Unit 4: Real Estate (38)

Front 1

Means a relationship in which a real estate broker or licensee, whether directly or through an affiliated licensee, represents a consumer by the consumers consent, whether expressed or implied in a real property transaction

Back 1

Agency

Front 2

Agency is governed by two kinds of laws?

Back 2

Statutory law and Common law

Front 3

In a broader sense than the agent-client relationship, the relationship of the broker, managing broker, or residential leasing agent with the sponsoring broker is also called?

Back 3

General agency

Front 4

Is the individual who is authorized and consents to represent the interest of another person in the real estate business. A firm sponsoring broker is the agent and shares this responsibility with the licensee who work for him.

Back 4

Agent

Front 5

Is an agreement written or oral between a sponsoring broker and a consumer for licensed activities to be provided to a consumer in return for compensation, or the right to receive compensation from another in Illinois. Must be in writing.

Back 5

Brokerage agreement

Front 6

a person or entity, seeking or receiving licensed activities

Back 6

Consumer

Front 7

a person who is being represented by a licensee

Back 7

Client

Front 8

a consumer who is not being represented by the licensee

Back 8

Customer

Front 9

means a valuable consideration, given by one person or entity to another person or entity, in exchange for the performance of some activity or service

Back 9

Compensation

Front 10

Means information obtained by a licensee during the term of a brokerage agreement that was made confidential by the written request

Back 10

Confidential information

Front 11

The client is the (blank) to whom the agent gives advice and counsel

Back 11

Principal

Front 12

one who is placed in a position of trust and confidence

Back 12

Fiduciary

Front 13

Care, obedience, loyalty disclosure, accounting, confidentiality

Back 13

The six common law fiduciary duties may be remembered by the acronym COLD AC

Front 14

Generalized vague exaggeration of a properties benefit is called?

Back 14

Puffing

Front 15

Is the intentional misrepresentation of a material fact, so as to harm or take advantage of another person

Back 15

Fraud

Front 16

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

Back 16

Negligent misrepresentation

Front 17

A structural defect that would not normally be uncovered over the course of an ordinary inspection, (due to the placement or type of defect)

Back 17

Latent defects

Front 18

are those properties that society has branded undesirable because of events that occur there

Back 18

Stigmatized properties

Front 19

Also called an express agreement in which the parties formally express their intention to establish an agency relationship and status terms and conditions

Back 19

Express contract

Front 20

An agency relationship between the seller and sponsoring broker is generally created by written employment contract commonly called a?

Back 20

Listing agreement

Front 21

And express agency relationship between a buyer and sponsoring broker is created by a

Back 21

Buyer agency agreement

Front 22

An express agency relationship between a buyer and sponsoring broker is created by a

Back 22

Buyer agency agreement

Front 23

This occurs when the actions of the licensee indicate that the licensee has formed an agency relationship with a party.

Back 23

Implied contract

Front 24

Agency can exist, even if no fees involved

Back 24

gratuitous agency

Front 25

Both the buyers and sellers real estate agents are often paid by the seller in a

Back 25

Cooperative commission

Front 26

is a person empowered to do anything the principal could do personally

Back 26

Universal Agent

Front 27

May represent the principal in a broad range of matter, is related to a particular business or activity

Back 27

General agent

Front 28

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

Back 28

Special agent

Front 29

Is a person authorized by the sponsoring broker to act as the agent of a specific principle

Back 29

Designated agent

Front 30

When an agent or firm, represents only one party, buyer, seller, landlord, or tenant exclusively in a real estate transaction this relationship is called?

Back 30

Single agency

Front 31

The agent represents two principles in the same transaction

Back 31

Dual agency

Front 32

The practice of using those escrow funds as the licenses own money

Back 32

Conversion

Front 33

Monies with the licenses personal or general business funds is illegal

Back 33

Commingling

Front 34

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

Back 34

Material fact

Front 35

The agent has an interest in the subject of the agency, such as the property being sold

Back 35

Agency coupled with an interest

Front 36

When the dialogue between a licensee and consumer moves from casual conversation to the consumers motives and other info that if disclosed could harm the consumers bargaining position.

Back 36

Substantive contact

Front 37

Is created through the formal expression of an individuals intentions

Back 37

Express agency

Front 38

Death, or incapacity of either the client or sponsoring broker

Destruction or condemnation of the property

Expiration of terms of the agency

Mutual agreement by all parties to the contract

Breach

By operation of law as in bankruptcy

Completion, performance or fulfillment

Back 38

Creation and termination of agency