Agency and Contracts Review

These flashcards cover key concepts related to agency relationships, contracts, and fiduciary duties as discussed in the lecture notes.

Fiduciary

One who holds a position of trust.

Duties and Responsibilities

Care, obedience, loyalty, accountability, and notice are duties of a fiduciary.

Dual Agency

Occurs when a broker represents both the buyer and seller in the same transaction.

Commission Rates

Set by mutual agreement between the broker and the seller.

Termination of Agency

Can occur due to expiration of the agreement, destruction of property, or fulfillment of the agreement.

COLAN

Abbreviation for the duties of a fiduciary.

Notice Provision

Means keeping the owner informed through prompt disclosure.

Accountability

Duty of a fiduciary to keep accurate records for principals.

Disclosure in Dual Agency

A licensee can disclose all latent material defects regarding property that are known.

Types of Contracts

Express, implied, bi-lateral, and unilateral are types of contracts.

Fraud

Defined as intentional deceit or lying.

Statute of Frauds

Requires all leases longer than one year to be in writing to be enforceable in court.

Constructive Eviction

Occurs when the tenant claims the unit is uninhabitable.

Holdover Tenant

One who continues to occupy the unit after the lease has expired without the landlord's written consent.

Offer and Acceptance

Part of the essential elements to a contract.

Voluntary Agreement

A valid contract between two competent parties.

Contract with Minor

Usually voidable by the minor.

Reality of Consent

Essential element based on all parties having an accurate knowledge of the terms and conditions.

Periodic Tenancy

Refers to a lease that began on February 1st and is month to month thereafter.

Existing Leases upon Sale

Remain in full force and effect when an apartment building is sold.

Lessor

The owner of the property in a lease agreement.

Essential Elements to Contracts

Must contain consideration, offer and acceptance, and legal purpose.

Options in Lease Agreements

Rights of the Optionee when the Optionor does not honor the Option to Renew.

Unexecuted Lease Agreement

A tenant agreed to a six-month lease but never signed it; contracts up to 12 months can be verbal.

Termination of Agency Relationship

Can be terminated at any time except by disclosure.

Residential Lease

A contract between a lessor and lessee.

Price Fixing

An example of a violation of antitrust laws.

Depositing Escrow Funds

Needed within 48 hours of acceptance.

Consideration in Contracts

Means giving of something of value.

Record Keeping Duration

Escrow records and employment agreements must be maintained for 5 years.