Study sets, textbooks, questions
Upgrade to remove ads
Chapter 1 - Agency and Other Brokerage Relationships
Terms in this set (19)
A buyer who is a client of a salesperson in an office wants to purchase a house that another salesperson in that office has listed for sale. Which of the following statements is TRUE?
-if the listing salesperson and selling salesperson are two different people, there is no problem
-the selling salesperson should refer the buyer to another company to negotiate the sale
-the seller and buyer must be informed of the situation and agree to limited representation
-the buyer should not have bee shown a house listed by that office
the seller and buyer must be informed of the situation and agree to limited representation
A building sold for $157,000. The broker charged 6 percent commission and divided it as follows: 10 percent to the salesperson who took the listing, one-half of the balance to the salesperson who made the sale, and the remainder to the broker. What was the listing salesperson's commission?
A listing contract in which payment of the commission is contingent on the broker's being able to produce a buyer before the property is sold by the owner or another broker is called a (n)
The dual agency contract needs to be signed by
both parties before a specific transaction
A broker is permitted to represent both the seller and the buyer in the same transaction when
-the principals are not aware of such action
-the broker is a subagent rather than the agent of the seller
-commissions are collected from both parties
-both parties have been informed and agree to the dual representation
both parties have been informed and agree to the dual representation
According to the common law of agency, which of the following statements about the fiduciary obligation of confidentiality is CORRECT when an agent represents a principal in a real estate transaction?
-It outlasts the termination of the agency relationship
-It must be defined in writing to be legally valid and enforceable
-It is comparable to lawyer/client privilege and cannot be violated
It applies primarily to information about the principal's finances and motivation.
It outlasts the termination of the agency relationship
According to the common law of agency, a licensee has which of the following obligations to an individual that prefers to remain a customer rather than become a client?
-Courtesy and patience
-Honesty and fair dealing
-Only those agreed to in writing
Honesty and fair dealing
Which of the following documents creates and identifies the extent of authority for a licensee acting on behalf of an owner?
-Local zoning laws
-Federal and state civil rights statutes
Some property owners list their property for sale with a broker. During the listing negotiations, they tell the broker that they want $138,000 for the property, and anything above that amount the broker can keep as a commission. A listing with this type of provision is known as a
Which of the following terms identifies a property owner who has entered into an agency relationship with a licensee?
Real Estate Brokers are often granted a wide range of job-related authority to act on behalf of their principal. This is known as which of the following types of agent?
Commissions earned by a broker in a real estate sales transaction...
-are determined by agreement of the broker and his or her principal
-may be shared with an unlicensed person, provided that such person aided the broker in bringing the buyer and seller together
-must be paid by the seller in each transaction
-accommodate a client's request to steer buyer to neighborhoods comprised of certain ethnic groups
are determined by agreement of the broker and his or her principal
In SC, when may an agent divulge client confidential information?
-never, since client confidentiality must be preserved indefinitely
-when a relationship with a client is limited
-in a disclosed dual agency situation
-if required by law
if required by law
A broker cannot legally collect commissions from both the seller and the buyer without...
-notifying both parties of this fact orally after the sale has closed
-notifying both parties of this fact in writing after the sale has closed
-having exclusive listing agreements signed by both the seller and the buyer
-having the prior knowledge and written consent of both the seller and the buyer
having the prior knowledge and written consent of both the seller and the buyer
The relationship of a broker to his or her client is that of a (n)
Agency disclosure requirements apply in all of the following transactions EXCEPT
-resale of foreclosed properties
Consent to disclosed dual agency...
-can be withheld by either party before a specific transaction
-results in limited representation to one principle, not the other
-is not permitted in SC
-is a blanket authorization for all transactions
can be withheld by either party before a specific transaction
When acting in a fiduciary capacity for a seller in a real estate transaction, a licensee MUST
-Be loyal to the seller's interests.
-Obey all instructions of the seller
-Represent no other party in the transaction
-Disclose only those facts the seller wants known
Be loyal to the seller's interests.
Which of the following events will terminate an agency relationship?
-Any arrest of the agent
-Bankruptcy of the principal
Transfer of ownership of the real estate firm
-Violent disagreement between the principal and the agent
Bankruptcy of the principal
Sets found in the same folder
Chapt. 1.1/1.2 Pract. Quiz
Chp. 1.3/ Pract. Quiz
Chp. 1 Terms
Other sets by this creator
chp 6.1 pract quiz
Overall chp. 5
Practic quiz 5.5 &5.6
Pract. Quiz 5.4
Other Quizlet sets
Introduction to Financial Accounting
Lesson 1 Practice and Quiz Review
Mosby's Procedures Review