Unit 4 UNIT 4 – Definitions

Term Definition
Agency A relationship in which a consumer has given consent (express or implied) to a real estate licensee to represent the consumer in a real property transaction.
Agent The individual who is authorized and consents to represent the interests of another person. In the real estate business, a firm's sponsoring broker is the agent and shares this responsibility with the licensees who work for them.
Brokerage agreement An agreement, made verbally or set out in writing, for an agent or firm to provide brokerage services to a consumer and to receive compensation for providing those services.
Client The person or entity that a licensee represents in a real property transaction.
Compensation Payment (monetary or otherwise) made to a person or entity for executing services for a client or consumer.
Consumer A person or entity seeking services from a licensee.
Confidential information Information given by a client to a licensee during the term of a brokerage agreement that (1) the client requests (in writing or verbally) the licensee keep in confidence; (2) relates to the client's negotiating position; or (3) could do damage to the cli
Customer A person or entity who a licensee is providing service (including ministerial acts) but who is not represented by the licensee in an agency relationship.
Ministerial acts Informative or clerical service provided by a licensee to a consumer, it is not equivalent to active representation.
Puffing Exaggerating a property's benefits.
Latent Defect. Structural defect that would not normally be uncovered over the course of an ordinary inspection.
Stigmatized Properties properties are those properties that society has branded undesirable because of events that occurred there
Megan's Law is a general name for laws requiring law enforcement authorities to make information available to the public regarding registered sex offenders.
Express Agency The principal and agent may enter into a contract, or an express agreement, in which the parties formally express their intention to establish an agency and state its terms and conditions
Implied Agency This occurs when the actions of the parties indicate that they have mutually consented to an agency.
Agency coupled with an interest an agency relationship in which the agent has an interest in the subject of the agency, such as the property being sold
Universal agent person empowered to do anything the principal could do personally. The universal agent's authority to act on behalf of the principal is virtually unlimited.
General agent Represent the principal in a broad range of matters related to a particular business or activity
Special agent Authorized to represent the principal in one specific act or business transaction only
Designated agent Person authorized by the sponsoring broker to act as the agent of a specific principal
Property Management Agency An owner may employ a sponsoring broker to market, lease, maintain, or manage the owner's property.
Buyer Agency Licensee representing buyers only and getting compensated by seller's broker.
Dual Agency A licensee representing to two principals in the same transaction.
Disclosed dual agency Disclosure needs to be made in writing and consent of both principles of dual agency.
Undisclosed dual agency Not disclosing happens by accident, but a violation of licensing laws.

Leave a Reply

Your email address will not be published.