National Portion - Real Estate Prep Exam Correct Questions and Answers Graded A+ 100%

National Portion - Real Estate Prep Exam Correct Questions and Answers Graded A+ 100% agency - CORRECT ANSWER-a consensual fiduciary relationship authorizing a broker to act on the behalf of a client Fiduciary Relationship - CORRECT ANSWER-a relationship in which one party places special trust, confidence, and reliance in a trusted person Principal - CORRECT ANSWER-a person (client) who empowers another (agent) to act as his or her representative in a real estate transaction client - CORRECT ANSWER-those which have entered into a written agency agreement with an agent agent - CORRECT ANSWER-one empowered to act for another in a real estate transaction (broker) subagent - CORRECT ANSWER-an agent who is appointed by the broker to work directly with a client. All listings technically belong to the broker in charge customer - CORRECT ANSWER-one who desires the services of an agent but opts not to establish an agency relationship through the signing of a contract/agreement attorney in-fact - CORRECT ANSWER-an attorney or agent who may or may not be a lawyer who is given written authority to act on another's behalf as specified by a power of attorney common law - CORRECT ANSWER-body of law that is based on custom and general principles and embodied in case law. Serves as precedent and applies to situations not covered by statute statutory law - CORRECT ANSWER-laws that are created through written legislation dual agency - CORRECT ANSWER-when the agent represents two clients in the same real estate transaction (buyer and seller) Seller/buyer agency - CORRECT ANSWER-when the agent only represents one client in a single transaction; i.e. the buyer or the seller designated agency - CORRECT ANSWER-an example of dual agency where the BIC is the dual agent and he/she selects two subagents: one to represent the buyer, one to represent the seller. transactional broker - CORRECT ANSWER-only perform ministerial acts for both parties. No agency relationship. They serve as a facilitator in an attempt to bring the buyer and seller to agree on terms of the purchase Multiple Listing Service - CORRECT ANSWER-agent doing the MLS and agree to cooperate with other agents by listing all properties for sale in the MLS, making the homes available to cooperating agents Seller/Buyer Agency Responsibilities - CORRECT ANSWER-1) perform the terms of the written brokerage agreement 2)promote the interest of the seller by performing agency duties Seller Agency Duties - CORRECT ANSWER-1) Seek a sale at the price and terms stated in the agreement, or at a term accord the acceptable to the client 2) present, in a timely manner all offers and counteroffers 3) disclose to the seller all relevant facts concerning the transaction 4) advise the seller to obtain expert advice on matters the are beyond the expertise of the agent 5) accounting, in a timely manner, for all money and property received in which the seller has an interest Buyer Agency Duties - CORRECT ANSWER-1) seeking property at the price and terms stated in the agreement, or at a price and terms acceptable to the buy 2) present, in a timely manner, all offers and counteroffers to the buyer 3) disclose to the buyer all relevant facts concerning the transaction which are known, or should have been known, to the agent 4) advise the buyer to obtain expert advice on material that is beyond the expertise of the agent 5) accounting, in a timely manner, for all money and property received that the buyer has an interest in Non-disclosable information in dual agency situation - CORRECT ANSWER-1) the willingness or ability of the seller to accept less than asking 2) the willingness or ability of the buyer to pay more than asking 3) confidential negotiating strategy not disclosed in an offer as terms of a sale 4) the motivation ballet seller for selling property or the motivation of a buyer for buying property Joint Liability - CORRECT ANSWER-Means the agent in the sub agent are fully liable for all of their obligations Several liability - CORRECT ANSWER-Means the agent and the sub agent are only liable for their proportionate share of the obligation Vicarious liability - CORRECT ANSWER-Secondary liability that arises under the common law doctrine of agency. Basically, anything the sub agent, knows or should know, the agent should know also. Universal agent - CORRECT ANSWER-One authorized to conduct business on behalf of a client with a very broad authority. They find the property, negotiate a deal, and purchase the property for the client. General agent - CORRECT ANSWER-One authorized to represent a client on behalf of another agent (BIC) Special agent - CORRECT ANSWER-Typically the broker in charge. The client will hire this agent and tell them which level of authority they possess Disclose principal - CORRECT ANSWER-When the agent represents a buyer or seller whose identity is known. Undisclosed principal - CORRECT ANSWER-When an agent represents a client without disclosing who that client is. Ex. Mason's and Jay Sean's house. Fiduciary duties (OLDCAR) - CORRECT ANSWER-1) obedience 2) loyalty 3) disclosure 4) confidentiality 5) accounting 6) reasonable care, knowledge and diligence Three times an agent may disclose confidential info - CORRECT ANSWER-1) when the principal grants permission 2) when it is required by law 3) when disclosure is required to defend oneself against accusations of wrongdoing before a legal hearing clients obligations to the agent - CORRECT ANSWER-1) compensation 2) reimbursement 3) opportunity to do job fully 4) good conduct 5) indemnity 6) good thing Ministerial Services - CORRECT ANSWER-Non-agency duties such as scribing, completion and sending of paperwork, and the gathering of information Services that must be offered to a customer - CORRECT ANSWER-1) timely presentation of offers 2) timely account for all money and property received 3) providing meaningful explanation of agency relationship 4) provide an explanation of the scope of services to be provided 5) fair and honest/provide accurate information in all dealings Mandatory disclosures - CORRECT ANSWER-Property defects and the breakdown in the four types of agency relationships When does agency begin? - CORRECT ANSWER-When all parties have agreed through written consent