Law of Agency: Cumulative Rationale
Answered 2023
abandonment
when the license holder ceases to perform their duties of the agency relationship
actual authority
specific powers given to an agent by the principal that allows them to act on the
principal's behalf
agency by actual authority
actions taken by an agent for which they have permission, whether given through
express or implied authority by a principal
agency by estoppel
agency imposed by law when it is determined that ostensible agency existed; used
to create legal accountability for the agent or the principal on whose behalf the
agent acted
agency by ratification
created when a license holder acts on behalf of but without prior authorization of a
principal and that principal accepts the license holder's action after the fact
agency coupled with interest
when an agent is involved in a real estate transaction with a personal interest
(either for themselves, a family member, or a business interest)
arbitration
a forum where parties and counsel present their positions before an impartial third
party who renders a specific award
attorney representation
, a situation in which a real estate attorney can represent the buyer in the purchase of
a home (this option is only available in certain states)
backup offer
offer made on a property already under contract
blockbusting
occurs when a real estate agent canvasses a geographical area and incites panic by
suggesting that people of certain races, colors, religions, or other protected classes
will be moving into the neighborhood and causing the area to deteriorate and prices
to destabilize
broker
An individual licensed by TREC to perform brokerage duties
broker compensation
the percentage fee or commission (or, in rare instances, flat fee) that is paid for an
agent's representation and services provided during real estate transactions; a.k.a.
brokerage fee
broker price opinion (BPO)
the agent's determination of an appropriate purchase price
brokerage
the joining of two people for the purpose of an exchange of products or services
buyer representation agreement
a document that outlines the duties and implications of the broker-buyer agency
relationship
buyer's agent
a broker representing a buyer in a real estate transaction, a.k.a. buyer's broker
client
the person that an agent is representing, made official through a representation
document
Answered 2023
abandonment
when the license holder ceases to perform their duties of the agency relationship
actual authority
specific powers given to an agent by the principal that allows them to act on the
principal's behalf
agency by actual authority
actions taken by an agent for which they have permission, whether given through
express or implied authority by a principal
agency by estoppel
agency imposed by law when it is determined that ostensible agency existed; used
to create legal accountability for the agent or the principal on whose behalf the
agent acted
agency by ratification
created when a license holder acts on behalf of but without prior authorization of a
principal and that principal accepts the license holder's action after the fact
agency coupled with interest
when an agent is involved in a real estate transaction with a personal interest
(either for themselves, a family member, or a business interest)
arbitration
a forum where parties and counsel present their positions before an impartial third
party who renders a specific award
attorney representation
, a situation in which a real estate attorney can represent the buyer in the purchase of
a home (this option is only available in certain states)
backup offer
offer made on a property already under contract
blockbusting
occurs when a real estate agent canvasses a geographical area and incites panic by
suggesting that people of certain races, colors, religions, or other protected classes
will be moving into the neighborhood and causing the area to deteriorate and prices
to destabilize
broker
An individual licensed by TREC to perform brokerage duties
broker compensation
the percentage fee or commission (or, in rare instances, flat fee) that is paid for an
agent's representation and services provided during real estate transactions; a.k.a.
brokerage fee
broker price opinion (BPO)
the agent's determination of an appropriate purchase price
brokerage
the joining of two people for the purpose of an exchange of products or services
buyer representation agreement
a document that outlines the duties and implications of the broker-buyer agency
relationship
buyer's agent
a broker representing a buyer in a real estate transaction, a.k.a. buyer's broker
client
the person that an agent is representing, made official through a representation
document
