Chapter 9 Review Notes

Question 1

Agent

Answer 1

Is hired by principal ti act on the principals befalf

Question 2

Agency

Answer 2

The fiduciary relationship in which the agent is held in a position if special trust and confidence by the principal

Question 3

Principal

Answer 3

A client

Question 4

Customer

Answer 4

Non-represented party for whom some levels of service is provided and who is entitled to fairness and honesty

Question 5

Subagent

Answer 5

Authorized to work with the agent on the behalf of the client

Question 6

Non agent/ transaction broker/ facilitator/intermediary/ transaction coordinator/contract broker

Answer 6

Assists one or both parties with the transaction without representing either party’s interests and is often subject to specific statutory responsibilities.

Question 7

Express agency

Answer 7

Is based on an express agreement between the agent and the principal

Question 8

Express agreement

Answer 8

An agreement between the parties that is expressed in words- written or oral.

Question 9

Implied agency

Answer 9

Created when the actions of the parties indicate that they have mutually consented to an agency

Question 10

Gratuitous agency

Answer 10

Agency that exists with no compensation involved

Question 11

Agent fiduciaries

Answer 11

Care, obedience, loyatly, disclosure, accounting, confidentiality

Question 12

Universal agent

Answer 12

Is empowered to do anything the principal could do personally

Question 13

General agent

Answer 13

Represents the principal in a broad range of matters

Question 14

Special agent

Answer 14

Represents the principal in one specific act or business transaction only, under detailed instruction

Question 15

Single agency

Answer 15

An agent represents only one party in a transaction

Question 16

Buyers broker

Answer 16

Represents a buyer ad an agent to find property that meets the buyer’s specifications, as set out in the buyer representation agreement.

Question 17

Dual agency

Answer 17

An agent represents two principals in the same transaction

Question 18

Informed consent

Answer 18

consent signed by both parties that the listing agent and buyer’s agent may act as a dual agent for that seller/landlord and a buyer/tenant for residential real property which is the subject of a listing agreement.

Question 19

Undisclosed dual agency

Answer 19

May happen on accident, but can result in rescission of the sales, forfeiture of commission, a lawsuit for damages, and possibly license suspension or revocation

Question 20

Designated agent

Answer 20

Sales associate authorized by the broker to represent one party to a transaction, while a different sales associate in the same firm represents the other party in the transaction

Question 21

Puffing

Answer 21

Legal exaggeration of a property’s benefits

Question 22

Fraud

Answer 22

The intentional misrepresentation of a material fact to harm or take advantage of another person

Question 23

Negligent misrepresentation

Answer 23

Occurs when a real estate professional should have known that a statement about a material fact was false and the real estate professional’s misrepresentation was due to careless negligence rather than accidental negligence.

Question 24

Latent

Answer 24

A hidden structural defect that could not be discovered by ordinary inspection snd that threatens the a property’s soundness or the safety of its inhabitants.

Question 25

Megans law

Answer 25

Requires states to make available to the public information about how they can determine where persons convicted of sexual offenses live in the community