Ch. 1

Question 0

The business of bringing buyers and sellers together in the marketplace.

Answer 0

Brokerage

Question 1

A relationship in which one person acts for or represents another.

Answer 1

Agency

Question 2

A person who is authorized by another to act on their behalf.

Answer 2

Agent

Question 3

One who for another person,and for commission, money or other thing of value, negotiates or offers or attempts to negotiate a sale, exchange, purchase, or rental of or the granting or acceptance of an option to sell, exchange, purchase or rent and interest or estate in real estate; who shows real estate or a business or it’s inventory; or promotes the sale, exchange, purchase, option, rental or leasing of a real estate, a time share or a business or it’s goodwill, inventory or fixtures.

Answer 3

Broker

Question 4

The sale or lease of the business and the good will of an existing business, enterprise or opportunity, including a sale of the majority of assets or stocks of the business.

Answer 4

Business Sale

Question 5

The firm that has entered into a buyer agency agreement with the buyer indicating that the broker will be representing the interests of the buyer.

Answer 5

Buyer’s Broker

Question 6

The person who employs an agent to perform a service on their behalf.

Answer 6

Client

Question 7

The actual person, within the buyer broker firm that procured the buyer.

Answer 7

Buyer’s Agent

Question 8

A broker who works in conjunction with another broker in procuring a buyer for the seller’s property.

Answer 8

Cooperating Broker

Question 9

A person who receives services given on behalf and for the benefit of a client.

Answer 9

Customer

Question 10

Receiving compensation related to the real estate transaction from someone other than the licensee’s client without prior written consent from all parties to the transaction.

Answer 10

Dual Compensation

Question 11

A way to defer capital gains tax by exchanging like property for like property.

Answer 11

Exchange

Question 12

One placed in a position of trust and confidence, normally responsible for the money and/or property of another.

Answer 12

Fiduciary

Question 13

The body of laws that determines the rights and duties owed by an agent to a principal.

Answer 13

Laws of Agency

Question 14

A term used by the Department of Regulation and Licensing (DRL) to refer to any person licensed or registered under state law to practice real estate.

Answer 14

Licensee

Question 16

An individual employed by the listing broker who actually secured the business for the listing firm.

Answer 16

Listing Agent

Question 16

An adverse fact that a party indicates is of such significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects the party’s decision to enter into a contract or the terms of a contract.

Answer 16

Material Adverse Fact

Question 17

The firm that the seller has employed under a listing contract.

Answer 17

Listing Broker

Question 19

Any fact that is relevant to a person making a decision. Agents must disclose all facts to their clients.

Answer 19

Material Fact

Question 19

Showings of real estate open for public viewing without an individual appointment.

Answer 19

Open House

Question 20

An agent representing two principals in one transaction. That requires both parties to agree to the transaction in writing.

Answer 20

Multiple Representation Relationship

Question 21

An agreement to keep open for a set period of time an offer to sell or lease real property.

Answer 21

Option to Purchase

Question 22

The purchaser under an option contract.

Answer 22

Optionee

Question 23

The seller under an option contract.

Answer 23

Optionor

Question 24

Presumptive evidence that a broker's license is required because one has participated in five sales in one year or ten sales in five years.

Answer 24

Pattern of Sales

Question 25

Has permitted or directed another to act for his/her benefit and subject to his/her direction and control. 2. The amount of money which is borrowed, not including the payment of interest.

Answer 25

Principal

Question 26

Any person other than a broker who is employed by a broker to perform any act authorized by chapter 452 to be performed by a broker.

Answer 26

Salesperson

Question 27

The practice of representing either the buyer or the seller but never both in the same transaction.

Answer 27

Single Agency

Question 28

A broker who is engaged by another broker to provide brokerage services in a transaction, but who is not the other broker’s employee.

Answer 28

Subagent

Question 29

Selling one product only if the buyer agrees to purchase another product as well.

Answer 29

Tie-In Agreement

Question 30

The name appearing on the broker's license under which the broker advertises or does business.

Answer 30

Trade Name

Question 31

Person who is not licensed under chapter 452 or licensed but not employed for the purpose of providing services for which a license is required.

Answer 31

Unlicensed Personal Assistant