Real Estate Chapter 7

Subagent

Agent of the Agent. If the agent is considered to be the firm, this would be those agents who work for that firm.

General Agency

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

Apparent Authority

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

Third Party

Party that you do not represent

Agent

Party who acts on behalf of the principal

Principal/Client

Person for whom the agent acts. Typically the party who hires the agents on his behalf and is responsible for compensation to the agent absent any other agreement.

Fiduciary

Relationship based on trust

Agency

Relationship that exists in which one person is empowered to act on behalf of another

Customer

The person the agent does not represent

Express Agency

Duties and responsibilities created by an implied agency are the same as those created by this agency

Facilitator/Transactional Broker

Type of non agency relationship that is NOT allowed in North Carolina in which licensees assists buyers and sellers. in transaction but does not actually represent either party.

Implied/Ostensible Agency

When actions of the principal and agent indicate that they have an agency agreement. Highly Unlikely to occur

Dual Agency Agreement

When firm represents both buyer and seller.

Special/Limited Agency

Agency which is limited to one well-defined task one time. Once task or time period has ended, relationship also ends. Agent does not make decisions on part of principal, but only stands in principal's place to receive information

Universal Agency

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

Three General classifications for Agency

Universal, General, and Special Agency