Real Estate Chapter 7

Facilitatior/Transactional broker

Not allowed in NC but used in some other states, licensee assists buyers and seller in a transaction but does not actually represent either party.

Principal/Client

Person for whom the agent acts.

Fiduciary

Relationship that is based on trust

Agent

The party who acts on behalf of the principal.

General agency

confers a broad scope of authority on the agent, but the authority is not as broad as the universal agency and is limited to some particular field.

Third party

The party that you do not represent.

Customer

The person the agent does not represent, although the agent may have a relationship with this person.

Subagent

agent of an agent

Agency

The relationship that exists in which one person is empowered to act on behalf of another.

Estoppel

This occurs when an individual claims incorrectly that a person is his agent and a third party relies on the incorrect representation.

Implied Agency

When the actions of the principal and agent indicate that they have an agency agreement.

Special/ limited agency

is limited to one well-defined task one time.

Apparent authority

occurs when an agent gives the impression that she has certain authority that a third party might reasonably rely upon, when in fact the agent does not actually hold such authority.

Universal agency

provides for an agent to have all- encompassing powers to make decisions and acts on behalf of the principal.

Dual agency agreement

the firm is actually representing both the buyer and the seller. Have higher risk because of the inherent conflicts of interest.