ACE NC STATE PORTION EXAM: LATEST QUESTIONS AND
ANSWERS AND STEP BY STEP + TIPS.
Agency relationship
there are always two parties in any agency relationship: the principal and the agent. An
agency relationship is created when one person (the Principal) authorized another
person (the agent) to handle certain matters on behalf of the principal.
Agency
the relationship that exists when one person is authorized to act for and on behalf of
another
principal
the person who authorizes another (the agent) to act on the principal's behalf within the
spceified parameters and to whom the agent owes certain legal duties
Agent
the person acting for and on behalf of the principal within the bounds of the authority
granted and who owes fiduciary (legal) duties to the principal
Subagent
literally the agent of an agent, a person designated or employed by an agent to perform
all or part of the agent's assigned tasks or services on behalf of the agent's principal. A
subagent stands in the shoes of the agent and owes the same fiduciary duties to the
principal of the agent
Fiduciary
a person who acts for another in a relationship of trust and who is obligated to act in the
other's best interests, placing the other's interests before any self-interest (guardians,
executors, attorneys, and real estate brokers when acting as an agent)
Common law of agency
obligations to be loyal to the prinicpal and preserve personal, confidential information
about the principal, to operate in good faith to promote the principal's interests, and to
disclose all facts to the principal that may influence the principal's decision
Agency law
, requires that a real estate broker, like any other agent, exercise a high degree of skill,
care and diligence in the conduct of the agents duties -- determined by standards set
forth in the NC general Statues, NC real estate commission rules, court decisions and
the professional standards prevailing in the community where the broker works
Special agency
a special agent is only authorized to perform one or more specific acts on behalf of the
principal in accordance with the principal's instructions (most sales transactions involve
special agency)
General agency
a general agent is authorized to perform a range of acts, within specified parameters or
limitations, on behalf of the principal (property management agency agreements)
Universal agency
a universal agent is authorized to transact all of the principal's business of every kind. A
principal may only have one universal agent at a time. Real estate rarely involves this
kind of agency.
Creation of agency relationships
Under the common law of agency, agency relationships could be created by an express
agreement, whether oral or in writing, or by an implied agreement based on the actions
and conduct of the parties.
Listing agreement
A listing agreement is a written agreement in which a property owner hires a broker to
assist the owner in marketing the owner's property and in locating a ready, willing, and
able buyer to purchase the property at a price and terms acceptable to the owner.
Property Management Agreement
A property management agreement is a written agreement in which a property owner
hires a broker to manage property, and tenants, collect rents, maintain the property,
enforce rules, evict tenants, and such other services as are expressly delegated to the
agent. If the broker is hired solely to locate a tenant without any additional management
services, then the owner and broker typically enter into an Agreement to Procure
Tenant rather than a full-service property management agreement.
Buyer Agency Agreement
ANSWERS AND STEP BY STEP + TIPS.
Agency relationship
there are always two parties in any agency relationship: the principal and the agent. An
agency relationship is created when one person (the Principal) authorized another
person (the agent) to handle certain matters on behalf of the principal.
Agency
the relationship that exists when one person is authorized to act for and on behalf of
another
principal
the person who authorizes another (the agent) to act on the principal's behalf within the
spceified parameters and to whom the agent owes certain legal duties
Agent
the person acting for and on behalf of the principal within the bounds of the authority
granted and who owes fiduciary (legal) duties to the principal
Subagent
literally the agent of an agent, a person designated or employed by an agent to perform
all or part of the agent's assigned tasks or services on behalf of the agent's principal. A
subagent stands in the shoes of the agent and owes the same fiduciary duties to the
principal of the agent
Fiduciary
a person who acts for another in a relationship of trust and who is obligated to act in the
other's best interests, placing the other's interests before any self-interest (guardians,
executors, attorneys, and real estate brokers when acting as an agent)
Common law of agency
obligations to be loyal to the prinicpal and preserve personal, confidential information
about the principal, to operate in good faith to promote the principal's interests, and to
disclose all facts to the principal that may influence the principal's decision
Agency law
, requires that a real estate broker, like any other agent, exercise a high degree of skill,
care and diligence in the conduct of the agents duties -- determined by standards set
forth in the NC general Statues, NC real estate commission rules, court decisions and
the professional standards prevailing in the community where the broker works
Special agency
a special agent is only authorized to perform one or more specific acts on behalf of the
principal in accordance with the principal's instructions (most sales transactions involve
special agency)
General agency
a general agent is authorized to perform a range of acts, within specified parameters or
limitations, on behalf of the principal (property management agency agreements)
Universal agency
a universal agent is authorized to transact all of the principal's business of every kind. A
principal may only have one universal agent at a time. Real estate rarely involves this
kind of agency.
Creation of agency relationships
Under the common law of agency, agency relationships could be created by an express
agreement, whether oral or in writing, or by an implied agreement based on the actions
and conduct of the parties.
Listing agreement
A listing agreement is a written agreement in which a property owner hires a broker to
assist the owner in marketing the owner's property and in locating a ready, willing, and
able buyer to purchase the property at a price and terms acceptable to the owner.
Property Management Agreement
A property management agreement is a written agreement in which a property owner
hires a broker to manage property, and tenants, collect rents, maintain the property,
enforce rules, evict tenants, and such other services as are expressly delegated to the
agent. If the broker is hired solely to locate a tenant without any additional management
services, then the owner and broker typically enter into an Agreement to Procure
Tenant rather than a full-service property management agreement.
Buyer Agency Agreement
