CHAPTER 3

Question 1

Meaning of principal

Answer 1

is also know as the client

Question 2

A broker can act as a:

Answer 2

buyer’s broker or buyer’s agent

Question 3

Meaning of brokerage

Answer 3

bringing buyers and sellers together in the market places

Question 4

broker is defined as:

Answer 4

a person who is licensed to assist others in real estate transaction and to recieve compensation for those services.

Question 5

a real estate sales-person

Answer 5

works on behalf of and is licensed to work under the supervision of a broker

Question 6

a fiduciary relationship

Answer 6

is one of trust and confidence in which an agent is responsible for the money and/or property of others

Question 7

the agent is also known as a

Answer 7

fiduciary

Question 8

types of agency:

universal agent

Answer 8

has the authority to represent the principal in all matters that can be delegated. enter into any contract on behalf of the principal without prior permission

Question 9

types of agency:

general agent

Answer 9

is empowered to represent the principal in a broad range of matters - like property manager

Question 10

types of agency:

special agent

Answer 10

is authorized to represent the principal in one specific capacity only.

Question 11

power of attorney

Answer 11

a person is authorized to act for someone else ina legallly binding capacity

Question 12

power of attorney needs

Answer 12

a legal written authorization that stipulates the specific areas of authority in which the agent may act this agent is called attorney-in-fact.