PSI Real Estate Agency and Property Management Flashcards

Which type of agency relationship is created when a seller hires a broker to sell their property?

Answer: Listing agency

A listing agency relationship is formed when a property owner (principal) authorizes a broker (agent) to act on their behalf to sell the property.

What fiduciary duty requires an agent to place the client's interests above all others, including the agent's own?

Answer: Loyalty

The duty of loyalty requires the agent to act solely in the best interest of the principal and to avoid any conflicts of interest.

A broker who represents both the buyer and the seller in the same transaction with informed consent is acting as a:

Answer: Dual agent

A dual agent represents both the buyer and seller in a single transaction, which is only permissible with the informed written consent of both parties.

An agent's authority that is expressly granted in writing through a listing agreement is called:

Answer: Express authority

Express authority is explicitly stated in a written or oral agreement, such as a listing contract that authorizes the agent to market and negotiate the sale of property.

Which listing agreement gives the broker the exclusive right to a commission regardless of who sells the property?

Answer: Exclusive right-to-sell listing

An exclusive right-to-sell listing entitles the broker to a commission if the property sells during the listing period, no matter who procures the buyer.

Under agency law, the term 'procuring cause' is most associated with which scenario?

Answer: Determining which agent is entitled to a commission

Procuring cause refers to the broker whose continuous, uninterrupted efforts directly led to the successful sale, determining who is entitled to the commission.