Self-dealing. If a real estate agent who is employed to purchase real estate for a principal secretly sells his or her own property to the principal, this is a violation of the duty of loyalty known as __ Usurping an opportunity.
What is self-dealing real estate?
Self-dealing is an illegal act that happens when a fiduciary acts in their own best interest in a transaction, rather than in the best interest of their clients.
Which type of agency is a real estate brokerage based on in most cases quizlet?
In most instances, real estate brokerage is based on a special agency. The principal hires a licensed broker to procure a ready, willing, and able buyer or seller.
Which of the following fiduciary duties does an agent owe to the principal quizlet?
A fiduciary relationship is a position of trust, and the agent owes the principal the duty of obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care (OLD CAR).
What is the definition of a principal quizlet real estate?
principal. the person who authorizes another to act on his or her behalf (buyer and seller in a real estate transaction)
What is the self-dealing rule?
Self-dealing is the act committed by a trustee (or another in a fiduciary position), whereby they seek to enter into a transaction in which, against their duty to act in the best interests of the Trust/beneficiaries, they have a personal interest conflicting or which possibly may conflict with the interests of those …
What would be an example of self-dealing?
Examples include taking a corporate opportunity, using corporate funds as a personal loan or purchasing company stock based on inside information received through being in the position of a fiduciary. Self-dealing is a violation of the duty of loyalty.
Which of the following types of agency is used in transactions in which a real estate licensee is involved only as a facilitator?
Used in transactions in which the real estate licensee wants to avoid the confusion that sometimes results from the other forms of agency representation. In non-agency transactions, licensees are involved only as facilitators or intermediaries and not in any type of agency capacity.
Which of the following is a type of agency relationship in real estate?
Which of the following is a type of agency relationship in real estate? Both sales and broker associates may put their licenses with an employing licensed broker. Agency relationships are created by agreement, ratification, or estoppel.
Which of the following are contingencies in a real estate contract?
Common contingencies in real estate include an appraisal contingency, inspection contingency, sale contingency or a funding contingency.
Which one of the following is the primary duty that a principal legally owes to an agent?
A principal’s primary duties to his/her agent include: To compensate the agent as agreed; and. To indemnify and protect the agent against claims, liabilities, and expenses incurred in the agent correctly discharging the duties assigned by the principal.
What is one exception to the fiduciary duty of confidentiality?
In general, the fiduciary exception provides that a fiduciary cannot shield communications with its legal counsel from a person to whom the fiduciary owed fiduciary duties, where such legal services related to the administration of the fiduciary entity (rather than the fiduciary’s defense against charges of misconduct) …
What are the three main duties owed to the principal by the agent quizlet?
An agent owes performance-based duties to the principal, including a duty of obedience and a duty to perform with reasonable care.
- Contractual duties.
- Duty of care.
- Duty of obedience.
- Duty to provide information.
- Duty to keep and render accounts.
What does a principal do in real estate?
Assesses buyers’ needs and locates properties and businesses for their consideration. Offers valuations and advice for buying and selling properties and businesses, and structures the terms of settlement. Collects and holds rent monies from tenants, and remits to owner on agreed basis.
What is the definition of a principal real estate?
The principal is the individual who is selling the real estate property, while the agent is the licensed broker who has been contracted to represent the seller.
What is an appurtenance in real estate?
An appurtenance is a real property, which has been defined as being immovable or fixed to the land. … More examples of appurtenances include in-ground swimming pools, a fence, or a shed that are all fixed to the land. The term can also be used to describe the acreage behind a home.