Real Estate Agency

Question 1

Real estate agency relationships are governed by

Answer 1

Common Law

Question 2

hired by a principal to act on the principal’s behalf

Answer 2

An Agent

Question 3

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

Answer 3

Agency

Question 4

In a real estate transaction, the principal is the

Answer 4

client

Question 5

the nonrepresented party for whom some level of service is provided and who is entitled to fairness and honesty.

Answer 5

customer

Question 6

also known as a facilitator, intermediary, transaction broker, transaction coordinator, or contract broker

Answer 6

nonagent

Question 7

assists one or both parties with the transaction without representing either party’s interests and often is subject to specific statutory responsibilities.

Answer 7

nonagent

Question 8

The relationship between principal and agent must be

Answer 8

Consentual

Question 9

express agreement between agent and principal

Answer 9

Express agency

Question 10

agency created when the actions of the parties indicate that they have mutually consented to an agency

Answer 10

Implied agency

Question 11

agency may exist even if no compensation is involved

Answer 11

gratuitous agency.

Question 12

six common-law fiduciary duties can be remembered as COLD-AC

Answer 12

Care
Obedience
Loyalty
Disclosure
Accounting
Confidentiality

Question 13

empowered to do anything the principal could do personally.

Answer 13

universal agent

Question 14

represents the principal in a broad range of matters.

Answer 14

general agent

Question 15

represents the principal in one specific act or business transaction only, under detailed instruction.

Answer 15

special agent

Question 16

one in which an agent represents only one party in a transaction.

Answer 16

single agency

Question 17

represents a buyer as an agent to find property that meets the buyer’s specifications, as set out in the buyer representation agreement.

Answer 17

Buyers broker

Question 18

one in which an agent represents two principals in the same transaction

Answer 18

Dual agency

Question 19

Dual agency, where allowed by state law, requires what from both parties

Answer 19

Informed consent

Question 20

may occur inadvertently, can result in rescission of the sales contract, forfeiture of a commission, a lawsuit for damages, and possibly license suspension or revocation.

Answer 20

undisclosed dual agency

Question 21

sales associate authorized by the broker to represent one party to a transaction, while a different sales associate in the same firm represents the other party to the transaction.

Answer 21

designated agent

Question 22

cannot be revoked by the principal or terminated upon the principal’s death.

Answer 22

agency with interest

Question 23

legal exaggeration of a property’s benefits,

Answer 23

puffing

Question 24

the intentional misrepresentation of a material fact to harm or take advantage of another person.

Answer 24

fraud

Question 25

when a real estate professional should have known that a statement about a material fact was false and the real estate professional's misrepresentation was due to culpable (careless) negligence rather than simple (accidental) negligence.

Answer 25

negligent misrepresentation

Question 26

requires states to make available to the public information about how they can determine where persons convicted of sexual offenses live in the community.

Answer 26

megans law

Question 27

The basic framework of the agency law that governs the legal responsibilities of real estate brokers to the people they represent is known as

Answer 27

common law

Question 28

Real estate agency relationships are governed by which kinds of law?

Answer 28

Common law, statutory law, and administrative law

Question 29

A real estate agent's duty of confidentiality usually extends for how long?

Answer 29

The period of time specified in state law

Question 30

The agent is held in a position of special trust and confidence by the principal when the agent is considered

Answer 30

fiduciary

Question 31

In a real estate transaction, the term fiduciary typically refers to

Answer 31

the agent's relationship to the principal.

Question 32

In MOST situations, the relationship between real estate broker and seller is what type of agency?

Answer 32

special

Question 33

Designated agency is MOST likely to occur when

Answer 33

the buyer and the seller are represented by the same company.

Question 34

A facilitator functions as

Answer 34

nonagent

Question 35

The rules established by tradition and court decisions are found in

Answer 35

common law

Question 36

Properties that are considered undesirable because of events that occurred there or because a known sex offender lives in the area are considered

Answer 36

stigmatized properties

Question 37

When the broker should have known that a statement about a material fact was false, it is considered

Answer 37

negligent misrepresentation

Question 38

A broker taking a listing is generally

Answer 38

a special agent