real estate unit 9 legal aspects Flashcards


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1

A. agency

Legal relationship in which a principal authorizes an agent to act as the
principal’s representative when dealing with third parties

2

G. fiduciary relationship

Implies a position of trust and confidence

3

B. agent

Person who has the authority to act on the behalf of another, representing
the business interests of that person

4

N. principal

Client who gives authority to an agent to represent his or her interests in
dealing with third parties

5

T. third party

Customer who may be affected by the terms of an agreement but who is
not a part of the agreement

6

H. general agency

Relationship in which a principal delegates ongoing tasks or duties to an
agent under his or her employ

7

S. special agency

Relationship in which a principal delegates limited tasks or specific duties
to an agent under his or her employ

8

D. cooperating broker

Selling agent who assists another broker by finding a buyer

9

E. dual agent

Broker acting as agent for both the seller and the buyer in the same
transaction

10

R. sales associate

Licensed real estate salesperson or broker whose license is held by an
employing licensed broker

11

Q. right to control

How much direction the broker exercises over the person the broker has
hired

12

M. power of attorney

Written document that gives a person legal authority to act on behalf of
another person

13

O. ratification

Acceptance of an act already performed

14

F. estoppel

Legal bar that prevents a person from asserting facts or rights that are not
consistent with what was implied by the person’s previous behavior

15

L. obedience

Willingness to follow the orders of others

16

C. confidentiality

Discretion in holding privileged information

17

J. material fact

Any fact that would seem likely to affect the judgment of the principal in
giving consent to the agent to enter into the particular transaction on the
specified terms

18

K. misrepresentation

Making a false statement or concealing a material fact

19

P. respondeat superior

“Let the superior answer.”

20

I. indemnification

Protect against damage, loss, or injury, or to make compensation for
damage, loss, or injury