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AGENCY
Agency is a legal relationship in which a principal authorizes an agent to act as the principal’s representative when dealing with third parties. This
creates a fiduciary relationship between the agent and the principal. A fiduciary relationship implies a position of trust or confidence. The agent is
in a position of trust or confidence with the principal and owes the principal certain fiduciary duties. The agent has the fiduciary duty of loyalty,
integrity,and utmost care to the principal. This means that the agent bound by agency law acts in the best interests of the principal. There is an
obligation always to act fairly and honestly with third parties. The law compares the fiduciary duties owed by the agent to the principal, as to the
trustee to a beneficiary, or like a mortgagee to mortgagor. The agent works for the principal and with third parties. An agent is either a special
agent or general agent. This depends on the scope of authority delegated to the agent by the principal. A special agent is employed to perform a
specific task, whereas any other agent would be a general agent. A real estate broker, for example, who has a contract is a special agent
authorized to perform certain acts for a specified time.
Exclusive Authorization and Right-to-Sell Listing
An exclusive authorization and right-to-sell listing is an exclusive contract where the seller must pay the listing broker a commission if the
property is sold within the time limit by the listing broker, any other broker, or even by the owner. If the broker brings the seller a “mirror offer”,
or an offer that matches exactly all terms in the listing, the seller does not have to accept the offer. However, under the terms of the listing, the
seller must pay the brokera commission. In this listing, the phrase “right to sell” means “right to find a buyer”. It does not authorize the broker the
right to convey any property belonging to the principal unless the agent has a power of attorney to do so. Every exclusive listing must specify a
definite termination date.
Exclusive Agency Listing
An exclusive agency listing is an exclusive contract where the seller must pay the listing broker a commission if any broker sells the property.
However, the seller has the right to sell the property without a broker, and pay nocommission. Every exclusive listing must specify a definite
termination date.122 California Real Estate Principles
Open Listing
An open listing is a listing agreement that gives any number of brokers the right to sell a property. It is not exclusive and may be given to any
number of agents at the same time. The first broker to obtain a buyer who meets the terms of the listing, and whose offer is accepted by the
seller, earns the commission. That agent is known as the procuring cause of the sale. Procuring cause refers to a broker who produces a buyer
“ready, willing, and able” to purchase the property for the price and on the terms specified by the seller, regardless of whether the sale is
completed. Unlike an exclusive listing agreement, an open listing does not require a specific termination date. The owner may sell the property
without an agent, owing no commission.
Net Listing
A net listing is a listing agreement in which the commission is not definite. Instead, the broker receives all the money from the sale of the property
that is in excess of the selling price set by the seller. The broker must disclose the selling price to both buyer and seller within 30 days after
closing the transaction.
Option Listing
An option listing gives the broker the right to purchase the property that is listed. A broker with an option is acting as a principal as well as an
agent. Prior to exercising the option, the seller must be informed of the full amount of the broker’s profit and agree to it in writing.
Agency is a legal relationship in which a principal authorizes an agent to act as the principal’s representative when dealing with third parties. This
creates a fiduciary relationship between the agent and the principal. A fiduciary relationship implies a position of trust or confidence. The agent is
in a position of trust or confidence with the principal and owes the principal certain fiduciary duties. The agent has the fiduciary duty of loyalty,
integrity,and utmost care to the principal. This means that the agent bound by agency law acts in the best interests of the principal. There is an
obligation always to act fairly and honestly with third parties. The law compares the fiduciary duties owed by the agent to the principal, as to the
trustee to a beneficiary, or like a mortgagee to mortgagor. The agent works for the principal and with third parties. An agent is either a special
agent or general agent. This depends on the scope of authority delegated to the agent by the principal. A special agent is employed to perform a
specific task, whereas any other agent would be a general agent. A real estate broker, for example, who has a contract is a special agent
authorized to perform certain acts for a specified time.
Exclusive Authorization and Right-to-Sell Listing
An exclusive authorization and right-to-sell listing is an exclusive contract where the seller must pay the listing broker a commission if the
property is sold within the time limit by the listing broker, any other broker, or even by the owner. If the broker brings the seller a “mirror offer”,
or an offer that matches exactly all terms in the listing, the seller does not have to accept the offer. However, under the terms of the listing, the
seller must pay the brokera commission. In this listing, the phrase “right to sell” means “right to find a buyer”. It does not authorize the broker the
right to convey any property belonging to the principal unless the agent has a power of attorney to do so. Every exclusive listing must specify a
definite termination date.
Exclusive Agency Listing
An exclusive agency listing is an exclusive contract where the seller must pay the listing broker a commission if any broker sells the property.
However, the seller has the right to sell the property without a broker, and pay nocommission. Every exclusive listing must specify a definite
termination date.122 California Real Estate Principles
Open Listing
An open listing is a listing agreement that gives any number of brokers the right to sell a property. It is not exclusive and may be given to any
number of agents at the same time. The first broker to obtain a buyer who meets the terms of the listing, and whose offer is accepted by the
seller, earns the commission. That agent is known as the procuring cause of the sale. Procuring cause refers to a broker who produces a buyer
“ready, willing, and able” to purchase the property for the price and on the terms specified by the seller, regardless of whether the sale is
completed. Unlike an exclusive listing agreement, an open listing does not require a specific termination date. The owner may sell the property
without an agent, owing no commission.
Net Listing
A net listing is a listing agreement in which the commission is not definite. Instead, the broker receives all the money from the sale of the property
that is in excess of the selling price set by the seller. The broker must disclose the selling price to both buyer and seller within 30 days after
closing the transaction.
Option Listing
An option listing gives the broker the right to purchase the property that is listed. A broker with an option is acting as a principal as well as an
agent. Prior to exercising the option, the seller must be informed of the full amount of the broker’s profit and agree to it in writing.
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Deed (escritura de propiedad)
A formal transfer by a party.
Deed in lieu of foreclosure
A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender.
Deed restrictions (limitaciones en la escritura)
Limitations in the deed to a property that dictate certain uses that may or may not be made of the property.
Trust deed
A security instrument that conveys naked legal title of real property.
LIEN
The right to retain the lawful possession of the property of another until the owner fulfills a legal duty to the person holding the property, such as
the payment of lawful charges for work done on the property. A mortgage is a common lien.
In its widest meaning this term includes every case in which real or personal property is charged with the payment of any debt or duty; every such
charge being denominated a lien on the property. In a more limited sense it is defined to be a right of detaining the property of another until some
claim be satisfied. The right of lien generally arises by operation of law, but in some cases it is created by express contract. There are two kinds of
lien; particular and general.
Title report
A report which discloses condition of the title, made by a title company preliminary to issuance of title insurance policy in the other hand this
report provides details of the Certificate of Title including ownership and other main details.
Title (título)
Evidence that the owner of land is in lawful possession.
Title companies
Companies who perform a title search on the property and issue a title policy for the lender and the purchaser to ensure that there is a valid
mortgage lien against the property and title is clear.
Title insurance (seguro de título)
An insurance policy that protects the named insured against loss or damage due to defect in the property’s title.
Title plant
The storage facility of a title company in which it has accumulated complete title records of properties in its area.
Escrow (en custodia de tercero persona)
A small and short-lived trust arrangement.
Escrow agent
The neutral third party holding funds or something of value in trust for another or others.
Escrow holder
Acts as a neutral agent of both buyer and seller.
Escrow instructions
Written directions, signed by a buyer and seller, detailing the procedures necessary to close a transaction and directing the escrow agent how to
proceed.
Beneficiary (beneficiario)
The lender under a deed of trust.
Beneficiary statement (declaración del beneficiario)
A statement of the unpaid balance of a loan and describes the condition of the debt
Appraisal (avalúo)
An unbiased estimate or opinion of the property value on a given date.
Appraisal process
An orderly systematic method to arrive at an estimate of value.
Appraisal report (información de la evaluación)
A written statement where an appraiser gives his or her opinion of value.
Hard money(different definition)
A hard money loan is a species of real estate loan collateralized against the quick-sale value of the property for which the loan is made. Most
lenders fund in the 1st-lien position, meaning that in the event of a default, they are the first creditor to receive remuneration. Occasionally, lenders
will subordinate to another 1st lien position loan; these loans are known as a mezzanine loan or second lien position loans.
Hard money lenders structure loans based on a percentage of the quick-sale value of the subject property. This is called the Loan-to-Value or LTV
ratio and typically hovers between 60-70% of the value of the property. For the purposes of determining an LTV, the word "value" is defined as
"today's purchase price".
A formal transfer by a party.
Deed in lieu of foreclosure
A deed to real property accepted by a lender from a defaulting borrower to avoid the necessity of foreclosure proceedings by the lender.
Deed restrictions (limitaciones en la escritura)
Limitations in the deed to a property that dictate certain uses that may or may not be made of the property.
Trust deed
A security instrument that conveys naked legal title of real property.
LIEN
The right to retain the lawful possession of the property of another until the owner fulfills a legal duty to the person holding the property, such as
the payment of lawful charges for work done on the property. A mortgage is a common lien.
In its widest meaning this term includes every case in which real or personal property is charged with the payment of any debt or duty; every such
charge being denominated a lien on the property. In a more limited sense it is defined to be a right of detaining the property of another until some
claim be satisfied. The right of lien generally arises by operation of law, but in some cases it is created by express contract. There are two kinds of
lien; particular and general.
Title report
A report which discloses condition of the title, made by a title company preliminary to issuance of title insurance policy in the other hand this
report provides details of the Certificate of Title including ownership and other main details.
Title (título)
Evidence that the owner of land is in lawful possession.
Title companies
Companies who perform a title search on the property and issue a title policy for the lender and the purchaser to ensure that there is a valid
mortgage lien against the property and title is clear.
Title insurance (seguro de título)
An insurance policy that protects the named insured against loss or damage due to defect in the property’s title.
Title plant
The storage facility of a title company in which it has accumulated complete title records of properties in its area.
Escrow (en custodia de tercero persona)
A small and short-lived trust arrangement.
Escrow agent
The neutral third party holding funds or something of value in trust for another or others.
Escrow holder
Acts as a neutral agent of both buyer and seller.
Escrow instructions
Written directions, signed by a buyer and seller, detailing the procedures necessary to close a transaction and directing the escrow agent how to
proceed.
Beneficiary (beneficiario)
The lender under a deed of trust.
Beneficiary statement (declaración del beneficiario)
A statement of the unpaid balance of a loan and describes the condition of the debt
Appraisal (avalúo)
An unbiased estimate or opinion of the property value on a given date.
Appraisal process
An orderly systematic method to arrive at an estimate of value.
Appraisal report (información de la evaluación)
A written statement where an appraiser gives his or her opinion of value.
Hard money(different definition)
A hard money loan is a species of real estate loan collateralized against the quick-sale value of the property for which the loan is made. Most
lenders fund in the 1st-lien position, meaning that in the event of a default, they are the first creditor to receive remuneration. Occasionally, lenders
will subordinate to another 1st lien position loan; these loans are known as a mezzanine loan or second lien position loans.
Hard money lenders structure loans based on a percentage of the quick-sale value of the subject property. This is called the Loan-to-Value or LTV
ratio and typically hovers between 60-70% of the value of the property. For the purposes of determining an LTV, the word "value" is defined as
"today's purchase price".