3: Real Estate Agency Flashcards
A real estate agency exists between the:
Broker and principle
A fiduciary relationship is best described as:
Loyalty and confidentiality
A real estate salesperson is a(n):
Agent by virtue of his or her contract with a broker
T or F: The use of cooperating agents is legal under California law.
True
A real estate agency can be created by all of the following:
- Ratification
- Agreement
- Estoppel
All of the following are methods of terminating a real estate agency except for:
Estoppel
A home seller must inform his or her real estate agent when the seller is aware of:
- Termites
- A leaky roof
- An inoperative fireplace
T or F: Dual agency does not require written confirmation from the buyer and seller.
False
A listing agent owes the buyer:
A disclosure of known defects
An independent contractor would expect which of the following from her broker?
To be responsible for her own withholding taxes
If a real estate salesperson decides to work for a new broker, the existing listings obtained by the salesperson belong to whom?
The former broker
Unless instructed to hold the check uncashed, a buyer’s deposit must be placed with the appropriated party or account within how many business days?
3
Ms. Diaz showed a property to Mr and Mrs Chan without having an agency agreement with the owner. Later, the owner accepted the offer to purchase, which was submitted by Ms. Diaz on behalf of Mr and Mrs Chan. The owner consented to Ms. Diaz’ unauthorized acts. Under these circumstances, an agency could be created by:
Ratification
The maximum amount per individual claim against the Bureau of Real Estate Recovery Fund is:
$50,000
A real estate broker who has been appointed in writing to be a property owner’s agent to find a buyer under a specified set of terms is best described as a:
Special, actual agent
A real estate agent mistakenly states that the portable dishwasher is included in the sales price of the home. This agent is guilty of:
Misrepresentation
When a real estate agent mixes his or her personal funds with that of the principal, the agent is guilty of:
Commingling
In today’s real estate market, when a real estate agent uses agents from other real estate companies to help find a buyer, the other agents are called:
Cooperating agents
A salesperson has signed a listing agreement that has gone under contract. The buyer’s inspection report, which was sent to the broker ans salesperson, shows a number of items that the seller’s disclosure did not mention. The buyer terminates the contract. In this case the salesman is not owed commission but the following are true:
- The buyer’s earnest money will be returned in full
- The seller, broker, and salesperson will now have to disclose the items the buyer found
- The broker can restart efforts to sell the home
T or F: By law, a real estate salesperson are required to have a written contract with their employing broker.
True
A real estate broker is allowed to keep ____ of his or her own money in a trust fund to handle bank service charges.
$200
The top producing salesperson Jane, at ABC Realty has become a broker and decided to open her own office. She currently has 10 listings with ABC Realty. What happens to these listings when she opens her own office?
They belong to the ABC Realty brokerage
Which of the following might be considered an example of secret profit and a violation of the law?
Broker receives a referral fee from a title company without telling the principals in the sale transaction
Under a buyer’s agency, the fiduciary relationship is between the broker and the:
Buyer
T or F: When a California real estate broker sells a property in another state where the California agent is not licensed, the use of a licensed broker in the other state does not allow the California broker to share in the commission.
False
