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Real estate terms you should know
By Bankrate.com
Before you start down any road to buying or
selling a home, you need to learn the lingo. If you don't, you might find you're
not speaking the same language, and when it comes to buying or selling, it pays
to know who's who and what's what.
Here are some of the terms you should have a working knowledge
of:
- Real estate agent -- Someone
who is licensed and permitted by the state to conduct the buying and selling
of real estate for other people.
- Realtor -- A real estate
agent, broker or associate who is a member of a local real estate board associated
with the National Association of Realtors. Realtors are required to abide by a strong code
of ethics and face strict disciplinary action if they violate it.
- Real estate broker or real estate agency
-- A person or firm that brings property buyers together with sellers.
- MLS (Multiple listing service)
-- A shared compilation of detailed information on properties for sale in
a certain area. This allows agents to show and sell listings held by offices
other than the one they're associated with. The MLS is usually available only
to Realtors.
- Fiduciary -- a relationship
in which one person places confidence in another in regard to a particular
transaction or one's general affairs or business. The relationship is not
necessarily formally or legally established as in a declaration of trust but
can be one of moral or personal responsibility.
- Single agency -- an agent
or broker represents and owes his or her fiduciary to only one party in a
real-estate transaction.
- Buyer's agent -- an agent
who represents and owes his allegiance and his fiduciary to the buyer.
- Seller's agent -- the
agent who works for the real estate firm that listed the property and owes
his allegiance to the seller.
- Dual agent, multiple agent --
A situation in which an agent shows prospective buyers a home listed by the
real estate firm he works for. In most states it is illegal to represent both
buyer and seller in a real-estate transaction unless both the buyer and seller
give their written consent.
- Disclosed dual agency --
The dual agency relationship is fully disclosed to all parties.
- Designated agency -- Your
agent continues to represent you while another agent in the same firm represents
the seller. Keep in mind that information can leak easily within an office.
- Transaction broker or Transaction Agency
-- The same agent or firm works for both buyer and seller but discloses
to both that the agent is not in a fiduciary relationship with either party.
A real estate professional who does not represent either the buyer or the
seller but is hired to help them reach an agreement.
-- Posted: July 1, 2003
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