Concepts Definitions

• Agency Relationship Disclosure: The formal process by which a real estate agent informs all parties in a transaction about who they represent (e.g., seller, buyer, or both) and the duties owed to each.

• Statute: A written law passed by a legislative body, requiring certain actions or prohibiting others.

• Ethics and Professional Responsibility: The moral principles and standards of conduct expected of real estate licensees, particularly their fiduciary duties to clients.

• Fiduciary Duty: A legal obligation of a party to act in the best interest of another party, characterized by trust, honesty, and loyalty.

• Imputed Notice (Imputed Knowledge): A legal principle where knowledge possessed by an agent is legally considered to be known by their principal, regardless of whether it was actually communicated.

• Vicarious Liability: A legal doctrine under which one party can be held indirectly responsible for the actions or omissions of another party, particularly within an agency relationship.

• Material Fact: Information so important that it could affect a principal’s decision in a transaction.

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