| Agent | the person authorized to act on behalf of the principal in dealings with a 3rd person. a.k.a representative. Sales associates are agents of the broker. Broker are agents of the client. |
| Principal | the individual who hires the agent and delegates to that agent the respondibility of representing the principals interest |
| Agency | fiduciary relationship between the prinicpal and the agent by which the agent is authorized the represent the principal |
| Fiduciary | the relationship in which the agent is held in a position of special trust and confidence by the principal |
| Client | the principal where the broker acts an an agent. also when a broker represents someone other than in an agency |
| Customer | Third party or nonrepresented consumer who is not a principal |
| Nonagent | aka - facilitator, intermediary, transaction coordinator, transaction broker - someone who works with a buyer and a seller assisting one or both parties without representing either partys interests |
| Three kinds of law govern agency relationships | common law - rules established by tradition and court decisions. statutory laws - the laws enacted by the legislature. administrative law - rules and regualtions created by real estate comissions |
| Good Faith Estimate | an estimate of all closing fees that was formerly provided to a borrower within 3 days of loan application |
| short sale | sale of property in which the sales price is less than the debt |
| Reversionary Rights | The return of the rights of possesion and quiet enjoyment to the lessor at the expiration of a lease |
| Earnest Money | money deposited by a buy under the terms of a contract, to be forfeited if the buyer defaults but to be applied to the purcharse price if the sale is closed |
| Escrow Account | trust account established by an escrow agent to hold funds pending distributuion at the closing of a transaction |
| Escrow | the closing of a transaction through a third party called an escrow agent who recieves certain funds and documents to be delivered upon the performance of conditions |
| HUD Form 1 | form that was formally used to itemize fees and services charges to a borrower and seller |
| Express agency | oral or written agreement creates an agency relationship |
| implied agency | the clients behavior causes an agency relationship |
| Listing agreement | seller representation agreement, authroizes the broker to find a buyer or a tenant for the owners property |
| buyer representation agreement | express agency relationship between a buyer and a broker is created |
| COLDAC (common law) | Care, Obedience, Loyalty, Disclosure, Accounting, Confidentiality |
| universal agent | person empowered to do anything the prinicipal can do personally |
| general agent | represents the principal in a broad range of matters related to a particular business or activity |
| special agent | aka limited agent. authorized to represent the principal in one specific act or business transaction only. sellers agency. |
| single agency | the agent represents only one party to a transaction |
| seller representation | broker is an agent of the seller, the seller is the principal the broker's client |
| buyer representation | the buyer is the principal and the brokers client, the broker is the agent |
| Dual agency | the agent represents two principles in the same transaction. the practice is illegal in some states. |
| designated agency | assigned or appointed agency - two sales associated of the same broker are involved. designated agent. |
| puffing | exaggeration of a propertys benefits |
| Fraud | intentional misrepresentation of a material fact of such a way to harm or take advantage of another person. false statements and intentionally concealing or failing to disclose |
| negligent misrepresentation | agent should have known that a statement about a material fact was false |
| latent defect | hidden structural defect that would not be discovered by ordinary inspection |
| stigmatized properties | society has found them undesirable because of events that occured there or because of the proximity |
| Megans Law | sex offenders registry, the customer has to sign a form that includes info of where sex offender registry is obtained |
