PERRY REAL ESTATE MODULE 2
TERMS EXAM QUESTIONS &
CORRECT ANSWERS
Duties of Principle Broker - Correct Answer ✔✔ * Manage the business and set policies.
*Maintain the space and equipment
*Direct the Staff and sales activities
*Master Real estate transactions
Transaction Broker - Correct Answer ✔✔ one who facilitates a transaction without
functioning as an agent.
They assist two parties in a real estate transaction but represent neither.
Agency - Correct Answer ✔✔ the fiduciary relationship between the principal (buyer or
seller) and the agent.
Agent - Correct Answer ✔✔ The individual who is authorized to and consents to
represent the interest of another person. In real estate, the principle broker of the firm is
the agent.
Principal - Correct Answer ✔✔ The individual (buyer or seller) who hires and delegates
to the agent the responsibility of representing his or her interest.
Subagent - Correct Answer ✔✔ This is the individual that is the agent of the agent (your
broker).
Client - Correct Answer ✔✔ The principle that signs the agreement with the agent,
which obligates the agent to perform a service for the client and creates a fiduciary
relationship.
Fiduciary - Correct Answer ✔✔ A fiduciary is a person who holds a legal or ethical
relationship of trust with one or more other parties.
Law of agency - Correct Answer ✔✔ The basic framework or law that governs the
relationship between a principal and his or her agent.
Fiduciary Relationship - Correct Answer ✔✔ A relationship of trust and confidence, as
between trustee and beneficiary, attorney and client, or principal and agent.
, Duties: Care/Confidentiality, Obedience, Accounting, Loyalty, and Disclosure.
Agent - Correct Answer ✔✔ The individual who is authorized and consents to represent
the interests of another person.
The Principal broker of the firm is the agent.
Subagent - Correct Answer ✔✔ The agent working under the principal broker or agent.
this is a fiduciary relationship.
Universal Agent - Correct Answer ✔✔ They have no limitations.
They have full power of attorney to act on clients behalf to purchase or sell real
property.
General Agent - Correct Answer ✔✔ An agent who represents the principal in a range
of matters.
They have an ongoing role or relationship.
Licensees are general agents for the principal broker.
Special Agent - Correct Answer ✔✔ Represents the seller in one specific transaction
with limited authority, under detailed instructions.
The typical role of the average agent with one specific listing contract.
Designated Agent - Correct Answer ✔✔ One authorized by the broker to act as the
agent of a specific principal (client).
Remaining agents in the firm are free to represent other principals (clients).
The principal broker cannot be a designated agent.
Seller's agent - Correct Answer ✔✔ A seller who enters into a listing contract with a
brokerage firm is a client and the principal broker, the listing agent and all the sales
agents in the office owe loyalty to the seller.
Buyers Agent - Correct Answer ✔✔ A buyer who enters into a written agreement with a
buyers agent has a fiduciary relationship and considered a client with the agent.
They can be paid by the buyer or the seller.
The agreement makes the difference in compensation.
TERMS EXAM QUESTIONS &
CORRECT ANSWERS
Duties of Principle Broker - Correct Answer ✔✔ * Manage the business and set policies.
*Maintain the space and equipment
*Direct the Staff and sales activities
*Master Real estate transactions
Transaction Broker - Correct Answer ✔✔ one who facilitates a transaction without
functioning as an agent.
They assist two parties in a real estate transaction but represent neither.
Agency - Correct Answer ✔✔ the fiduciary relationship between the principal (buyer or
seller) and the agent.
Agent - Correct Answer ✔✔ The individual who is authorized to and consents to
represent the interest of another person. In real estate, the principle broker of the firm is
the agent.
Principal - Correct Answer ✔✔ The individual (buyer or seller) who hires and delegates
to the agent the responsibility of representing his or her interest.
Subagent - Correct Answer ✔✔ This is the individual that is the agent of the agent (your
broker).
Client - Correct Answer ✔✔ The principle that signs the agreement with the agent,
which obligates the agent to perform a service for the client and creates a fiduciary
relationship.
Fiduciary - Correct Answer ✔✔ A fiduciary is a person who holds a legal or ethical
relationship of trust with one or more other parties.
Law of agency - Correct Answer ✔✔ The basic framework or law that governs the
relationship between a principal and his or her agent.
Fiduciary Relationship - Correct Answer ✔✔ A relationship of trust and confidence, as
between trustee and beneficiary, attorney and client, or principal and agent.
, Duties: Care/Confidentiality, Obedience, Accounting, Loyalty, and Disclosure.
Agent - Correct Answer ✔✔ The individual who is authorized and consents to represent
the interests of another person.
The Principal broker of the firm is the agent.
Subagent - Correct Answer ✔✔ The agent working under the principal broker or agent.
this is a fiduciary relationship.
Universal Agent - Correct Answer ✔✔ They have no limitations.
They have full power of attorney to act on clients behalf to purchase or sell real
property.
General Agent - Correct Answer ✔✔ An agent who represents the principal in a range
of matters.
They have an ongoing role or relationship.
Licensees are general agents for the principal broker.
Special Agent - Correct Answer ✔✔ Represents the seller in one specific transaction
with limited authority, under detailed instructions.
The typical role of the average agent with one specific listing contract.
Designated Agent - Correct Answer ✔✔ One authorized by the broker to act as the
agent of a specific principal (client).
Remaining agents in the firm are free to represent other principals (clients).
The principal broker cannot be a designated agent.
Seller's agent - Correct Answer ✔✔ A seller who enters into a listing contract with a
brokerage firm is a client and the principal broker, the listing agent and all the sales
agents in the office owe loyalty to the seller.
Buyers Agent - Correct Answer ✔✔ A buyer who enters into a written agreement with a
buyers agent has a fiduciary relationship and considered a client with the agent.
They can be paid by the buyer or the seller.
The agreement makes the difference in compensation.
