Legal Aspects of Real Estate Unit 9
Exam 2025 Questions and Answers
Agency - ANSWER✔️✔️-A legal relationship in which a proncipal authorizes an agent ti act as the
principals representative when dealing with third parties
Law of agency - ANSWER✔️✔️-He who acts through another is deemed in law to do it himself
Fiduciary Relationship - ANSWER✔️✔️-Implies a position of trust and confidence
Common law agency - ANSWER✔️✔️-Get authority from the customs of pre colonial England.
Laws that were common and from the subsequent judgements and case law that have enforced and
reaffirmed the customs
Statutory law agency - ANSWER✔️✔️-Draws from the statutes and rules created by various
legislative and governing bodies
Agent - ANSWER✔️✔️-A person who has the authority to act on behalf of another representing
the business interests of that person
Principal - ANSWER✔️✔️-The client who gives authority to an agent to represent his or her
interest in dealing with third parties
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, Third party - ANSWER✔️✔️-A customer who may be affected by the terms of an agreement but
who is not apart of the agreement
General agency - ANSWER✔️✔️-A relationship in which principle delegates ongoing task or
duties to an agent under his or her employ
General agent - ANSWER✔️✔️-Authorized by a principal to perform all task associated with
continued operation of a particular project
Special agency - ANSWER✔️✔️-A relationship in which a principal delegates limited tasks or
specific duties to an agent under his or her employ
Special agent - ANSWER✔️✔️-A person employed to perform a particular task or transaction for
a specified amount of time
Actual Authority - ANSWER✔️✔️-With the agency relationship is described in a written
agreement
Implied agency - ANSWER✔️✔️-When agent and principal relationship is created two words or
actions without actual authority
Agency by Estoppel - ANSWER✔️✔️-Created when a principal causes a third-party to believe
another person is the principal's agent
Single agency - ANSWER✔️✔️-When a broker represents only the buyer or the seller in the
transaction
Dual agency - ANSWER✔️✔️-Exists if one broker represents both principles in the transaction
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
Exam 2025 Questions and Answers
Agency - ANSWER✔️✔️-A legal relationship in which a proncipal authorizes an agent ti act as the
principals representative when dealing with third parties
Law of agency - ANSWER✔️✔️-He who acts through another is deemed in law to do it himself
Fiduciary Relationship - ANSWER✔️✔️-Implies a position of trust and confidence
Common law agency - ANSWER✔️✔️-Get authority from the customs of pre colonial England.
Laws that were common and from the subsequent judgements and case law that have enforced and
reaffirmed the customs
Statutory law agency - ANSWER✔️✔️-Draws from the statutes and rules created by various
legislative and governing bodies
Agent - ANSWER✔️✔️-A person who has the authority to act on behalf of another representing
the business interests of that person
Principal - ANSWER✔️✔️-The client who gives authority to an agent to represent his or her
interest in dealing with third parties
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, Third party - ANSWER✔️✔️-A customer who may be affected by the terms of an agreement but
who is not apart of the agreement
General agency - ANSWER✔️✔️-A relationship in which principle delegates ongoing task or
duties to an agent under his or her employ
General agent - ANSWER✔️✔️-Authorized by a principal to perform all task associated with
continued operation of a particular project
Special agency - ANSWER✔️✔️-A relationship in which a principal delegates limited tasks or
specific duties to an agent under his or her employ
Special agent - ANSWER✔️✔️-A person employed to perform a particular task or transaction for
a specified amount of time
Actual Authority - ANSWER✔️✔️-With the agency relationship is described in a written
agreement
Implied agency - ANSWER✔️✔️-When agent and principal relationship is created two words or
actions without actual authority
Agency by Estoppel - ANSWER✔️✔️-Created when a principal causes a third-party to believe
another person is the principal's agent
Single agency - ANSWER✔️✔️-When a broker represents only the buyer or the seller in the
transaction
Dual agency - ANSWER✔️✔️-Exists if one broker represents both principles in the transaction
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
