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REAL ESTATE > Chapter 2 Section 2 > Flashcards

Chapter 2 Section 2 Flashcards

1
Q

When one person (client) delegates another (agent) the right to act on his behalf in buisness transaction

A

Agency Relationship

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2
Q

A body of laws based on social traditions and common practices modified by English court cases

A

Common Law

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3
Q

Who is authorized to perform a particular act or transaction?

A

Special Agent

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4
Q

Who is authorized to perform any and all acts required for a job or business.

A

General Agent

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5
Q

When a RE agent performs property management functions for a client, he/she is acting as:

A

General Agent

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6
Q

Who is given legal power to transact matters of all types on behalf of the principal? Unlimited power of attorney

A

Universal Agent

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7
Q

Someone who performs tasks for primary agent’s clients

A

Subagent “agent of agent”

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8
Q

Person placed in a position of trust to act for someone else’s benefit

A

Fiduciary

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9
Q

True or False: Any info concerning a buyers willingness to increase an offer must be disclosed

A

True

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10
Q

What are the duties of clients to agents?

A
  1. Availability
  2. Informed
  3. Compensation
  4. Indemnification
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11
Q

When is compensation usually earned when client is the seller?

A

When a ready, willing and able buyer offers to purchase the property on terms acceptable to sller.

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12
Q

When is compensation usually earned when client is the buyer?

A

When buyer purchases acceptable property

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13
Q

What are the 4 creations of agencies?

A
  1. By express agreement
  2. By implied agreement
  3. By ratification
  4. By estoppel
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14
Q

How can an agency be terminated?

A
  1. Death or incapacity of either party
  2. Destruction or condemnation of the property
  3. Expiration of agency
  4. Mutual Agreement
  5. Renunciation by agent/licensee
  6. Revocation by principal/client
  7. By operation of law
  8. By completion of the agency (performance)
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15
Q

What is it called when a broker represents both the buyer and seller in RE transaction and owes agency duties to both parties?

A

Dual Agency

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16
Q

When one salesperson that works for the firm is represending the seller and another salesperson from that firm represents the buyer

A

In-House Sales –> Becomes dual agent

17
Q

The process whereby $ and documents related to a real estate transaction are held in safekeeping until all terms and conditions of transactions have been met

A

Escrow

18
Q

Act of mixing and mingling personal funds with funds that should be held in trust for others in sep. escrow account

A

Commingling

19
Q

Neutral 3rd party hired to handle a property transaction , exchange of $ or related documents.

A

Escrow

20
Q

When applied to escrow means misappropriation of entrusted funds

A

Conversion

21
Q

Commingling will not be constituted if:

A
  1. Broker can clearly identify the total funds that belong to him with accounting
  2. withdrawls made at least every 6 months
22
Q

What is the term that means that the title passes when the deed is delivered into escrow

A

Doctrine of Relationback

23
Q

Delivery of deed to the grantee is said to what to the date it was deposited into escrow?

A

Relate Back

24
Q

What are the laws required for escrow accounts?

A
  1. Deposited in a federally insured banking institution in the state of the business
  2. Be maintained in the same name by which firm is licensed
  3. Be designated as an excrow account by use of term escrow
  4. Be used for funds as down payments, earnest $ deposits, rental collected
25
Q

What needs to happen if an escrow account is interest bearing?

A

Written disclousure at contract writing shall be made to the principals involved regarding disbursement of interest

26
Q

What happens in an escrow account violation?

A

State licensing boards may suspend or revoke brokers license, fine broker, or petition court to enjoin the licensee from any activity in account

27
Q

Person granting authority

A

Client

28
Q

Person receiving authority

A

Agent

29
Q

Can a broker buy and sell in his name?

A

Yes

30
Q

What is the sole job of a broker?

A

To find a ready, willing and able buyer

31
Q

A listing agreement can be terminated by:

A
  • Seller
  • Broker
  • Mutual consent

REAL ESTATE (14 decks)

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