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Details Title: Chapter 6 Description: Chapter 6 Vocab Total Flash Cards: 33 Created: 08/26/2006 14:43:42	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term agent Definition individual who is autorized and consents to represent the interest of another person. In the real estate industry, principals are hiring an entire company to represent them. Term principal Definition the individual who hires and delegates to the agent through a broker contract the responsibility of representing his or her interest. Buyer, seller, or landlord. Term commission Definition compensation to the firm contingent on the firm successfully performing the service for which it was employed Term universal agent Definition person who is empowered to do anything the principal could do personally Term general agent Definition may represent the principal in a broad range of matters related to a particular business or activity. Term special agent Definition autorized to represent the principal in only one specfic act or business transaction, and under detailed instruction. Most commonly used. Term ready, willing, and able buyer Definition one who is prepared to buy property on the seller's terms and is ready to take positive steps to consummate the transaction. Term express agreement Definition an oral or written contract in which the parties state the contract's terms and espress their intentions in words. Term implied agreement Definition a contract under which the agreement of the parties is demonstrated by their acts and conduct Term ratification Definition a method of creating an agency relationship in which the principal accepts the conduct of someone who acted without prior autorization as the principal's agent Term buyer brokerage Definition specialized field representing buyers exclusively Term dual agency Definition the broker/firm represents the buyer and the seller in the same transaction. Must be equally loyal to both principals at the same time. Term designated dual agency Definition when a transaction is an in-house sale. When the BIC appoints one agent to represent the buyer and appoints another agent to represent the seller. Term fiduciary relationship Definition one of trust and confidence between the broker and the principal. The broker, by law, owes the principal specific duties - loyalty, obedience, accounting, disclosure, and skill, care, and diligence. LOADS Term puffing Definition statements that exaggerate a property's benefits Term fraud Definition intentional misrepresentation of a material fact in such a way as to harm or take advantage of another person Term material facts Definition any fact that is important or relevant to the issue at hand. 1. Facts about the property itself; 2. facts related directly to the property (zoning changes or planned highway construction); 3. facts relating directly to the ability of the agent's principal to complete the transaction (foreclosure or inablity to finance); 4. facts known to be of specific importance to a party Term willful misrepresentation Definition when agents who have actual knowledge of a material fact deliberatly misinform a buyer, seller, tenant, or landlord concerning such fact. Term Negligent Misrepresentation Definition unintentionally misinform a buyer, sellerl, tenant, or landlord concerning a material fact because they do not have actual knowledge of the fact, because they have incorrect information, or because of a mistake by the agent. Term willful omission Definition when an agent has actual knowledge of a material fact and a duty to disclose such a fact to a buyer, seller, or tenant, or landlord but deliberatly fail to disclose such fact. Term negligent omission Definition agents do not have knowledge of a material fact but shold reasonably have know a such fact Term stigmatized property Definition properties branded by society as undesirable becasue of events that occurred in the past. Term Duties to agent Definition Two basic duties to agent by principal: 1. Act in good faith; 2. To pay the agent the agreed-on compensation Term tort Definition a wrongful act by an agent while representing the principal and acting within the scope of the employment agreement that created the agency Term employee Definition someone who works as a direct employee of an employer and has employee status. The employer is obligated to withhold incom taxes and Social Security taxes from the compensation of the employee Term independent contractor Definition someone who retained to perform a certain act but who is subject to the control and direction of another only as the end result and not as to the way in which the act is performed. Unlike an employee, an independent contractor pays all expenses and Social Security and income taxes and receives to employee benefits. Most real esate licensees are independent contractors. Term antitrust laws Definition prohibit monopolies and contracts, combinations, and conspiricies that unreasonably restrain trade Term price-fixing Definition a type of antitrust violation. the practice of setting prices for products or services rather than letting competition in the open market establish those prices. Term allocating markets or customers Definition antitrust violation - an agreement between brokers to divide their markets and refrain from competing with eachother for business made on a geographic basis. Term caveat emptor Definition let the buyer bewer Term brokerage Definition the business of bringing buyers and sellers together in the marketplace Term group boycotting Definition antitrust violation - when two or more businesses conspire against other businesses or agree to withhold their patronage to reduce competition Term subagent Definition when one broker/firm, usually the seller's agent, appoints other brokers/firms (with authority of the seller) to assist in performing client-based functions on the principal's behalf.