Term
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Definition
| "let the buyer beware"; common law in the 1950s |
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Term
| What are the three laws that govern agency relationships? |
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Definition
1. Common Law - rules established by tradition and court decisions.
2. Statutory Law - the laws enacted by the legislature.
3. Administrative Law - the rules and regulations created by real estate commissions and departments, as authorized by the legislature. |
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Term
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Definition
| A person authorized to act on behalf of the principal in dealing swith a third person. |
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Term
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Definition
| The individual who hires the agent and delegates to that agent the responsibility of representing the principal's interests. |
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Term
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Definition
| The fiduciary relationship between the principal and the agent by which the agent is authorized to represent the principal in one or more transactions. |
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Term
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Definition
| The relationship in which the agent is held in a position of special trust and confidence by the principal. |
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Term
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Definition
| The principal in a real estate transaction for whom a real estate brokers acts as an agent. |
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Term
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Definition
| The third party or nonrepresented consumer who is not a principal but for whom some level of service may be provided and who is entitled to fairness and honesty. |
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Term
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Definition
| Also referred to as a facilitator, intermediary, transactional broker, transaction coordinator or contract broker; someone who works with a buyer and a seller assisting one or both parties with the transaction without representing either party's interests. Often called a transaction broker. |
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Term
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Definition
| The principal and the agent enter into a contract in which the parties formally express their intention to establish and agency and state its terms and conditions (can be oral or written). |
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Term
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Definition
| An agency relationship between a real estate seller and a broker generally created by a written employment contract. |
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Term
| Buyer Representation Agreement |
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Definition
| An express agency relationship between a buyer and a broker. |
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Term
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Definition
| When teh parties act as though they have mutually consented to an agency, even if they have not entered into a formal agency agreemtn. |
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Term
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Definition
| Means the real estate broker owes the principal certain duties of trust and confidence. |
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Term
| COLD-AC (an agent owes six duties under common law) |
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Definition
1. Care - An agent must exercise a reasonable degree of care.
2. Obedience - Obligates an agent to act in good faith at all times, obeying the principal's lawful instructions in accordance with the contract.
3. Disclosure - Agent's duty to keep the principal informed of all facts or information that might affect a transaction.
4. Disclosure - Agent's duty to keep the principal informed of all facts or information that might affect a transaction.
5. Accounting - Must be able to report the status of all funds received from or on behalf of the principal.
6. Confidentiality - Agent may not disclose the principal's personal information. |
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Term
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Definition
| Person empowered to do anything the principal could do personally. |
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Term
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Definition
| May represent the principal in a broad range of matters related to a particular business or activity. |
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Term
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Definition
| Or "limited agent"; is authorized to represent the principal in one specific act or business transaction only. |
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Term
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Definition
| The agent represents only one party to a transaction. |
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Term
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Definition
| The agent represents two principals in the same transaction. |
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Term
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Definition
| Exaggeration of a property's benefits. |
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Term
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Definition
| The intentional misrepresentation of a material fact in such a way as to harm or take advantage of another person. |
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Term
| Negligent Misrepresentaiton |
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Definition
| Occurs when the real estate professional should have known that a statement about a material fact was false. |
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Term
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Definition
| A hidden structural defect that would not be discovered by ordinary inspection. |
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Term
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Definition
| Those that society has found undesirable because of events that occurred there or because of proximity to a know nuisandc.e |
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Term
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Definition
| Promotes the establishment of state registration systems to maintain residential information on every person who kidnaps children, commits sexual crimes against children or commits sexually violent crimes. |
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