UNIT 9: REAL ESTATE AGENCY
what are the six duties of a fiduciary?
-care -obedience -loyalty -disclosure -accounting -confidentiality
an agency may be terminated for any of the following reasons:
-completion of purpose -death -destruction -expiration of terms -mutual agreement -breach by parties -law
real estate professional's duties to the customer includes:
-reasonable care and skill -honest and fair dealing -disclosure of all facts
implied agreement
A contract under which the agreement of the parties is demonstrated by their acts and conduct.
buyer representation agreement
A principal-agent relationship in which the real estate professional acts on behalf of the buyer, usually as an agent, with fiduciary responsibilities to the buyer.
designated agency
A process that accommodates an in-house sale in which two different agents are involved.
designated agent
A real estate professional authorized by a broker to act as the agent for a specific principal in a particular transaction
buyer's agent
A real estate professional who is under contract to locate property for a buyer and represent the buyer's interests in a transaction.
fiduciary relationship
A relationship of trust and confidence, as between trustee and beneficiary, attorney and client, or principal and agent.
express agency
An agency relationship based on a formal agreement between the parties.
listing agreement
An agency relationship between a real estate seller and a broker is generally created by a written employment contract
nonagent
An intermediary between a buyer and a seller, or a landlord and a tenant, who assists one or both parties with a transaction without representing either
express agreement
An oral or written contract in which the parties state the contract's terms and express their intentions in words.
fraud
Deception intended to cause a person to give up property or a lawful right.
puffing
Exaggerated or superlative comments or opinions.
transaction broker
Helps both the buyer and the seller with paperwork and formalities in transferring ownership of real property, but who is not an agent of either party.
implied agency
If the actions of the parties imply that they have mutually consented to an agency relationship
fiduciary
One in whom trust and confidence is placed; a reference to a real estate professional employed under the terms of a listing contract or buyer representation agreement.
general agent
One who is authorized by a principal to represent the principal in a specific range of matters.
agency
The relationship between a principal and an agent wherein the agent is authorized to represent the principal in certain transactions.
latent defect
a hidden structural defect that would not be discovered by ordinary inspection.
universal agent
a person empowered to do anything the principal could do personally.
agent
a person who acts or does business for another
special agent
authorized to represent the principal in one specific act or business transaction only.
agents must exercise a reasonable degree of ______ while transacting the business entrusted to them by principals
care
the duty of _______________ includes relevant information or material facts that the agent knows or in some cases should have known
disclosure
t/f An express agreement occurs when the actions of the parties indicate that they have mutually consented to an agency.
false
t/f Exaggeration of a property's benefits is called puffing and is illegal.
false
t/f The fundamentals of general agency law have changed dramatically over the past two hundred years.
false
t/f The universal agent's authority to act on behalf of the principal is significantly limited.
false
the agent must be able to report the status of all ______ from or on behalf of the principal
funds
the duty of ______________ requires that the agent place the principal's interest above of all others, including the agent's own self-interest
loyalty
the fiduciary relationship obligates an agent to act in good faith at all times,____________ the principal's lawful instruction in accordance with the contract
obeying
megan's law
promotes the establishment of state registration systems to maintain residential information on every person who kidnaps children, commits sexual crimes against children, or commits sexually violent crimes.
single agency
the agent represents only one party to a transaction
dual agency
the agent represents two principals in the same transaction.
principal
the individual who hires the agent and delegates to that agent the responsibility of representing the principal's interests.
statutory law
the laws enacted by the legislature
client
the principal in a real estate transaction for whom a real estate broker acts as agent.
administrative law
the rules and regulations created by real estate commissions and departments
common law
the rules established by tradition and court decisions
customer
the third party or nonrepresented consumer who is not a principal but for whom some level of service may be provided and who is entitled to fairness and honesty.
stigmatized properties
those that society has found undesirable because of events that occurred there or because of proximity of the property to a known nuisance
t/f A universal agent is a person empowered to do anything the principal could do personally.
true
t/f An express agreement, in which the parties formally express their intention to establish an agency and state its terms and conditions, may be either oral or written.
true
t/f In traditional common law, the relationship in which the agent is held in a position of special trust and confidence by the principal is one of a fiduciary
true
t/f The real estate professional's duty to a third party (customer) includes disclosure of all facts that the real estate professional knows or should reasonably be expected to know that materially affect the value or desirability of the property.
true
t/f an agent may not disclose the principal's personal information in any circumstance
true
negligent misrepresentation
when the real estate professional should have known that a statement about a material fact was false.
