Chapter 7

Question 1

The fiduciary relationship in which the agent is held in a position of special trust and confidence by the principal

Answer 1

Agency

Question 2

Buyers, seller, lessor or leasee hiring the agent to represent him or her in this transaction

Answer 2

Principal

Question 3

A person or entity within whom a real estate professional has an agency relationship

Answer 3

Client

Question 4

A situation in which an agent represents both the buyer and the seller

Answer 4

Limited agency

Question 5

A situation in which an agent represents both a buyer and the seller

Answer 5

Dual agency

Question 6

An agency relationship created by means of an agent, giving advice, guidance or counsel in such a way that the principal begins to rely upon the agent in an implied manner

Answer 6

Implied agency

Question 7

The agent representing the seller

Answer 7

Listing agent

Question 8

The agent representing the buyer

Answer 8

Buyers agent

Question 9

In Utah, the only person who has the authority to enter into an agency relationship with a member of the public as a broker. Here she can hire other agents.

Answer 9

Principal broker

Question 10

The principal broker can hire other agents to exclusively represent specific clients

Answer 10

Designated agency

Question 11

A relationship in which the agent is obligated to act in the best interest of the client above all else, including his or her own self interest

Answer 11

Fiduciary

Question 12

A person who uses the services of a real estate professional, but has not entered into an agreement with an agent

Answer 12

Customer

Question 13

A principal whose identity is known to the agent and all other parts of the transaction

Answer 13

Fully disclosed principal

Question 14

A principal whose identity is known to the agent, but not to the other parties in the transaction

Answer 14

Partiality disclosed principal

Question 15

A principal whose identity has not been disclosed to either the agent or the other parties in the transaction

Answer 15

Undisclosed principal

Question 16

An agency relationship in which agent is higher to do a specific task

Answer 16

Specific agency

Question 17

An agency relationship in which an agent is hired to fill a specific need using their expertise to take care of a specific problem for a principal

Answer 17

General agency

Question 18

An agency relationship in which the agent is authorized to act on behalf of the principal and business of every kind

Answer 18

Universal agency

Question 19

A legal document whereby one person called the principal gives another person called the agent to manage assets

Answer 19

General power of attorney

Question 20

A written authorization to act on another’s behalf under specific limited circumstances

Answer 20

Specific power of attorney

Question 21

The agent that the principal broker or branch broker higher to assist in representing buyers and sellers out in the public area

Answer 21

Sub agents

Question 22

Minimum duties that the agent owed to their principal

Answer 22

Minimum services

Question 23

The term that has to be met in order for the contract to move forward

Answer 23

Contingency

Question 24

The legal obligation of an agent to disclose any defects

Answer 24

Disclosure of material defects

Question 25

Principles need to know who is representing their best interests. This is because they need to know who they should disclose information to.

Answer 25

Disclosure of agency

Question 26

If an agent related to the buyer or seller of the property, he or she must

Answer 26

Disclosure of relationships

Question 27

Ending an agency relationship

Answer 27

Terminating agency