Champions School of Real Estate - Exam Prep Questions with complete solutions

Buyer Representation Agreement - ANSWER-An employment contract obligating a broker to act as a fiduciary to a buyer Implied Agency - ANSWER-Agency as a result of customary, usual or typical conditions Broker - ANSWER-A properly licensed party who serves a principal in an agency relationship- also called an agent Client - ANSWER-A party represented by a broker in an agency relationship - also called a principal Duties of an Agent - ANSWER-An agent owes his client obedience, loyalty, disclosure, confidentiality, accounting and reasonable care (old car) customer - ANSWER-A third party - one a broker is working with, but who is not represented by that broker Exclusive Agency Listing - 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 - ANSWER-Agency as a result of the actions of an agent and the response of other to those actions Agency by Ratification - ANSWER-Agency is established when an agent acts without permission of the principal and the principal accepts or ratifies those actions. Blind Ad - 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.