Agent
Person authorized by the principal to act on their behalf. The agent works for the principal.
Fiduciary Relationship
Specialized relationship of trust and confidence between principal and agent. Agent must place the interests of the principal above all others, including themselves.
Fraud
Dual Agency or Limited Agency
One agent representing both sides of a transaction. (i.e. Buyer and Seller.) The agent's role is limited, they would not "take sides" in negotiations. Must have written informed consent from both principals.
General Agent
Agent that represents a Principal in broad range of matters related to a specific property. (i.e. A property manager is usually a general agent.)
Latent Defect
Property defects that are "hidden" or not obvious to the eye. Usually structural in nature.
Negligent Misrepresentation
Incorrect statement or information provided to a client or customer when the Broker should have known that the information was false.
Psychologically Affected POroperty or Stigmatized Property
Property with a "reputation" because of events such as death, murder, or illegal drug manufacture.
Principal
Client. One who authorizes an agent to work on their behalf.
Puffing
Exaggerating the benefits of a property. Usually refers to subjective issues such as beauty or views.
Universal Agent
Agent with virtually unlimited authority to act on behalf of the Principal. Can do anything the Principal could do personally.
Special Agent
Agent authorized to perform only specific act(s) for a Principal. Real estate agents are usually special agents.