California Real Estate Principals Ch. 4

how much of a brokers personal funds can be kept in his or her trust account without being guilty of co-mingling

$200

Agency Disclosure Form

A form presented to both principals in a transaction stating exactly who the agent is working for: the buyer, the seller or both

agency

A relationship in which one party (the principal) authorizes another party (the agent) to act as the principal's representative in dealing with third parties.

Dual Agency

An agency relationship in which the agent acts concurrently for both principals, with their consent, in a transaction

Conversion

Change from one character or use to another. Also, the wrongful appropriation of funds of another

seller Skinner signed a 90 day exclusive right to sell listing with broker Bill two weeks later Skinner canceled the listing with Bill and gave in open listing to broker carl and other open listing to broker Paul three weeks later Paul presented an offer to Skinner that the seller accepted which of the following is most correct

Paul is entitled to a full commission and Bill is entitled to a full commission as well

Commingling

The mixing of funds held in trust with personal funds

tort

a civil wrongs committed against the person or property independent of any contractual agreement

Transfer Disclosure Statement

a form that notifies buyers of any physical defects to property and requires the seller and the agent to list any evidence of defects of which they are aware

Exclusive Agency Listing

a listing agreement employing a broker as the sole agent for the seller of real property under the terms of which the broker is entitled to a commission unless the homeowner sells the property

Exclusive Right to Sell

a listing agreement employing a broker to act as an agent for the seller of real property under the terms of this agreement the broker is entitled to a commission if the property is sold during the duration of the listing by the broker or by the owner without an agent

net listing

a listing that provides for the agent to retain as compensation for his or her services all sums received over and above a net price to the owner

independent contractor

a person acting for another selling final results and using his or her own judgment to achieve those results

sub agent

a person upon whom the powers of an agent have been conferred not by the principle but by an agent authorized by the principal

policy manual

a written book of procedures explaining how a broker expects agents working under him or her to conduct business and handle routine problems

when a seller grants the right to sell in a broker agrees to use diligence in obtaining a purchaser this is called

agency

multiple listing service (MLS)

an Association of real estate agents that provide the pooling of listings and the sharing of commissions

secret profit

an agents making of additional money in a real estate transaction without disclosing it to the principal and third-party

open listing

an authorization from a property owner giving a real estate agent the nonexclusive right to secure a purchaser other brokers are owners themselves may also solicit the purchaser

third-party

any party to a transaction other than the principal with whom you have an agency relationship

the broker in a large real estate office dies all listings are then

automatically canceled and the new broker would need to relist the properties

seller signed a 90 day exclusive right to sell listing with broker able when the listing expired seller gave an open listing to broker Baker and broker Charlie three weeks later broker Baker presented an offer to the seller which he accepted which of the following is most correct

broker Baker is the procuring cause of the sale and is entitled to a full commission

which is most correct about puffing

it may be a misrepresentation if a reasonable person considers it statement of fact

fraudulent misrepresentation

knowingly making false and deceptive statements to help sell a property

innocent misrepresentation

making false statements about a property without realizing it

negligent misrepresentation

making false statements regarding a property that could have been checked out or verified

general attorney-in-fact

one who is authorized to perform many ask for another under power of attorney

employee

one who works directly for another person is told what to do and is controlled and how they do it

special attorney-in-fact

someone authorized to represent a principal in a specific task such a selling property

ratification

the approval of an act performed on behalf of the person without previous authorization such as the approval by principle of a previously unauthorized act of an agent

a salespersons listings are the property of

the broker who employs him as a salesperson

the broker as agent of the seller owes the buyer

the duty of honesty and fair dealing

Easton V. Strassburger

the major court decision which requires an agent to disclose any physical defects or evidence of defects that could affect the value of real property

principal

the persons who employs a real estate agent usually through a listing agreement

fiduciary relationship

the relationship between the agent and the principle that requires the highest level of trust and good faith

estoppel

the theory of law that states a person cannot suddenly assert a legal right when that person has neglected to asserted previously for example if someone claims to be your agent and you know about it and don't stop that person you can't later claim that person was not acting on your behalf

when inspecting a seller's home the agent discovers several physical defects that the agent fails to disclose to the buyer the buyer can file civil action against the agent for up to how many years

two years

the best way to establish an agency relationship is through

written agreement