Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
66 Cards in this Set
- Front
- Back
|
Agent |
Acts for or on behalf of another person |
|
|
Principal |
Aka the client |
|
|
Client |
Also known as the principal. Hires an agent |
|
|
Fiduciary |
A relationship built on trust |
|
|
Compensation |
Refers to the fact that an agent should be paid on the completion of the agency (when an agent helps a client buy or sell) |
|
|
Reimbursement |
An agent should be reimbursed by the principal for expenses incurred on behalf of the principal, above and beyond the expenses related to the sale itself. (If the agent pays for a house to be cleaned or a lawn mowed) |
|
|
Indemnification |
Means that the principal will protect the agent from suffering a loss due to the agents reliance on information received from the principal. (If the seller gave the broker false information, then sells the home, the broker would be justified in expecting indemnification from the seller. |
|
|
Performance |
Means the principal is expected to perform as promised in the agency agreement. (You have listed a property, it is reasonable to expect the property to be available to be shown) |
|
|
Agency by actual authority |
When an individual grants express authority to the agent to perform some act. Authority granted may be in oral or written form. |
|
|
When is actual written authority given? |
When a seller signs a listing agreement |
|
|
Ostensible agency |
When actions lead another person to assume that one is an agent. |
|
|
Agency by ratification |
When an agent acts without prior authorization and the principal accepts it upon learning of the action |
|
|
Agency by estoppel |
Is created when a principal in adequately supervises an agent. The agent takes on powers that go beyond the scope of authority given by the principal |
|
|
Agency coupled with an interest |
When a broker is the owner of a property that is being sold or when a broker is interested in buying a property. |
|
|
Express Authority |
Written listing agreement or buyer representation agreement is evidence that the agency relationship exists and provides agent with express authority. Express authority also comes from specific instructions from the principal |
|
|
Implied authority |
Authority for agents that are considered the “norm”. (A home owner can expect their agent to make appointments to show their property not only on business hours but weekends and evenings). Basically what is expected out of agents |
|
|
Universal agency |
BROAD or WIDE range of authority to act on behalf of principal. The agent has the power to for the principal in ALL transactions. Universal agency is created with a power of attorney |
|
|
General Agency |
Less authority than universal agent. Gives agent the right to represent principal in a particular type of transaction or business. (Being a property manager) |
|
|
Special Agency |
Also known as limited agency. Agent may perform limited duties for principal. (being an agent for a client, to market and sell their property for example) |
|
|
OLDCAR |
Obedience Loyalty Disclosure Confidentiality Accounting Reasonable Care |
|
|
IABS |
Information about Brokerage Services |
|
|
Oral Agency Agreement |
Legal and common in Texas. Agreement given by customer to let agent represent them without written proof. Unenforceable against client but enforceable towards agent. |
|
|
Listing Side |
Where the SELLER retains the services of a broker |
|
|
Selling Side |
Where the BUYER retains the services of a broker. Agent is referred as the selling agent |
|
|
Cooperative sale |
The property is sold by a firm other than the listing firm (client from ACME Realty buys home listed on CITY Realty) |
|
|
In house sale |
The property is sold by the listing firm |
|
|
MLS |
Multiple Listing Service. Which significantly facilitates cooperative sales. |
|
|
Subagency |
Unusual in Texas. A firm sells a property listed by another firm to a buyer that they are not representing, the selling firm represents the seller. |
|
|
Honesty |
A special duty of honesty is applied in the act when the license holder is buying or selling property in his or her name |
|
|
REALTORS |
Of the National Association of REALTORS. (NAR). Members must comply with the rules of the commission, TREC and NAR Code of ethics and standards of practice. |
|
|
Alternate name. |
Also known as alias. |
|
|
Associated broker |
Means a broker who associates with and gets paid through another broker under a relationship that is intended to be a continuous relationship, including but not limited to employment |
|
|
Associated business name |
Aka DBA |
|
|
Team Name |
A name used by a group of one or more license holders sponsored by the same broker. |
|
|
What words can be used for team names? |
Team Group |
|
|
What can a team use in their name |
Realty (followed by team or group) |
|
|
What words CANNOT be used in a team name? |
Company Brokerage Associates |
|
|
Sellers disclosure notice |
Is what the seller prepares. The seller is responsible for its accuracy. |
|
|
What is a Stigmatized property? |
A property is stigmatized when some adverse event occurs on site or when people believe that a past event or condition is affecting it. Murder Death Suicide Infectious disease Criminal activity Property conditions issues Paranormal activity |
|
|
Megan’s law |
Law enacted in New Jersey after the murder of Megan Kanka which occurred on July 29, 1994. All states have ratified this law. It requires the registration of sex offenders |
|
|
Listing agreement |
An employment contract used by sellers to employ a real estate broker or brokerage firm, to find a buyer for their property. |
|
|
Open listing |
Gives the seller the right to list the property with multiple competing brokers and to sell the property personally without liability for payment of a commission. |
|
|
Procuring cause |
The person responsible for finding the buyer for an open listing |
|
|
Exclusive agency |
The seller agrees to list the property with only one broker during the listing term, with the provision that the seller can sell the property himself without paying a commission |
|
|
Exclusive right to sell |
A commission is paid even if the property is sold by the owner. Greatest degree of protection in earning a commission |
|
|
Net listing |
The seller establishes a minimum net amount for his proceeds during closing. Outlawed in many states for the potential of unethical and legal issues |
|
|
Competitive market analysis |
The agent uses sales from the MLS data to show a seller the market value of the property |
|
|
Subagency |
When a license holder is not associated with the sellers broker but is representing the seller through a cooperative agreement with the sellers broker. Does not happen often, everyone represents the seller |
|
|
Buyer representation agreement |
Create buyer agency |
|
|
Honest dealing |
An agent may not deceive, defraud or otherwise dishonestly deal with a customer |
|
|
Reasonable care and skill performance |
That an agent will be held to the standards of knowledge, expertise and ethics that are spelled out in the TRELA |
|
|
Disclosure of all material facts |
The license holder must disclose all facts that he or she knows or should reasonably be expected to know that materially affect the value of or desirability of the property. |
|
|
Price fixing |
Any attempt by a group of brokers to set the commission rates in their area or between a group of brokerage firms would be considered illegal price fixing |
|
|
Price fixing |
Any attempt by a group of brokers to set the commission rates in their area or between a group of brokerage firms would be considered illegal price fixing |
|
|
Sherman Anti Trust Act |
Federal legislation that specifically deals with illegal fixing of commission rates |
|
|
Clayton Act |
Similar to Sherman Anti Trust Act for price fixing |
|
|
Dual Agency |
The practice that allows a real estate firm to represent both the buyer and seller with their written permission |
|
|
Senate Bill 489 |
The legislation that gives the industry the intermediary process |
|
|
In house sale |
A transaction in which a broker is on both the selling and listing side |
|
|
Intermediary |
Is a process that makes it possible to bring client buyers and sellers together while at the same time representing their best interest. When this event happens, the broker becomes an intermediary. |
|
|
Intermediary with appointments |
Appointed associates will give advice and opinions (negotiate) to their respective parties. The broker must make the appointments, using the Intermediary Relationship notice. |
|
|
Intermediary without appointments |
When an agent sells their listing. Agent can still complete the transaction but cannot give advice to any parties |
|
|
Representation disclosure |
A license holder who represents a party in a proposed real estate transaction shall disclose, orally or in writing, that representation at the time of the license holders first contact with another party of the transaction or another license holder who represents another party to the transaction |
|
|
Substantive dialogue |
As a meeting or written communication that involves a substantive discussion that relates to a specific property |
|
|
Independent contractor |
(S) engaged in a principal-agent relationship, which is a general agency relationship that exists between the broker and the sponsored license holders. |
|
|
1099-MISC |
Independent contractors receive this instead of a W2. It shows the sum of the payments received from an agents broker during the tax year |
