SC Real Estate PSI Exam Review questions and solutions

SC Real Estate PSI Exam Review questions
and solutions

Agent AKA Proxy - answersOne engaged to respresent and be under the control of a principal
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Principal AKA Client - answersOne who contracts with another for represenation, advise and
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cousel in legal or business dealings with third parties.
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Third Party AKA customer - answersThe person(s) the agent is trying to do busines with while
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representing the client
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Common Law - answersCreated by judges vc vc vc vc vc




Statues - answerswritten State or Federal laws vc vc vc vc vc vc




Types of agents - answersUniversal , Special, General, Subagent, Dual Agent and Designated
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agent
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Designated Agent - answersBIC designates a licensee to seller and another licensee to the vc vc vc vc vc vc vc vc vc vc vc vc vc




buyer - BIC can never designate themselves
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Universal Agent - answersCan do ALL the acts a principal can do; created by a power of attorney
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Special Agent - answersHired by principal for a specific service - limited authority - does NOT
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have continuous service
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General Agent - answersHired for continuous service and has broad authority. (Usually a PM
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but if they are only to find a tenant and get a leased sign then they are a Special Agent).
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Dual Agent - answersReal estate firm representing the buyer client and seller client in the same
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real estate transation
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Power of Attorney - answersA piece of paper authorizing one person to act for another person
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Subagent - answersAn agent of an agent. Two types: Inhouse and cooperative. vc vc vc vc vc vc vc vc vc vc vc




Cooperative Subagent - answersWhen a compant sells another company's listing to a buyer vc vc vc vc vc vc vc vc vc vc vc vc




customer, the selling company is a subagent of the listing company.
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Types of agencies - answersExpress and Implied
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Express Agency - answersTerms that are expressed in writing. vc vc vc vc vc vc vc vc




Implied Agency - answersTerms that are expressed in acts of the parties.
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SC requires agency contracts to be... - answersWritten
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Listings - answersContracts between seller and the broker vc vc vc vc vc vc vc




Buyer Representation - answersContracts between the buyer and the broker
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, Property Management Agreement - answersConteacts between the property owner and the
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PM
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Agency Contracts may be terminated by either... - answersoperation if the law OR acts of the
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parties
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A contract terminated by operation of the law - answersDeath or incapcity of
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principal/client/agent, destruction of subjest matter, loss of title through foreclosure/tax sale,
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performance, bankrupcy of principal/client/agent, or change of law that makes performance
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impossible.
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A contract terminated by Acts of Parties - answersMutual agreement, breach of contract,
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Exclusive right to sell (seller agency) - answersListing brokerage gets paid if property is sold by
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anyone (most common)
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Exclusive agency (seller agency) - answersListing brokersage does NOT get paid if owner sells
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property
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Open Listing (seller agency) - answersCould have many listing brokerages; only the comnpany
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that sells it gets paid (rarely used)
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Broker protection clause AKA Safety Clause in listings - answersMakes the seller obligated to
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pay the commission if the property is sold to a registered buyer after the listing expires.
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Protection voided if seller doesn't become a FSBO and lists with another broker. Signing
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another listing agreement with another broker will void this.
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Net listing - answersThis is not a type of listing and is unethical method of calculating the
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commission
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Exclusive right to sell (buyer agency) - answersBuyer's brokerage gets paid if the property is
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bought
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Exclusive agency (buyer agency) - answersBuyer's brokerage does NOT get paid if the buyer
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buys a property not listed and no other licensee is involved. Rarely used.
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Open (buyer agency) - answersBuyer's brokaerage only gets paid if firectly invloved in the
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purchase
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Broker protection clause AKA Safety Clause in buyers - answersBuyer is obligated to pay the
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agrred fee if the buyer client buys a property that the agent has shown or told them about before
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the agency agreement expired. Signing an agreement with another broker does not normally
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void the protection period.
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Agent's Common Law Fiduciary Duties to Prinicipal - answersOLD CAR - Obedience, Loyalty,
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Disclosure - full, Confidentiality (out lives the contract), Accounting (out lives the contract), and
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Reasonable care and diligence
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What is the effect of Dual Agency on Agent's Duties? - answersBoth clients lose 'OLD' and both
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clients keep 'CAR'. Agent must become neutral - not favoring either party.
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Residential Property - answersSingle family, duplex to quadplex, multi-family which is 5 units or vc vc vc vc vc vc vc vc vc vc vc vc vc




more.
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