Agency
The relationship between a principal and an agent wherin the agent is authorized to represent the principal in certain transactions.
Agency by ratification
An agency relationship created after the fact.
Agent
One who acts or has the power to act for another. A fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be his
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.
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.
Buyer's broker
A residential real estate professional who represents prospective buyers exclusively.
Buyer's Representative
A residential real estate professional who represents the prospective purchaser in a transaction, often through a sales associate of the broker. The buyer's representative who acts as a buyer's agent owes the buyer-principal the common law or statutory ag
Client
The principal in an agency relationship or other form of representation
Customer
The third party or nonrepresented consumer for whom some level of service is provided.
Designated Agency
A process that accommodates an inhouse sale in which two different agents are involved. The broker designates one agent to represent the seller and one agent to represent the buyer.
Designated Agent
A real estate professional authorized by a broker to act as the agent for a specific principal in a particular transaction; also may be called assigned agent or appointed agent.
Dual Agency
Representing both parties to a transaction. This is unethical unless both parties agree to it, and it is illegal in some states.
Employment contract
A document evidencing formal employment between employer and employee or between principal and agent or representative. In real estate, this is the client representation agreement or property management agreement.
Estoppel
Method of creating an agency relationship in which someone states incorrectly that another person is his agent and a third person relies on that representation.
Express Agency
An agency relationship based on a formal agreement between the parties.
Express agreement
An oral or written contract in which the parties state the contract's terms and express their intentions in words.
Fee-for-service
Arrangement by which a consumer asks a real estate professional to perform specific real estate services for an agreed upon fee.
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.
Fiduciary relationship
A relationship of trust and confidence, as between trustee and beneficiary, attorney and client, or principal and agent.
Fraud
Deception intended to cause a person to give up property or a lawful right.
General agent
One who is authorized by a principal to represent the principal in a specific range of matters.
Implied agency
If the actions of the parties imply that they have mutually consented to an agency relationship, an implied agency relationship is formed.
Implied agreement
A contract under which the agreement of the parties is demonstrated by their acts and conduct.
Latent defect
A hidden structural defect that could not be discovered by ordinary inspection and that threatens a property's soundness or the safety of its inhabitants. Some states impose on property sellers and real estate professionals a duty to inspect for and discl
Listing broker
The broker from whose office a listing agreement is initiated.
Megan's Law
Federal legislation that 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.
Ministerial acts
The necessary paperwork and formalities involved in transferring ownership of real property.
Negligent misrepresentation
Occurs when the real estate professional should have known that a statement about a material fact was false.
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. Also known as a facilitator, transaction broker, transaction coordinator, and contract broker.
Ostensible agency
A form of implied agency relationship created by the actions of the parties involved rather than by written agreement of document.
Principal
1. A sum loaned or employed as a fund or an investment
2. The original amount (as ina loan) of the total due and payable
3. A main party to a transaction--the person for whom an agent works.
Puffing
Exaggerated or superlative comments or opinions.
Ratification
Method of creating an agency relationship in which the principal accepts the conduct of someone who acted without prior authorization as the principal's agent.
Real estate broker
A person licensed to arrange the buying, selling, leasing, or exchange of real property for a fee.
Representation
The role of a real estate professional acting on behalf of a client in a real estate transaction.
Seller's broker
The real estate broker who represents only the seller in transactions.
Single agency
Agency relationship in which the agent represents only one party to a transactions
Special agent
One who is authorized by a principal to perform a single act or transaction; a real estate professional is usually a special agent authorized to find a ready, willing, and able buyer for a particular property, when representing a seller, or a special agen
Subagent
A sales associate acting as an agent of a broker and who therefore owes fiduciary duties to the broker's client.
Transaction broker
Helps both the buyer and the seller with the paperwork and formalities in transferring ownership of real property, but who is not an agent of either party.
Universal agent
A person empowered to do anything the principal could do personally.
listing agreement
Written agreement authorizes the broker to find a buyer or a tenant for the owner's property. *creates express agency
COLD-AC
6 fiduciary responsibilities, care, obedience, loyalty, disclosure, accounting, and confidentiality