Chapter 11 quiz

A person in a position of trust and confidence is known as a...?

fiduciary

An agent with full authority over one property of the principal is known as a...?

general agent

A common-law doctrine that makes an employer liable for the actions of an employee when the actions take place within the scope of employment is known as...?

respondeat superior

A number which, times the gross income of a property, produces an estimate of value of the property...?

Gross Rent Multiplier

The agent who has complete authority over any activity of principal is known as a...?

universal agent

A listing which provides that the agent may retain as compensation for the agent's services all sums received over and above a net price to the owner...?

net listing

A listing given to one or more brokers in which the broker procuring a sale is entitled to the commission but imposes no commission obligation on the owner when the owner sells the property is known as a...?

non exclusive listing

This is a section of the U.S. Internal Revenue Service Code that allows investors to defer capital gains taxes on any exchange of like-kind properties for business or investment purposes...?

Section 1031 exchange

Agency that exists as a result of actions of the parties is known as...?

implied agency

The relationship between 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, is known as...?

agency

A contract in which a property owner employs a real estate broker to market the property described in the contract is known as a...?

Listing contract

The employer of an agent is known as the...?

principal

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

special agent

Real estate agents act as what type of agents...?

special agent

Which of the following is an example of a fiduciary duty owed by an agent to his/her principal...?

Reasonable Care Obedience Confidentiality

An agency relationship in which the agent acts concurrently for both of the principals in a transaction is known as a...?

dual agent

Which of the following is an example of dual agency...?

escrow

A listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract is known as a...?

exclusive right to sell listing agreement

That authority which a third person reasonably believes an agent possesses because of the acts or omissions of the principal is known as...?

ostensible authority

Federal legislation including imposition of civil and punitive damages for anti-trust activities is known as the...?

sherman anti-trust act

An agent who works only for the buyer or the seller is known as a...?

single agent

A person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another is referred to as a/an...?

independent contractor

An agency relationship created by oral or written agreement between principal and the agent is known as...?

express agency

Exclusive Agency Agreements are typically found in residential transactions...? (t/f)

false

One who acts for and with authority from another called the principal is known as a/an...?

agent

Prior to signing a listing agreement, a party in a real estate transaction who will employ an agent is known as the...?

client

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 is known as...?

fiduciary duty

A high risk property will demand higher rates of return from investors...? (t/f)

true

Dual agency must be disclosed...? (t/f)

true

Residential listing agreements must be in writing...? (t/f)

true