Chapter 8

Question 1

A legal relationship between a principle and an agent

Answer 1

Agency

Question 2

The party authorized to conduct business on the principle’s behalf

Answer 2

Agent

Question 3

The illegal practice of encouraging property owners to sell their homes when minorities begin moving into an area

Answer 3

Blockbusting

Question 4

An intermediary who brings together buyers and sellers, assists in negotiating agreements between them, executes their orders, and receives compensation for services rendered

Answer 4

Broker

Question 5

The legal agreement between a buyer and a broker hired to represent the buyer’s interests

Answer 5

Buyer Representation Agreement

Question 6

A broker who is legally obligated to represent a buyer’s interest

Answer 6

Buyer’s Agent

Question 7

The compensation received by a broker for services rendered

Answer 7

Commission

Question 8

An agreement between a seller and a broker for the payment of a commission if the broker is successful in locating a buyer for the seller’s property

Answer 8

Commission Agreement

Question 9

An agent who attempts to work in the best interest of two parties on opposing sides of a transaction

Answer 9

Dual Agent

Question 10

An agreement between a property owner and a single broker authorizing that broker to seek a buyer for the property in exchange for compensation

Answer 10

Exclusive-Brokerage Listing

Question 11

A listing agreement that guarantees the broker’s right to a commission if the property is sold by the seller or any licensed real estate broker or salesperson

Answer 11

Exclusive-Right-to-Sell Listing

Question 12

Laws that protect the rights of certain citizens in housing transactions

Answer 12

Fair House Laws

Question 13

A person who is obligated to act in the best interest of another

Answer 13

Fiduciary

Question 14

A false statement made with the intention to mislead, that is material to a transaction, that is justifiably relied on by a client, and that results in injury to the client

Answer 14

Fraud

Question 15

An agreement between a property owner/seller that authorizes a broker to perform certain tasks to seek a buyer for the property

Answer 15

Limited-Service Listing

Question 16

The legal agreement between a broker and a property owner that authorizes the broker to attempt to sell the property

Answer 16

Listing Agreement

Question 17

The broker who negotiates the listing agreement with the seller

Answer 17

Listing Broker

Question 18

A false statement that is material to a transaction, that is justifiably relied upon by a client, and that results in injury to the client

Answer 18

Misrepresentation

Question 19

An agreement in which brokers share their listings with other brokers in exchange for a share of the commission generated by a transaction

Answer 19

Multiple Listing Service

Question 20

A listing agreement in which the broker is entitled to receive as commission any amount above a base price

Answer 20

Net Listing

Question 21

A listing agreement in which a broker is entitled to receive a commission only in the event the broker procures a buyer for the property

Answer 21

Open Listing

Question 22

The person who authorizes an agent to conduct business on his or her behalf

Answer 22

Principle

Question 23

An individual licensed by a state to represent others in real estate transactions in exchange for compensation

Answer 23

Real Estate Broker

Question 24

A real estate broker who is obligated to represent the best interest of the seller

Answer 24

Seller’s Agent

Question 25

The broker who actually locates a buyer for a property

Answer 25

Selling Broker

Question 26

The illegal practice of steering potential homebuyers into certain areas to influence the racial or ethnic composition of the areas

Answer 26

Steering

Question 27

An agent of an agent of a principle

Answer 27

Subagent

Question 28

A broker who provides limited representation to a seller or buyer in a real estate transaction

Answer 28

Transaction Broker