National Portion - Real Estate Exam Prep, 2023 With
Complete Verified Solution. 270 Questions And Correct
Answers
agency
a consensual fiduciary relationship authorizing a broker to act on the behalf of a client
Fiduciary Relationship
a relationship in which one party places special trust, confidence, and reliance in a
trusted person
Principal
a person (client) who empowers another (agent) to act as his or her representative in a
real estate transaction
client
those which have entered into a written agency agreement with an agent
agent
one empowered to act for another in a real estate transaction (broker)
subagent
an agent who is appointed by the broker to work directly with a client. All listings
technically belong to the broker in charge
customer
one who desires the services of an agent but opts not to establish an agency
relationship through the signing of a contract/agreement
attorney in-fact
an attorney or agent who may or may not be a lawyer who is given written authority to
act on another's behalf as specified by a power of attorney
common law
body of law that is based on custom and general principles and embodied in case law.
Serves as precedent and applies to situations not covered by statute
statutory law
laws that are created through written legislation
dual agency
when the agent represents two clients in the same real estate transaction (buyer and
seller)
Seller/buyer agency
when the agent only represents one client in a single transaction; i.e. the buyer or the
seller
designated agency
an example of dual agency where the BIC is the dual agent and he/she selects two
subagents: one to represent the buyer, one to represent the seller.
transactional broker
only perform ministerial acts for both parties. No agency relationship. They serve as a
facilitator in an attempt to bring the buyer and seller to agree on terms of the purchase
Multiple Listing Service
agent doing the MLS and agree to cooperate with other agents by listing all properties
for sale in the MLS, making the homes available to cooperating agents
,Seller/Buyer Agency Responsibilities
1) perform the terms of the written brokerage agreement
2)promote the interest of the seller by performing agency duties
Seller Agency Duties
1) Seek a sale at the price and terms stated in the agreement, or at a term accord the
acceptable to the client
2) present, in a timely manner all offers and counteroffers
3) disclose to the seller all relevant facts concerning the transaction
4) advise the seller to obtain expert advice on matters the are beyond the expertise of
the agent
5) accounting, in a timely manner, for all money and property received in which the
seller has an interest
Buyer Agency Duties
1) seeking property at the price and terms stated in the agreement, or at a price and
terms acceptable to the buy
2) present, in a timely manner, all offers and counteroffers to the buyer
3) disclose to the buyer all relevant facts concerning the transaction which are known,
or should have been known, to the agent
4) advise the buyer to obtain expert advice on material that is beyond the expertise of
the agent
5) accounting, in a timely manner, for all money and property received that the buyer
has an interest in
Non-disclosable information in dual agency situation
1) the willingness or ability of the seller to accept less than asking
2) the willingness or ability of the buyer to pay more than asking
3) confidential negotiating strategy not disclosed in an offer as terms of a sale
4) the motivation ballet seller for selling property or the motivation of a buyer for buying
property
Joint Liability
Means the agent in the sub agent are fully liable for all of their obligations
Several liability
Means the agent and the sub agent are only liable for their proportionate share of the
obligation
Vicarious liability
Secondary liability that arises under the common law doctrine of agency. Basically,
anything the sub agent, knows or should know, the agent should know also.
Universal agent
One authorized to conduct business on behalf of a client with a very broad authority.
They find the property, negotiate a deal, and purchase the property for the client.
General agent
One authorized to represent a client on behalf of another agent (BIC)
Special agent
Typically the broker in charge. The client will hire this agent and tell them which level of
authority they possess
Disclose principal
When the agent represents a buyer or seller whose identity is known.
, Undisclosed principal
When an agent represents a client without disclosing who that client is. Ex. Mason's and
Jay Sean's house.
Fiduciary duties (OLDCAR)
1) obedience
2) loyalty
3) disclosure
4) confidentiality
5) accounting
6) reasonable care, knowledge and diligence
Three times an agent may disclose confidential info
1) when the principal grants permission
2) when it is required by law
3) when disclosure is required to defend oneself against accusations of wrongdoing
before a legal hearing
clients obligations to the agent
1) compensation
2) reimbursement
3) opportunity to do job fully
4) good conduct
5) indemnity
6) good thing
Ministerial Services
Non-agency duties such as scribing, completion and sending of paperwork, and the
gathering of information
Services that must be offered to a customer
1) timely presentation of offers
2) timely account for all money and property received
3) providing meaningful explanation of agency relationship
4) provide an explanation of the scope of services to be provided
5) fair and honest/provide accurate information in all dealings
Mandatory disclosures
Property defects and the breakdown in the four types of agency relationships
When does agency begin?
When all parties have agreed through written consent
Types of Authority
1) Express
2) Implied
Express authority
Is conferred by the contract agency and this in writing
implied authority
Is it illegal in South Carolina
Types of Agency Agreements
1) open listing
2) exclusive listing
Open Listing
Complete Verified Solution. 270 Questions And Correct
Answers
agency
a consensual fiduciary relationship authorizing a broker to act on the behalf of a client
Fiduciary Relationship
a relationship in which one party places special trust, confidence, and reliance in a
trusted person
Principal
a person (client) who empowers another (agent) to act as his or her representative in a
real estate transaction
client
those which have entered into a written agency agreement with an agent
agent
one empowered to act for another in a real estate transaction (broker)
subagent
an agent who is appointed by the broker to work directly with a client. All listings
technically belong to the broker in charge
customer
one who desires the services of an agent but opts not to establish an agency
relationship through the signing of a contract/agreement
attorney in-fact
an attorney or agent who may or may not be a lawyer who is given written authority to
act on another's behalf as specified by a power of attorney
common law
body of law that is based on custom and general principles and embodied in case law.
Serves as precedent and applies to situations not covered by statute
statutory law
laws that are created through written legislation
dual agency
when the agent represents two clients in the same real estate transaction (buyer and
seller)
Seller/buyer agency
when the agent only represents one client in a single transaction; i.e. the buyer or the
seller
designated agency
an example of dual agency where the BIC is the dual agent and he/she selects two
subagents: one to represent the buyer, one to represent the seller.
transactional broker
only perform ministerial acts for both parties. No agency relationship. They serve as a
facilitator in an attempt to bring the buyer and seller to agree on terms of the purchase
Multiple Listing Service
agent doing the MLS and agree to cooperate with other agents by listing all properties
for sale in the MLS, making the homes available to cooperating agents
,Seller/Buyer Agency Responsibilities
1) perform the terms of the written brokerage agreement
2)promote the interest of the seller by performing agency duties
Seller Agency Duties
1) Seek a sale at the price and terms stated in the agreement, or at a term accord the
acceptable to the client
2) present, in a timely manner all offers and counteroffers
3) disclose to the seller all relevant facts concerning the transaction
4) advise the seller to obtain expert advice on matters the are beyond the expertise of
the agent
5) accounting, in a timely manner, for all money and property received in which the
seller has an interest
Buyer Agency Duties
1) seeking property at the price and terms stated in the agreement, or at a price and
terms acceptable to the buy
2) present, in a timely manner, all offers and counteroffers to the buyer
3) disclose to the buyer all relevant facts concerning the transaction which are known,
or should have been known, to the agent
4) advise the buyer to obtain expert advice on material that is beyond the expertise of
the agent
5) accounting, in a timely manner, for all money and property received that the buyer
has an interest in
Non-disclosable information in dual agency situation
1) the willingness or ability of the seller to accept less than asking
2) the willingness or ability of the buyer to pay more than asking
3) confidential negotiating strategy not disclosed in an offer as terms of a sale
4) the motivation ballet seller for selling property or the motivation of a buyer for buying
property
Joint Liability
Means the agent in the sub agent are fully liable for all of their obligations
Several liability
Means the agent and the sub agent are only liable for their proportionate share of the
obligation
Vicarious liability
Secondary liability that arises under the common law doctrine of agency. Basically,
anything the sub agent, knows or should know, the agent should know also.
Universal agent
One authorized to conduct business on behalf of a client with a very broad authority.
They find the property, negotiate a deal, and purchase the property for the client.
General agent
One authorized to represent a client on behalf of another agent (BIC)
Special agent
Typically the broker in charge. The client will hire this agent and tell them which level of
authority they possess
Disclose principal
When the agent represents a buyer or seller whose identity is known.
, Undisclosed principal
When an agent represents a client without disclosing who that client is. Ex. Mason's and
Jay Sean's house.
Fiduciary duties (OLDCAR)
1) obedience
2) loyalty
3) disclosure
4) confidentiality
5) accounting
6) reasonable care, knowledge and diligence
Three times an agent may disclose confidential info
1) when the principal grants permission
2) when it is required by law
3) when disclosure is required to defend oneself against accusations of wrongdoing
before a legal hearing
clients obligations to the agent
1) compensation
2) reimbursement
3) opportunity to do job fully
4) good conduct
5) indemnity
6) good thing
Ministerial Services
Non-agency duties such as scribing, completion and sending of paperwork, and the
gathering of information
Services that must be offered to a customer
1) timely presentation of offers
2) timely account for all money and property received
3) providing meaningful explanation of agency relationship
4) provide an explanation of the scope of services to be provided
5) fair and honest/provide accurate information in all dealings
Mandatory disclosures
Property defects and the breakdown in the four types of agency relationships
When does agency begin?
When all parties have agreed through written consent
Types of Authority
1) Express
2) Implied
Express authority
Is conferred by the contract agency and this in writing
implied authority
Is it illegal in South Carolina
Types of Agency Agreements
1) open listing
2) exclusive listing
Open Listing
