Champions School of Real Estate - Exam Prep with Correct Solutions 2024/2025

Champions School of Real Estate - Exam Prep with Correct Solutions 2024 Buyer Representation Agreement - Answer -An employment contract obligating a broker to act as a fiduciary to a buyer Implied Agency - Answer -Agency as a result of customary, usual or typical conditions Broker - Answer -A properly licensed party who serves a principal in an agency relationship- also called an agent Client - Answer -A party represented by a broker in an agency relationship - also called a principal Duties of an Agent - Answer -An agent owes his client obedience, loyalty, disclosure, confidentiality, accounting and reasonable care (old car) customer - Answer -A third party - one a broker is working with, but who is not represented by that broker Exclusive Agency Listing - Answer -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 - Answer -Agency as a result of the actions of an agent and the response of other to those actions Agency by Ratification - Answer -Agency is established when an agent acts without permission of the principal and the principal accepts or ratifies those actions. Blind Ad - Answer -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 - Answer -A principal owes his agent compensation, reimbursement, indemnification and performance Procuring Cause of Sale - Answer -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 - Answer -A listing where one broker will earn a commission when the property is sold, no matter who sells it Listing Agreement - Answer -An employment contract obligating a broker to act as a fiduciary to a sellerAgency by Estoppel - Answer -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 - Answer -A broker who has the written permission of both the buyer and the seller to represent both parties in a single transaction Management Agreement - Answer -An employment contract obligating a broker to act as a fiduciary to a property owner Sherman Anti-Trust Act - Answer -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 - Answer -The fiduciary relationship between a broker and a principal or a broker and a client Universal Agency - Answer -A principal gives an agent the power to transact matters of all types for him Designated Agent - Answer -A license appointed by a broker in a dual agency situation to work with either the buyer or the seller in the transaction. Commission - Answer -A negotiated compensation in a broker's employment contract. Fiduciary - Answer -A party acting for another in a position of trust - a broker, an agent Public Responsibilities - Answer -The responsibilities a broker