(Ch. 10) Vocab (Agency)

Question 1

A legal relationship resulting from an agreement that the agent is authorized by a principal to perform certain acts on behalf of the principal and dealing with a third-party

Answer 1

Agency

Question 2

The legal relationship resulting from an agreement that the agent is authorized by a principal to perform certain acts on behalf of the principal in dealing with a third party. (10-123)

Answer 2

Agent

Question 3

One who is authorized to perform certain acts for another under a power of attorney. (10-128)

Answer 3

Attorney in Fact

Question 4

A broker who represents a buyer in a real estate transaction

Answer 4

Buyer’s Agent

Question 5

The principal to a real estate transaction who employs the agent (10-127)

Answer 5

Client

Question 6

A statement on New Jersey Real Estate Relationships as prescribed in NJAC 11:5-1.43(h)

Disclosure in how they intend to work with buyers and seller in a real estate transaction.

Answer 6

Consumer Information Statement

Question 7

An agent that legally represents both the buyer and seller in the same transaction. (10-126)

Answer 7

Disclosed Dual Agent

Question 8

A person in a position of great trust and confidence, as the relationship between principal and agent. (16-200)

Answer 8

Fiduciary

Question 9

One who is retained to perform a certain act subject to the control and direction of another as to the end result, but not as to how the act is performed. The critical feature is that an independent contractor, unlike an employee, is not subject to the control of the person who retained him or her. (10-129)

Answer 9

Independent Contractor

Question 10

A written employment agreement between a property owner and a broker authorizing the broker to sell, lease or exchange the realty. (11-147)

Answer 10

Listing

Question 11

A written instrument authorizing a person to act as the agent on behalf of another to the extent indicated in the instrument (10-128)

Answer 11

Power of Attorney

Question 12

The employer of an agent or broker. Also, a sum of money owed as a debt upon which interest is calculated (10-123)

Answer 12

Principal

Question 13

The cause of a series of events, which leads to the consummation of a sale. (10-128)

Answer 13

Procuring Cause

Question 14

Statements a reasonable person would recognize as being non-factual or exaggerated

Answer 14

Puffing

Question 15

A person who is prepared, financially able and willing to enter into a binding contract

Answer 15

Ready, Willing and Able

Question 16

An agent who works only for the seller and has legal obligations, called fiduciary duties, to the seller.

Answer 16

Seller’s Agent

Question 17

A person who is authorized to perform only certain specified functions on behalf of his or her principal

Answer 17

Special Agent

Question 18

A federal law that include civil and punitive damages for activities in restraint interstate and foreign trade.

Answer 18

Sherman Antitrust Act

Question 19

A broker who works with a buyer and seller or both in the same transaction without representing any of the parties.

Answer 19

Transaction Broker

Question 20

An illegal agency relationship arising when a real estate broker represents two principals in a transaction without their informed consent. (10-127)

Answer 20

Undisclosed Dual Agent