Legal Aspects of Real Estate Unit 9
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Agency - CORRECT ANSWER - A legal relationship in which a proncipal authorizes an
agent ti act as the principals representative when dealing with third parties
Law of agency - CORRECT ANSWER - He who acts through another is deemed in law to
do it himself
Fiduciary Relationship - CORRECT ANSWER - Implies a position of trust and confidence
Common law agency - CORRECT ANSWER - Get authority from the customs of pre
colonial England. Laws that were common and from the subsequent judgements and case law
that have enforced and reaffirmed the customs
Statutory law agency - CORRECT ANSWER - Draws from the statutes and rules created
by various legislative and governing bodies
Agent - CORRECT ANSWER - A person who has the authority to act on behalf of another
representing the business interests of that person
Principal - CORRECT ANSWER - The client who gives authority to an agent to represent
his or her interest in dealing with third parties
Third party - CORRECT ANSWER - A customer who may be affected by the terms of an
agreement but who is not apart of the agreement
General agency - CORRECT ANSWER - A relationship in which principle delegates
ongoing task or duties to an agent under his or her employ
, General agent - CORRECT ANSWER - Authorized by a principal to perform all task
associated with continued operation of a particular project
Special agency - CORRECT ANSWER - A relationship in which a principal delegates
limited tasks or specific duties to an agent under his or her employ
Special agent - CORRECT ANSWER - A person employed to perform a particular task or
transaction for a specified amount of time
Actual Authority - CORRECT ANSWER - With the agency relationship is described in a
written agreement
Implied agency - CORRECT ANSWER - When agent and principal relationship is created
two words or actions without actual authority
Agency by Estoppel - CORRECT ANSWER - Created when a principal causes a third-
party to believe another person is the principal's agent
Single agency - CORRECT ANSWER - When a broker represents only the buyer or the
seller in the transaction
Dual agency - CORRECT ANSWER - Exists if one broker represents both principles in
the transaction
Listing agent - CORRECT ANSWER - A broker who obtains a listing from a seller to act
as an agent for compensation
Listing - CORRECT ANSWER - A contract between an owner of real property and an
agent who is authorized to obtain a buyer
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Agency - CORRECT ANSWER - A legal relationship in which a proncipal authorizes an
agent ti act as the principals representative when dealing with third parties
Law of agency - CORRECT ANSWER - He who acts through another is deemed in law to
do it himself
Fiduciary Relationship - CORRECT ANSWER - Implies a position of trust and confidence
Common law agency - CORRECT ANSWER - Get authority from the customs of pre
colonial England. Laws that were common and from the subsequent judgements and case law
that have enforced and reaffirmed the customs
Statutory law agency - CORRECT ANSWER - Draws from the statutes and rules created
by various legislative and governing bodies
Agent - CORRECT ANSWER - A person who has the authority to act on behalf of another
representing the business interests of that person
Principal - CORRECT ANSWER - The client who gives authority to an agent to represent
his or her interest in dealing with third parties
Third party - CORRECT ANSWER - A customer who may be affected by the terms of an
agreement but who is not apart of the agreement
General agency - CORRECT ANSWER - A relationship in which principle delegates
ongoing task or duties to an agent under his or her employ
, General agent - CORRECT ANSWER - Authorized by a principal to perform all task
associated with continued operation of a particular project
Special agency - CORRECT ANSWER - A relationship in which a principal delegates
limited tasks or specific duties to an agent under his or her employ
Special agent - CORRECT ANSWER - A person employed to perform a particular task or
transaction for a specified amount of time
Actual Authority - CORRECT ANSWER - With the agency relationship is described in a
written agreement
Implied agency - CORRECT ANSWER - When agent and principal relationship is created
two words or actions without actual authority
Agency by Estoppel - CORRECT ANSWER - Created when a principal causes a third-
party to believe another person is the principal's agent
Single agency - CORRECT ANSWER - When a broker represents only the buyer or the
seller in the transaction
Dual agency - CORRECT ANSWER - Exists if one broker represents both principles in
the transaction
Listing agent - CORRECT ANSWER - A broker who obtains a listing from a seller to act
as an agent for compensation
Listing - CORRECT ANSWER - A contract between an owner of real property and an
agent who is authorized to obtain a buyer
