4.1 The Law of Agency

An agent with full authority over one property of the principal is known as a...? A) General Agent B) Special Agent C) Specific Agent D) Real Estate Agent

A

Implied Agency

Agency that exists as a result of actions of the parties.

Express Agency

An agency relationship created by oral or written agreement between principal and the agent.

A broker will work for a client and with a...? A) Principal B) Customer C) Agent D) None of the above

B

Agent

A person authorized to act on behalf of another.

Real Estate Broker

A person who is licensed to buy, sell, exchange, or lease real property for others and to charge a fee for these services.

General Agent

An agent with full authority over one property of the principal, such as a property manager

Special Agent

An agent with limited authority to act on behalf of the principal, such as created by a listing.

This refers to the party the agent brings to the principal as seller or buyer of the property...? A) Client B) Customer C) Partner D) Principle

B

Fiduciary Duty

That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure.

Brokerage

The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate.

Customer

The party the agent brings to the principal as seller or buyer of the property.

Listing Contract

A contract in which a property owner employs a real estate broker to market the property described in the contract

Principal

The employer of an agent.

Agency that exists as a result of actions of the parties is known as...? a) Implied Agency B) Express Agency C) General Agency D) Special Agency

A

An agent with limited authority to act on behalf of the principal is referred to as a...? A) General Agent B) Universal Agent C) Special Agent D) Specific Agent

C

A seller's agent is entitled to a commission after...? A) The agent finds a buyer who is ready, willing, and able to purchase the property B) The buyer closes on the transaction C) The seller agrees to pay the commission D) All of the above

A

The sale of the property results in the .......... of the agency relationship? A) Beginning B) Creation C) Termination D) The agency relationship is not contingent on the sale of the property

C

An agency relationship may be terminated by which of the following...? A) Destruction of the property B) Expiration of the term of an agency C) Mutual agreement of the parties D) All of the above

D

The real estate agent in a transaction is considered a ............ to his/her broker? A) Principal B) Client C) Customer D) agent

D

Agency

The relationship between the principal and the principal's agent which arises out of a contract, either expressed or implied, written or oral, wherein the agent is employed by the principal to do certain acts dealing with a third party.