CA Real Restate Vocabulary - Chapter 2 Laws of agency and fiduciary duties

equal credit opportunity act

a 1974 federal enactment prohibiting lenders from discriminating against borrows from a protected class

unruh civil rights act

a california law which prohibits discrimination by a business establishment based on sex, race, color, religon, ancestry, national origon, disability or medical condition

real estate law

a collection of 29 codes in california civil law governing real estate practiced licensed under the business and professional code and in the government code

contingency

a condition that needs to be met before escrow can proceed to closing

disclosure

a fact that is made known, such as informing a buyer or tenant about a property's condition

misrepresentation

a false or misleading statement or assertion given to another to induce them to do something.

kickback

a fee improperly paid to an transaction agent who renders no service beyond the act of referring in exchange for a referral fee when the agent is already providing another service in the transaction for a fee

referral fee

a fee paid by one service provider to another for referring a client to them Prohibited by the real estate settlement procedures act when consumer financing funds the purchase of a one to four unit residential property

california bureau of real estate

a government agency which over sees , regulates, administers and enforces california real estate law as practiced by licensees

protected group

a group of people who receive special protection against discrimination due to their distinguishing factors

power of attorney

a temporary authority granted to an individual to perform activities during a period of the owners incapacity or travel

implicit discrimination

actions which are not openly discriminatory but yield discriminatory results

trust account

an account separate and apart and physically segregated from a brokers own funds, into which the broker is required by law to deposit all funds received of clients

agency creation (4)

an agency relationship is created in real estate when the principal employs a broker to act on their behalf created by: EXPRESS AGREEMENT: either orally or in writing IMPLIED: created by acts and conduct of the licensee RATIFICATION: principle approves of and confirms the agency relationship after it has been created ESTOPPELl: principal leads the a third party to believe that another person is their agent through words or actions

steering

an unlawful housing practice includes words or practices by a real estate licensee intended to influence the choice of a prospective buyer or tenant. A violation of the federal fair housing provision that seeks to eliminate discrimination in the sale or rental of housing

agency termination (6)

completion mutual consent expiration death or incapacity of agent or principal renunciation of agency which may expose the renouncing party to liability for damages

licensed activity

dealing with members of the public to offer, contact for and render brokerage services for compensation

fiduciary duty

duty owed by and agent or trustee to act in the highest good faith toward the principal and not to obtain any advantage over their principal by the slightest misrepresentation, concealment, duress or undue influence

agency law disclosure (2)

eEst. in 1988 to address misconceptions about the duties of licensees owe to members of the public - sets out the "rules of agency" conduct when dealing with the public -agency confirmation provisions: doc ssigned by principals used to negotiate the purchase of leasing of real estate and lease agreements with a team exceeding one year, declaring the agency relationship

redlining

failure to provide financing or insurance in certain communities based on the demographics of that community

civil rights act

federal law which provides broad protection to numerous classes of individuals in the united states against discriminatory activites

advance fees

fees paid in advance. sometime unlawfully charged in conjuction with illegal practice of obtaining a fee in advance for advertising of property or business for sale, with no intention to obtain a buyer etc....

real estate recovery fund

funds availalble to the individuals who have obtained a final court judgement against a licensee. Also known as the consumer recovery

attorney in fact

one who is authorized by another to perform certain acts for another under a power of attorney: power of attorney may be limited to a specific act or acts or be general

agency

relationship between principal and principals agent which rises out of a contract either expressed, written or oral, the principal employing the agent to do a specified activities dealing with third parties

subrogation

replacing one person with another in regard to a legal right or obligation

subornation

the act of inducing another person to commit an unlawful act

ratification

the adoption or approval of an act performed on behalf of a person without previous authorization such as the approval by a principal of previously unauthorized acts of an agent, after the acts have been wrongfully performed

dual agency relationship

the agency relationship that results when a broker represents both the buyer and the seller in a estate transaction

single agency

the buyers agent who is paid their fee on a transaction by their buyer client, and does not fee split or otherwise share in the fee received by the sellers broker

general duty

the duty a licensee owes to a non client individual to act honestly and in good faith with upfront disclosures of known conditions which adversely affect a propertys vale

commingling

the mixing of personal funds with the client or third party funds held in trust

conversion

the unlawful appropriation of another's property, as in the conversion of trust funds

discriminatory practices

unequal treatment given to members of a protected class of individuals

conflict of interest

when a broker has a positive or negative bias toward the party in the transaction which is incompatible with the duties owed to their client

renunciation

when an individual has been granted something or has accepted something later gives it up or rejects it, as occurs when an agent withdraws from an agency relationship