Unit 4 Key Terms

Question 1

Administrative Law

Answer 1

The body of law created by administrative agencies in the form of rules, regulations, orders, and decisions.

Question 2

agent

Answer 2

A representative: one who is authorized to act on behalf of another

Question 3

at arm’s length

Answer 3

Conducting negotiations on one’s own behalf without being subject to the other party’s control or influence.

Question 4

caveat emptor

Answer 4

Latin for “Let the buyer beware.”

Question 5

common law

Answer 5

Judge-made law manifested in decrees and judgements of the courts (case law), as opposed to statutory law.

Question 6

consent to transition

Answer 6

A written agreement to gain the principal’s permission to change in brokerage relationship.

Question 7

customer

Answer 7

One with whom the broker or sales associate hopes to be successful in accomplishing the purpose of employment. Per Section 475.01 F.S., a member of the public who is or who may be a buyer or seller of real property and may or may not be represented by a real estate licensee in an authorized brokerage relationship.

Question 8

designated sales associates

Answer 8

Two real estate licensees designated to represent the buyer and the seller as single agents in a nonresidential transaction. The buyer and the seller must have assets of $1 million or more and sign disclosures stating that their assets meet the required threshold.

Question 9

dual agency

Answer 9

Representing both principals in a transaction (not a legal agency relationship in Florida).

Question 10

fiduciary

Answer 10

A person in a position of trust and confidence with respect to another person.

Question 11

general agent

Answer 11

A representative authorized by the principal to perform only acts related to a business or to employment of a particular nature.

Question 12

limited representation

Answer 12

Transaction brokers provide a limited form of nonfiduciary representation to a buyer, seller, or both in a real estate transaction.

Question 13

nonrepresentation

Answer 13

A no-brokerage relationship.

Question 14

principal

Answer 14

The party employing the services of a real estate broker; amount of money borrowed in a mortgage loan, excluding interest and other charges.

Question 15

residential sale transactions

Answer 15

Transactions involving the sale of improved residential property of four or fewer units, the sale of unimproved residential property intended for use as four or fewer units, or the sale of agricultural property of 10 or fewer acres.

Question 16

single agent

Answer 16

Per Section 475.01, F.S., a broker who represents, as a fiduciary, either buyer or the seller but not both in the same transaction.

Question 17

special agent

Answer 17

One authorized by the principal to perform a particular act or transaction, without contemplation of continuity of service as with a general agent.

Question 18

statutory law

Answer 18

Law created by the enactments of legislation, as opposed to law created by judicial decisions (common law).

Question 19

subagent

Answer 19

A person authorized to assist and represent the agent and whose duties are delegated by the original agent.

Question 20

transaction broker

Answer 20

A broker who provides limited representation to a buyer, seller, or both in a real estate transaction, but does not represent either in a fiduciary capacity or as a single agent.

Question 21

The body of law created by administrative agencies in the form of rules, regulations, orders, and decisions.

Answer 21

Administrative Law

Question 22

A representative: one who is authorized to act on behalf of another

Answer 22

agent

Question 23

Conducting negotiations on one’s own behalf without being subject to the other party’s control or influence.

Answer 23

at arm’s length

Question 24

Latin for “Let the buyer beware.”

Answer 24

caveat emptor

Question 25

Judge-made law manifested in decrees and judgements of the courts (case law), as opposed to statutory law.

Answer 25

common law

Question 26

A written agreement to gain the principal’s permission to change in brokerage relationship.

Answer 26

consent to transition

Question 27

One with whom the broker or sales associate hopes to be successful in accomplishing the purpose of employment. Per Section 475.01 F.S., a member of the public who is or who may be a buyer or seller of real property and may or may not be represented by a real estate licensee in an authorized brokerage relationship.

Answer 27

customer

Question 28

Two real estate licensees designated to represent the buyer and the seller as single agents in a nonresidential transaction. The buyer and the seller must have assets of $1 million or more and sign disclosures stating that their assets meet the required threshold.

Answer 28

designated sales associates

Question 29

Representing both principals in a transaction (not a legal agency relationship in Florida).

Answer 29

dual agency

Question 30

A person in a position of trust and confidence with respect to another person.

Answer 30

fiduciary

Question 31

A representative authorized by the principal to perform only acts related to a business or to employment of a particular nature.

Answer 31

general agent

Question 32

Transaction brokers provide a limited form of nonfiduciary representation to a buyer, seller, or both in a real estate transaction.

Answer 32

limited representation

Question 33

A no-brokerage relationship.

Answer 33

nonrepresentation

Question 34

The party employing the services of a real estate broker; amount of money borrowed in a mortgage loan, excluding interest and other charges.

Answer 34

principal

Question 35

Transactions involving the sale of improved residential property of four or fewer units, the sale of unimproved residential property intended for use as four or fewer units, or the sale of agricultural property of 10 or fewer acres.

Answer 35

residential sale transactions

Question 36

Per Section 475.01, F.S., a broker who represents, as a fiduciary, either buyer or the seller but not both in the same transaction.

Answer 36

single agent

Question 37

One authorized by the principal to perform a particular act or transaction, without contemplation of continuity of service as with a general agent.

Answer 37

special agent

Question 38

Law created by the enactments of legislation, as opposed to law created by judicial decisions (common law).

Answer 38

statutory law

Question 39

A person authorized to assist and represent the agent and whose duties are delegated by the original agent.

Answer 39

subagent

Question 40

A broker who provides limited representation to a buyer, seller, or both in a real estate transaction, but does not represent either in a fiduciary capacity or as a single agent.

Answer 40

transaction broker