front 1 Agent | back 1 One who acts/holds 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 or her agent. A prospective property buyer may authorize a real estate broker to act as the buyer’s agent to find a suitable property |
front 2 Fiduciary | back 2 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 |
front 3 Agency | back 3 The relationship between a principal and an agent is authorized to represent the principal in certain transactions |
front 4 Principal | back 4 1. A sum loaned or employed as a fund or an investment, as distinguished from its income or profits 2. The original amount (as in a loan) of the total due and payable at a certain date 3. A main party to a transaction — the person for whom an agent works |
front 5 Client | back 5 The principal in an agency relationship or other form of representation |
front 6 Customer | back 6 The third party or non-represented consumer for whom some level of service is provided |
front 7 Non-agent | back 7 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 |
front 8 Agency relationships in real estate transactions are governed by 3 kinds of law | back 8 Common law, statutory law, administrative law |
front 9 Common law | back 9 The rules established by tradition and court decisions |
front 10 Statutory law | back 10 The laws enforced by the legislature |
front 11 Administrative law | back 11 The rules and regulations created by real estate commissions and departments, as authorized by the legisltaure |
front 12 The fundamentals of agency law have ___ for hundreds of years | back 12 Remained largely unchanged |
front 13 Particularly those provided in residential ___, has ___ in the last half-century | back 13 Sales transactions; changed significantly |
front 14 In 1990s | back 14 Buyers began to demand that they be represented too |
front 15 They came to expect not only accurate | back 15 Factual information but also objective advice, particularly in the face of increasingly complex real estate transactions |
front 16 The brokers formalized this exchange of information by creating the | back 16 Multiple listing agreement (MLS) |
front 17 The MLS quickly became | back 17 A widely used industry service |
front 18 Agent | back 18 The individual who is authorized and consents to represent the interests of another person in dealings with a third person |
front 19 Principal | back 19 The individual who hires the agent and delegates to that agent the responsibility of representing the principals interest |
front 20 Agency | back 20 The fiduciary relationship between the agent by which the agent is authorized to represent the principal in one or more transactions |
front 21 Fidicuary | back 21 The relationship in which the agent is held in a position of special trust and confidence by the principal |
front 22 Client | back 22 The principal in a real estate transaction for whom a real estate broker acts as an agent |
front 23 Customer | back 23 The 3rd party or non-represented consumer who is not a principal but for whom some level of service may be provided and who is fair and honest |
front 24 Non-agnet | back 24 (Also known as facilitator, intermediary, transactional broker, transaction coordinator, or contract broker) someone who works with a buyer and a seller (or a landlord and a tenant), assisting one or both parties with the transaction without representing either party’s interest |
front 25 The agent is entrusted with certain ___ and has ___ to the principal | back 25 Confidential information; fiduciary responsibilities |
front 26 A real estate professional should be familiar with | back 26 Specific terms of any agency adopted by the legislative of the state in which the real estate professional does business |
front 27 The ___ is entitled to factual information and fair and honesty ___ | back 27 Customer; dealings as a consumer |
front 28 The agent works ___ the principal and ___ the customer | back 28 For; with |
front 29 This means | back 29 That the agent supports and defends the principals interest and NOT the customers |
front 30 The relationship between the principal and agent must be ___ | back 30 Consensual |
front 31 The principal ___ authority | back 31 Delegates |
front 32 The agent ___ to act | back 32 Consents |
front 33 The parties must ___ to form the relationship | back 33 Agree |
front 34 The principal’s primary duty | back 34 Is to comply with the agency agreement and cooperate with reasonable expectations of the agent |
front 35 The principal must ___ hinder the agent and ___ deal with the agent in good faith | back 35 NOT; must |
front 36 The principal must ___ the agent according to the terms of the agency agreement | back 36 Compensate |