Champions School of Real Estate - Exam Prep
Test Questions with Exact Answers.
Buyer Representation Agreement - Correct Answer-An employment contract obligating a
broker to act as a fiduciary to a buyer
Implied Agency - Correct Answer-Agency as a result of customary, usual or typical
conditions
Broker - Correct Answer-A properly licensed party who serves a principal in an agency
relationship- also called an agent
Client - Correct Answer-A party represented by a broker in an agency relationship - also
called a principal
Duties of an Agent - Correct Answer-An agent owes his client obedience, loyalty,
disclosure, confidentiality, accounting and reasonable care (old car)
customer - Correct Answer-A third party - one a broker is working with, but who is not
represented by that broker
Exclusive Agency Listing - Correct Answer-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 - Correct Answer-Agency as a result of the actions of an agent and the
response of other to those actions
Agency by Ratification - Correct Answer-Agency is established when an agent acts
without permission of the principal and the principal accepts or ratifies those actions.
Blind Ad - Correct Answer-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 - Correct Answer-A principal owes his agent compensation,
reimbursement, indemnification and performance
Procuring Cause of Sale - Correct Answer-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 - Correct Answer-A listing where one broker will earn a commission
when the property is sold, no matter who sells it
Listing Agreement - Correct Answer-An employment contract obligating a broker to act as
a fiduciary to a seller
Agency by Estoppel - Correct Answer-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 - Correct Answer-A broker who has the written permission of both the buyer
and the seller to represent both parties in a single transaction
Management Agreement - Correct Answer-An employment contract obligating a broker to
act as a fiduciary to a property owner
Sherman Anti-Trust Act - Correct Answer-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 - Correct Answer-The fiduciary relationship between a broker and a principal or a
broker and a client
Universal Agency - Correct Answer-A principal gives an agent the power to transact
matters of all types for him
Designated Agent - Correct Answer-A license appointed by a broker in a dual agency
situation to work with either the buyer or the seller in the transaction.
Commission - Correct Answer-A negotiated compensation in a broker's employment
contract.
Test Questions with Exact Answers.
Buyer Representation Agreement - Correct Answer-An employment contract obligating a
broker to act as a fiduciary to a buyer
Implied Agency - Correct Answer-Agency as a result of customary, usual or typical
conditions
Broker - Correct Answer-A properly licensed party who serves a principal in an agency
relationship- also called an agent
Client - Correct Answer-A party represented by a broker in an agency relationship - also
called a principal
Duties of an Agent - Correct Answer-An agent owes his client obedience, loyalty,
disclosure, confidentiality, accounting and reasonable care (old car)
customer - Correct Answer-A third party - one a broker is working with, but who is not
represented by that broker
Exclusive Agency Listing - Correct Answer-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 - Correct Answer-Agency as a result of the actions of an agent and the
response of other to those actions
Agency by Ratification - Correct Answer-Agency is established when an agent acts
without permission of the principal and the principal accepts or ratifies those actions.
Blind Ad - Correct Answer-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 - Correct Answer-A principal owes his agent compensation,
reimbursement, indemnification and performance
Procuring Cause of Sale - Correct Answer-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 - Correct Answer-A listing where one broker will earn a commission
when the property is sold, no matter who sells it
Listing Agreement - Correct Answer-An employment contract obligating a broker to act as
a fiduciary to a seller
Agency by Estoppel - Correct Answer-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 - Correct Answer-A broker who has the written permission of both the buyer
and the seller to represent both parties in a single transaction
Management Agreement - Correct Answer-An employment contract obligating a broker to
act as a fiduciary to a property owner
Sherman Anti-Trust Act - Correct Answer-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 - Correct Answer-The fiduciary relationship between a broker and a principal or a
broker and a client
Universal Agency - Correct Answer-A principal gives an agent the power to transact
matters of all types for him
Designated Agent - Correct Answer-A license appointed by a broker in a dual agency
situation to work with either the buyer or the seller in the transaction.
Commission - Correct Answer-A negotiated compensation in a broker's employment
contract.
