Unit 10 Vocabulary

Question 1

Agent

Answer 1

A real estate professional can represent a client as an

Question 2

fiduciary

Answer 2

ut in addition to the parties’ assumptions and expectations, the real estate professional acts as a

Question 3

agency

Answer 3

relationships in the real estate business, including that of sales associate to the employing broker

Question 4

Principal

Answer 4

the individual who hires the agent and delegates to that agent the responsibility of representing the principal’s interests. In a real estate transaction in which an agency relationship is established, the principal is the buyer or the seller or the landlord or the tenant. The broker is the principal in dealings with sales associates.

Question 5

Client

Answer 5

the principal in a real estate transaction for whom a real estate broker acts as agent. The term client is also used when a broker represents someone in a relationship other than an agency.

Question 6

Customer

Answer 6

the third party or nonrepresented consumer who is not a principal but for whom some level of service may be provided and who is entitled to fairness and honesty. The customer may be represented by a separate agent.

Question 7

Nonagent

Answer 7

also referred to as a facilitator, intermediary, transactional broker, transaction coordinator, or contract broker) someone who works with a buyer and a seller (or a landlord and a tenant), assisting one or both parties with the transaction without representing either party’s interests. Nonagents are often subject to specific statutory responsibilities. A broker may be considered a nonagent when dealing with a customer (someone other than the person the broker represents).

Question 8

implied agency.

Answer 8

agency relationship may also result from the parties’ behavior by an

Question 9

express agreement

Answer 9

which the parties formally express their intention to establish an agency and state its terms and conditions.

Question 10

listing agreement

Answer 10

An agency relationship between a real estate seller and a broker is generally created by a written employment contract, commonly called a

Question 11

buyer representation agreement

Answer 11

An express agency relationship between a buyer and a broker is created by a

Question 12

implied agreement.

Answer 12

An agency may also be created by

Question 13

buyer’s agent

Answer 13

could instead be paid directly by the buyer

Question 14

fiduciary relationship

Answer 14

of trust and confidence means that the real estate broker owes the principal certain duties.

Question 15

universal agent

Answer 15

is a person empowered to do anything the principal could do personally

Question 16

general agent

Answer 16

may represent the principal in a broad range of matters related to a particular business or activity

Question 17

special agent

Answer 17

limited agent, is authorized to represent the principal in one specific act or business transaction only

Question 18

single agency

Answer 18

agent represents only one party to a transaction

Question 19

dual agency,

Answer 19

the agent represents two principals in the same transaction

Question 20

Designated agency

Answer 20

also called assigned agency or appointed agency, is available in some states to accommodate an in-house sale in which two sales associates of the same broker are involved.

Question 21

designated agent

Answer 21

or designated representative, is the only sales associate in the company who has a fiduciary responsibility toward the principal.

Question 22

transaction broker

Answer 22

facilitator, transaction coordinator, or contract broker) is not an agent of either party

Question 23

puffing

Answer 23

Exaggeration of a property’s benefits is called

Question 24

Fraud

Answer 24

is the intentional misrepresentation of a material fact in such a way as to harm or take advantage of another person.

Question 25

negligent misrepresentation

Answer 25

occurs when the real estate professional should have known that a statement about a material fact was false.