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Unit 7 - nc real estate terms
Terms in this set (46)
The relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions.
One who acts or has the power to act for another. A fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be the property owner's agent. See OLD CAR
When someone claims to be an agent but there is no express agreement, the principal can establish an agency relationship by performing any act that accepts (ratifies) the conduct of the agent as that of an agent.
1- one who acts as an intermediary on behalf of others for a fee or commission.
2- one who is licensed to list, lease, buy, exchange, auction, negotiate or sell interest in real estate for others for a fee.
The bringing together of buyers and sellers in the marketplace.
Broker in charge - BIC
Required for each brokerage firm and each branch office, the full broker responsible for displaying all licenses properly, notifying the North Carolina Real Estate Commission of any change of business address or trade name, ensuring that all advertising and agency compliance is done properly, maintaining the trust account and trust account records properly, retaining and maintaining all real estate transactions records properly, and supervising all provisional brokers associated with the firm or office.
A Latin phrase meaning "let the buyer beware" In a caveat emptor state, sellers do not have to disclose any facts about their property when selling.
Client - also Principal
The person who hires and delegates to the agent through a brokerage contract the responsibility of representing that person's best interest. In the real estate business, the principal/client can be the buyer, seller, landlord, or tenant.
A real estate transaction involving two or more brokerage firms, one firm representing the seller and the other representing the buyer.
The illegal act by a real estate broker of placing consumer funds with personal funds. By law, brokers are required to maintain a separate trust or escrow account for other parties' funds held temporarily by the broker.
Common Law of Agency
The basic framework of law that governs the legal responsibilities of the broker to the people the broker represents.
The broker/firm in a multiple-listing situation representing the seller, as opposed to the cooperating broker/firm, that brings the buyer to the transaction. The listing broker and the cooperating broker may be the same person/firm.
A third party to whom is owed honesty and fairness; not a fiduciary relationship.
Designated dual agency
An agency option under dual agency that allows the firm, with both clients' permission, to appoint one or more licensees to exclusively represent the seller-client and one or more licensees to exclusively represents the buyer-client; also called designated agency.
Representing both parties to a transaction must be consensual and reduced to writing prior to presentation of first offer.
Someone who works as a direct employee of an employer and has employee status. The employer is obligated to withhold income taxes and Social Security taxes from the compensation of the employee.
An oral or written contract in which the parties state the contract's terms and express their intentions in words.
An agent's power to act on behalf of a principal, explicitly granted by an agreement between the agent and principal.
One in whom trust and confidence are placed; a reference to a principal-agent relationship.
First Substantial Contract
A flexible moment in time when conversation between a licensee and a consumer begins to address confidential needs, desires and abilities; latest moment to legally disclose agency choices to a consumer.
An international misrepresentation of material fact so as to harm or take advantage of another person.
One who is authorized to represent the principal in a broad range of matters related to a specific business or activity; a property manager might have this power.
A contract under which the agreement of the parties is demonstrated by their conduct.
An agency relationship created when principals and agents, without formally agreeing to the agency, act as if one exists.
Someone who is retained to perform a certain act but who is subject to the control and direction of another only as to 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 no employee benefits. Most real estate licensees are independent contractors.
A real estate transaction where the listing firm actually produces the buyer for their listing, as opposed to to a co-brokered or cross sale that involves two firms.
Any fact that is important or relevant to the issue at hand; mandatory disclosure by all agents in a transaction to all parties of the transaction
Multiple listing service (MLS)
A marketing organization composed of member brokers who agree to share their listing agreements with one another in the hope of procuring ready, willing, and able buyers for their properties more quickly than they could on their own. Most MLSs accept only exclusive right-to-sell or exclusive-agency listings from their member brokers.
Unintentionally misinforming any party involved in a transaction about a material fact.
Unintentionally failing to disclose a material fact to any party involved in a transaction.
The mnemonic for fiduciary duties of obedience, loyalty, disclosure of information, obedience, confidentiality, accounting, disclosure of information, and reasonable skill, care, and diligence.
Oral buyer agency
A non-exclusive verbal agency agreement between a firm and a buyer-client. There can be no time limit on oral agency, but it must be reduced to writing prior to presentation of first offer.
1- a sum loaned or employed as a fund or an investment , as distinguished from its income or profits.
2- the original amount (as in a loan) of the total balance due and payable at a certain date.
3- a main party to a transaction - the person for whom the agent works, the client.
A real estate licensee who performs real estate activities under the supervision of a licensed real estate broker in charge. Must complete postlicensing courses to remove the provisional license status.
Exaggerated or superlative comments or opinions: e.g. "This house has the best view in town!"
A method of creating an agency relationship in which the principal accepts/confirms the conduct of someone who acted without prior authorization as the principal's agent.
Also known as a secret profit, an illegal act by a licensee who takes advantage of clients by failing to disclose the appropriate value of property.
One who is authorized by a principal to perform a single act or transaction. A real estate broker is usually a special agent of the seller authorized to find a ready, willing, and able buyer for a particular property, or a special agent of the buyer to find a specific type of property to purchase. Special agent has limited authority and cannot bind his principal.
Property regarded as undesirable because of events that occurred there; also called psychologically impacted property. Some conditions that typically stigmatize a property are murder, gang-related activity, proximity to a nuclear plant, and even the alleged presence of ghosts.
One who is employed by a person already acting as an agent; typically a reference to a provisional broker licensed under a broker (agent) who is employed under the term of a listing agreement. A subagent has the same duties to the client as the agent.
A wrongful act, injury, or violation of legal right to the person or property of another.
Undisclosed dual agency
An illegal agency relationship where buyers and/or sellers are unaware of an individual broker or firm's conflicting duties to their clients.
Person empowered to do anything the principal could do personally; unlimited authority; unusual in real estate.
Intentionally misinforming any part involved in a transaction about a material fact.
Intentionally failing to disclose a material fact to any party involved in a transaction.
Working with real estate agents- ( WWREA)
A mandatory agency information brochure that a licensee must give to and review with consumers in all real estate sales transactions no later than first substantial contact; it does not create agency.
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