Unit 10 - Real Estate Agency - Terms and Definitions

Seller agent

A broker representing the seller in a real estate transaction . Also refereed to as a Seller's Broker, Listing Broker or Listing Agent.

Reasonable skill and care

A broker's duty to provide competent services which will safeguard the interests of the public.

Dual agency

A broker/salesperson who attempts to represent both the buyer and seller in the same transaction

Agency disclosure form

A form that describes the role of seller's agent, buyer's agent, listing, Broker's agent, and dual agents; under NYS requirement," This form is also called the disclosure statement form."

Agent

A person authorized to act on behalf of another person

Broker's Agent

A person who is hired through a broker to work for the principal.

Cooperating agent

A person who participates in the sale of a property

Employee

A person who works for another in return for pay

Buyer Agent

A real estate agent who works in the best interest for a buyer.

Designated agent

A salesperson or an associate broker; supervised by a broker, who is assigned to represent a client when a different client is also represented by such real estate broker in the same transaction

Implied agency

Agency agreement created by the actions of the parties, and not a stated (written or verbal) agreement.

Express agency

Agency created through words, written or oral, between the principal and the agent, such as a listing agreement.

Special agent

Agent hired by principal to perform a single act. In real estate, broker is special agent hired by seller to find ready, willing, able buyer

Informed consent

Agreement by a buyer or seller to a type of agency relationship after considering the various alternatives.

Accountabilty

An agent must account for and promptly remit as required all money or property entrusted to the agent for the benefits of others. The broker must keep accurate records of all receipts and expenditures of other people's money.

General agent

An agent with full authority over one property of the principal, such as a property manager

Open listing

An agreement between an owner and many brokers. If a broker produces a ready willing, and able buyer, a commission is due. However, the owner still has the right to sell his/her property and is not obligated to pay a commission to anyone.

Single agent

Any agent who represents either the seller or the buyer.

Subagent

Anyone who is assisting the agent(client's broker) in the agent's responsibilities. For instance, a sales agent or associate broker in the office, or principal broker with a co-broker agreement.

Exclusive agency

Broker is the exclusive agent for the seller. The owner may sell, but the broker will be entitled to a commission only if he/she is successful in selling the property

Self-dealing

Illegal activity that can occur when a broker has an undisclosed interest in a property.

Principal

In the law of agency, a person who appoints an agent to represent him/her; also, the amount of money on which interest is paid or received.

Fiduciary duties

Legal requirement that the agent serve the best interests of the principal; specific fiduciary duties are loyalty and obedience, reasonable care and skill, confidentiality, and accounting

Vicarious liability

Legal responsibility placed on one person for the acts of another; principal for agent

Misrepresentation

Occurs when one party to a contract is not given full or accurate information by the other party about the contract subject matter

Independent contractor

One who is self-employed, working under someone for specific tasks

Estoppel

Preventing a person from making a statement contrary to a previous statement

Undisclosed dual agency

Representation of both principal parties in the same transaction without full written disclosure; and approval from all parties.

Exclusive right to sell

Single broker has the exclusive right to sell this property. As a result, the broker will be entitled to a commission regardless of whether the broker or owner sells the property

Disclosure

The act of revealing previously unknown information

Customer

The party the agent brings to the principal as seller or buyer of the property

Client

The principal of the agent

Obedience

The state or condition of doing what one is told.

Loyalty

The state or quality of being dedicated to a particular person or entity

Confidentiality

Types of communication between a person and one of these professionals are "privileged" and may not be discussed or divulged to third parties. The agent owes the principal faith, trust, and confidentiality

Undivided loyalty

When consensual dual agency poses problems since both the seller and the purchaser must release the portion of the fiduciary agent relationship known as undivided loyalty.

First substantive contact

When the agent meets face to face with either the client or customer