TN REAL ESTATE-Agency Definitions Flashcards

TN REAL ESTATE-Agency Definitions Flashcards Facilitator (also called transaction broker A facilitator is a licensee who provides general assistance to parties to a transaction, without a specific agency agreement representing any of them.Dual agencyIn dual agency the licensee has agreements to provide agency services to more than one party in a specific transaction, and the parties' interests are opposite.A facilitator, or transaction broker, is a non-agent.In this role, you would assist with transaction paperwork, but wouldn't act as a fiduciary to either party. The terms transaction broker and facilitator are used interchangeably in Tennessee, where licensees cannot serve as both an agent and a facilitator in the same transaction. Even in a facilitator role, you still owe both parties the duty of confidentiality. To divulge confidential information about one party to another would equate to acting as an undisclosed dual agent, and would be a violation of real estate law. Other duties required in a facilitator role are reasonable care and accountability.Agency relationships requireagreement from both parties. In other words, a consumer can't compel you to be his or her agent without your consent, and vice versa. You both have to agree As a property manager, however (should you find yourself in this role), you would be a general agent In carrying out the property management agreement terms of the, you would collect rent, evict tenants, and enter into leases with tenants on behalf of your client, the property owner. This is similar to the duties the holder of a power of attorney would have, but a power of attorney designation may not be required A universal agentis someone who is empowered to do anything the principal could do personally. This type of agent has the most authority; in fact, a universal agent's authority is virtually unlimited. One example is a court-appointed guardian, whose authority would likely be over a person and the person's property CLIENTWhen agent and consumer agree the consumer becomes client Affiliate brokerAn affiliate broker is engaged under contract by or on behalf of a licensed broker to participate in real estate activities.fiduciaryperson who's in a position of trust and owes loyalty to another. When consumer becomes client agent becomes fiduciary

A designated agent (or appointed or assigned agent)is a licensee who represents one party in a transaction. In some states, the principal or managing broker will appoint one licensee to act as the designated agent for one party (the buyer, for example), and a different licensee to act as the designated agent for the other party (the seller). This form of agency allows two parties to a transaction to be represented by a single brokerage. In such states, two designated agents in a single transaction in the same brokerage means that the broker becomes a dual agent, but Tennessee agency law interprets dual agency differently special agent, also known as a limited agent. ThisThis means you don't make any decisions or enter into any contracts on your client's behalf, but simply act as an intermediary, liaison, and negotiator, conveying and representing your client's wishes. In addition, a special agent doesn't offer continuity of service. Once the transaction is complete, your role as an agent ends Limited agencyAgency relationships aren't boundless, allowing the agent unlimited power of representation. Rather, the licensee is limited to duties outlined in the law and actions the client initiates.principalThe common definition is that a principal is a client-someone who's represented by a real estate professional. Principal may also refer to a party to a transaction (e.g., the buyer or seller, whether or not they're represented by an agent).An agentis someone who acts on someone else's behalf, at that person's reques general agentwith responsibility for all of the dealings of a specific piece of your client's property, or you may serve special agent,where you have limited authority to act on your client's behalf.Tennessee doesn't allow implied agencySpecifically, the law states: "An agency or sub-agency relationship shall not be assumed, implied or created without a written bilateral agreement." Disclosed dual agency,although legal in Tennessee, is uncommon.Designated agentAny licensee who serves as a client's agent, to the exclusion of other licensees employed by or affiliated with the broker, is a designated agent non-agent-also known as a facilitator or transaction brokeris a licensee who has a unique relationship with a consumer, generally acting as a "middle man" in a transaction. While some states allow non-agency, the exact nature of the relationship and the duties owed to the consumer vary widely from state to state. A non-agent doesn't represent the buyer or seller, isn't a fiduciary, and

can provide only limited services to facilitate the transaction. The non-agent assists either or both parties with clerical or ministerial tasks.BrokerA broker is a person who, for another and for a fee (or with the intention or expectation of receiving compensation), lists, sells, exchanges, buys or rents, manages, or offers, or attempts to negotiate a sale, option, exchange, purchase, or rental of real estate.

Designated agency doesn't make the broker a dual agentInstead, designated agency sets up an agency relationship between one licensee in the office and a buyer or seller.It's common for Tennessee brokerages to offer designated agency as a default.The Tennessee Association of REALTORS® provides sets of forms establishing agency relationships, for both buyers and sellers. For sellers, one set of forms creates seller agency in which the seller relationship is with the brokerage, and the other set creates designated agency in which the seller relationship is with the individual affiliate broker.