Chapter 3 Agency, Brokerage and Ethical

Question 1

Regulations prohibiting price-fixing

Answer 1

Antitrust Law Also know as Sherman Antitrust Act

Question 2

agent who takes a buyer as the principal

Answer 2

Buyer’s Broker

Question 3

Broker’s usual compensation

They are usually are earned when…

Answer 3

commission
*the seller accepts the buyer’s offer without conditions.
paid within 10 days of receipt by the broker

Question 4

third party in a transaction, not the principal

Answer 4

customer

Question 5

revealing to another any pertinent information

Answer 5

Disclosure

Question 6

brokers taking both parties as principal

Answer 6

Dual agency

Question 7

one authorized to act for another

Answer 7

agent

Question 8

person authorized to act under a power of attorney

Answer 8

attorney in fact

Question 9

salesperson whose broker pays social security, regulates hours, etc

Answer 9

employee

Question 10

trust and confidence between parties

Answer 10

fiduciary relationship

Question 11

principal who engages and agent

Answer 11

client

Question 12

one empowered for a wide range of actions

Answer 12

general agent

Question 13

one who owes special duties to another

Answer 13

fiduciary

Question 14

intentional or unintentional misleading of another who is harmed thereby

Answer 14

fraud

Question 15

one authorize to act for another in real estate transactions

Answer 15

broker

Question 16

written explanation of a business relationship

*They are usually required for transactions involving

Answer 16

consumer information statement

1 to 4 family dwellings.

Question 17

one who works for both the seller and the buyer

Answer 17

Disclosed dual agent

Question 18

agent of an agent

Answer 18

subagent

Question 19

agreement between a buyer and seller on major points

Answer 19

meeting of the minds

Question 20

contract by which the owner retains a broker to find a buyer

Answer 20

Listing agreement

Question 21

harmless exaggeration as salesmanship

Answer 21

Puffing

Question 22

illegal sharing of a commission with seller

Answer 22

Kickback

Question 23

one authorized to act for another in a specific transaction

The legal relationship between a broker and seller is generally……

Answer 23

special agent

Question 24

one qualified and prepared to purchase

Answer 24

ready, willing and able buyer

Question 25

person licensed to assist a real estate broker

Answer 25

salesperson

Question 26

salesperson who sets own hours, pays own estimated income taxes, etc.

Answer 26

independent contractor

Question 27

problem not discoverable by normal prudent inspection

Answer 27

Latent defect

Question 28

rules governing conduct of agents

Answer 28

law of agency

Question 29

the one employing and agent; the client

Answer 29

Principle

Question 30

the one who brings about a sell

Answer 30

Procuring cause

Question 31

written authorization of agency

Answer 31

power of attorney

Question 32

one who facilitates a transaction without functioning as an agent

Answer 32

Transaction Broker

Question 33

legislation requiring that communities be alerted to the presence of sex offenders

Answer 33

Megan's Law

Question 34

competence normally expected

Answer 34

standard of care

Question 35

fraud committed by someone who should have known better

Answer 35

Negligent misrepresentation

Question 36

intentional fraud

Answer 36

fraudulent misrepresentation

Question 37

member of private national organization

Answer 37

Realtor

Question 38

designation awarded for advanced study

Answer 38

graduate Realtor institute

Question 39

private nationwide organization of brokers and salespersons

Answer 39

national association of REALTORS

Question 40

problem when serving best interests of both the client and oneself

Answer 40

conflict of interest

Question 41

real estate equivalent of malpractice coverage

Answer 41

errors and omissions insurance

Question 42

standards of conduct adopted by REALTORS

Answer 42

code of ethics

Question 43

statewide group of real estate licensees who choose to join

Answer 43

New Jersey REALTORS

Question 44

unintentional deception committed in ignorance

Answer 44

innocent misrepresentation

Question 45

Agent to his principal fiduciary responsibilities

Answer 45

O-L-D-C-A-R Obedience, loyalty, disclosure, confidentiality, accounting and reasonable care. *The duty of loyalty forbids the seller's broker to suggest an offer under the listed price.

Question 46

"A broker must be employed to recover a commission for his of her services" means

Answer 46

someone must have agreed to pay a commission to the broker for selling the property.

Question 47

NJ consumer fraud act

Answer 47

allows exemption from liability in some circumstances.

Question 48

Off site conditions (two disclosures)

Answer 48

1. new construction- 5 day period in which the purchaser may cancel the contract. 2. existing properties- no such claim.

Question 49

what are the three things taken place during a meeting of the minds?

Answer 49

price down payment financing method