The notes below are intended only to supplement a complete and diligent review of the related chapter in your course text. Studying these notes alone is not expected to be adequate test preparation.

 

 

AGENCY

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Simply knowing the real estate language is half the battle in preparing oneself for the examination. This exercise will help to commit the terminology to memory. Read the definition on the left and then recite the term being defined. Place your mouse pointer over the maroon colored box to the right of the definition to reveal the correct answer.

 

The legal relationship created when one person delegates another person to act on his/her behalf when dealing with third parties
The person delegated to act on the principal's behalf
That level of authority which the public is justified in assuming the agent has
An agent whose fiduciary obligations are owed to the buyer
One who retains the services of a broker to represent their interest
The form used to inform buyers and sellers about the four recognized business relationships that a firm may engage in with buyers and sellers
Permission granted through the terms of a contract
An agent who works for both the buyer and seller with their informed written consent
One who transacts business with the brokerage firm but does not retain the services of the firm
The required agreement between a broker and a salesperson
Professional liability insurance for real estate licensees
One who holds a position of trust and confidence for another
An agency in which the agent is empowered to bind his principal in all matters, usually regarding a particular trade or business
The assumed authority an agent has in order to carry out his contractual authority
The principals that govern the relationship of an agent with his principal
The party who is represented by an agent
An agent whose fiduciary obligations are owed to the seller
An agency established to accomplish only a specific purpose
An agent for an agent
One that works with a buyer, a seller or both in a sales transaction without representing either one
Form used when the principal directs the listing agency not to cooperate with other licensees