Champions School of Real Estate - Exam Prep| 177 questions and answers.

Buyer Representation Agreement An employment contract obligating a broker to act as a fiduciary to a buyer Implied Agency Agency as a result of customary, usual or typical conditions Broker A properly licensed party who serves a principal in an agency relationship- also called an agent Client A party represented by a broker in an agency relationship - also called a principal Duties of an Agent An agent owes his client obedience, loyalty, disclosure, confidentiality, accounting and reasonable care (old car) customer A third party - one a broker is working with, but who is not represented by that broker Exclusive Agency Listing A listing where one broker is the exclusive agent and will earn a commission if the property is sold, unless the seller sells it himself- the seller is competing with his broker Ostensible Agency Agency as a result of the actions of an agent and the response of other to those actions Agency by Ratification Agency is established when an agent acts without permission of the principal and the principal accepts or ratifies those actions. Blind Ad An advertisement that does not clearly indicate the licensed status of the party placing the ad - real estate licensees are prohibited from placing blind ads. Duties of Principal A principal owes his agent compensation, reimbursement, indemnification and performance Procuring Cause of Sale The effort that results in the sale of property - the act of bringing a ready, willing and able buyer to a seller resulting the sale of the seller's property Exclusive right to sell A listing where one broker will earn a commission when the property is sold, no matter who sells it Listing Agreement An employment contract obligating a broker to act as a fiduciary to a seller Agency by Estoppel A principal fails to maintain due diligence over his agent and as a result the court prevents the principal from denying the agency relationship Dual Agent A broker who has the written permission of both the buyer and the seller to represent both parties in a single transaction Management Agreement An employment contract obligating a broker to act as a fiduciary to a property owner Sherman Anti-Trust Act Federal law that preserves business competition by prohibiting monopolies, monopolistic practices and restraint of trade- in real estate the biggest impact is on commissions- always negotiable Agency The fiduciary relationship between a broker and a principal or a broker and a client Universal Agency A principal gives an agent the power to transact matters of all types for him Designated Agent A license appointed by a broker in a dual agency situation to work with either the buyer or the seller in the transaction. Commission A negotiated compensation in a broker's employment contract. Fiduciary A party acting for another in a position of trust - a broker, an agent Public Responsibilities The responsibilities a broker has to customers or third parties including honesty, fairness and disclosure of material facts General Agency A principal gives an agent the power to bind him in a particular trade or business intermediary A broker in Texas who has the written permission of both the buyer and the seller to represent both parties in a single transaction Fiduciary Responsibilities The responsibilities a broker has to clients in an agency relationship includes placing the interest of the client first, full disclosure of all facts, material and other, and giving advice and opinions Agency coupled with an interest Any transaction where the agent is also the seller, or the agent is also the buyer, this dual role must always be disclosed Appointed Associate A licensee appointed by a broker in Texas in an intermediary situation to work with either the buyer or the seller in the transaction Special Agency A principal gives an agent the power to perform specific acts, but not to bind the principal - also called limited agency. fiduciary relationship The relationship based on trust - the relationship governed by the law of agency between a broker and a principal Subagent An agent for a person who is already an agent for a principal - the listing salesperson under a listing broker - this is not a Texas definition Principal A party represented by a broker in an agency relationship - also called a client Oral Agency An agency relationship created by an oral or spoken agreement Limited Agency A principal gives an agent the power to perform specific acts, but not to bind the principal- also called special agency Open Listing A listing where a seller reserves the right to list with as many brokers as he chooses - he also reserves the right to sell the property himself - only a broker who brings a contract to the seller will earn a commission Module A unit of prefabricated housing - offsite construction Straight Line Method Depreciation of equal annual installment amounts Life Cycle The stage of growth and development of a community - grow, stabilize, decline and revitalize Principle of Substitution No person is justified in paying more for a property when a similar property can be purchased for less - sets an upper limit on price