Chapter 3 Agency, brokerage and ethical considerations Key terms part 1

Question 0

Antitrust laws

Answer 0

Regulations prohibiting price-fixing

Question 1

Agent

Answer 1

One authorized to act for another.

Question 2

Attorney-in-fact

Answer 2

A person authorized to act under a power of attorney.

Question 3

Broker

Answer 3

One authorized to act for another in real estate.

Question 4

Buyer’s broker

Answer 4

An agent who takes a buyer as the principal.

Question 5

Client

Answer 5

Principal who engages an agent.

Question 6

Commission

Answer 6

A brokers usual compensation.

Question 7

Consumer information statement.

Answer 7

Written explanation of a business relationship.

Question 8

Customer

Answer 8

Third-party in a transaction not the principal.

Question 9

Disclosed dual agent

Answer 9

One who works for both the seller and the buyer.

Question 10

Disclosure

Answer 10

Revealing to another any pertinent information.

Question 11

Dual agency

Answer 11

Brokers taking both parties as principles.

Question 12

Employee

Answer 12

A sales person who’s broker pay Social Security, regulates hours, etc.

Question 13

Fiduciary

Answer 13

One who gives special duties to another.
Fiduciary responsibilities include care, obedience, accounting, loyalty (confidentiality), and disclosure.
These duties are easily remembered by the acronym COALD.

Question 14

Fiduciary relationship

Answer 14

The trust and confidence between parties.
This falls within the requirements of the law of agency.
The agent is responsible for the money and/or property of others.

Question 15

Fraud

Answer 15

Intentional or unintentional misleading of another, who is harmed by these actions.

Question 16

General agent

Answer 16

A person empowered to represent the principal in a broad range of matters and actions.