___ are governed by ___, which is established by tradition and court decisions, and ___, which is passed by state legislatures and other governing bodies

Real estate agency relationships; common law; statutory law

An ___ is hired by a principal to act on the principal’s behalf

Agent

___ is the fiduciary relationship in which the agent is held in a position of special trust and confidence by the principal

Agency

In a real estate transaction, the ___ is the ___

Principal; client

A ___ is the non-representative party for whom some level of service is provided and who is entitled to fairness and honesty

Customer

A ___ is authorized to work with the agent on behalf of the client

Sub-agen

A ___ (also known as a ___, ___, ___, ___, or ___) assists one or both parties with the transaction without representing either party’s interests and often is subject to specific statutory responsibilities

Non-agent; facilitator, intermediary, transaction broker, transaction coordinator; contract broker

The relationship between principal and agent must be ___

Consensual

As ___ is based on an express agreement between agent and principal, while an ___ will be created when the actions of the parties indicate that they have mutually consented to an agency

Express agency; implied agency

The source of the agent’s ___ does not determine the agency, because the agent may be compensated by someone other than the client, or the agency may exist even if not compensation is involved — a ___

Compensation; gratuitous agency

An agent has a ___ of trust and confidence with the principal

Fiduciary relationship

The 6 common-law fiduciary duties can be remembered as ___

COLD-AC

Which is an acronym for the following

Care; Obedience; Loyalty; Disclosure; Accounting; Confidentiality

a ___ is empowered to do anything the principal could do personally

Universal agent

A ___ represents the principal in a broad range of matters

General agent

A ___ represents the principal in one specific act or business transaction only, under detailed instruction

Special agent

A ___ is one in which an agent represents only one party in a transaction

Single agency

A real estate broker becomes an ___ of the seller by entering into a listing agreement for the seller’s property

Agent

A ___ represents a buyer as an agent to find property that meets the buyer’s specifications, as set out in the ___

Buyer’s broker; buyer representation agreement

A ___ is one in which an agent represents two principals in the same transaction

Dual agency

Dual agency, where allowed by state law, requires the ___ of both parties

Informed consent

An ___, which may occur inadvertently, can result in rescission of the sales contract, forfeiture of a commission, a lawsuit for damages, and possibly license suspension or revocation

Undisclosed dual agency

A ___ (or ___) is a sales associate authorized by the broker to represent one party to a transaction, while a different sales associate in the same firm represents the other party to the transaction

Designated agent; designated representative

Termination of agency may be accomplished by the

Completion, performance, or fulfillment of purpose of agency; destruction or condemnation of the property; expiration of the terms of the agency; mutual agreement of all parties to the contract; breach by one of the parties, who may be liable for damages; operation of law, as in the bankruptcy of the principal

An ___ cannot be revoked by the principal or terminated upon the principal’s death

Agency coupled with an interest

Statements to clients and customers should be clearly identified as ___ or ___

Opinion; fact

___ is legal exaggeration of a property’s benefits, while ___ is the intentional misrepresentation of a material fact to harm or take advantage of another person

Puffing; fraud

A ___ occurs when a real estate professional ___ that a statement about a material fact was false and the real estate professional’s misrepresentation was due to culpable (careless) negligence rather than simple (accidental) negligence

Negligent misrepresentation; should have known

The ___ of residential property may have the duty to disclose any known ___ (i.e., hidden) ___ that threaten a building’s structural soundness or an occupant’s personal safety

Seller; latent; defect

In some states, an agent has an independent duty to conduct a ___ of the property and to disclose defects to prospective buyers

Reasonably competent and diligent inspection

Disclosure of ___ may be required

Environmental hazards

___ may equine an agent to consult an attorney

Stigmatized properties

___ requires states to make available to the public information about how they can determine where persons convicted of sexual offenses live in the community

Megan’sLaw