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Modern Real Estate Practice Chapter 10 Real Estate Agency Quiz
Modern Real Estate Practice 19th Edition Unit 10 Quiz created by Sharren Y. Williams
Terms in this set (47)
In a real estate transaction, the term ____ typically refers to the agent's relationship to the principal.
The relationship between real estate broker and seller is generally what type of agency? special, general, implied, universal.
True or False. The broker is obligated to render loyalty to the seller.
True or False. The broker can disclose confidential information about the seller to a buyer if it increases the likelihood of a sale.
The woman is the brokers client; the man is a customer
A real estate broker lists a woman's home for sale for $189,500. Later that same day, a man comes into the broker's office and asks for general information about homes for sale in the $130,000 to $140,000 price range but refuses representation by the broker's company at this time. What is the relationship of the woman and the man to the broker?
Both parties consent in writing to the dual agency.
In a dual agency situation, a broker may represent both the seller and the buyer in the same transaction if...
The owner declares personal bankruptcy
Which event will terminate an agency in a broker-seller relationship? Broker discovers market value of property will result in adequate commission not being earned, owner declares personal bankruptcy, owner abandons the property, broker appoints other brokers to help sell the property.
The buyer and the seller are represented by the same company
Designated agency is MOST likely to occur when
All lawful instructions of the owner
A real estate broker hired by an owner to sell a parcel of real estate must comply with
Yes or No. The buyer wanted to work with a new agent, but the terms of agency had not yet expired and the current agent did not agree to terminate. IS THIS A VALID REASON TO TERMINATE THE AGENCY RELATIONSHIP?
The agent found a home for a buyer to purchase, and the sale closed. IS THIS A VALID REASONTO TERMINATE THE AGENCY RELATIONSHIP?
Disclosure was improper and possibly illegal, regardless of the agent's motive.
A seller tells his agent in confidence that he must sell fast and may accept less than the list price. The agent tells a buyer the seller will accept up to $5000 less than the list price.
The seller and the buyer must be informed of the situation and agree in writing to the broker's representing both of them.
A buyer who is a client of the broker wants to purchase a house that the broker has listed.
Law of Agency is a Common Law Doctrine
It is part of a body of law established by tradition and court decisions.
A broker helps a buyer and a seller with paperwork buy does not represent wither party.this relationship is a
A real estate sales associate represents a buyer. At their first meeting, the buyer reveals plans to operate a dog grooming business out of the purchased house. The sales associate 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 sales associate violate? care, obedience, loyalty, disclosure
The broker is merely puffing
A broker tells a buyer, "This home has the most beautiful river view," In fact, the view includes the river and the back of a shopping center. What is the broker doing?
A real estate broker's responsibility to keep the principal informed of all the facts that might affect a transaction is the duty of...care, disclosure, obedience, accounting
A Broker acting for Both Parties in the Same Transaction
The relationship of broker to client in an agency relationship is that of...a trustee, a subagent, a fiduciary, an attorney in fact.
Must promote and safeguard the seller's best interest
A real estate broker acting as the agent of the seller...
Both parties hava been informed and agree in writing to the dual representation.
A broker is permitted to represent both the seller and the buyer in the same transaction when...
Agent's relationship to the principal
In a real estate transaction, the term fiduciary typically refers to the...
The broker is obligated to render loyalty to the seller
Which statement is TRUE of a real estate broker acting as the agent of the seller...
The buyer wanted to work with a new agent, but the terms of the agency had not yet expired and the current agent did not agree to terminate
Which of the following is NOT a valid reason to terminate a agency relationship
It is part of a body of law established by tradition and court decisions
What does the phrase the law of agency is a common law doctrine mean?
A broker acting for both parties in the same transaction
Which of the following is considered dual agency.
An individual who is authorized and consents to represent the interests of another person is
The broker is the woman's agent; the man is the broker's customer.
A broker represents a woman but is currently working with a man to find a home. Assuming that no statute has replaced the traditional common law, which of these correctly identities the parties in this relationship?
The agent's obligation to use skill and expertise on behalf of the principal arises under which of these common-law duties?
The agent's advertising budget
An agent representing the seller has a duty to disclose to the principal all of these EXCEPT
The agency agreement was terminated by the fire, although the seller's death also would have done so.
A broker has an agency agreement to represent a seller in the sale of a house. the agreement's expiration date is June 10. On May 5, the house is struck by lightning and burns to the ground. The seller, overwhelmed by grief, dies. Based on these facts, which is True?
A person who is designated by the principal in a broad range of matters related to a particular transaction or activity is a
The broker has created a potential undisclosed dual agency problem and should disclose the relationships to bot parties before showing the seller's home to the buyer
A real estate broker signed an agency agreement with a seller. the Asking price for the sellers house was $499,000. a few days later, the broker met a prospective buyer who was interested in buying a home in the $480,000 to $510,000 price range. the broker agreed to help the buyer locate such a property and to represent him in negotiating a favorable purchase price. Based on these facts which statement is true?
A broker is showing a house to a prospective buyer. He points out the rustic charm of the sagging front porch and refers to a weed choked backyard as a delightful garden. The broker is engaging in?
A house built over a ditch covered with decaying timber or a house with ceilings that are improperly attached to the support beams are example of
Suggesting marketing strategies to the agent.
The seller's agent has certain duties to the client principal. All of these are duties of the principal EXCEPT
When, how and to whom agents must reveal for whom they provide client based services.
Every state has mandatory agency disclosure laws that stipulate
Whoever hired the agent
Who is the agent principal?
The broker was hired to represent the seller, to market the property, and to solicit offers to purchase. The broker is called a
A house was the scene of a drug arrest and a violent murder last year. When it was listed on the market, many people considered it to be a
an offer made on the property
all of these will terminate an agency relationship EXCEPT
All information about material defects that the agent knows or should know
What is a seller's agent required to disclose to prospective buyers about material defects in the property?
The uneven floors just mean that the building dates to colonial times
Which of these statements could be negligent misrepresentation?
The seller's agent is aware that a new landfill has been approved for development on an adjacent property but does not disclose this information to a buyer. this could be an example of
Avoid conflicts of interest
A key element of an agents fiduciary responsibility of loyalty is to
When a broker places trust funds of others into the company's operating account and then withdraws funds for the firm's use, what illegal practice has taken place?
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