclusive Right to Sell Listing

Back 24

A listing agreement which guarantees the broker a commission if the property is sold during the term of the listing, regardless of who sells it.

Front 25

Fiduciary

Back 25

A relationship of trust and confidence between a principle and agent; a person in a position of trust and confidence, as between broker and seller.

Front 26

General Agent

Back 26

One who has authority to bind his/her principle in a particular business.

Front 27

Guardian

Back 27

One appointed by a court to take care of and manage property owned by a minor, insane person, or the aged.

Front 28

Implied Authority

Back 28

Authority of an agent arising from custom rather than expressed agreement.

Front 29

Independent Contractor

Back 29

One who contracts to do work according to his/her own methods and is responsible to his/her employer only as to the results of that work.

Front 30

Innocent Misrepresentation

Back 30

Waiting on definition

Front 31

Franchise

Back 31

searching for definition

Front 32

Latent Defect

Back 32

Defects not readily apparent from an ordinary inspection of the property. Concealed defects that affect the value of the property and must be disclosed by the seller and broker (when known or apparent to them) and to third parties.

Front 33

Law of Agency

Back 33

That body of law that governs the relationship between principle, agent and third parties.

Front 34

Limited Agency

Back 34

Looking for definition

Front 35

Limited Liability Company

Back 35

A unique form of ownership not classified as a corporation, but an association similar to that of limited partnership. Management responsibilities are vested in its members and members are not personally liable for debts of the limited liability company. Members are not stockholders and therefore, profits are not taxed at the corporate level.

Front 36

Listing Agreement

Back 36

A real estate broker's contract of employment with an owner. The agreement obligates the owner to pay the broker a commission if the broker finds a ready, willing, and able buyer, but it does not obligate the owner to contract with the buyer.

Front 37

Ministerial Acts

Back 37

Under "BRRETA", Ministerial Acts are acts that a broker or affiliated licensee performs for a person (customer) which do not require discretion or the exercise of judgment n the part of the licensee (i.e. preparing and conveying offers, locating draftsmen, architects, attorneys or lenders).

Front 38

Multiple Listing Service

Back 38

A vehicle for sharing listings and seeking cooperation, used by brokers who are members of a multiple listing service.

Front 39

Multiple Listing

Back 39

There should be a definition

Front 40

Net Listing

Back 40

A listing agreement which authorizes the broker to sell the property for any price possible, while the seller agrees to accept the set amount. It is prohibited by License Law in most states.

Front 41

100% Commission Plan

Back 41

A method of compensating salespeople where each salesperson pays the broker a monthly fee foe the use of office space, support services, and the broker's name, and in return, the salesperson keeps 100% of the commission.

Front 42

Open Listing

Back 42

An authorization made by an owner, either verbal or in writing which gives a broker the non-exclusive right to secure a purchaser. Such listings may be given to any number of agents without liability to compensate anyone; except the one who first secures a buyer ready, willing, and able to meet the terms of the listing, or who first secures the seller's acceptance of an acceptable offer. The owner can also sell and pay no commission.

Front 43

Ostensible Agency

Back 43

An agency which is created when a principal's expressed or implied actions indicate that a particular person is acting as his/her agent.

Front 44

Partnership

Back 44

A working relationship of two or more persons where they unite skill, property, or labor to carry on a business and share the profits or losses.

Front 45

Principle

Back 45

Also called Client. One who employs an agent to obtain mortgage financing.

Front 46

Procuring Cause

Back 46

The person whose action is the primary reason for a sale taking place.

Front 47

Ratification

Back 47

The acceptance of an agent's unauthorized acts by direct confirmation or implication.

Front 48

Safety Clause

Back 48

A provision in a Listing Agreement that entitles the broker to a commission after the listing expires, provided the owner sells to one of the broker's prospect's and certain other conditions are met.

Front 49

Special Agent

Back 49

One who is appointed to act on a particular occasion or for a specific purpose. A person with limited authority.

Front 50

Straw Purchaser

Back 50

One who buys property for another in order to keep the identity of the real purchaser confidential.

Front 51

Subagent

Back 51

A co-broker who is working for the listing broker and sharing representation of the seller.

Front 52

Supervening Illegality

Back 52

A method of terminating an agency due to a change of law causing the purpose of the agency to become illegal.

Front 53

Universal Agent

Back 53

One who has authority to perform any lawful act the principle could perform him/herself. An agent who has authority without limitations, usually granted by a general power of attorney.