Chapter Four: Understanding agency laws

Question 1

What’s a Principal?

Answer 1

The person you represent as an agent. The client.

Question 2

Who is the customer?

Answer 2

The other party to the transaction.

Question 3

Definition: Exclusive right to sell listing

Answer 3

Exclusive right to market the property, broker s paid regardless who sell the property.

Question 4

Definition: Exclusive agency listing

Answer 4

Exclusive right to market the property, however if the owner sells the property without the agents help the property owner won’t have to paid the agent.

Question 5

Definition: Open listing

Answer 5

The owner has the right to use as many brokers as are needed to sell the property.

Question 6

What are the three buyer agency agreements?

A. Exclusive buyer agency agreement
B. Exclusive agency buyer agency agreement
C. Open buyer agency agreement
D. All the above

Answer 6

D. All the above

Question 7

Definition: Fiduciary

Answer 7

Faithful trusting servant and the agent is the fiduciary of the principal.