Chapter 7

Question 1

fiduciary relationship between an agent and principal

Answer 1

Agency

Question 2

a person authorized by another to act on his/her behalf

Answer 2

Agent

Question 3

a fact situation that creates the appearance of an agent’s authority

Answer 3

Apparent Authority

Question 4

violation

Answer 4

Breach of Duty

Question 5

a contract in which a buyer engages an agent to act on the buyer’s behalf in purchasing a property

Answer 5

Buyer Agency Agreement

Question 6

buyer beware

Answer 6

Caveat Emptor

Question 7

person you work for

Answer 7

Client

Question 8

person you work with

Answer 8

Customer

Question 9

prompt and total communication to the principal by the agent of any info that is material fact to the transaction

Answer 9

Disclosure of Information

Question 10

A type of dual agency where two licensees in the same firm are designated by the BIC to represent a seller and a buyer in the same transaction

Answer 10

Designated Dual Agency

Question 11

agents of the same firm represent the seller/buyer with limitations on disclosing personal and confidential information

Answer 11

Dual Agency

Question 12

a document or contract giving real estate agents the right to act for a principal with certain specific guidelines

Answer 12

Employment Agreement

Question 13

oral or written agreement establishing a trust relationship between principal and agent

Answer 13

Express Agency

Question 14

authority specifically granted in a contract

Answer 14

Express Authority

Question 15

Fiduciary

Answer 15

Trust

Question 16

First Substantial Contact

Answer 16

when a customer shares personal, motivational, confidential, or financial information for the first time; agent must provide agency disclosure with WWREA

Question 17

full authority over one field of business or aspect of personal affairs of principal (property management)

Answer 17

General Agency

Question 18

assumed agency based on an agent’s actions

Answer 18

Implied Agency

Question 19

OLDCAR

Answer 19

Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable skill and care

Question 20

important facts that may effect a person’s decision to buy or sell property

Answer 20

Material Fact

Question 21

criminal violation punishable by fine and/or imprisonment

Answer 21

Misdemeanor

Question 22

giving false information to a principal about a material fact

Answer 22

Misrepresentation

Question 23

giving false information about a property because one didn’t do their job

Answer 23

Negligent Misrepresentation

Question 24

failure to disclose information

Answer 24

Omisson

Question 25

failing to disclose material facts because one didn't find the information

Answer 25

Negligent Omission

Question 26

Principal

Answer 26

Client

Question 27

saying how "good" a house looks

Answer 27

Puffing

Question 28

this NC act requires the seller to delver to the buyer disclosure form prior to an offer being presented.

Answer 28

Residential Property Disclosure Act

Question 29

setting yourself up with a sell/buying a property where you make a profit undisclosed to the principal

Answer 29

Self-dealing

Question 30

limited authority to act on behalf of a principal

Answer 30

Special Agency

Question 31

agent of an agent

Answer 31

Subagent

Question 32

person in a transaction that's not the principal or agent

Answer 32

Third Party

Question 33

complete authority; power of attorney; not seen in real estate

Answer 33

Universal Agency

Question 34

deliberately providing false information

Answer 34

Willful Misrepresentation

Question 35

deliberately leaving out material facts

Answer 35

Willful Omission