UNIT 9 - CA LEGAL ASPECTS OF REAL
ESTATE UPDATED ACTUAL Exam
Questions and CORRECT Answers
Agency - CORRECT ANSWER - Legal relationship where a principal authorizes an agent
to represent them with third parties
Fiduciary relationship - CORRECT ANSWER - Implies trust and confidence in a legal
relationship
Agent - CORRECT ANSWER - Person representing another's business interests with
authority
Principal - CORRECT ANSWER - Client authorizing an agent to act on their behalf with
third parties
Third party - CORRECT ANSWER - Customer affected by an agreement but not part of it
General agency - CORRECT ANSWER - Principal delegates ongoing tasks to an agent
under their employ
Special agency - CORRECT ANSWER - Principal delegates limited tasks to an agent
under their employ
Cooperating broker - CORRECT ANSWER - Selling agent aiding another broker in
finding a buyer
Dual agent - CORRECT ANSWER - Broker representing both seller and buyer in a
transaction
, Sales associate - CORRECT ANSWER - Licensed real estate salesperson or broker under
an employing broker
Right to control - CORRECT ANSWER - Extent of direction the broker has over their
hired individual
Power of attorney - CORRECT ANSWER - Written document granting legal authority to
act on another's behalf
Ratification - CORRECT ANSWER - Acceptance of an already performed act
Estoppel - CORRECT ANSWER - Legal bar preventing assertion of inconsistent facts or
rights
Material fact - CORRECT ANSWER - Significant information affecting a principal's
consent to a transaction
Indemnification - CORRECT ANSWER - Protection against loss, damage, or injury
Confidentiality - CORRECT ANSWER - Obligation to disclose truth and not conceal
material facts
Agency - CORRECT ANSWER - Relationship where one party acts on behalf of another
Principal - CORRECT ANSWER - Grants authority to an agent in an agency relationship
Agent - CORRECT ANSWER - Authorized individual acting on behalf of the principal
ESTATE UPDATED ACTUAL Exam
Questions and CORRECT Answers
Agency - CORRECT ANSWER - Legal relationship where a principal authorizes an agent
to represent them with third parties
Fiduciary relationship - CORRECT ANSWER - Implies trust and confidence in a legal
relationship
Agent - CORRECT ANSWER - Person representing another's business interests with
authority
Principal - CORRECT ANSWER - Client authorizing an agent to act on their behalf with
third parties
Third party - CORRECT ANSWER - Customer affected by an agreement but not part of it
General agency - CORRECT ANSWER - Principal delegates ongoing tasks to an agent
under their employ
Special agency - CORRECT ANSWER - Principal delegates limited tasks to an agent
under their employ
Cooperating broker - CORRECT ANSWER - Selling agent aiding another broker in
finding a buyer
Dual agent - CORRECT ANSWER - Broker representing both seller and buyer in a
transaction
, Sales associate - CORRECT ANSWER - Licensed real estate salesperson or broker under
an employing broker
Right to control - CORRECT ANSWER - Extent of direction the broker has over their
hired individual
Power of attorney - CORRECT ANSWER - Written document granting legal authority to
act on another's behalf
Ratification - CORRECT ANSWER - Acceptance of an already performed act
Estoppel - CORRECT ANSWER - Legal bar preventing assertion of inconsistent facts or
rights
Material fact - CORRECT ANSWER - Significant information affecting a principal's
consent to a transaction
Indemnification - CORRECT ANSWER - Protection against loss, damage, or injury
Confidentiality - CORRECT ANSWER - Obligation to disclose truth and not conceal
material facts
Agency - CORRECT ANSWER - Relationship where one party acts on behalf of another
Principal - CORRECT ANSWER - Grants authority to an agent in an agency relationship
Agent - CORRECT ANSWER - Authorized individual acting on behalf of the principal
