Ohio (Definition First)

Question 1

Under the common law, this relationship is defined as: 1. Agency is the fiduciary relationship that results from the manifestation of consent by one person to another that the other shall act on his behalf and subject his control, and consent by the other so to act.2. The one for whom action is taken is the principal.3. The one who is to act is the agent.In a real estate transaction, the agency relationship is formed between the brokerage firm and the principal.

Answer 1

Agency Relationship

Question 2

When someone without any authority (actual or implied) holds himself out as an agent working for a principle. If the principle takes no action to stop the apparent agent; then the principle will himself be “estopped” from asserting that the apparent agent really is not his agent.

Answer 2

Apparent Agency (Ostensible Agency)

Question 3

An automatic offer that is made by a listing agent to all other members of the Multiple Listing Service (MLS) when he submits his seller’s listing to an agent shows the listed property without rejecting the offer. (no longer used in Ohio)

Answer 3

Blanket Unilateral Offer of Subagency

Question 4

The agency relationship that exists between a buyer principal and the buyers agent.

Answer 4

Buyer Agency

Question 5

The practice of representing only the buyer and never the seller in a transaction.

Answer 5

Buyer Agency Exclusively

Question 6

A real estate agent who is employed by and represents only the buyer in a real estate transaction, regardless of whether the commission is paid by the buyer or by the seller, or through a commission split with the listing agent.

Answer 6

Buyer’s Agent

Question 7

A buyer or seller represented by an agent who is subject to that buyer’s or seller’s control; also called a principal

Answer 7

Client

Question 8

Any fee that is conditional upon some event occurring, usually at closing

Answer 8

Contingent Fee

Question 9

A disclosure for offers to purchase or leasee on behalf of two or more clients represented by the same licensee for the same property that the licensee knows, has know, or has reason to know will be taken under consideration by the owner or owners authorized representative during the same period of time.

Answer 9

Contemporaneous Offer Disclosure

Question 10

Sees Selling Agent

Answer 10

Cooperating Agent

Question 11

A buyer who is working with an agent who represents the seller; also the seller of unlisted property that is being sold to a buyer represented by a buyer’s agent.

Answer 11

Customer

Question 12

A dual agency relationship where the brokerage firm, by written or oral means, discloses and receives informed consent from both the buyer and the seller to act in a dual agency capacity

Answer 12

Disclosed Dual Agency

Question 13

A real estate agent who has received informed consent from both a buyer and seller in the same transaction to act in a dual agency capacity.

Answer 13

Disclosed Dual Agent

Question 14

An agency relationship where the brokerage firm represents both the buyer and the seller in the same transaction to act in a dual agency capacity.

Answer 14

Dual Agent

Question 15

A person who assists the parties to a potential real estate transaction in communication, interposition, and negotiation to reach agreement between or among them, without being an advocate for the interests of any party except the mutual interested all parties to reach agreement. Also known as an intermediary. (Not recognized in Ohio)

Answer 15

Facilitator

Question 16

Duties owned by an agent to his principal (ACCOLD)1. Accounting- Acknowledges that all money received in the agency relationship belongs to the principal, not the agent. The agent has the duty to strictly account for any amounts received in a transaction on behalf of the principal. 2. Confidentiality- Agents must not reveal confidential information about a client.3. Care (Reasonable Care&Skill)- Must be used by an agent at all times when acting on behalf of a client. Agents are seen as trusted professionals and experts, and as such, are held to a minimum standard of competence. Expertise should never be claimed in areas where one does not have special training, and agents must be careful never to engage in the unauthorized practice of law. 4. Obedience- Agents must follow all legal directions of the principal, obey the restrictions of the agency relationship, and not stray beyond scope of authority. 5. Loyalty- Agents must put the principal’s best interest above all others, including the agent’s own. 6. Disclosures- An agent is obligated to disclose to his principal all relevant and material information, unless obtained through a previous fiduciary relationship, that the agent knows and that pertains to the scope of the agency. Duties of disclosures include: True property value, all offers to purchase, identity of the prospective buyer, buyer’s financial condition, any relationship between buyer and broker, and any commission splitting arrangements with other brokers.

Answer 16

Fiduciary Duties

Question 17

Any agency relationship that is indicated by the words and or actions of the agent rather than by written agreement; also called accidental or undisclosed agency.

Answer 17

Implied Agency

Question 18

A person’s agreement to allow something to happen that is based on full disclosure of facts needed to make the decision intelligently, ex, knowledge of liability involved alternatives.

Answer 18

Informed Consent

Question 19

A sale in which one real estate brokerage company acts as both the listing and selling agent.

Answer 19

In-Company Sale

Question 20

A Facilitator

Answer 20

Intermediary

Question 21

An agent of the seller who markets that seller’s property, usually exclusively, and represents the seller during the sale and closing of the property. Also known as seller’s agent.

Answer 21

Listing Agent

Question 22

An organized system created to disseminate information about listed properties and through which members offer cooperation and compensation to their participants; usually a committee of a Board or a corporation owned by a Board.

Answer 22

Multiple Listing Service (MLS)

Question 23

MLS policy that allows listing agents to indicate thee fee they will pay a buyer’s agent as well as the fee they will pay a buyer’s agent as a successful closing. An offer of subagency is mandatory. Also known as alternative MLS, but is not in all markets.

Answer 23

MLS PLUS

Question 24

See Selling Agent

Answer 24

Participating Agent

Question 25

The proximate cause originating a series of events that, without break, in their continuity, results in the accomplishments of the objective. A real estate broker will be regarded as the “procuring cause” of a sale, so as to be entitled to commission, if the broker’s efforts are the foundation on which the negotiations resulting in a sale are begun.

Answer 25

Procuring Cause

Question 26

A real estate agent who is employed by and represents only the seller in a real estate transaction. Also known as listing agent.

Answer 26

Seller’s Agent

Question 27

Any Agent who sells a property; she may be the subagent or listing agent of the seller, or a buyer’s agent, or a dual agent, also called cooperating/participating agent.

Answer 27

Selling Agent

Question 28

The agency relationship that exists between a seller principal and the seller’s agent.

Answer 28

Seller Agency

Question 29

The practice of representing a party you are working with (either buy or sell) and becoming a disclosed dual agent for in-company sales.

Answer 29

Seller Agency & Buyer Agency w/ Disclosed Dual Agency for In-Company Sales

Question 30

The practice of representing only the seller and never the buyer in a transaction

Answer 30

Seller Agency Exclusively

Question 31

The practice of representing either the buyer or the seller, but never both, in thee same transaction.

Answer 31

Single Agency

Question 32

A situation in which one agent represents the buyer and another agent from the same real estate brokerage represents the seller. The broker and all management-level employees are dual agents of both buyer and seller. The broker may also appoint a specific agent to represent thee seller and another specific agent to represent thee buyer. Also known as in-company transaction.

Answer 32

Split Agency

Question 33

An agent employed to act for another agent in performing functions undertaken for a principal, who owes the same duties and responsibilities to the principal as the principal’s agent. Correspondingly, thee subagent can create thee same liabilities for the agent and principal that the agent can create for thee principal himself.

Answer 33

Subagent

Question 34

MLS in which listing agents must offer cooperation but don’t automatically offer subagency; the offer of compensation may be to buyer’s agents, subagents and/or listing agents; subagency may be offered.

Answer 34

Subagency Optional MLS

Question 35

A brokerage relationship in which a licensee provides only administrative services to buyers and sellers to assist in a transaction, remaining neutral and having no fiduciary responsibility toward either party.

Answer 35

Transaction Broker

Question 36

A dual agency relationship that occurs when a listing agent or subagent acts or speaks as though he also represents the buyer but without either written or oral disclosure. Conversely, dual agency also occurs when an agency of the buyer acts or speaks as if he also represents.

Answer 36

Undisclosed Dual Agency