chapter 2 : Real Estate Agency

Question 1

sub-agency

Question 2

seller agency agreement vs buyer agency agreement

Question 3

fiduciary relationship

Question 4

the law of agency

Answer 4

defines the rights and duties of the principal and the agent

Question 5

agency refers to

Answer 5

relationship that a broker, managing broker or residential leasing agent, may have with buyers sellers, landlord, or tenant 

Question 6

those who hire are

Answer 6

clients

Question 7

those who are hired are

Answer 7

agents

Question 8

A real estate license sea becomes an Agent 

Answer 8

through a contractual agreement, whether expressed or implied 

Question 9

agent

Answer 9

The individual who is authorized and consents to represent the interest of another person 

Question 10

agency

Answer 10

relationship in which a customer has giving consent, express or implied to a real estate licensee to represent the consumer in a real property. Transaction consent may be given to a licensee directly or through, and I ciliated licensee. 

Question 11

brokerage agreement 

Answer 11

and agreement made verbally, or sit out in writing for an agent, or firm to provide a brokerage services to a consumer, and to receive compensation for providing those services 

Question 12

client

Answer 12

The person or entity that are licensee represents in a real property transaction 

Question 13

 compensation

Answer 13

payment monetary or otherwise made to a person or entity for executing services for clients or customers 

Question 14

 consumer

Answer 14

A person or entity, for whom, and Asian provide services, which are only to be provided with a licensee or a person or entity, who seek such services from a licensncy 

Question 15

 customer

Answer 15

A person or entity, for whom a licensee is providing services, excluding menace to the real acts, but who is not represented by the licensee in an agency relationship 

Question 16

ministerial acts


Answer 16

informative or clerical service provided by a licensee to a consumer providing Ministerial acts is not equivalent to active representation 

Question 17

confidential information

Answer 17

1. The client‘s request in writing, or verbally
2. relates to the clients negotiating position
3. could you damage to the client negotiating position if disclosed

Question 18

Confidential information must not be shared, unless 

Answer 18

1. The client gives authorization for the licensee to share the information. 2. The information must be shared by law
2. The information is revealed by some person or entity, other than the licensee 

Question 19

principles primary duties

Answer 19

comply with the brokerage agreement and cooperate with the agent 

Question 20

The six common law fiduciary duties

Answer 20

COLD AC

Care
Obedience
loyalty
disclosure
accounting
confidentiality

Question 21

Under section 1545(2)(c) of the act material facts do not include the following when located or related to real estate that is not the subject of the transaction

Answer 21

• physical conditions that do not have a substantial adverse effect in the value of real estate

• fact situations

• occurrences

Question 22

opinions are permissible only as long as they are…

Answer 22

offered as opinions and without any intention to deceive

Question 23

exaggeration of a property’s benefits is called

Answer 23

puffing

Question 24

negligent misrepresentation occurs when…

Answer 24

the licensee should have known that a statement about a material fact was false

Question 25

licensees must ensure none of their statement can be i reforested as…

Answer 25

fraudulent

Question 26

fraud is…

Answer 26

the intentional misinterpretation of a material fact to take advantage of another person

Question 27

if a lease is obtained by fraudulent misstatements the lease may be renounced by the renter resulting in

Answer 27

•losing commission •liable for damages

Question 28

if a lease is obtained by fraudulent misstatements based in owners own inaccurate statements

Answer 28

the licensee would not be liable for any damages

Question 29

latent defect

Answer 29

a structural defect that would not normally be uncovered by an ordinary inspection

Question 30

stigmatized properties

Answer 30

properties that society has branded undesirable because of events that occurred there

Question 31

licensees should seek legal counsel when dealing with a

Answer 31

stigmatized property

Question 32

express agency

Answer 32

chapter 2 page 36

Question 33

an express agency

Answer 33

chapter 2 page 36

Question 34

implied agency

Answer 34

by implied agreement occurs when the actions of the parties indicate that why have mutually consented to an agency relationship

Question 35

an agency may be terminated for any of the following reasons

Answer 35

• death or incapacity of either party • destruction or condemnation of the property • expiration of the terms of the agency • mutual agreement by all parties to the contract • breach by one of the parties that in which case the breaching party might be liable for damages • by operation of law as in bankruptcy • completion, performance or fulfillment of the purpose for which the agency was created

Question 36

universal agent

Answer 36

a person empowered to do anything the principal could do personally

Question 37

express agency

Answer 37

The principal, landlord and agent sponsoring broker, may enter into an express agreement, in which the party‘s formally expressed their intention to establish an agency and state its terms and conditions, either oral or written 

Question 38

general agent

Answer 38

May represent the principal in a broad range of Matters related to a particular business or activity 

Question 39

the property management agreement

Answer 39

spells out the various contracts and documents, which the sponsoring broker is empowered to sign for the landlord 

Question 40

single agency

Answer 40

when an agent represents only one party exclusively in a real estate transaction