CHAMPION SCHOOL OF REAL ESTATE- LAW OF AGENCY !! ACTUAL
EXAM/ MOSTLY TESTED QUESTIONS AND CORRECT DETAILED
ANSWERS| 100% CORRECT SOLUTIONS/GRADE A+
Broker
Ans: A Properly Licensed party who serves a principal in an agency relationship
Agency
Ans: A fiduciary relationship between a broker and a principal or a broker and a client
Fiduciary
Ans: A Party acting for another in a position of trust-a broker or agent
Fiduciary Relationship
Ans: The relationship based on trust-the relationship governed by the law of the agency between a
broker and a principal
,Principal
Ans: A party represented by a broker in an agency relationship-also called a client
Client
Ans: A Party represented by a broker in an agency relationship-also called a principal
Customer
Ans: A third party-one a broker is working with, but who is not represented by that broker
Buyer Representation Agreement
Ans: An employment contract obligating a broker to act as a fiduciary to a buyer
Listing Agreement
Ans: An employment contract obligating a broker to act as a fiduciary to a seller
Management Agreement
Ans: An Employment contract obligating a broker to act as a fiduciary to a property owner
Public Responsibilities
, Ans: The responsibilities a broker has to customers or third partyies including-Honesty, Fairness and
disclosure to material facts
Fiduciary Responsibilities
Ans: 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
Oral Agency
Ans: An agency relationship created by an oral or spoken agreement
Implied Agency
Ans: Agency as a result of customary, usual or typical conditions
Ostensible Agency
Ans: Agency as a result of the actions of an agent and the response of others to those actions
Agency by Ratification
Ans: Agency established when an agent acts without permission of the principal and the principal
accepts or ratifies those actions
EXAM/ MOSTLY TESTED QUESTIONS AND CORRECT DETAILED
ANSWERS| 100% CORRECT SOLUTIONS/GRADE A+
Broker
Ans: A Properly Licensed party who serves a principal in an agency relationship
Agency
Ans: A fiduciary relationship between a broker and a principal or a broker and a client
Fiduciary
Ans: A Party acting for another in a position of trust-a broker or agent
Fiduciary Relationship
Ans: The relationship based on trust-the relationship governed by the law of the agency between a
broker and a principal
,Principal
Ans: A party represented by a broker in an agency relationship-also called a client
Client
Ans: A Party represented by a broker in an agency relationship-also called a principal
Customer
Ans: A third party-one a broker is working with, but who is not represented by that broker
Buyer Representation Agreement
Ans: An employment contract obligating a broker to act as a fiduciary to a buyer
Listing Agreement
Ans: An employment contract obligating a broker to act as a fiduciary to a seller
Management Agreement
Ans: An Employment contract obligating a broker to act as a fiduciary to a property owner
Public Responsibilities
, Ans: The responsibilities a broker has to customers or third partyies including-Honesty, Fairness and
disclosure to material facts
Fiduciary Responsibilities
Ans: 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
Oral Agency
Ans: An agency relationship created by an oral or spoken agreement
Implied Agency
Ans: Agency as a result of customary, usual or typical conditions
Ostensible Agency
Ans: Agency as a result of the actions of an agent and the response of others to those actions
Agency by Ratification
Ans: Agency established when an agent acts without permission of the principal and the principal
accepts or ratifies those actions
