Unit 9 - Vocab

Question 1

Prima Facie

Answer 1

good and sufficient evidence on its face

Question 2

Fiduciary

Answer 2

A faithful relationship where the person places the other in higher esteem than himself; one who is also confidential.

Question 3

Agent

Answer 3

one who is authorized to represent and act on the part of a person called the principal

Question 4

Principal

Answer 4

a person who chooses to be represented by an agent. The principal is also called the client (seller)

Question 5

Laws of Agency

Answer 5

Body of laws which relate to the relationship between the agent and the principal

Question 6

Fiduciary Relationship

Answer 6

a relationship based on utmost trust and confidentiality

Question 7

The types of relationships allowed by PA Law are…

Answer 7

Sellers Agent (subagent), Buyer’s broker, Dual Agent, Designated Agent, Transactional Agent

Question 8

The “Initial Interview” is the….

Answer 8

first contact between a licensee and a consumer of real estate services where a substantive discussion about real estate occurs.

Question 9

Material Facts

Answer 9

are important facts needed to make a decision to buy; information such as a leaky roof would impact the costs for the buyer if he needed to fix it, etc.

Question 10

subagent

Answer 10

is an agent who assists in some or all of the duties assigned by the agent to do a job (such as selling a home) for a Principal.

Question 11

Dual Agency

Answer 11

representing both the seller/landlord and the buyer/tenant at the same time with the same level of commitment and dedication to both. This also involves the same level of confidentiality to both.

Question 12

The broker’s license is not in jeopardy unless the employing broker had ____ _____ of law violation by the salesperson.

Answer 12

actual knowledge

Question 13

Because the salesperson represents and is accountable to the broker, the salesperson is called a___ of the employing broker.

Answer 13

fiduciary

Question 14

In the event the consumer does not appear in person and the written Consumer Notice cannot be given, the licensee must provide an ____.

Answer 14

oral disclosure

Question 15

The seller’s agent must:

Answer 15

-Be loyal to the seller;
-Make a continuous and good-faith effort to find a buyer for the property;
-Give the seller confidentiality, except that a licensee has a duty to reveal known material facts about the property;
-Disclose to others that the broker represents the seller and has been engaged to be a seller’s agent.

Question 16

A buyer’s agent must:

Answer 16

-Be loyal to the buyer/tenant by acting in his best interest;
-Be confidential to the buyer/tenant;
-Make a continuous and good-faith effort to find a property for the buyer;
-Disclose to others that the broker has been employed as a buyer’s broker/agent

Question 17

Designated Agent

Answer 17

a broker with the written consent of the principal may designate licensees to act exclusively as the agent of the seller/landlord and designate licensees to act exclusively as the agent of the buyer/tenant in the same transaction

Question 18

A transaction licensee…

Answer 18

does not represent anyone in a transaction but is only present to implement the process of the transaction. He does not care about the interests of anyone in the transaction and will not represent the interests of either party.

Question 19

The rule regarding initial interview will not apply for leases if the licensee is providing information on a property for the purpose of rental only and if the licensee is:

Answer 19

-The actual owner/landlord of the property;
-The direct employee of the owner/landlord of the real property;
-Leasing the property with a property management agreement with the owner/landlord of the property.