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16 Cards in this Set
- Front
- Back
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The relationship between broker and seller is generally what type of agency?
a. special b. general c. implied d. universal |
a. special
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Which statement is TRUE of a real estate broker acting as the agent of the seller?
a. the broker is obligated to render loyalty to the seller b. the broker can disclose confidential information about the seller to a buyer if it increases the likelihood of a sale c. the broker can agree to a change in price without the seller's approval d. the broker can accept a commission from the buyer without the seller's approval |
a. the broker is obligated to render loyalty to the
seller |
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In a dual agency situation, a broker may represent
both the seller and the buyer if: a. the broker informs either the buyer or the seller of this fact b. the buyer and the seller are related by blood or marriage c. both parties give their informed consent, usually in writing, to the dual agency d. both parties are represented by attorneys |
c. both parties give their informed consent, usually
in writing, to the dual agency |
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Which event will terminate an agency in a broker-seller relationship?
a. the broker discovers that the market value of the property is such that an adequate commission will not be earned b. the owner declares personal bankruptcy c. the owner abandons the property d. the broker appoints other brokers to help sell the property |
b. the owner declares personal bankruptcy
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Designated agency is MOST likely to occur when:
a. there is a client-buyer and a customer-seller b. the seller and the buyer are represented by different companies c. both the buyer and the seller are customers d. the buyer and the seller are represented by the same company |
d. the buyer and the seller are represented by
the same company |
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A real estate broker hired by an owner to sell a parcel
of real estate must comply with: a. the common law of agency, even if a state agency statute exists b. dual agency requirements c. the concept of caveat emptor d. all lawful instructions of the owner |
d. all lawful instructions of the owner
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A buyer who is a client of the broker wants to purchase a house that the broker has listed for sale. Which statement is true:
a. the broker may proceed to write an offer on the property and submit it b. the broker should refer the buyer to another broker to negotiate the sale c. the seller and the buyer must be informed of the situation and agree, usually in writing, to the broker's representing both of them d. the buyer should not have been shown a house listed by the broker |
c. the seller and the buyer must be informed of the
situation and agree, usually in writing, to the broker's representing both of them |
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What does the phrase "the law of agency is a
common-law doctrine" mean: a. it is a legal doctrine that is not unusual b. it is one of the rules of society enacted by legislatures and other governing bodies c. it is part of a body of law established by tradition and court decisions d. it may not be superseded by statutory law |
c. it is part of a body of law established by tradition
and court decisions |
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A broker helps a buyer and a seller with paperwork
bu does not represent either party. This is: a. dual agency b. prohibited in all states because a broker must always represent one party c. transactional brokerage d. designated agency |
c. transactional brokerage
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A real estate licensee was representing a buyer. At
their first meeting, the buyer revealed plans to operate a dog-grooming business out of the purchased house. The licensee did not check the local zoning ordinances to determine in which parts of town such a business could be conducted. Which common-law duty did the license violate? |
a. care
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A broker tells a prospective buyer, "This property has the most beautiful river view." In fact, the view
includes the river and the back of a shopping center. Which statement is TRUE? a. the broker has committed faud b. the broker is guilty of negligent misrepresentation c. the broker is guilty of intentional misrepresentation d. the broker is merely puffing. |
d. the broker is merely puffing
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A real estate broker's responsibility to keep the
principal informed of all the facts that could affect a transaction is the duty of: a. care b. disclosure c. obedience d. accounting |
b. disclosure
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Which of the following would be considered dual agency?
a. a broker acting for both the buyer and the seller in in the same transaction b. two brokerage companies cooperating with each other c. a broker representing more than one principal d. a broker listing and then selling the same property |
a. a broker acting for both the buyer and the
seller in the same transaction |
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The relationship of broker to client is that of a (an):
a. trustee b. subagent c. fiduciary d. attorney-in-fact |
c. fiduciary
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A real esstate broker acting as the agent of the seller:
a. must promote and safeguard the sellers best interest b. can disclose the seller's minimum price c. should present to the seller only the highest offer for the property d. can accept an offer on behalf of the seller |
a. must promote and safeguard the sellers
best interest's |
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A broker is permitted to represent both the seller
and the buyer in the same transaction when? a. the principals are not aware of such action b. the broker is a subagent rather that the agent of the seller c. commissions are collected from both parties d. both parties have been informed and agree to the dual representation |
d. both parties have been informed and agree to
the dual representation |
