Session 11

Question 1

Agent

Answer 1

One who represents a principal. In Arizona, the designated is the agent to the principal. Associated licensees in the office are considered sub agents to the principal. Both the agent (the designated broker) and the sub agents are fiduciaries to the principal (the client).

Question 2

Attorney in fact

Answer 2

A person specifically designated in an instrument (e.g. power of attorney) to do something legally for another in his stead. And has a fiduciary relationship with the principal. And attorney-in-in fact need not be an Attorney at law.

Question 3

Client

Answer 3

A buyer or seller tenant or landlord – who is represented by an agent. Also called principal

Question 4

Customer

Answer 4

A party to a transaction who is not a principal. In Arizona’s law of agency, the buyer is the and the seller is the principal.

Question 5

Dual agent

Answer 5

An agent who has two principals in the same transaction

Question 6

General agent

Answer 6

An agent authorized to handle any and all of the principles affairs in a specified job or business area, for example, a real estate broker who is a property manager.

Question 7

Power of attorney

Answer 7

Illegal instrument that gives a person the authority to act for another as attorney-in-fact.

Question 8

Principal

Answer 8

The person who gives authority to an agent or attorney, thereby creating a fiduciary relationship.

Question 9

Special agent

Answer 9

An agent authorized by the principal to perform a specific activity or participate in the specific transaction. Also called limited agent or specific agent.

Question 10

Universal agent

Answer 10

An agent authorized to do everything that can be lawfully delegated to a representative; generally requires a power of attorney.

Question 11

Commingling

Answer 11

Illegally Mixing personal funds with money held in trust on behalf of a client

Question 12

Conversion

Answer 12

The illegal use of funds being held in trust

Question 13

Fiduciary

Answer 13

A person in a position of trust, held by law to high standards of good faith and loyalty.

Question 14

Due diligence

Answer 14

And investigation to discover facts or liabilities about a property prior to its purchase.

Question 15

Latent defect

Answer 15

A defect that is not visible or apparent; a hidden defect that would not be discovered in a reasonably thorough inspection of property.

Question 16

Material defect

Answer 16

Any property conditions that might affect the consideration paid by the buyer/customer.

Question 17

Material fact

Answer 17

Any fact that is relevant to a person making a decision; agents must disclose to buyers.

Question 18

Puffing

Answer 18

Exaggerated or superlative comments or opinions.