Ny Real Estate Exam Study Guide

Agent's Responsibilities to Third Parties {Ans: The basis for imposing liability in case of misrepresentation consists of: Ø a false representation of a material fact Ø the fact that the person making the false representation knew or should have known it to be false Ø the fact that the misrepresentation was made with an intent to induce the party to act or refrain from acting in reliance upon the misrepresentation Ø the fact that the party relied upon the misrepresentation in acting or failing to act Ø the fact that there was damage to the party who relied upon the misrepresentation in acting or not acting}Types of Agreements {Ans: Express Contract-the parties to the contract have definitely agreed on all the terms in the contract Ø Bilateral Contract-two parties have made promises of some kind to each other. The offer to purchase a home is bilateral because it is based on the exchange of promises in which the seller will sell and the buyer will buy. Ø Executory Contract-a contract that is not fully performed or completed}Broker's Agent {Ans: *In the case of the subagent, the principal accepts vicarious liability for the acts of the agents and