Law of Agency: Cumulative Questions with Verified Solutions

Law of Agency: Cumulative Questions with Verified Solutions abandonment when the license holder ceases to perform their duties of the agency relationship actual authority specific powers given to an agent by the principal that allows them to act on the principal's behalf agency by actual authority actions taken by an agent for which they have permission, whether given through express or implied authority by a principal agency by estoppel agency imposed by law when it is determined that ostensible agency existed; used to create legal accountability for the agent or the principal on whose behalf the agent acted agency by ratification created when a license holder acts on behalf of but without prior authorization of a principal and that principal accepts the license holder's action after the fact agency coupled with interest when an agent is involved in a real estate transaction with a personal interest (either for themselves, a family member, or a business interest) arbitration a forum where parties and counsel present their positions before an impartial third party who renders a specific award attorney representation a situation in which a real estate attorney can represent the buyer in the purchase of a home (this option is only available in certain states) backup offer offer made on a property already under contract blockbusting occurs when a real estate agent canvasses a geographical area and incites panic by suggesting that people of certain races, colors, religions, or other protected classes will be moving into the neighborhood and causing the area to deteriorate and prices to destabilize broker An individual licensed by TREC to perform brokerage duties broker compensation the percentage fee or commission (or, in rare instances, flat fee) that is paid for an agent's representation and services provided during real estate transactions; a.k.a. brokerage fee broker price opinion (BPO) the agent's determination of an appropriate purchase price brokerage the joining of two people for the purpose of an exchange of products or services buyer representation agreement a document that outlines the duties and implications of the broker-buyer agency relationship buyer's agent a broker representing a buyer in a real estate transaction, a.k.a. buyer's broker client the person that an agent is representing, made official through a representation document collusion a secret agreement or cooperation for an illegal or deceitful purpose comparative market analysis (CMA) a report comparing the prices of sold homes that are similar to the subject property (called comparables); created by a license holder to help the seller or buyer determine the market value consumer an individual, partnership, corporation, the state, or a subdivision or agency of the state who seeks or acquires by purchase or lease, any goods or services contingency a provision within a contract