5 Written questions
5 Matching questions
- So, the agent wants to give the pamphlet to the party he is providing services to...he decides to do this after they've signed a written agreement. That's cool, right?
- How is an independent contractor distinguishable from an employee?
- What are latent defects? Should they be disclosed by the agent?
- Estoppel (relating to an agency relationship)
- Revocation by principal
- a Principal allowed third party to believe agency relationship existed; unfair to not allow
- b An independent contractor is hired to perform a particular job, and uses her own judgment to decide how the job should be completed. In contrast, an employee is hired to perform whatever tasks the employer requires, and is given instructions on how to accomplish each task.
- c WRONG WRONG WRONG! The Pamphlet must be given out before ANY written agreement is signed!!!
- d The seller and his agent have a duty to disclose any known latent defects in the property to the buyer, even if the property is listed "as is." A latent defect is one that would not be discovered in a typical inspection of the property by the buyer. A broker should refuse to take a listing if the seller insists that she must conceal any latent defects.
- e YOU'RE FIRED!!! The principal may revoke the agency by firing the agent whenever she wishes. The principal may be liable for any damages caused by the breach.
5 Multiple choice questions
- A universal agent is authorized to do anything that can be lawfully delegated to a representative.
- The principal is bound by acts of the agent that are within the scope of the agent's authority.
- For listing agreements with this term, a buyer's agent who finds a buyer is STILL a subagent of the seller, rather than agent for the buyer.
- Most agencies are created by an express written agreement, such as a listing agreement or a buyer agency agreement. However, the agreement does not need to be in writing to create a valid agency, nor does the agreement have to be supported by consideration.
- Under Washington real estate law, there is no vicarious liability between a real estate agent and a principal. A seller or buyer is ordinarily not liable for any act, error, or omission by a broker or salesperson.
5 True/False questions
Duty 4: Expert advise → When in doubt, sub it out! Don't be a hero and try and be everything to your principal! A licensee must advise the principal to seek expert advice on any matters relating to the transaction that are beyond the agent's expertise (such as matters best handled by a lawyer or a home inspector).
Is the broker responsible for the salesperson's conduct, even if he or she is an independent contractor? → Even if a salesperson is considered an independent contractor for tax purposes, the broker is still considered responsible for supervising the salesperson's actions and may be liable for a salesperson's misconduct.
Duty 3: Confidentiality → An agent must always place the principal's interests above the interests of a third party. For instance, a seller's agent must negotiate with the buyer to get the highest price possible for the seller.
Are agents and brokers employees or independent contractors? → Important employment and tax laws apply when someone is classified as an employee, particularly those involving the withholding of income taxes and social security. Unlike employees, independent contractors do not have taxes withheld from their earnings.
In-house transaction → An agent must always place the principal's interests above the interests of a third party. For instance, a seller's agent must negotiate with the buyer to get the highest price possible for the seller.