Practice Quiz 1 Flashcards
Subagent
An individual who has been delegated agency duties by a broker employed by a client, not the client themselves.
Multiple Listing Service (MLS)
A subscription available to real estate brokers which pools preliminary information on property listings for publication.
Agency Law Disclosure
A form containing real estate agency codes which establish the conduct of real estate licensees when representing others in a real estate transaction, which is delivered to all parties in sales transactions other than for five or more unit residential properties.
Clients
Members of the public who retain brokers and agents to perform real estate related services
Licensed Activities
Dealing by CalBRE licensees with members of the public to offer, contract for and render real estate brokerage services for compensation.
Double-end
Price Fixing
Risk Reduction Program
Conflict of Interest
Independent Contractor (IC)
Dual Agent
Sales Goal
The amount of aftertax income agents and brokers intend to earn as a result of their real estate licensing activities.
Listing Agreement
A written employment agreement used by brokers and agents when an owner, buyer, tenant or lender retains a broker to render real estate transactional services as the agent of the client
Supra-competitive
A market condition where prices are unfairly set by collusion, preventing others from entering the market and hurting consumers.
Turnover Rate
The rate at which a broker loses and replaces agents.
Net Listing
A type of listing setting the agent’s fee as all sums received exceeding a net price established by the owner.
Affiliated Business Arrangement (ABA)
Referral of a client to a financially controlled business whose earnings are shared with the broker.
Agency Relationship
The scope of duties imposed on the broker as arising out of the representation authorized by the employment.
Fiduciary Duty
The duty owed by an agent to act in the highest good faith toward their client and not to obtain any advantage over the client by the slightest misrepresentation, concealment, duress or undue influence.
Quantum Meruit
Compensation paid to a broker on termination of a listing agreement set as the value of the time, effort and money the broker expended acting on the employment, not based on the lost opportunity of the employment
Agency Confirmation Provision
A provision in all purchase agreements and counteroffers disclosing the agency of each broker in the transaction.
Employment Relationship
The scope of activities the broker and the broker’s agents are to undertake in the employment of a client.
Guaranteed Sale Listing
A variation of the exclusive right-to-sell listing in which the broker agrees to buy the property if the property does not sell during the listing period
Due Diligence
The concerted and continuing efforts taken by an agent to meet the objectives of their client.
Net Listing
A type of listing setting the agent’s fee as all sums received exceeding a net price established by the owner.
Full Listing Offer
A buyer’s or tenant’s offer to buy or lease on terms substantially identical to the employment terms in the owner’s listing agreement with the broker.
S1031 Transaction
A sales transaction in which sales proceeds are properly reinvested in a replacement property to qualify any profit realized on the sale as tax exempt.
Option to Buy
An agreement granting an irrevocable right to buy property within a specific time period.
Exclusive Right-to-Sell Listing Agreement
A written employment agreement by a broker and a seller of real estate employing and entitling the broker to a fee when the property sells during the listing period.
Exclusive Agent
An agent who is acting exclusively on behalf of only one party in a transaction.
Broker Fee Provision
A clause in employment agreements entered into by brokers and their clients enabling brokers, when acting on behalf of their clients in a transaction, too share fees between themselves at the brokers’ discretion.
Option Listing
A variation of the exclusive right-to-sell listing granting the broker an option to buy the property at a predetermined price if the property does not sell during the listing period.
Exclusive Right-to-Buy Listing Agreement
A written employment agreement by a broker and a prospective buyer of real estate employing and entitling the broker to a fee when property is purchased during the listing period.
Exclusive Agency Listing
A listing agreement employing a broker as the sole agent for the seller of real property under the terms entitling the broker to a fee if the property is sold through any other broker, but not if a sale is negotiated by the owner without the services of an agent.
Agency Law Disclosure
A form containing real estate agency codes which establish the conduct of real estate licensees when representing others in a real estate transaction, which is delivered to all parties in sales transactions other than for five or more unit residential properties.
Buyer’s Agent
An agent representing the buyer. Also known as a selling agent
Open Listing
An employment entered into by a broker to render real estate services on a best-efforts basis for a fee to be paid if they achieve the client’s objective of the employment before the client or another broker independent of the broker first meet the objective, such as locating a buyer or a property.
Listing Agreement
A written employment agreement used by brokers and agents when an owner, buyer, tenant or lender retains a broker to render real estate transactional services as the agent of the client.
Marketing Package
A property information package handed to prospective buyers containing all the disclosures compiled by the seller’s agent on the listed property.
