Chapter 11 Flashcards
Gross Rent Multiplier
A number which, times the gross income of a property, produces an estimate of value of the property.
Section 1031 Exchange
A section of the U.S. Internal Revenue Service Code that allows investors to defer capital gains taxes on any exchange of like-kind properties for business or investment purposes.
Agent
One who acts for and with authority from another called the principal.
Agency
The relationship between principal and the principal’s agent which arises out of a contract, either expressed or implied, written or oral, wherein the agent is employed by the principal to do certain acts dealing with a third party.
Respondeat Superior
A common-law doctrine that makes an employer liable for the actions of an employee when the actions take place within the scope of employment.
Independent Contractor
A person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another.
Principal
The employer of an agent; one of the main parties in a real estate transaction, such as a buyer, borrower, seller, or lessor.
Client
Prior to signing a listing agreement, a party in a real estate transaction who will employ an agent.
Real Estate Broker
A person employed for a fee by another to carry on any of the activities listed in the license law definition of a broker.
Express Agency
An agency relationship created by oral or written agreement between principal and the agent.
Implied Agency
Agency that exists as a result of actions of the parties.
Ostensible Authority (apparent authority)
That authority which a third person reasonably believes an agent possesses because of the acts or omissions of the principal.
Universal Agent
The agent who has complete authority over any activity of principal; for example, power of attorney.
General Agent
An agent with full authority over one property of the principal, such as a property manager.
Special Agent
An agent with limited authority to act on behalf of the principal, such as created by a listing contract.
Fiduciary
A person in a position of trust and confidence, as between principal and broker; broker as a fiduciary owes certain loyalty which cannot be breached under the rules of agency.
Fiduciary Duty
That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure.
Single Agent
An agent who works only for the buyer or the seller.
Dual Agency
An agency relationship in which the agent acts concurrently for both of the principals in a transaction.
Listing Contract
A contract in which a property owner employs a real estate broker to market the property described in the contract.
Exclusive Agreement (Exclusive Right to Sell Listing Agreement)
A listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract.
Exclusive Agency Agreement
A listing given to only one broker (exclusive) who is entitled to the commission if the broker or any agent of the listing broker effects a sale but imposes no commission obligation on the owner who sells the property to a person who was not interested in the property by efforts of the listing broker or an agent of the listing broker.
Non-Exclusive Listing (Open Listing)
a listing given to one or more brokers in which the broker procuring a sale is entitled to the commission but imposes no commission obligation on the owner when the owner sells the property.
Net Listing
A listing which provides that the agent may retain as compensation for agent’s services all sums received over and above a net price to the owner.
Sherman Anti-Trust Act
Federal legislation including imposition of civil and punitive damages for anti-trust activities.
A number which, times the gross income of a property, produces an estimate of value of the property…?
Gross Rent Multiplier
This is a section of the U.S. Internal Revenue Service Code that allows investors to defer capital gains taxes on any exchange of like-kind properties for business or investment purposes…?
Section 1031 Exchange
Agency that exists as a result of actions of the parties is known as…?
Implied Agency
That authority which a third person reasonably believes an agent possesses because of the acts or omissions of the principal is known as…?
Ostensible Authority
The agent who has complete authority over any activity of principal is known as a…?
Universal Agent
An agent with full authority over one property of the principal is known as a…?
General Agent
An agent with limited authority to act on behalf of the principal, such as created by a listing contract, is known as a…?
Special Agent
Real estate agents act as what type of agents…?
Special Agent
A person in a position of trust and confidence is known as a…?
Fiduciary
That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure is known as…?
Fiduciary Duty
Which of the following is an example of a fiduciary duty owed by an agent to his/her principal…?
Reasonable Care, Obedience, Confidentiality
An agent who works only for the buyer or the seller is known as a…?
Single Agent
A high risk property will demand higher rates of return from investors…?
T (True)
An agency relationship in which the agent acts concurrently for both of the principals in a transaction is known as a…?
Dual Agent
Dual agency must be disclosed…?
T (True)
Which of the following is an example of dual agency…?
Escrow
A contract in which a property owner employs a real estate broker to market the property described in the contract is known as a…?
Listing Contract
A listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract is known as a…?
Exclusive Right to Sell Listing Agreement
A listing given to one or more brokers in which the broker procuring a sale is entitled to the commission but imposes no commission obligation on the owner when the owner sells the property is known as a…?
Non-Exclusive Listing
A listing which provides that the agent may retain as compensation for the agent’s services all sums received over and above a net price to the owner…?
Net Listing
Federal legislation including imposition of civil and punitive damages for anti-trust activities is known as the…?
Sherman Anti-Trust Act
Residential listing agreements must be in writing…?
T (True)
Exclusive Agency Agreements are typically found in residential transactions…?
F (False)
One who acts for and with authority from another called the principal is known as a/an…?
Agent
The relationship between principal and the principal’s agent which arises out of a contract, either expressed or implied, written or oral, wherein the agent is employed by the principal to do certain acts dealing with a third party, is known as…?
Agency
A common-law doctrine that makes an employer liable for the actions of an employee when the actions take place within the scope of employment is known as…?
Respondeat Superior
A person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another is referred to as a/an…?
Independent Contractor
The employer of an agent is known as the…?
Principal
Prior to signing a listing agreement, a party in a real estate transaction who will employ an agent is known as the…?
Client
An agency relationship created by oral or written agreement between principal and the agent is known as…?
Express Agency
