Fundamentals of real estate exam prep questions and answers

Fundamentals of real estate exam prep questions and answers Money laundering: - Answer-Process of making large amounts of money from illegal sources. - To convert the proceeds of crime into less suspicious forms - To conceal the criminal origins & ownership of the funds - To create legitimate explanations for the sources of the funds 5 D's of role clarity & consistency - Answer-5 D's of role clarity & consistency 1. Discuss 2. Determine 3. Document 4. Disclose 5. Do Benefits of role clarity & consistency: - Answer-1. Complies w/ the regulatory requirements 2. Enhances image of the rep 3. Prevents unintended RE relationships 4. Clairifies responsibilities owed to the consumer 5. Clarifies services to be provided to consumer 6. Reduces disputes with the REP Representation relationships: - Answer-In any agency relationships, the third party being represented by another party is known as the principal - An agent is the party acrting on behalf of the principals behalf - Client = principal - Customer= third party Fundamental principlles of fiduciary Duties - Answer-- Trust & confidence- The client places trust & confidence in the REP & relies on their advice - Best interests:- The REP always must act in the clients best interest - Loyalty- A REP must always be loyal to the client & place the clients best interest their own Implication - Answer-Implied by the conduct of the parties involved Ratification - Answer-When an agent acts without authority or in excess of the authority granted Estoppel - Answer-when a principal acts in a way that leads a third party to believe that an agent has been given authority to act on behalf of the principal Operation of law- - Answer-- When an agent takes immediate action to save the property or prevent imminent danger to a principal.