Section 6: Real Estate Basics-Study
Guide Questions and Answers.
describes the relationship between the real estate professional and the person or persons being
represented. - Answer Agency
Rules governing the relationship between the real estate professional and the person being
represented
Ex. The law of agency sets forth the expectation that licensees will give their clients their
undivided loyalty, obedience, confidentiality, disclosure, reasonable skill and care, and
accounting when completing a real estate transaction. - Answer Law of Agency
is someone who acts on someone else's behalf, at that person's request. - Answer An agent
In other words, a consumer can't compel you to be his agent without your consent, and vice
versa. You both have to agree. Once you do, the consumer becomes your ____________, and
you become the client's ______ and ___________—a person who's in a position of trust and
owes loyalty to another. - Answer Client, agent and fiduciary
Fiduciary Ex. A property manager is the fiduciary agent of the owner; as such, the property
manager must act in the owner's best interest.
The person represented by an agent in a real estate transaction
Ex. Mary is selling her house, and Kamal is her listing agent. Mary is the principal in the
transaction. - Answer principal (agency)
A person related to the transaction whom the agent does not represent - Answer Customer
Ex. Even though customers are not clients, agents owe to customers the duties of fair and
honest dealing, and disclosure of who the agent represents, and disclosure of any material
facts.
Ok
The duties owed to customers and third parties (e.g., lenders) include: - Answer Disclosure of
material facts
Honesty
Integrity
Accounting for trust funds
,___________ is not a customer. Real estate agents have no contact, or very limited contact,
with ______. They don't owe _________ any duties. Once _________ make contact with real
estate licensees about anything real estate-related, they become customers. - Answer
consumer, consumers
A ________—also known as a facilitator or transaction broker - is a licensee who has a unique
relationship with a consumer, generally acting as a "middle man" in a transaction. - Answer
non-agent
While some states allow non-agency, the exact nature of the relationship and the duties owed
to the consumer vary widely from state to state.
A __________ doesn't represent the buyer or seller, isn't a fiduciary, and can provide only
limited services to facilitate the transaction. The ___________ assists either or both parties with
clerical or ministerial tasks. - Answer non-agent
is a licensee engaged to act for another licensee in performing brokerage tasks for a principal.
The sub-agent owes the same obligations and responsibilities to the principal as the principal's
agent. Usually this is seen when a licensee from a competing firm brings the buyer to the deal,
but instead of representing the buyer, the licensee works under the listing agent as a
representative of the seller. - Answer sub-agent
Someone who's a party to a transaction OR the person for whom the agent acts - Answer
principal
Someone who's working with a real estate licensee, but isn't represented by him - Answer
customer
Someone who uses or purchases a product or service - Answer consumer
Someone who has agency representation with the real estate licensee - Answer client
You are permitted to perform some _______ (aka ministerial) tasks for a customer, which are
defined as factual-based tasks that don't require you to use your judgment as a licensee. -
Answer clerical
**Further, you'll also need to disclose any material facts about the transaction to a customer, as
well as treat that person with honesty and professional integrity. And, of course, you'll need to
properly account for any money or property you receive from a customer.
, Services performed that are routine and do not involve judgment, advocacy, or negotiation -
Answer ministerial acts
Ex. Keira helped a buyer fill in some of the blanks in their contract offer for her seller's house,
but did not advocate for or advise them in any way.
As a real estate agent, you may serve as two types of agents: - Answer General Agent
Special Agent
A person who is authorized to act for another (the principal or client) in a range of matters or
multiple transactions - Answer General Agent
Ex. A property manager is one example a general agent of the owner and acts for the owner in
most matters related to the property.
An agent whose scope of authority is limited to a specific area or/also where you have limited
authority to represent your client in one transaction. - Answer special agent
Ex. Real estate agents usually act as special agents to their clients; they assist with the sale but
cannot sign contracts for the client or make decisions regarding the property independent of
the client.
In most typical transactions involving a buyer or seller, you'll act as a ________________. This
means you don't make any decisions or enter into any contracts on your client's behalf, but you
simply act as an intermediary, liaison, and negotiator, conveying, representing, and advocating
for your client's best interests. A ______________ relationship is usually limited to one
transaction. Your role is to find the house, sell the house, etc. You don't continue to represent
that client once the transaction is closed. - Answer special or specific agent
A property manager, however usually serves as a ______________. In carrying out the terms of
the property management agreement, you'd find yourself collecting rent, evicting tenants, and
entering into leases with tenants on behalf of your client, the property owner. This is similar to
the duties that the holder of a power of attorney would have. Rather than a power of attorney,
the property management agreement will spell out the scope of your authority to act on the
principal's behalf. A _____________ in this capacity does offer continuity of service, because
the agent is authorized to conduct a series of transactions. - Answer general agent
Another example of general agency is the relationship of a salesperson and their supervising
broker. A salesperson represents their broker in multiple transactions over time with limited
authority.
Three types of agency that may have sometimes apply to your role as a licensee - Answer
limited, universal, and non-agent
Guide Questions and Answers.
describes the relationship between the real estate professional and the person or persons being
represented. - Answer Agency
Rules governing the relationship between the real estate professional and the person being
represented
Ex. The law of agency sets forth the expectation that licensees will give their clients their
undivided loyalty, obedience, confidentiality, disclosure, reasonable skill and care, and
accounting when completing a real estate transaction. - Answer Law of Agency
is someone who acts on someone else's behalf, at that person's request. - Answer An agent
In other words, a consumer can't compel you to be his agent without your consent, and vice
versa. You both have to agree. Once you do, the consumer becomes your ____________, and
you become the client's ______ and ___________—a person who's in a position of trust and
owes loyalty to another. - Answer Client, agent and fiduciary
Fiduciary Ex. A property manager is the fiduciary agent of the owner; as such, the property
manager must act in the owner's best interest.
The person represented by an agent in a real estate transaction
Ex. Mary is selling her house, and Kamal is her listing agent. Mary is the principal in the
transaction. - Answer principal (agency)
A person related to the transaction whom the agent does not represent - Answer Customer
Ex. Even though customers are not clients, agents owe to customers the duties of fair and
honest dealing, and disclosure of who the agent represents, and disclosure of any material
facts.
Ok
The duties owed to customers and third parties (e.g., lenders) include: - Answer Disclosure of
material facts
Honesty
Integrity
Accounting for trust funds
,___________ is not a customer. Real estate agents have no contact, or very limited contact,
with ______. They don't owe _________ any duties. Once _________ make contact with real
estate licensees about anything real estate-related, they become customers. - Answer
consumer, consumers
A ________—also known as a facilitator or transaction broker - is a licensee who has a unique
relationship with a consumer, generally acting as a "middle man" in a transaction. - Answer
non-agent
While some states allow non-agency, the exact nature of the relationship and the duties owed
to the consumer vary widely from state to state.
A __________ doesn't represent the buyer or seller, isn't a fiduciary, and can provide only
limited services to facilitate the transaction. The ___________ assists either or both parties with
clerical or ministerial tasks. - Answer non-agent
is a licensee engaged to act for another licensee in performing brokerage tasks for a principal.
The sub-agent owes the same obligations and responsibilities to the principal as the principal's
agent. Usually this is seen when a licensee from a competing firm brings the buyer to the deal,
but instead of representing the buyer, the licensee works under the listing agent as a
representative of the seller. - Answer sub-agent
Someone who's a party to a transaction OR the person for whom the agent acts - Answer
principal
Someone who's working with a real estate licensee, but isn't represented by him - Answer
customer
Someone who uses or purchases a product or service - Answer consumer
Someone who has agency representation with the real estate licensee - Answer client
You are permitted to perform some _______ (aka ministerial) tasks for a customer, which are
defined as factual-based tasks that don't require you to use your judgment as a licensee. -
Answer clerical
**Further, you'll also need to disclose any material facts about the transaction to a customer, as
well as treat that person with honesty and professional integrity. And, of course, you'll need to
properly account for any money or property you receive from a customer.
, Services performed that are routine and do not involve judgment, advocacy, or negotiation -
Answer ministerial acts
Ex. Keira helped a buyer fill in some of the blanks in their contract offer for her seller's house,
but did not advocate for or advise them in any way.
As a real estate agent, you may serve as two types of agents: - Answer General Agent
Special Agent
A person who is authorized to act for another (the principal or client) in a range of matters or
multiple transactions - Answer General Agent
Ex. A property manager is one example a general agent of the owner and acts for the owner in
most matters related to the property.
An agent whose scope of authority is limited to a specific area or/also where you have limited
authority to represent your client in one transaction. - Answer special agent
Ex. Real estate agents usually act as special agents to their clients; they assist with the sale but
cannot sign contracts for the client or make decisions regarding the property independent of
the client.
In most typical transactions involving a buyer or seller, you'll act as a ________________. This
means you don't make any decisions or enter into any contracts on your client's behalf, but you
simply act as an intermediary, liaison, and negotiator, conveying, representing, and advocating
for your client's best interests. A ______________ relationship is usually limited to one
transaction. Your role is to find the house, sell the house, etc. You don't continue to represent
that client once the transaction is closed. - Answer special or specific agent
A property manager, however usually serves as a ______________. In carrying out the terms of
the property management agreement, you'd find yourself collecting rent, evicting tenants, and
entering into leases with tenants on behalf of your client, the property owner. This is similar to
the duties that the holder of a power of attorney would have. Rather than a power of attorney,
the property management agreement will spell out the scope of your authority to act on the
principal's behalf. A _____________ in this capacity does offer continuity of service, because
the agent is authorized to conduct a series of transactions. - Answer general agent
Another example of general agency is the relationship of a salesperson and their supervising
broker. A salesperson represents their broker in multiple transactions over time with limited
authority.
Three types of agency that may have sometimes apply to your role as a licensee - Answer
limited, universal, and non-agent
