Champions School of Real Estate - Exam Prep
Buyer Representation Agreement
An employment contract obligating a broker to act as a fiduciary to a buyer
Implied Agency
Agency as a result of customary, usual or typical conditions
Broker
A properly licensed party who serves a principal in...
Champions School of Real Estate - Exam Prep
Buyer Representation Agreement
An employment contract obligating a broker to act as a fiduciary to a buyer
Implied Agency
Agency as a result of customary, usual or typical conditions
Broker
A properly licensed party who serves a principal in an agency relationship- also called an agent
Client
A party represented by a broker in an agency relationship - also called a principal
Duties of an Agent
An agent owes his client obedience, loyalty, disclosure, confidentiality, accounting and reasonable
care (old car)
customer
A third party - one a broker is working with, but who is not represented by that broker
Exclusive Agency Listing
A listing where one broker is the exclusive agent and will earn a commission if the property is sold,
unless the seller sells it himself- the seller is competing with his broker
Ostensible Agency
Agency as a result of the actions of an agent and the response of other to those actions
Agency by Ratification
Agency is established when an agent acts without permission of the principal and the principal
accepts or ratifies those actions.
Blind Ad
An advertisement that does not clearly indicate the licensed status of the party placing the ad - real
estate licensees are prohibited from placing blind ads.
Duties of Principal
A principal owes his agent compensation, reimbursement, indemnification and performance
Procuring Cause of Sale
The effort that results in the sale of property - the act of bringing a ready, willing and able buyer to a
seller resulting the sale of the seller's property
Exclusive right to sell
A listing where one broker will earn a commission when the property is sold, no matter who sells it
, Listing Agreement
An employment contract obligating a broker to act as a fiduciary to a seller
Agency by Estoppel
A principal fails to maintain due diligence over his agent and as a result the court prevents the
principal from denying the agency relationship
Dual Agent
A broker who has the written permission of both the buyer and the seller to represent both parties in
a single transaction
Management Agreement
An employment contract obligating a broker to act as a fiduciary to a property owner
Sherman Anti-Trust Act
Federal law that preserves business competition by prohibiting monopolies, monopolistic practices
and restraint of trade- in real estate the biggest impact is on commissions- always negotiable
Agency
The fiduciary relationship between a broker and a principal or a broker and a client
Universal Agency
A principal gives an agent the power to transact matters of all types for him
Designated Agent
A license appointed by a broker in a dual agency situation to work with either the buyer or the seller
in the transaction.
Commission
A negotiated compensation in a broker's employment contract.
Fiduciary
A party acting for another in a position of trust - a broker, an agent
Public Responsibilities
The responsibilities a broker has to customers or third parties including honesty, fairness and
disclosure of material facts
General Agency
A principal gives an agent the power to bind him in a particular trade or business
intermediary
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