Duty to the buyer/ customer

Question 1

Actual Notice

Answer 1

The knowledge one has gained based on what has been actually seen, heard, read, or observed

Question 2

Caveat Emptor

Answer 2

A Latin phrase meaning “let the buyer beware”; the legal maxim starting that the buyer must examine the goods or property and buy at his or her own risk

Question 3

Client

Answer 3

Person (principal) represented in purchase or sale of real property by a broker

Question 4

Constructive Notice

Answer 4

A notice given by a recorded document because a person could have discovered certain facts upon reasonable investigation

Question 5

Cyber Crime

Answer 5

A wide range of malicious activity done on the internet

Question 6

Deal Fairly

Answer 6

One of the duties of a license set forth in the Commissioner’s Rules, wherein a licensee must be honest and truthful with all parties to a transaction

Question 7

Fraudulent Misrepresentation

Answer 7

A deceitful practice or material misstatement known to be false and done with intent to deceive

Question 8

Identity Theft

Answer 8

Acquisition and use of a person’s private identifying information, usually for financial gain

Question 9

Latent Defects

Answer 9

Hidden or concealed defect that cannot be discovered by ordinary observation or inspection

Question 10

Material Facts

Answer 10

Facts that would be likely to affect a person’s decision in determining whether to enter into a particular transacton

Question 11

Misrepresentation

Answer 11

A false statement or concealment of a material fact made to someone entitled to the information, by which that person responds with action and thereby suffers damage

Question 12

Negligance

Answer 12

When an agent fails to exercise a degree of reasonable caution that would be exercised by a person of ordinary prudence under all existing circumstances in view of probable danger or injury

Question 13

Negligence Per Se

Answer 13

Conduct by which may be declared and treated as negligence without any argument or proof as to the surrounding circumstances

Question 14

Negligent Misrepresentation

Answer 14

A statement contrary to fact resulting from failure to exercise reasonable care in obtaining or communicating information; the licensee could be held liable

Question 15

Puffing

Answer 15

Occurs when an agent makes an exaggerated statement of opinion, without intending to deceive, such as “this property has the best view in town.” Not illegal but frowned upon