Types of Agencies and Agents

Question 1

One who acts on behalf of another in a business transaction.

Answer 1

Agent

Question 2

An agent who works under another agent to perform some of the acts of an agency with the principal’s permission.

Answer 2

Sub-agent

Question 3

Represents both the buyer and seller in the same transaction.

Answer 3

Dual agent

Question 4

Two salespeople from the same brokerage who each represent a different party in the same transaction

Answer 4

Dual agent with designated sales agents

Question 5

This type of agent represents only one party

Answer 5

Single agent

Question 6

The agent, also called a listing agent, is engaged by a seller to represent the seller’s interest.

Answer 6

Seller’s agent

Question 7

An agent who is engaged by a buyer to represent the buyer’s interests.

Answer 7

Buyer’s agent

Question 8

An agent who represents the broker from another firm. This agent does not represent the principal, only the broker.

Answer 8

Broker’s agent

Question 9

An agent who assists a landlord in finding a tenant.

Answer 9

Landlord’s agent

Question 10

An agent who assists someone in finding a property to lease or rent.

Answer 10

Tenant’s agent

Question 11

An agent who acts within the scope of the property management agreement on behalf of the landlord.

Answer 11

Property manager

Question 12

A relationship in which one party (the principal) authorizes another party (the agent) to act as the principal’s representative in dealing with third parties

Answer 12

Agency

Question 13

Fiduciary duties

Answer 13

Care, obedience, loyalty, disclosure, accounting, confidentiality, honesty, integrity

Question 14

A licensee from another firm who assists the buyer but represents the listing agent and the seller

Answer 14

Sub-agent

Question 15

A licensee authorized by a broker to act as the agent for a specific principal in a particular transaction

Answer 15

Designated agent

Question 16

A broker helps a buyer and a seller with paperwork but does not represent either party

Answer 16

Transactional brokerage

Question 17

An agency relationship based on a formal agreement between the parties

Answer 17

Express agency

Question 18

An agency relationship created by the act or conduct of the parties involved, as opposed to express agency

Answer 18

Implied agency

Question 19

Legal responsibility placed on one person for another individual’s acts (brokers are vicariously liable for their licensees)

Answer 19

Vicarious liability

Question 20

An agreement between a licensee and broker when the licensee is not an employee of the brokerage, is paid on results rather than hours worked, and is responsible for setting his own hours and paying his own Social Security taxes

Answer 20

Independent contractor agreement