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Real Estate National Exam > Agency > Flashcards

Agency Flashcards

1
Q

The party empowered to represent a principal (client) in real estate transaction

A

Agent

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2
Q

The license assigned to assist the principal (client) on behalf of the agent (BIC)

A

Subagent

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3
Q

An agent (BIC) who represents both the buyer and the seller in the same in the same real estate transaction

This occurs only with the prior informed, written and signed of both parties

A

Dual agent

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4
Q

The license (subagent) designated by the dual agent (BiC) to solely represent the interests of one client in real estate transaction in which a dual agency relationship exists

This occurs only with the prior informed, written, and signed of both parties

A

Designated
Agent

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5
Q

A person who performs only ministerial
acts in a transaction
This person does not represent either party
in the transaction; instead, they provide
information on the property, show the
property, and act as a scribe for completion and
presentation of paperwork between the parties.
They do not offer advice, counsel, or expertise
during the offer or negotiation phases of a deal.

A

Transaction
Broken

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6
Q

The identity of the principal is known to all parties in the transaction

Most residential transactions involve a disclosed principal

A

Disclosed
Principal

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7
Q

A specific third party who has chosen not
to enter into an agency relationship but
still requests assistance from an agent in a real
estate transaction
An agent may not provide fiduciary services
(obedience, loyalty, and disclosure) to a customer.
The agent, however, must still provide the
customer with honesty, fair dealing, accounting
for money, and reasonable care.

A

Customer

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8
Q

The identity of the principal is not known to any
third parties in the transaction, although the
existence of the principal has been established.

A

Partially
Disclosed
Principal

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9
Q

Anyone who is not a principal (represented by
the agent through a written agency agreement)
in a real estate transaction

A

Third party

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10
Q

The existence of a principal is not disclosed; their own name in the contract,

A

Undisclosed
Principal

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11
Q

A person who has been given written authority to legally act behalf of another

The written permission is called power attorney (POA)

A

Attorney-in-fact

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12
Q

An agent is given broad authority to conduct business on behalf of a large entity

For example, an agent might work on behalf of chain grocery store and could be tasked with finding and purchasing new locations for the store

A

Universal agent

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13
Q

The person or entity (client) who enlists party (agent) to represent them in real estate transaction

A

Principal

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14
Q

Agency:used to describe the fiduciary (legal) and consensual realationship between an agent and a principal (client)

Agency relationship: Required for the agent to provide any professional services to the principal

A

Agency and agency relationship

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15
Q

Created purely through the actions of the parties involved but should be used in real estate transaction

A

Lmplied agency

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16
Q

Established in writing through a buyer representation agreement or a listing agreement

A

Express agency

17
Q

The efforts the agent takes are understandable and appreciate and the agent has expertise needed to help the client

A

Old car: Reasonable care and skill

18
Q

Required of the agent in two areas
Money: The agent must account for any money (typically) earnest money) that a principal contribution toward the completion a transaction

Paperwork: The agent must account for all paperwork related to the transaction and provide copies of all such documents to the principal

A

Accounting

19
Q

Nothing can be disclosed to anyone else
With just a few exceptions

When the principal has given permission to the agent disclose information

When it is required by law to divulge
Information

When the agent is definitely themselves in a legal setting accusations of wrongdoing

A

Confidential

20
Q

The obligation of the agent to reveal material information related to the transaction

A

Disclosure

21
Q

Requires the agent to put the interest of the principal ahead of the interest of all others in the transaction (including the agent)

A

Loyalty

22
Q

Requires the agent to obey all instructions from their principal for duration of the agency relationships

The agent is free to express ideas contrary to the principal and provide professional guidance on how to proceed, but in the end, the principal’s wishes should be followed, so long as the actions are not illegal or immoral

A

Obedience

23
Q

Summarizes the obligations of the fiduciary relationship

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

A

OLD CAR

24
Q

The agent has six specific legal obligations that they must abide by in their dealings with the principal

These obligations relate to the trust that principal has placed in the agent during the transaction

A

Fiduciary relationship

25
Q

An agent who is given authority to work on behalf of another agent

Subagents fall into category

A

General agent

26
Q

An agent who is hired by a principal

This will typically be the broker-in-charge of a firm. They will enter into the agency relationship and be given a specific level of authority to act on behalf of the principal

A

Special agent

27
Q

Listing agent: represents a seller in a home transaction

Selling agent: represent a buyer in a home sale transaction ( a cooperating agent)

A

Listing agent vs selling agent

28
Q

A contract between an agent and the owner of property

This enables the agent to act on behalf of the property owner to find potential buyers

A

Listing agreement

29
Q

Allows the seller to hire as many agents as they want

The seller will only be obligated to pay commission to the agent who brings the successful contract. The seller still has the right to sell the property and not pay commission to any agent

A

Listing agreement
Open listing

30
Q

The seller hires only one agent to represent them in the sale of the property

Exclusive agency: Allows the seller to sell property themselves and not pay the agent a commission

Exclusive rights to sell: commits the seller to paying the agent a commission regardless of who brings the buyer

A

•Listing agreement

•Exclusive listing

31
Q

An agents realationship with a seller

The seller and the agent agree that the seller will receive a predetermined amount at closing. The agents commission will be the difference between the final sales price and the predetermined amount

A

Listing agreement
Net Listing

32
Q

An agents realationship with a buyer

The agent and buyer obligation themselves in the same manner as seller
Agents do. Termination of the representation agreement eccurs in the same way

A

Buyer representation agreement

33
Q

Allows the buyer to hire as many agents as they want

The only agent to receive commission is the one who facilitates the successful purchase. The buyer also reserves the right to buy the property on their own and pay no commission to any agent

A

Open buyer representation agreement

34
Q

The buyer hires only an agent to represent them in the purchase of a property

Exclusive agency: allows the buyer to purchase the property themselves and owe the agent no commission

Exclusive right to purchase: commits the buyer to paying the agent a commission regardless of who facilitates the purchase

A

Exclusive buyer agreement

35
Q

All agency agreement must have a defined termination date .

A

Agency termination expiration

Real Estate National Exam (10 decks)

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