Module 1 Part 1: Explaining Services to Buyers and Sellers

Question 1

In an agency relationship

Answer 1

the agent is authorized to represent the principal in dealing with a 3rd party

Question 2

(Legislative term) Representation equals (Common marketplace term(

Answer 2

Agency

Question 3

(Legislative term) Rep Agreement (Common marketplace term(

Answer 3

Listing agreement

Question 4

(Legislative term) Agreement (Conveyance of interest in RE) equals (Common marketplace term)

Answer 4

Agreement of P&S

Question 5

(Legislative term) Multiple representation equals (Common marketplace term)

Answer 5

Dual Agency

Question 6

(Legislative term) Convey Offer equals (Common marketplace term)

Answer 6

Present offer

Question 7

(Legislative term) Acquisition/Divestiture by registrant equals (Common marketplace term)

Answer 7

Purchase/Sale by registrant

Question 8

Agency is the relationship bw

Answer 8

2 parties where 1 accepts responsibility for representing the other in dealing with a third party

Question 9

REBBA term for agency

Answer 9

representation

Question 10

Principal is the

Answer 10

seller/buyer

Question 11

Third party

Answer 11

not directly connected to the agency relationship, also involved in the transactions

Question 12

Fiduciary

Answer 12

relationship of trust with 1+ parties

Question 13

Obedience (Fiduciary obligations)

Answer 13

obey the lawful instructions of the principal

Question 14

Accounting (Fiduciary obligations)

Answer 14

Responsible of all documents and funds related to the transaction

Question 15

Authority is the legal power

Answer 15

or right given by the a principal to act on their behalf in business transactions

Question 16

Single agency

Answer 16

1 brokerage reps 1 principal

Question 17

Dual agency

Answer 17

one agent reps 2+ principals within the same transaction

Question 18

Dual agency under REBBA

Answer 18

Multiple representation

Question 19

Concurrent representation

Answer 19

Dual agency

Question 20

Express agreement

Answer 20

written or verbal representation agreement

Question 21

Written agreement

Answer 21

documents the agency relationship through a S/B rep agreement

Question 22

Ratification

Answer 22

agent acts w/o authority or in excess of the authority granted

Question 23

Estoppel

Answer 23

Principal leads a 3rd party to believe they are being represented by the agent

Question 24

Operation of law creates an agency relationship where

Answer 24

a duty is created by circumstance and is imposed on an agent to act of behalf of the principal

Question 25

Effective & expiration date

Answer 25

must be included in a seller/buyer rep agreement

Question 26

Revocation

Answer 26

Principal has the power to revoke the authority of the agent

Question 27

Continuing responsibilities after termination of a contract

Answer 27

confidentiality, loyalty, protecting best interests

Question 28

Two types of authority in RE

Answer 28

Express/actual & implied

Question 29

Brokerages/SP do not have the authority to

Answer 29

sign contracts on behalf of a principal

Question 30

Duty of indemnification

Answer 30

principal must compensate an agent for loss or damage incurred in carrying out lawful acts

Question 31

Duty of remuneration

Answer 31

principal must pay the brokerage for services agreed to

Question 32

Distinguishing aspect of an agency relationship is related to

Answer 32

providing advice - can give rise to action for damages due to negligence

Question 33

Disclosures that must be made to a costumer

Answer 33

material facts (ought to be known)/direct or indirect interests held by the salesperson

Question 34

General obligations provided to a costumer

Answer 34

Exercise care & skill | Ensure honesty

Question 35

Negotiate favourable terms (client obligation)

Answer 35

successfully negotiate agreements, discuss client's options, drafting favourable terms

Question 36

Act in person

Answer 36

A brokerage must perform duties personally, unless instructed otherwise

Question 37

Perform mandate

Answer 37

brokerage must perform mandate as set out in the rep agreement

Question 38

3 fundamental premises for a fiduciary relationship

Answer 38

loyalty, best interests & trust/confidence

Question 39

Do not make secret profit

Answer 39

improper advice, payment from another party or payment by a third party

Question 40

payment by a third party

Answer 40

receiving a referral fee from a property inspector, appraiser or lender

Question 41

SPs must comply with general and fiduciary obligations as well as

Answer 41

regulatory obligations

Question 42

Account

Answer 42

under rebba the brokerage must account for, safeguard and keep proper records pertaining to money & documents

Question 43

Finder's fee

Answer 43

referral fee