ARM (Adjustable Rate Mortgage)
A financing technique in which the lender can raise or lower the mortgage interest rate according to a set index, such as six-month Treasury bills.

Agency - The relationship resulting from mutual consent between the principal and his or her agent that the agent will act on the principal’s behalf and subject to his or her control.

Agent - a licensee who has agreed to act on behalf of his or her principal and subject to that principal’s control. An agent is the person who acts for and represents you. In a real estate transaction an agent will work to negotiate the best price and terms for their client. An agent owes utmost loyalty to the client and must provide the client with any information the agent knows which might influence the client’s decision to buy or sell. See also Buyers Agent

Blanket Unilateral Offer of Subagency - an offer that may be made by a listing agent to all other members of the MLS when he or she submits his or her seller’s listing to a traditional MLS; the offer is accepted whenever an agent shows the listed property without rejecting the offer. In Connecticut subagency has been replaced by Buyer Agency. This provides better protection to both the buyer and the seller.

Broker A broker is someone licensed by the state to represent a buyer or seller as their agent. Salespeople, even though licensed, must work for a broker. A broker has real estate training and credentials in addition to those required for salespeople.

Buyer Agency - the agency relationship that exists between a buyer principal and his or her buyer’s agent. Ask us for Why Every Home Buyer Needs a Buyer's Agent - a free publication.

Buyers Agent A Buyer’s Agent is a Realtor who is employed by and represents the buyer in a real estate transaction, regardless of whether the Realtor is paid by the buyer, seller or through a commission split with the listing broker. This is sometimes called Buyer Brokerage. See also Agent. Ask us for Why Every Home Buyer Needs a Buyer's Agent - a free publication.

Client A client is the person who is represented by an agent in a transaction and who is subject to that buyer’s or seller’s control. A seller becomes a client by signing a listing agreement with a broker. A buyer becomes a client by signing a buyer agency agreement with a broker. Connecticut state law specifies these agreements must be in writing; also called a principal. Ask us for a free publication on Connecticut's Agency Law.

Confidentiality - the fiduciary duty that requires the agent to keep secret any information that his or her principal considers to be private.

Conflict of Interest - the situation in which an agent’s interests may be adverse to those of his or her principal; immediate disclosure is required.

Contingent Fee - any fee that is conditional upon some event, usually a closing, occurring.

Customer A customer is a person who purchases or rents real estate, but is NOT represented in the transaction. A customer is traditionally a buyer who is buying a product or service from a salesperson. You would expect the salesperson to provide honest information, but you would not expect the salesperson to represent you or to negotiate the best price in the purchase for you. A Realtor is obligated by law to treat customers honestly and fairly. A Realtor can provide valuable market information and services to assist buyers (as customers) during the decision-making process, but is not allowed by law or ethics to provide the customer with the same level of help that they expected to give a client. A customer can also be the seller of an unlisted property that is being sold to a buyer represented by a buyer’s agent.

Debt ratio - the ratio between gross monthly income and monthly long-term debt; used to determine financial qualification of a buyer.

Dual Agent If a Realtor lists a property which their buyer client wishes to buy, the Realtor will be the agent for both the buyer and the seller. This is called Dual Agency. If this situation were to occur, the buyer would be informed and asked to sign a Dual Agency Consent Agreement. This Agreement provides that the agent will not disclose either client’s personal, financial or confidential information. To best protect the interests of our clients, when negotiating on a property listed by our company, the Realtor representing the buyer will not be the same Realtor that represents the seller.

Implied Agency - any agency relationship that is indicated by the words and/or actions of the agent rather than by written agreement; also called accidental or undisclosed agency.

Informed Consent - any consent in which the party (buyer or seller) clearly understands what he or she is signing and why; it is obtained when the agent makes his or her explanation commensurate with the education and understanding of the party.

Listing agent - an agent of the seller who markets the seller’s property and represents the seller during the sale and closing of his or her property.

MLS (Multiple Listing Service) - an organized system by which Realtor members share information about properties for sale and offer cooperation and compensation to buyers’ agent.. In Greenwich all Brokers list all their properties with the MLS.

Mill Rate - The tax rate for real estate is usually expressed in mills. A mill is equivalent to dollars of tax per thousand dollars ($.001)of taxable value. Each municipality sets its own mill rate. Some municipalities also have different mill rates for different districts, as well as for school, water and sewer taxes. To obtain the tax for a property, divide the taxable value by one thousand and multiple this by the mill rate.

NAR (National Association of Realtors? - an organization of licensees in which all members swear to uphold the Realtors?#146; code of Ethics; NAR also provides education and legislative cooperation for the benefit of its members.

Private Client A Private Client signs a buyer agency agreement with a real estate broker. Connecticut state law specifies these agreements must be in writing. The Realtor therefore represents their Client and not the Customer. See Buying Real Estate. Ask us for Anderson Associates Private Client Group - a free publication.

Realtor A designation given to a real estate agent who has subscribed to the code of ethics of the National Association of Realtors. Not all brokers or real estate salespeople are realtors. See Anderson Associates.

Selling agent - any agent who sells a property; he or she may be a subagent or listing agent of the seller, a buyer’s agent or a dual agent. Also called a "co-op" agent.

Subagent - a selling agent who has accepted a listing agent’s blanket offer of subagency and is, therefore, an agent of the seller who is working with a buyer as a customer.

Undisclosed Dual Agency - a dual agency relationship that occurs when a listing agent or subagent acts and speaks as though he or she also represents the buyer but without either written or oral disclosure; see "implied agency."