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NC Real Estate Pre-licensing Unit 7 - Real Estate Brokerage and the Law of Agency
Terms in this set (49)
the fiduciary relationship between the principal and the agent
The individual who is authorized and consents to represent the interests of another person; works for the client and with the customer
when someone claims to be an agent but there is no express agreement
a person who is licensed to list, lease, buy, exchange, auction, negotiate, or sell interest in real property for others and to charge a fee for services
The business of bringing buyers and sellers together in the marketplace.
One broker-in-charge for every real estate office in practice.
let the buyer beware
A real estate transaction involving two or more brokerage firms, one firm representing the seller and the other representing the buyer.
when trust funds and the firm/broker's personal/business funds are placed in the same account
Payment to a broker for services rendered, such as in the sale or purchase of real property; usually a percentage of the selling price of the property.
common law of agency
The traditional law governing the principal-agent relationship
A broker who assists another broker in the sale of real property. Usually, the cooperating broker is the (selling) broker who found the buyer who offers to buy a piece of property that is listed with another (listing) broker
prospects; The third party or nonrepresented consumer for whom some level of service is provided, not represented by an agent
designated dual agency
when the firm appoints one broker to exclusively represent the seller and another to represent the buyer
The broker/firm represents the buyer and the seller in the same transaction.
Someone who works for an employer; employer is obligated to withhold taxes
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.
the relationship in which the agent is held in a position of special trust and confidence by the principal
first substantial contact
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.
intentional misrepresentation of an existing, important fact
one who is authorized to execute the principal's business of a particular kind, or all the principal's business at a particular place; property manager hired for a landlord
when principal and agent, without formally agreeing to the agency, act as if one exists; not legal in NC
an agent's authority to do things not specifically authorized in order to carry out express authority(We used Apple Cider Vinegar today)v
One who works for, and receives payment from, an employer but whose working conditions and methods are not controlled by the employer. they are responsible for paying taxes and receives no benefits
a sale in which both the selling agent and the listing agent are from the same firm.
mandatory disclosure by all agents in a transaction to all parties of the transaction
multiple listing service (MLS)
A marketing organization composed of member real estate professionals 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 multiple listing services accept exclusive right-to-sell or exclusive agency listings from their member real estate professionals.
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.
It is the law of the agency
- Reasonable Care
oral buyer agency
an agency option a firm may use when the consumer is unwilling to commit to a written buyer agency relationship.
client; person who hires and delegates through a brokerage contract; can be buyer, seller, landlord or tenant
a real estate licensee who performs real estate activities under the supervision of a licensed broker
exaggeration of a property's benefits
method of creating an agent relationship by conduct of someone with permission
secret profit; an illegal act by a licensee who takes advantage of clients by failing to disclose the appropriate value of property
Authorized to represent the principal in one specific act or business transaction only; real estate brokers are usually a special agent
Property branded as undesirable because of an event that happened there, such as murder, suicide, drug dealing. In NC it is not the law to disclose death at a property but if they buyer asks they must be honest except w/ HIV because state declares this legally handicapped and they are not allowed to disclose; same for sex offender registry
one who is employed by a person already acting as an agent; agent of an agent
termination of agency
* Completion or fulfillment of purpose of agency
* expiration of the terms of the agency
* mutual agreement of all parties to the contract
* destruction or condemnation of the property
* breach by one of the parties
* operation of law, as in the bankruptcy of the principal
* death or incapacity of either party
a wrongful act by an agent while representing the principal
undisclosed dual agency
Unfair or Deceptive Trade Practices Act
North Carolina's G. S. 75-1.1, which says that agents who engage in breach of duty, or tort, may find themselves liable for treble (triple) damages and attorney's fees under certain circumstances.
A person empowered to do anything the principal could do personally.
Intentionally failing to disclose a material fact to any party involved in a transaction.
Intentionally misinforming any party involved in a transaction about a material fact.
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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