Chapter 10 Flashcards

Chapter 10 Flashcards Seller RepresentationIf a seller enters a listing agreement with a broker to market the seller's real estate, the broker becomes an agent of the seller; the seller is the principal, the broker's client.Disclosed Dual AgencyUndisclosed Agency Latent DefectA hidden structural defect that would not be discovered by ordinary inspection ComminglingMonies with personal or general business funds is strictly illegal AgentAn individual who is authorized and consents to represent the interests of another person in dealings with third person.ObedienceAct in good faith following all of their instructions so long as they are legal Listing AgreementFor seller Special AgentAlso known as limited agent, I authorized to represent the principal in one specific act or business transaction. Do one thing (What I am ) List or assist in buying Implied AgencyIf the action of the parties imply that they have mutually consented to an agency relationship, an implied agency is formed.AccountingAn agent must be able to report the status of all funds received from or on behalf of the principal. (earnest money) Negligent MisrepresentationOccurs when the real estate professional should have known that a statement about a material fact was false.Designated AgencyAlso known as assigned agency or appointed agency, is available in some states to accommodate an in-house sale in which two sales associates of the same broker are involved.Stigmatized PropertiesProperties society has fond undesirable- crime, suicide, death, etc. We are not required to disclose this because it does not affect the health, structure, etc. But if asked you have to disclose LoyaltyPrincipal's interest above all others' including your own Undisclosed Dual AgencyRepresenting both buyer and seller without their knowledge or agreement PrincipleThe individual who hires the agent and delegates to that agent the responsibility of representing the principal's interests.Single AgencyWhen an agent only represents one party, buyer or seller Agency Relationships LawsCommon Law, Statutory Law, Administrative Law

CMAComparative Market Analysis Dual AgencyAgent represents both buyer and seller. Representing two principals in the same transaction. In TN is has to be agreed upon in writing Gratuitous AgentNo fee involved CompensationThe source of compensation does not determine agency DisclosureYou have to keep the principal informed of all facts of transactions PuffingExaggeration of a property's benefits- legal AgencyThe fiduciary relationship between the principal and the agent by which the agent is authorized to represent the principal in one or more transactions Universal AgentDo anything for the clients DisclosuresValue, health, contractual condition of property, environmental hazards Administrative LawThe rules and regulations created by a real estate commissions and departments as authorized by the legislature- Right for rules and regulations Three documents that establish agencyListing agreement, buyers representing agreement, management agreement Common LawThe rules established by tradition and court decisions Implied AgentWhen the parties act as though they have a mutually consented to an agency, even if they have not entered into a formal agency agreement Property ManagerAn owner may employ a broker to market, lease, maintain or manage their property.CareCovers everything in transaction that you do. You know more than average person. Care of behalf of principal.Could you have know, should you have known Statutory LawThe laws enacted by the legislature- State Law ConversionThe illegal use of such entrusted money NonagentAlso referred to as facilitator, intermediary, transaction broker, transaction coordinator, or contract broker.Someone who works with a buyer and a seller (landlord or tenant) assisting one or both parties with the transaction without representing either party's interests. No representation of any parties.Fiduciary Relationship ResponsibilitiesCareObedienceLoyaltyDisclosureAccountingConfidentiality Disclosure of AgencyReal estate professionals are required to disclose whom they represent ClientThe principal in the real estate transaction for whom a real estate broker acts as agent. The term client is also used when a broker represents someone in a relationship other than an agency. The person (principal) you work for

FraudThe intentional misrepresentation of a material fact in such a way as to harm or take advantage of another person.Buyers representing AgreementFor buyers Express AgentThe principal and the agent enter into a contract in which the parties formally express their intention to establish an agency and states its terms and conditions which is called a listing agreement or buyers representing agreement FiduciaryThe relationship in which the agent is held in a position of special trust and confidence by the principal.Buyer RepresentationA buyer who contracts with a broker to locate property and represent the buyer's interest in a transaction is the principal, the broker's client. The broker as agent is strictly accountable to the buyer Management AgreementA contract between the owner of income property as well and a management firm or individual property manager that outlines the scope of the manager's authority Megan's LawPromotes the establishment of state registration systems to maintain residential information on every person who kidnaps children, commits sexual crimes against children, or sexual violent crimes. Megan's law affects a real estate professional's duty of disclosure to tell them to go to the FBI site General AgentMay represent the principal in a broad range of matters related to the particular business or activity. Ex. Property manager (Can do more than one thing).CustomerThe third party or non-represented consumer who is not a principal but for whom some level of service may be provided and who is entitled to fairness and honesty. The customer may be represented by a separate agent.Someone who you work with