CH 4: Agency

23 terms by elsaelissa 

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Agent

Person who is hired to act for another. Hired by the principal

Negligent Misrepresentation

Misrepresentation occurring when the broker should have know that the statement about a material fact was false

Errors and Omissions Insurance

Liability insurance to cover broker for errors and negligence in general business; usually does not cover civil rights or antitrust violations

Puffing

Exaggerated comments about a property: "This is the best view of the valley."

Fiduciary Relationship

Relationship of trust and confidence between principal and agent; agent owes duties of care, obedience, accounting, loyalty and disclosure

Principal

One who hires; in real estate, the broker (principal) hires salespeople; seller (principal) hires the broker/agent; or buyer (principal) hires broker/agent

Fraud

Intentional misrepresentation of a material fact in order to harm or take advantage of another person

Special Agent

Agent hired by principal to perform a single act. In real estate, broker is special agent hired by seller to find ready, willing, able buyer

General Agent

Agent hired to represent principal in specific range of matters: long-term broad authority

Stigmatized Property

Property branded as undesirable because of an event that happened there, such as murder, suicide, drug dealing

Latent Defect

Hidden structural defect that would not be discovered by ordinary inspection

Subagent

Agent working for an agent; in real estate, the salesperson is the broker's agent and the subagent to the seller (or buyer) Note - Not permitted in some states

Agency

describes a special relationship between a real estate licensee and the person he or she represents

Universal Agent

someone authorized to transact every kind of business for the principal

Listing Agreement

A contract between an owner (as Principal) and a real estate broker (as agent) by which the broker is employed as agent to find a buyer for the owner's real estate on the owner's terms, for which service the owner agrees to pay a commission

Law of Agency

The law that governs the relationship between a principal and his or her agent

Implied Agreement

A contract under which the agreement of the parties is demonstrated by their acts and conduct

Express Agreement

An oral or written contract in which the parties state the contract's terms and express their intentions in words

Express Agency

Agency created through words, written or oral, between the principal and the agent, such as a listing agreement.

Dual Agency

Representing both parties to a transaction. This is unethical unless both parties agree to it, and it is illegal in many states

Designated Agent

A license authorized by a broker to act as the agent for a specific principal in a particular transaction

Customer

The third party or non represented consumer for whom some level of service is provided

Client

The principal

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