Chapter 3: Agency, brokerage and ethical considerations Key Terms Part 2

Question 1

Independent contractor

Answer 1

Sales person who sets own hours, pays own estimated income taxes, etc.

Question 2

Kickback

Answer 2

Illegal sharing of commission, to seller or any person.

Question 3

Latent defect

Answer 3

A problem not discoverable by normal prudent inspection.

Question 4

Law of agency

Answer 4

Rules governing conduct of agents

Question 5

Listing agreement

Answer 5

Contract by which the owner retains a broker to find a buyer.

Question 6

Meeting of the minds

Answer 6

Agreement between a buyer and seller on major points.

Question 7

Megan’s Law

Answer 7

Legislation requiring that communities be alerted to the presence of sex fenders.

Question 8

Power of attorney

Answer 8

Written authorization of agency.
A legal written authorization that stipulates the specific areas of authority in which the agent may act.
Giving your power to another to act on your behalf.
The agent acting in such a capacity is known as an attorney in fact.

Question 9

Principal

Answer 9

The one employing an agent, the client!

Question 10

Procuring cause

Answer 10

The person who brings about a sale.

Question 11

Puffing

Answer 11

Harmless exaggeration as salesmanship.

Question 12

Ready, willing and able buyer

Answer 12

One qualified and prepared to purchase.

Question 13

Salesperson

Answer 13

A person licensed to assist a real estate broker.

Question 14

Special agent

Answer 14

A person authorized to act for another in a specific transaction.
Authorized to represent the principal in one specific capacity only.

Question 15

Subagent

Answer 15

The subagent is an agent of an agent.

Question 16

Transaction broker

Answer 16

A licensed agent who facilitates a transaction without functioning as an agent. For example a property manager who collects rents.