3 Agency/Brokerage

Question 0

Fiduciary Elements

Answer 0

Care
Obedience
Loyalty
Disclosure
Accounting
Confidentiality

Question 1

Agency

Answer 1

Created when a person (principal) delegates to another (agent) the right to act on their behalf and with discretion.

Question 2

Customer

Answer 2

3rd party in the transaction. Owed fair and honest dealing.

Question 3

Latent Defect

Answer 3

A defect not seen by the naked eye.

Question 4

Forms of Agency

Answer 4

Express Agency. Writing or verbal stated intentions.
Implied Agency. Created by actions.
Ostensible Agency. A principal through statements or actions leads a third party to believe someone is his agent and the third person relies on it.

Question 5

Agent for the Seller

Answer 5

Present all offers.
Agents interest in the transaction, if any
Buyers intention to resell the property for profit.

Question 6

Agent for the Buyer

Answer 6

Any property defects if known or should have been known by the agent
Reason owner is selling.
Provide buyer with comparisons of similar properties that have sold recently.

Question 7

Universal Agent

Answer 7

Power of Attorney

Question 8

General Agent

Answer 8

One who is authorized by the principal to act in a wide range of ongoing business activities.

Question 9

Special Agent

Answer 9

Represents principal in just one business activity.

Question 10

Designated Agent

Answer 10

The broker allowing one of their agents to act as the agent to one of the principals.

Question 11

Subagency

Answer 11

An agent of an agent.

Question 12

Single Agent

Answer 12

Representing one principal.

Question 13

Dual Agent

Answer 13

One broker representing two principals in the same transaction.

Question 14

Fraud

Answer 14

Misrepresentation with the intent of harming someone. Voidable by the innocent party.

Question 15

Consent to Limited Representation

Answer 15

Must be signed before dual agency can be established. (North south exposure vs east west)

Question 16

Innocent misrepresentation

Answer 16

An error or misunderstanding that may not have been caused intentionally. Seldom void contracts.

Question 17

Puffing

Answer 17

An exaggeration of the facts, usually legal.

Question 18

Stigmatized Properties

Answer 18

Properties that have psychologically impacted defects. Murder, death, suicide or other felonies. Sex offenders.

Question 19

Procuring Cause

Answer 19

The unbroken chain of events that led to the completion of the transaction.

Question 20

Commingling

Answer 20

Mixing trust account funds with brokers operating account.

Question 21

Brokerage

Answer 21

One who acts as an intermediary between parties to a transaction.

Question 22

Real Estate Broker

Answer 22

One who is licensed to sell, buy, exchange, or lease real property for others and collect compensation for their services.

Question 23

Types of Brokers

Answer 23

Entity/Employing Broker. Corporation, partnership, sole proprietor that is licensed by the state to have a real estate company.
Designated Broker. A person who is responsible to the entity and oversees the daily activities and the supervision of everyone.
Associate Broker. One who is licensed as a broker but is not designated to authority and has the same privileges and responsibilities as other licensed sales associates.

Question 24

Sherman Antitrust

Answer 24

Commission is negotiable
Price Fixing
Group Boycotting
Allocation of customers and/or markets
Tie-in agreements