Real Estate chapter 4
conversion
(a) Change in a form of ownership, such as changing rental apartments to condominium ownership. (b) When a broker uses escrow or security deposits for his own purposes.
principal
(a) In the law of agency, one who appoints an agent to represent him or her. (b) Amount of money on which interest is paid or received.
tying arrangement
A consumer is not allowed to purchase a specific item unless they also purchase another (usually inferior) item.
customer
A consumer who is not being represented by a licensee but for whom the licensee is performing ministerial acts.
Sherman Antitrust Act
A federal law prohibiting any unreasonable interference by contract, or combination, or conspiracy with free market pricing and the distribution of trade.
designated agent
A licensee named by a broker as the legal agent of a client.
subagent
A person appointed by an agent to assist in performing some or all of the tasks of the agency.
fiduciary relationship
A position of trust in relation to the person for whose benefit the relationship is created.
Vicarious Liability
A principal is responsible for the actions of his or her agent.
agent
A real estate broker or licensee who, whether directly or through an affiliated licensee, represents a consumer by the consumer's consent, whether express or implied, in a real estate transaction
brokerage agreement
A written or oral agreement for brokerage services to be provided to a consumer in return for compensation or the right to receive compensation from another.
implied agency
Agency that exists as a result of actions of the parties.
universal agent
Agent that has complete authority over any activity of principal; for example, an attorney in fact.
Commercial Broker Lien Act
An Illinois law, when strictly followed, allows a real estate broker to lien a commercial property for commission.
buyer brokerage
An agency relationship between the buyer and broker, wherein the buyer hires the broker to represent her. The buyer is the principal and the broker is the agent.
expressed agency
An agency relationship created by an oral or written agreement between the principal and the agent
accidental agency
An agency relationship created when the buyer is led to believe by the agent's actions and representations that the buyer is being represented by that agent; also known as unintended agency.
tying agreements
An antitrust violation where a seller of a product ties the sale of one product to the sale of another product that is usually considered a less desirable product. Not all tying arrangements are violations.
multiple listing service (MLS)
An organized method of sharing or pooling listings by member brokers.
territorial allocation
Brokers attempts to reduce competition between themselves by setting up territories in which each would have exclusive marketing rights
confidential information
Information obtained by a licensee from a client during the term of a brokerage agreement made confidential by the written request or instruction of the client; any information dealing with the negotiating position of the client or information the disclosure of which could materially harm the client.
general agent
One who is authorized to act on behalf of the principal in all matters relating to a particular transaction or enterprise.
estoppel
Preventing a person from making a statement contrary to a previous statement.
ministerial acts
Services provided for a customer that are informative in nature but do not involve active representation on behalf of a consumer.
agency relationships (Article 15)
That section of the Illinois Real Estate License Act that statutorily defines designated agency and agency relationships. Article 15 effectively wiped out common law agency in Illinois real estate transactions.
dual agency
The agency relationship created when a real estate firm attempts to represent both the buyer and the seller in the same transaction. Both buyer and seller must agree in writing to the dual relationship.
common law agency
Traditional agency regulated by the laws of agency as defined in law, custom, judicial theory, and juristic decisions.
boycotting
When brokers conspire to refuse to cooperate with flat fee brokers or other brokers with less traditional commission splits.
price fixing
When two or more brokers conspire to fix prices.
client
a person being represented by a licensee; the principal in a agency relationship
special agent
agent with limited authority to act on behalf of the principal, such as created by a listing
consumer
one who seeks or receives services of a real estate brpkerage firm; a buyer or seller
unintended agency
see accidental agency
ostensible agency
see implied agency