unit 10: Real estate Agency
Fiduciary Correct Answer: One in whom trust and confidence is placed; a reference to a real estate
professional employed under the terms of a listing contract or buyer representation agreement.
agency Correct Answer: The relationship between a principal and an agent wherein the agent is
authorized to represent the principal in certain transactions.
common law Correct Answer: rules established by tradition and court decisions
statutory law Correct Answer: laws enacted by the legislature
administrative law Correct Answer: rules and regulations created by real estate commissions and
departments, as authorized by the legislature.
Principal Correct Answer: main party to a transaction-the person for whom an agent works for.
Principal Correct Answer: individual who hires someone and delegates to that person the responsibility
of representing his or her interests
Agent Correct Answer: Individual who is authorized and consents to represent the interests of another
person
agency Correct Answer: fiduciary relationship between the principal and the agent
customer Correct Answer: third party or non-respresented consumer
express agency Correct Answer: an agency relationship based on a formal agreement between the
parties. either oral or written agreements are formed.
Implied agency Correct Answer: actions of the parties imply the they have mutually consented to an
agency relationship, an implied agency relationship is formed. A contract under which the agreement of
the parties is demonstrated by their acts and conduct. mutual agreement
listing agreement Correct Answer: A contract between an owner (as principal) and a real estate
professional (as representative of the owner) by which the real estate professional is employed to find a
buyer for the owner's real estate on the owner's terms, for which service the owner agrees to pay a
commission or other form of compensation.
Buyer representation agreement Correct Answer: A principal-agent relationship in which the real estate
professional acts on behalf of the buyer, usually as an agent, with fiduciary responsibilities to the buyer.
buyers agent Correct Answer: A real estate professional who is under contract to locate property for a
buyer and represent the buyer's interests in a transaction.
Fiduciary Correct Answer: One in whom trust and confidence is placed; a reference to a real estate
professional employed under the terms of a listing contract or buyer representation agreement.
agency Correct Answer: The relationship between a principal and an agent wherein the agent is
authorized to represent the principal in certain transactions.
common law Correct Answer: rules established by tradition and court decisions
statutory law Correct Answer: laws enacted by the legislature
administrative law Correct Answer: rules and regulations created by real estate commissions and
departments, as authorized by the legislature.
Principal Correct Answer: main party to a transaction-the person for whom an agent works for.
Principal Correct Answer: individual who hires someone and delegates to that person the responsibility
of representing his or her interests
Agent Correct Answer: Individual who is authorized and consents to represent the interests of another
person
agency Correct Answer: fiduciary relationship between the principal and the agent
customer Correct Answer: third party or non-respresented consumer
express agency Correct Answer: an agency relationship based on a formal agreement between the
parties. either oral or written agreements are formed.
Implied agency Correct Answer: actions of the parties imply the they have mutually consented to an
agency relationship, an implied agency relationship is formed. A contract under which the agreement of
the parties is demonstrated by their acts and conduct. mutual agreement
listing agreement Correct Answer: A contract between an owner (as principal) and a real estate
professional (as representative of the owner) by which the real estate professional is employed to find a
buyer for the owner's real estate on the owner's terms, for which service the owner agrees to pay a
commission or other form of compensation.
Buyer representation agreement Correct Answer: A principal-agent relationship in which the real estate
professional acts on behalf of the buyer, usually as an agent, with fiduciary responsibilities to the buyer.
buyers agent Correct Answer: A real estate professional who is under contract to locate property for a
buyer and represent the buyer's interests in a transaction.
