Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
36 Cards in this Set
- Front
- Back
|
One who represents another called a principal and has authority to act for the principal in dealing with third parties. The relationship is referred to as an agency. Someone authorized to act for another (called the principal) in business matters.
|
AGENT
|
|
|
Real estate agents are used more by __ than by buyers.
|
sellers
|
|
|
The mixing of different funds so
that they can no longer be distinguished. In these cases, the funds are considered community property. |
COMMINGLING
|
|
|
__ is misappropriating and using the client’s money.This is a crime that carries a jail sentence.
|
CONVERSION
|
|
|
A real estate broker may represent both the buyer and seller in the same transaction, but only with the knowledge and consent of both parties. This is NOT when one salesperson represents both the buyer and seller. Its when one BROKER does. This is called:
|
DUAL AGENCY
|
|
|
To prove __ __, the injured party must show that the promise was impossible of performance and that the person making the promise knew it to be impossible. An example might be “Buy this home and it will double in value in six weeks!”
|
false promise
|
|
|
A(n) __ relationship is one of loyalty,
obedience, and confidentiality and obligates the agent to act in the principal’s best interest. (LOC) |
fiduciary
|
|
|
A(n) __ agent is one who has broad powers to act on behalf of the principal.
|
general
|
|
|
A(n) __ __ relationship exists when an individual is hired to accomplish results and little or no supervision is required.
|
independent contractor
|
|
|
This includes not only what was said, but also the failure of a broker or salesperson to disclose a material fact about the property. Can a real estate agent legally withhold information about a defect in the property? No.
|
misrepresentation
|
|
|
If a broker receives a deposit from a prospective buyer who does
not instruct that the deposit be held uncashed, the broker must, within three business days, do one of the following: 1. Give the deposit to the principal (the __). 2. Put the deposit in __. 3. Put the deposit in a __fund account. |
seller
escrow trust |
|
|
A program whereby the public can recover money when there are certain uncollectable court judgments obtained against a real estate licensee on the basis of fraud.
|
Recovery fund
|
|
|
The maximum a person can receive
from the recovery fund is currently limited to $__ per individual claim, up to a $__ maximum for multiple claims against any one real estate licensee. |
50,000
250,000 |
|
|
Also called a "divided agency". These cases usually arise
when the broker, who already has a higher offer from another buyer makes a low offer, usually through a “dummy” purchaser. The difference is the __ __. |
secret profit
|
|
|
A real estate broker who finds a buyer for the seller’s property.
|
seller’s agent
|
|
|
When a real estate broker acts as an agent to only the seller or only
the buyer, this is called a(n) __ __. |
single agency
|
|
|
A(n) __ agent has limited or well-defined powers, frequently confined to a single transaction. Most real estate agencies are this kind, with powers normally limited to the sale of a specific property.
|
special
|
|
|
Many real estate brokers open a
__ __ account at a financial institution where all monies received on behalf of clients and customers can be deposited for safekeeping. |
trust fund
|
|
|
If you accept the seller's asking price, does the realtor get a commission?
|
yes
|
|
|
A real estate __ is an agent by virtue of his association with a broker.
|
salesperson
|
|
|
Agents who help other agents prefer to be viewed as __ agents, not sub agents.
|
cooperating
|
|
|
A real estate agency differs from an __-employee relationship and an
independent __ relationship. |
employer; contractor
|
|
|
Agencies are created in three ways: by __, by __, and by __.
|
agreement; ratification; estoppel
|
|
|
In this type of agency, an individual knowingly allows another person to perform tasks beneficial to that individual.
|
agency by estoppel
|
|
|
A seller can be held __ for distortion of facts about the property.
|
liable
|
|
|
A real estate broker can contract directly with a principal, whereas a
__ cannot. |
salesperson
|
|
|
Only through the real estate salesperson’s association with a broker does the salesperson become a(n) __.
|
agent
|
|
|
Salespersons must have a written __ contract with a broker and can receive compensation only from the employing __.
|
employment; broker
|
|
|
Real estate agents are regulated by the California __.
|
DRE
|
|
|
Agencies are terminated by __ of the agency agreement, by expiration of time, by __ of the principal or agent, by destruction of the property, by mutual consent, and by unilateral __ by the agent or the principal.
|
completion; death; termination
|
|
|
The broker is the agent of the principal. The __ is also the agent by virtue of his employment contract with the broker.
|
salesperson
|
|
|
The __ __ __ administers the real estate law, issues regulations that have the force of law, and heads the Department of Real Estate.
|
real estate commissioner
|
|
|
Agency by __: an unauthorized agent performs a service on your behalf of which you were unaware. Upon learning of the service, which turns out to be beneficial, you accept the responsibility for the agent’s act.
|
ratification
|
|
|
Real estate agents are __, not ostensible (made up by the seller).
|
actual
|
|
|
If the seller dies between signing and the closing date, then the agent __ get a commission.
|
DOES
|
|
|
A real estate broker is allowed to keep $____ of his or her money in a trust fund to handle bank service charges.
|
$200
|
