Section 4 Vocabulary

Question 1

Agent

Answer 1

One who acts on the behalf of another.

Question 2

Caveat Emptor

Answer 2

Refers to the time prior to licensing laws when all risk and responsibility was on the buyer, known as “Let the buyer beware.”

Question 3

Consent to Transition

Answer 3

Change in the relationship between agent and principal (must be written).

Question 4

Customer

Answer 4

Member of the public that potentially may become employer of the broker in a transaction.

Question 5

Dual Agent

Answer 5

Representing both the buyer and the seller in a transaction. NOT legal in Florida.

Question 6

Fiduciary

Answer 6

Person entrusted with confidence and respect to principal.

Question 7

General Agent

Answer 7

Agent authorized to perform only acts related to ongoing business of a particular nature.

Question 8

Limited Representation

Answer 8

Specifically transaction broker. To buyer/seller or both provide limited non-fiduciary representation.

Question 9

Non-Representation

Answer 9

A no brokerage agreement is non-representation.

Question 10

Principal

Answer 10

The person employing the broker. Also, can be the amount paid on a loan that reduces the total outstanding amount owed.

Question 11

Residential Sale

Answer 11

Described as 4 or fewer units, property intended for 4 or fewer units, agricultural property of 10 or fewer acres.

Question 12

Special Agent

Answer 12

Agent that performs a particular act in a transaction.

Question 13

Subagency

Answer 13

An agent under the original agent.

Question 14

Transaction Broker

Answer 14

Provides limited representation to buyer/seller or both but does not represent either as a single agent or in a fiduciary capacity.