Affiliate Broker Prelicense Definitions - Part 1 exam with 100% correct answers

Definition of Brokerage The bringing together of parties interested in making a real estate transaction. What is Agency? The relationship between a principal and an agent. Usually a property owner and a real estate broker. What is a Single Agency? A broker who represents only one client in a real estate transaction. What is Dual Agency? A broker who represents two opposing clients in a real estate transaction. A Disclosed Dual Agency is? Legal An Undisclosed Dual Agency is? Always Illegal A Subagent is? An agent employed by a someone already acting as an agent. What is Designated Agency? When a brokerage represents both parties equally in a transaction by the broker appointing a seller agent and a separate buyer agent. As a Facilitator or Transaction Broker the agent? Assists the seller and buyer in reaching an agreement— but does not represent either the seller or buyer in the transaction. Agency Relationship Must Be? Written: Implied, assumed or oral contracts are not valid in Tennessee, though they are in many states. The Client/Principal is? Someone who has signed an agency contract. The Customer is? Someone who has not signed an agency contract. Duties Owed to the Client Under Common Law Are? Confidentiality, Care, Obedience, Accounting, Loyalty, Disclosure (CCOALD) What Are Material Facts in Tennessee? They are things that would cause a reasonable person to change their mind. What Are Adverse Facts in Tennessee? Anything that has a negative effect on property value. Anything that would affect the structure. Anthing that would affect the health of the occupants (lead, asbstos, radon, etc...) When the Broker is Hired to Find a Ready, Willing and Able Buyer, he is a _______ _____ Because of the Limited Authority Granted. Special Agent What is the Definition of Fiduciary? A person who holds a position of trust and confidence. How are Commission Rates Established? Commission Rates are Negotiable. When Has a Broker Earned a Commission? When he has found a ready, willing and able buyer the seller is willing to accept. A Broker May Share a Commission With? His/her own sales people or broker from another state so long as the broker of the other state does not come into Tennessee and conduct any negotiations. Anti-trust Laws are? Designed to Preserve the Free Enterprise of the Open Marketplace. What is a Listing Contract? It is an employment contract between the seller and the broker. The Listing is Owned By the? Broker Listings must be? Written, signed by the parties, have an expiration date, and a definite commission amount or rate specified in the agreement. What are the 5 Common Types of Listings? Exclusive right to sell, Exclusive Agency, Open, Net, and Multiple Listing Service In What Type of Listing Must the Seller Pay Commission Regardless of Who Finds the Buyer? Exclusive Right to Sell What is the Purpose of the Protection/Carryover Clause? To ensure that the broker's commission is paid, if the seller sells to someone who was introduced to the property within a number of days after the listing expires. In What Type of Listing Does the Seller Reserve the Right to Sell Property Himself Without Having to Pay a Commission? Exclusive Agency Net Listings are? Illegal Under What Type of Listing Contract is the Broker's Commission Contingent on the Broker Producing a Ready, Willing, and Able Buyer Before the Property is Sold By the Seller or Another Broker? Open Listing