Real Estate Guide Unit 10 Questions And
Answers With Verified Solutions 100%
Correct Latest Updated 2024
Agency - ANSWER✔✔ The relationship between a principal and an agent wherein
the agent is authorized to represent the principal in certain transactions.
Common law - ANSWER✔✔ The rules established by tradition and court
decisions
Statutory law - ANSWER✔✔ Laws enacted by legislature
Administrative laws - ANSWER✔✔ The rules and regulations created by real
estate commissions and departments, as authorized by the legislature
Agent - ANSWER✔✔ One who acts or has the power to act on behalf of another.
A fiduciary relationship is created under the law of agency when a property owner,
as the principal, executes a listing agreement or management contract authorizing a
licensed real estate broker to be his or her agent.
Buyer's agent - ANSWER✔✔ A real estate professional who is under contract to
locate property for a buyer and represent the buyer's interests in a transaction.
Buyer representation agreement - ANSWER✔✔ A principal-agent relationship in
which the real estate professional acts on behalf of the buyer, usually as an agent,
with fiduciary responsibilities to the buyer.
,Client - ANSWER✔✔ the principal in a real estate transaction for whom a real
estate broker acts as agent.
Customer - ANSWER✔✔ The third party or nonrepresented consumer for whom
some level of service is provided and who is entitled to fairness and honesty.
Designated agent - ANSWER✔✔ One or more of a broker's licensee affiliates
assigned by the broker to represent one client to the exclusion of all other clients in
the same transaction, as well as to the exclusion of all other licensees affiliated
with the broker.
Designated agency - ANSWER✔✔ A process that accommodates an in-house sale
in which two different agents are involved. The broker designates one agent to
represent the seller and one agent to represent the buyer.
Dual agency - ANSWER✔✔ Representing both parties to a transaction. This is
unethical unless both parties agree to it, and it is illegal in many states
Express agency - ANSWER✔✔ An agency relationship based on a formal
agreement between the parties.
Express agreement - ANSWER✔✔ An oral or written contract in which the parties
state the contract's terms and express their intentions in words.
Fiduciary - ANSWER✔✔ One in whom trust and confidence is placed; a reference
to a real estate professional employed under the terms of a listing contract or buyer
representation agreement.
, Fiduciary relationship - ANSWER✔✔ A relationship of trust and confidence, as
between trustee and beneficiary, attorney and client, or principal and agent.
Fraud - ANSWER✔✔ Deception intended to cause a person to give up property or
a lawful right.
General agent - ANSWER✔✔ One who is authorized by a principal to represent
the principal in a specific range of matters.
Implied agency - ANSWER✔✔ If the actions of the parties imply that they have
mutually consented to an agency relationship, an implied agency relationship is
formed.
Implied agreement - ANSWER✔✔ A contract under which the agreement of the
parties is demonstrated by their acts and conduct.
Latent defect - ANSWER✔✔ A hidden structural defect that could not be
discovered by ordinary inspection and that threatens a property's soundness or the
safety of its inhabitants.
Law of agency - ANSWER✔✔ The law that governs the relationship between a
principal and his or her agent.
Listing agreement - ANSWER✔✔ A contract between an owner (as Principal) and
a real estate broker (as agent) by which the broker is employed as agent to find a
buyer for the owner's real estate on the owner's terms, for which service the owner
agrees to pay a commission
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