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NJ Real Estate Licensing Exam > Chapter 3: Agency, Brokerage, and Ethical Considerations > Flashcards

Chapter 3: Agency, Brokerage, and Ethical Considerations Flashcards

1
Q

one who undertakes to transact some business or to manage some affair for another by authority of the latter

A

agent

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2
Q

laws designed to preserve the free enterprise of the open marketplace by making illegal certain private conspiracies and combinations formed to minimize competition

A

antitrust laws

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3
Q

person authorized to act under a power of attorney

A

attorney-in-fact

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4
Q

one who buys and sells for another for a fee

A

broker

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5
Q

a real estate broker retained by a prospective purchaser, who becomes the buyer’s principal or client and to whom fiduciary duties are owed

A

buyer’s broker (buyer’s agent)

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6
Q

the one by whom a broker is employed in an agency relationship (aka a principal)

A

client

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7
Q

standards of conduct adopted by the National Association of REALTORS

A

Code of Ethics

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8
Q

payment to a broker for services rendered, such as in the sale or purchase of real property

A

commission

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9
Q

problem when serving best interest of both the client and oneself

A

conflict of interest

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10
Q

written explanation of agency relationship presented to buyers and sellers

A

Consumer Information Statement (CIS)

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11
Q

third party in a transaction owed honest treatment but not owed fiduciary responsibilities

A

customer

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12
Q

one who works for both the seller and the buyer

A

disclosed dual agent

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13
Q

revealing to another any pertinent information

A

disclosure

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14
Q

representing both parties to a transaction

A

dual agency

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15
Q

salesperson whose broker pays social security, regulates hours, etc.

A

employee

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16
Q

a form of malpractice insurance for real estate licensees

A

errors and omissions (E&O) insurance

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17
Q

one legally placed in a position of trust and confidence

A

fiduciary

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18
Q

a relationship of trust and confidence between trustee and beneficiary, attorney and client, or principal and agent

A

fiduciary relationship

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19
Q

intentional deception that harms another

A

fraud

20
Q

intentional fraud and/or deliberate lying

A

fraudulent misrepresentation

21
Q

one authorized to act for his or her principal in a wide range of matters

A

general agent

22
Q

designation awarded by the National Association of REALTORS after specific study

A

Graduate, REALTOR Institute (GRI)

23
Q

salesperson who sets his or her own hours and who is not covered by income tax withholding

A

independent contractor

24
Q

unintentional misleading of a buyer committed in ignorance

A

innocent misrepresentation

25
Q

illegal sharing of a commission with seller

A

kickback

26
Q

problem with the property not discoverable by ordinary prudent inspection

A

latent defect

27
Q

rules governing conduct of agents

A

law of agency

28
Q

a contract between a property owner (as a principal) and a licensed real estate broker (as agent) by which the broker is employed as agent to sell real estate on the owner’s terms within a given time, for which service the landowner agrees to pay a commission fee

A

listing agreement

29
Q

agreement between a buyer and seller on major points

A

meeting of the minds

30
Q

a NJ law requiring that communities be alerted to the presence of convicted sex offenders. All contracts and leases must include a statement advising purchasers and lessees that a list of any known sex offenders who live in the area may be obtained from the county prosecutor

A

Megan’s law

31
Q

private nationwide organization of salespersons and brokers

A

National Association of REALTORS

32
Q

fraud committed, not necessarily on purpose, by someone who should have known better

A

negligent misrepresentation

33
Q

statewide group of real estate licensees who choose to join

A

New Jersey REALTORS (NJR)

34
Q

In NJ, licensees must disclose conditions beyond the limits of the property, such as hazardous waste disposal site, that may be considered material facts by a prospective purchaser

A

off-site conditions

35
Q

a written instrument authorizing a person , the attorney-in-fact, to act as an agent on behalf of another person

A

power of attorney

36
Q
  1. a sum lent or employed as a fund or investment as distinguished from its income or profits. 2. the original amount (as in a loan) of the total due and payable at a certain date. 3. a main party of a transaction - the person for whom the agent works
A

principal

37
Q

the broker responsible for bringing about a sale

A

procuring cause

38
Q

exaggerated or superlative comments or opinions made to induce buyers to buy; not as representation of fact and thus not grounds for misrepresentation

A

puffing

39
Q

one who is prepared to buy property on the seller’s terms and is ready to take positive steps to consummate the transaction

A

ready, willing, and able buyer

40
Q

a registered trademark reserved for the sole use of members of the National Association of REALTORS

A

REALTOR

41
Q

a person who performs real estate activities while employed by or associated with a licensed real estate broker

A

salesperson

42
Q

one authorized by a principal to perform a single act or transaction

A

special agent

43
Q

degree of competence normally expected of a licensee

A

standard of care

44
Q

a broker’s sale associate, or cooperating broker in a multiple listing system, in relationship to the principal who has designated the broker as an agent

A

subagent

45
Q

a licensee who works with a buyer, seller or both, without representing either one in an agency relationship

A

transaction broker

46
Q

an agent who has authority to represent the principal in all matters that can be delegated

A

universal agent

NJ Real Estate Licensing Exam (16 decks)

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