Chapter 1 Glossary

Question 1

antitrust laws

Answer 1

Regulations that promote fair competition by preventing monopolies. Prevent practices that could harm consumers or other businesses.

Question 2

Example of antitrust laws

Answer 2

price fixing, Market allocation, group boycotts, and bid rigging

Question 3

Boycott

Answer 3

An agreement between two or more individuals or companies to refuse to engage in business with a particular person, company, or service provider. Include refusing to work with other agents, brokers, developers, or vendors.

Question 4

Disclaimers

Answer 4

Statements or notices used to limit the liability of the parties involved, clarify terms, or disclosure of information to buyers and sellers.

Question 5

E-Sign

Answer 5

the use of electronic signatures to sign documents and contracts related to real estate transactions.

Question 6

IDX(Internet Data Exchange)

Answer 6

A system used in real estate that allows real estate agents and brokers to display property listings from a multiple listing service (MLS) on their own websites.

Question 7

Minimum Level of Service (MLS)

Answer 7

the minimum standards of service that real estate agents are expected to provide to their clients. These standards can vary depending on local regulations and industry practices

Question 8

Do not call registry

Answer 8

opt out of receiving telemarketing calls.

Question 9

Price fixing

Answer 9

An illegal agreement between competitors, such as real estate agents or brokers, to set the price of their services at a fixed or predetermined level.

Question 10

Procuring cause

Answer 10

The agent or broker who is primarily responsible for bringing about a successful real estate transaction. This concept is crucial in determining which agent is entitled to receive the commission for a sale.

Question 11

The Uniform Electronic Transactions Act (UETA)

Answer 11

Set of laws that establish the legal validity of electronic signatures, contracts, and records in electronic transactions.

Question 12

Buyer Representation Agreement (BRA)

Answer 12

A contact bewteen a buyer and a real estate agent or broker. It outlines the terms and conditions under which the agent will represent the buyer it finding and purchasing a property.

Question 13

Agency

Answer 13

The legal relationship between a real estate agent or broker and their client, whether its a buyer or seller. The agents acts on behalf of the client in real estate transaction.

Question 14

Dual agency

Answer 14

Has regulations and vary state by state but this is when a real estate agent or brokerage represents both the buyer and the seller in the same transaction.

Question 15

General Agency

Answer 15

A relationship or an agent is authorized to perform a range of tasks on behalf of a client typically under a broad scope of authority.

Question 16

Single agency

Answer 16

When a real estate agent or brokerage represents either the buyer or the seller exclusively in a transaction, but not both

Question 17

Agent

Answer 17

A licensed professional who represents either a buyer or a seller in a real estate transaction.

Question 18

Customer

Answer 18

An individual or entity who seeks services from a real estate agent or brokerage but has not established a formal agency relationship through a signed agreement.

Question 19

Express agreement

Answer 19

a clearly stated and formalized agreement between parties regarding terms and conditions related to real estate transactions.

Question 20

Fiduciary Relationship

Answer 20

legal and ethical Bond of trust and confidence between a real estate agent and their client it requires the agent to act in the client’s best interest

Question 21

Implied agreement

Answer 21

an agreement between two parties that is not explicitly written or spoken, but is understood to exist based on the actions or behaviors of the parties involved.

Question 22

Latent Defect

Answer 22

A hidden or concealed problem with a property that is not easily discoverable through a routine inspection this defect is not readily visible or obvious it may not be detected even with a thorough examination of the property

Question 23

Law of Agency

Answer 23

whereby the principal, authorizes the agent to work under their control and on their behalf.

Question 24

Listing Agreement

Answer 24

A contract between a property owner (seller) and a real estate agent or broker authorizing the agent to market and sell the property on the seller’s behalf.

Question 25

Nonagent

Answer 25

A party involved in a transaction who does not represent either the buyer or the seller. Nonagents provide services. EX: appraiser, transaction coordinator, escrow officers, inspectors, etc.

Question 26

Negligent Misrepresentation

Answer 26

Providing false or misleading information by a real estate agent or broker due to negligence or carelessness

Question 27

Puffing

Answer 27

Exaggerated or subjective statements made by a seller or agent about a property’s features or value that are not considered factual misrepresentations.

Question 28

Special Agent

Answer 28

An agent with limited authority who is authorized to perform specific tasks on behalf of a client

Question 29

Subagent

Answer 29

Who is appointed by another agent to help in the Performance of the agents duties typically on behalf of the principal (buyer or seller) .

Question 30

Transaction Broker

Answer 30

A neutral Intermediary who assist both the buyer and seller in a real estate transaction without representing either party’s interests.

Question 31

Universal Agent

Answer 31

Authorized to act on behalf of a principal and all matters and transactions giving them broad authority to make decisions and handle various tasks on behalf of the principal.

Question 32

What is typically included in a Buyer representation agreement (BRA)

Answer 32

the agent’s responsibilities, duration of agreement, commission structure, and any exclusivity clauses.

Question 33

What does an agent owe to their clients?

Answer 33

fiduciary duties, including loyalty, disclosure, confidentiality, reasonable care, obedience, and accounting.