National Lesson 5

Question 1

1. ____________________ means acting on behalf of another in expectation of compensation

Answer 1

agency

Question 2

2. The individual who hires and gives the authority to the agent of representing his or her interests is the ___________________.

Answer 2

client

Question 3

3. When an agent makes non-factual statements about the property that could reasonably be recognized as exaggeration it is called ____________________.

Answer 3

puffing

Question 4

4. ____________________ gives the agent the authority to do one particular activity for the client.

Answer 4

special agency

Question 5

5. A(n) ____________________ is created when one broker, usually the listing broker, allows other brokers to assist in the selling of the property.

Answer 5

sub-agency

Question 6

6. ____________________ occurs when the agent provides information or makes a statement that he or she believes to be true but is not.

Answer 6

innocent misrepresentation

Question 7

7. ____________________ gives the agent authority to do anything for the principal that the principal could normally do for himself.

Answer 7

universal agency

Question 8

8. The ____________________defines the rights and duties of the principal and the agent.

Answer 8

law of agency

Question 9

9. When the broker represents two principals in the same transaction is it called a(n) ____________________.

Answer 9

Dual Agency

Question 10

10. The intentional and successful employment of deception in order to cheat or deceive another person and to thereby gain some dishonest advantage is called ____________________.

Answer 10

Fraud