Chapter 4 Review-What is agency?

Question 1

The word ___________ is used to describe the relationship between a licensee and a client.

Answer 1

Agency

Question 2

An _______ is a person who is authorized to act on behalf of a client or principal.

Answer 2

Agent

Question 3

A __________ agent is authorized to perform a specific act.

Answer 3

Special

Question 4

A __________ agent is given the authority to perform in an ongoing business relationship on behalf of the person or entity.

Answer 4

General

Question 5

A __________ agent is given the authority to perform all acts as if he were the other person.

Answer 5

Universal

Question 6

Express agency is created by ____________ between the parties or contract.

Answer 6

agreement

Question 7

Implied agency is created by the _________ of the parties.

Answer 7

action

Question 8

A _____________ relationship is one that creates a position of trust and confidence for a client.

Answer 8

fiduciary

Question 9

A _________ is a person or entity that employs an agent who specializes in a certain line of work and to whom fiduciary duties are owed.

Answer 9

client

Question 10

A ___________ is a person or entity that is not represented by an agent, but who must be treated honestly and to whom material defects must be disclosed.

Answer 10

customer

Question 11

A __________ agent represents only the seller in the real estate transaction.

Answer 11

Seller Agent or Listing Agent

Question 12

A _________ agent represents only the buyer in the real estate transaction.

Answer 12

buyer agent / seller agent

Question 13

A _________ ______ ______ represents both the buyer and seller in the transaction.

Answer 13

disclosed dual agent

Question 14

Disclosed dual agency is ______ with the written and informed consent of both parties

Answer 14

legal

Question 15

Designated agency is also known as?

Answer 15

Appointed Agency or Split Agency

Question 16

In ______________ brokerage, a real estate licensee is working with consumers as a customer.

The licensee is also known as a facilitator or non-agent.

Answer 16

transaction

Question 17

__________ is created by written agreement between the parties or by the actions of the parties.

(The payment of money does not create an agency relationship.)

Answer 17

Agency

Question 18

The _________ of _________ requires listing agreements to be in writing to enforce the contract.

Answer 18

Statue of Frauds

Question 19

OLD CARD is the acronym to help you remember fiduciary duties.

What are they?

Answer 19

Obedience
Loyalty
Disclosure
Confidentiality
Accounting
Reasonable Care
Diligence