Term
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Definition
| Relationship between a real estate licensee and the person they represent. |
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Term
| Agency is governed by what two kinds of law |
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Definition
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Definition
| The rules of a society established by tradition and court decisions |
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Definition
| The laws, rules, and regulations enacted by legislatures and other governing bodies. |
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Term
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Definition
Defines the rights and duties of the principal (client) and the agent
A common law concept as opposed to statutory laws enacted by the legislature |
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Term
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Definition
| Client -- one who hires an agent to act on their behalf |
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Term
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Definition
| One who is authorized to act in the best interests of a principal--obligated to place the principal's interests before all other interests, including the agent's own interests. |
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Term
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Definition
Third party to an agency relationship. Does not receive benefit of loyalty created by an agency relationship.
Ex: buyer is customer of seller's agent
seller is customer of buyer's agent |
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Term
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Definition
| Fiduciary relationship between the principal and the agent |
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Definition
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Definition
Fiduciary duties of the Agent
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Term
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Definition
Protect the principal from foreseeable risks of harm
Recommend the principal obtain axpert advice when needed. |
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Definition
| Duty to obey the exact instruction of the principal |
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Definition
| Advancing the interests of the principal |
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Definition
| Reveal all facts or information that could affect the principal's bests interest and decisions. |
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Term
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Definition
| Must account for all funds received or disbursed on behalf of the principal. Secret profit is a violagtion of the agent's fiduciary duty. |
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Term
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Definition
| The Agent must never communicate information acquired by the agent while employed by the principal as well as thereafter. |
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Term
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Definition
| Personal use of trust monies by the agent. (Considered criminal theft.) |
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Term
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Definition
| Agent that has permission to represent both the buyer and the seller. Permission must be given by the buyer and the seller for it to be legal. |
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Term
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Definition
| Broker who chooses to represent both buyers and sellers on the same property. Agents are automatically dual agents if the broker is dual agent. |
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Term
| Psychologically Impacted Properties |
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Definition
| Properties suspected to have been the site of a homicide, suicide, or felony |
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Term
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Definition
| A licensee shall exert reasonable efforts to ascertain those facts which are material to the value or desirability of a property. |
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Term
| Are real estate agents liable for non-disclosure if the property is psychological impared? |
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Definition
NO
Arkansas Code Annotated 17-10-101 |
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Term
| Are real estate agents required to inform clients of registered sex offenders in the neighborhood? |
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Definition
| No; however, agents are required to furnish the client the web site that lists local sex offenders for the client to use should they desire to do so. |
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Term
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Definition
| Agent / broker contracted by the listing agent / broker to bring a buyer to purchase the property. The subagent actually represents the "seller" even though they are bringing the buyer to the transaction. |
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Term
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Definition
| Negligent or intentional civil wrong not arising out of a contract or statute |
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Term
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Definition
| Ex: battery or defamation |
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Term
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Definition
| Civil wrong committed un-intentionally or without premeditation |
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Term
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Definition
| The principal / client is accountable for the agent or subagent's actions and statements even if they are fradulent. |
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Term
| Can the agent enlist the services of a sub-agent without the consent of the client. |
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Definition
| No. The client must give permission. |
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Term
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Definition
| Occurs when the agent represents only one party in any single transaction, either the Client or the Buyer / Customer |
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Term
| Dual Agency / Limited Agency |
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Definition
| Agent represents two principals / clients in the same transaction |
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Term
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Definition
Facilitator, Intermediary, Transactional Broker, Transactional Coordinator, or Contract Broker.
assists one or both parties with the transaction without representing either party's interests. |
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Term
| May an Arkansas real estate agent be a "Non-agent" |
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Definition
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Term
| Potential penalties and remedies for breach of fiduciary duties |
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Definition
(1.) Forfeiture of commission
(2.) Actual damages
(3.) Punitive damages
(4.) Violation of NAR's Code of Ethics
(5.) Loss of real estate license |
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Term
| Fraud may be grounds for accusations of "racketeering" which can result in _____damages |
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Definition
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Term
| Two ways to create agency agreements |
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Definition
Express agency: formal agreement
Implied agency: accidential agency |
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Term
| Agency coupled with an interest |
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Definition
| agency relationship is created when the agent is given an interest in the subject of the agency. |
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Term
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Definition
| Person authorized to do anything the principal could do personally |
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Term
General Power of Attorney or
Durable Power of Attorney |
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Definition
| Like Universal Agent, the person has all the authority of the principal / client |
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Term
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Definition
| Agent has broad range of matters related to a particular business or activity; i.e., property manager, sales agents are general agents of the broker |
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Term
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Definition
| Agent is authorized to represent the principal in one specific act or business transaction. The Special Agent / broker may not bind the principal to any contract. |
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Term
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Definition
A person authorized by the broker to act as the agent of a specific client.
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Term
| Do AREC regulations allow "Designated Agents" in Arkansas? |
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Definition
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Term
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Definition
| Agent represents the Seller |
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Term
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Definition
| Agent represents the buyer |
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Term
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Definition
| Cooperation with other agents to sell a property; i.e., MLS listings |
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