unit 4 real estate exam

What is agency?

A relationship in which an agent represents a principal.

Who is the principal?

The person or party represented by the agent.

What is single agency?

The agent represents only one party in the transaction.

What is dual agency?

The same agent represents both the buyer and seller in the same transaction.

What is disclosed dual agency?

Dual agency in which both parties are informed and provide written consent.

What is inadvertent dual agency?

Dual agency that occurs unintentionally when the licensee represents both parties without properly establishing the relationship.

What is designated agency?

Different licensees are designated to represent different parties in the same transaction.

Does designated agency automatically create dual agency?

No. Having one licensee represent the seller and another represent the buyer does not by itself constitute dual agency.

What is required for legal dual agency in Illinois?

Written consent and confirmation from the parties.

What is the difference between a client and customer?

A client is represented by the licensee; a customer receives services but is not represented as a client.

Does who pays the commission determine who the licensee represents?

No. The source of compensation does not determine representation.

What must licensees provide to customers?

Fair and honest dealings and information necessary to make informed decisions.

What is a stigmatized property?

A property society considers undesirable because of an event or condition associated with it.

What is stigma?

The continuing negative association or feeling about a property.

What is the purpose of real estate license laws?

To protect the public by ensuring competence and professionalism.

What is the Illinois MLS subagency rule?

Any blanket offering of subagency through an MLS in Illinois is illegal.

What should happen before a customer discloses confidential information?

The licensee must provide the required written No-Agency disclosure.

What is the most protective agency arrangement?

An express written agreement with the buyer or seller.