Principles of Real Final Estate Exam
Questions with Answers
Agent - ✔✔the party authorized to conduct business on the principal's behalf
Agency - ✔✔a legal relationship between a principal and an agent
Blockbusting - ✔✔the illegal practice of encouraging property owners to sell their homes when
minorities begin moving into an area
Broker - ✔✔an intermediary who brings together buyers and sellers, assists in negotiating
agreements between them, executes their orders, and receives compensation for services
rendered
Buyer Representation Agreement - ✔✔the legal agreement between a buyer and a broker hired
to represent the buyer's interest
Buyer's Agent - ✔✔a broker who is legally obligated to represent a buyer's interest
Commission Agreement - ✔✔an agreement between a seller and broker for the payment of a
commission if the broker is successful in locating a buyer for the seller's property
Dual Agent - ✔✔an agent who attempts to work in the best interest of two parties on opposing
sides of a transaction
Exclusive-Brokerage Listing - ✔✔an agreement between a property owner and a single broker
authorizing that broker to seek a buyer for the property in exchange for compensation
,Fair Housing Laws - ✔✔laws that protect the rights of certain citizens in housing transactions
Fiduciary - ✔✔a person who is obligated to act in the best interest of another
Fraud - ✔✔a false statement made with the intention to mislead, that is material to a
transaction, that is justifiably relied on by a client, and that results in injury to the client
Limited-service listing - ✔✔an agreement between a property owner/seller that authorizes a
broker to perform certain tasks to seek a buyer for the property
Listing Agreement - ✔✔the legal agreement between a broker and a property owner that
authorizes the broker to attempt to sell the property
LISTING BROKER - ✔✔the broker who negotiates the listing agreement with the seller
MISREPRESENTATION - ✔✔a false statement that is material to a transaction, that is justifiably
relied upon by a client, and that results in injury to the client
MULTIPLE LISTING SERVICE (MLS) - ✔✔an arrangement in which brokers share their listings
with other brokers in exchange for a share of the commission generated by a transaction
NET LISTING - ✔✔a listing agreement in which the broker is entitled to receive as commission
any amount above a base price
OPEN LISTING - ✔✔a listing agreement in which a broker is entitled to receive a commission
only in the event the broker procures a buyer for the property
PRINCIPAL - ✔✔the person who authorizes an agent to conduct business on his or her behalf
, REAL ESTATE BROKER - ✔✔an individual licensed by a state to represent others in real estate
transactions in exchange for compensation
SELLER'S AGENT - ✔✔a real estate broker who is obligated to represent the best interest of the
seller
SELLING BROKER - ✔✔the broker who actually locates a buyer for a property
STEERING - ✔✔the illegal practice of steering potential homebuyers into certain areas to
influence the racial or ethnic composition of the areas
SUBAGENT - ✔✔an agent of an agent of a principal
TRANSACTION BROKER - ✔✔a broker who provides limited representation to a seller or buyer
in a real estate transaction
ABSORPTION RATE - ✔✔the number of units capable of being absorbed by the market over a
given time period
MANUFACTURED HOME - ✔✔a dwelling unit that is manufactured in a factory and then moved
to a particular site
PATIO HOUSE - ✔✔a detached house with at least one wall that touches the property line
PLEX - ✔✔a form of attached housing containing two or more units, each with its own outside
entrance
TIME-SHARING - ✔✔a form of concurrent estate that splits ownership of a property across
owners and across time
Questions with Answers
Agent - ✔✔the party authorized to conduct business on the principal's behalf
Agency - ✔✔a legal relationship between a principal and an agent
Blockbusting - ✔✔the illegal practice of encouraging property owners to sell their homes when
minorities begin moving into an area
Broker - ✔✔an intermediary who brings together buyers and sellers, assists in negotiating
agreements between them, executes their orders, and receives compensation for services
rendered
Buyer Representation Agreement - ✔✔the legal agreement between a buyer and a broker hired
to represent the buyer's interest
Buyer's Agent - ✔✔a broker who is legally obligated to represent a buyer's interest
Commission Agreement - ✔✔an agreement between a seller and broker for the payment of a
commission if the broker is successful in locating a buyer for the seller's property
Dual Agent - ✔✔an agent who attempts to work in the best interest of two parties on opposing
sides of a transaction
Exclusive-Brokerage Listing - ✔✔an agreement between a property owner and a single broker
authorizing that broker to seek a buyer for the property in exchange for compensation
,Fair Housing Laws - ✔✔laws that protect the rights of certain citizens in housing transactions
Fiduciary - ✔✔a person who is obligated to act in the best interest of another
Fraud - ✔✔a false statement made with the intention to mislead, that is material to a
transaction, that is justifiably relied on by a client, and that results in injury to the client
Limited-service listing - ✔✔an agreement between a property owner/seller that authorizes a
broker to perform certain tasks to seek a buyer for the property
Listing Agreement - ✔✔the legal agreement between a broker and a property owner that
authorizes the broker to attempt to sell the property
LISTING BROKER - ✔✔the broker who negotiates the listing agreement with the seller
MISREPRESENTATION - ✔✔a false statement that is material to a transaction, that is justifiably
relied upon by a client, and that results in injury to the client
MULTIPLE LISTING SERVICE (MLS) - ✔✔an arrangement in which brokers share their listings
with other brokers in exchange for a share of the commission generated by a transaction
NET LISTING - ✔✔a listing agreement in which the broker is entitled to receive as commission
any amount above a base price
OPEN LISTING - ✔✔a listing agreement in which a broker is entitled to receive a commission
only in the event the broker procures a buyer for the property
PRINCIPAL - ✔✔the person who authorizes an agent to conduct business on his or her behalf
, REAL ESTATE BROKER - ✔✔an individual licensed by a state to represent others in real estate
transactions in exchange for compensation
SELLER'S AGENT - ✔✔a real estate broker who is obligated to represent the best interest of the
seller
SELLING BROKER - ✔✔the broker who actually locates a buyer for a property
STEERING - ✔✔the illegal practice of steering potential homebuyers into certain areas to
influence the racial or ethnic composition of the areas
SUBAGENT - ✔✔an agent of an agent of a principal
TRANSACTION BROKER - ✔✔a broker who provides limited representation to a seller or buyer
in a real estate transaction
ABSORPTION RATE - ✔✔the number of units capable of being absorbed by the market over a
given time period
MANUFACTURED HOME - ✔✔a dwelling unit that is manufactured in a factory and then moved
to a particular site
PATIO HOUSE - ✔✔a detached house with at least one wall that touches the property line
PLEX - ✔✔a form of attached housing containing two or more units, each with its own outside
entrance
TIME-SHARING - ✔✔a form of concurrent estate that splits ownership of a property across
owners and across time
