Unit 4 quiz Real Estate course

A seller listed his property with a local brokerage company. The agency relationship between the seller and the sponsoring broker is a

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A seller listed his property with a local brokerage company. The agency relationship between the seller and the sponsoring broker is a

Special

2. Which of these events will terminate an agency relationship between a broker and seller?
a) The broker discovers that the market value of the property is such that she will not make an adequate commission
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

3. A broker lists a residence. The owner of the residence must sell the house quickly. To expedite the sale, the broker tells a prospective purchaser that the seller will accept at least $5,000 less than the asking price for the property. Based on these facts, which of these statements is TRUE?

c) The disclosure was improper, regardless of the broker's motive

4. A real estate licensee was representing a buyer. At their first meeting, the buyer explained that he planned to operate a dog grooming business out of any house he bought. The licensee did not check the local zoning ordinances to determine in which parts of town such a business could be conducted. Which agency duty did the licensee violate?

Care

5. Broker A tells a prospective buyer, "This property has the most beautiful view." In fact, the view includes the back of a shopping center. In a separate transaction, Broker B fails to mention to some enthusiastic potential buyers that a six-lane highway is planned for construction within 10 feet of a house the buyers think is perfect. Based on these facts, which of these statements is TRUE?

d) Broker A is merely puffing; Broker B has misrepresented the property

6. In Illinois, a real estate broker hired by an owner to sell a parcel of real estate must comply with the

d) Illinois statute called the Real Estate License Act of 2000

7. In real estate transactions, the term fiduciary typically refers to the

d) agent's relationship and duty to the principal

8. Which of these is considered dual agency?
a) A licensee acting for both the buyer and the seller in the same transaction
b) Two brokerage companies cooperating with each other
c) A licensee representing two or more sellers at the same time
d) A licensee listing and then selling the same propertyf

a) A licensee acting for both the buyer and the seller in the same transaction

9. In Illinois, which of these is true concerning designated agency?

d) License law requires the licensee to disclose that a designated agency relationship exists

10. A real estate licensee's responsibility to keep the principal informed of all the facts that could affect a transaction is the duty of

b) disclosure