Agency

Question 1

A Broker acting as agent for a Principal has as much authority as:

Answer 1

The principal actually or ostensibly confers upon him.

Question 2

Define Ostensibly (adverb)

Answer 2

Apparently or purportedly, but perhaps not actually.

Similar to apparently, seemingly.

Question 3

A Broker who is employed by the seller is liable to the buyer if:

Answer 3

He acts in excess of the terms of his contract.

Question 4

A Fiduciary relationship may be terminated by (name all 3):

Answer 4

Revocation, Death, Agreement.

Question 5

Define Revocation

Answer 5

When someone who granted or offered something withdraws it, as when a principal withdraws the authority granted to the agent, an offeror withdraws the offer.

Question 6

“Adrienne” has given “Martin” the impression that “Luis” is “Adrienne”’s Agent even though “Luis” was never given the authority to represent “Adrienne”. From “Martin”’s standpoint, the agency is:

Answer 6

Ostensible (Alleged to be real or genuine)

Question 7

Define Ostensible (Real Estate)

Answer 7

Alleged to be real or genuine

Question 8

A Licensee who misrepresents property to the Buyer while acting as an Agent of the Seller, is subject to (Name all 3):

Answer 8

Discipline, Civil Lawsuits, Criminal Penalties

Question 9

Agency is referred to as the relationship b/w the Agent & his Principal. Name all correct statements about Agency:

Answer 9

Agency may be an expressed or implied contract and an agreement that may be in writing or verbal.

Question 10

Name the false statement about Agency (Money):

Answer 10

The principal does not have to pay money to the Agent to create and Agency relationship.

Question 11

All of the following statements concerning Agency relationships. Name all correct statements:

Answer 11

1. Most Broker-Seller relationships are expressed Agencies
2. The Seller of a home is responsible for the misrepresentations of his Real Estate Broker as long as the Broker is acting w/in the scope of his authorized duties
3. The Real Estate Broker is not responsible for losses suffered by a buyer who acted upon misrepresentation of the Seller passed on to him by the Broker as long as the Broker was unaware of the Seller’s misrepresentations.

Question 12

What statements is incorrect concerning agency relationship (Net Listing):

Answer 12

Net listing are encourage in CA, b/c they avoid conflicts of interest in the Agency relationship.

Question 13

What is Special Performance?

Answer 13

Is an equitable remedy that is available when a party to a sales contract for real property is harmed by the other party’s nonperformance.

Question 14

Name the 3 ways in creating an Agency relationship

Answer 14

1. Agreement
2. Ratification
3. Estoppel

Question 15

What is a Ratification contract?

Answer 15

is created by accepting circumstances that created the Agency after the fact.

Question 16

What is Estoppel contract?

Answer 16

is created when a Principal doesn’t stop an Agent from going beyond the Agent’s normal duties.

Question 17

An Agency relationship is said to create Fiduciary relationship b/w Principal & Agent. Of the following relationships, which illustrates a Fiduciary responsibility? Name the 2.

Answer 17

1. Any Trustee to a Beneficiary.

2, Real Estate Broker to his Client.

Question 18

An Agency relationship, such as in a listing, may be terminated by all of the following methods:

Answer 18

1. Resignation of the agency by the Real Estate Broker.
2. Mutual termination by agreement of both the Agent & the Seller.
3. Destruction of the property w/ which the agency is concerned.

Question 19

An Agency relationship, such as in a listing, may not be terminated by which of the following ways:

Answer 19

Revocation by the Principal if the Agent has an interest in the Subject matter of the Agency.

Question 20

An Agent who acts exclusively as the Agent for the Buyer may (regarding offer):

Answer 20

Present offers to the Seller & Seller’s Agent.

Question 21

By accepting the actions of an Agent, even though there is no contract, a Seller may created an Agency by:

Answer 21

Ratification

Question 22

CA Real Estate Law imposes upon a Real Estate Agent the highest obligation of undivided Interest & Loyalty to his Principal. The relationship is comparable to that of a:

Answer 22

Trustee to the Beneficiary

Question 23

Fiduciary applies to the relationships b/w people in many different positions. It does NOT apply to which of the following?

Answer 23

Trustor to Beneficiary

Question 24

Fiduciary applies to the relationships b/w people in many different positions. It does apply to which of the following?

Answer 24

1. Attorney-In-Fact to Principal
   2, Attorney to Client
2. Agent to Seller.

Question 25

In describing an Agency contract, which is most nearly correct?

Answer 25

Most Multiple Listings are Exclusive Listings

Question 26

What are the 2 types of Exclusive Listings?

Answer 26

1. Exclusive Right to Sell Listing

2. Exclusive Agency Listing

Question 27

Micheal, a Real Estate Broker, sold a condo that was listed by a Broker from another company. What is her relationship to the Listing Broker?

Answer 27

Selling Broker

Question 28

What kind of Agency is a Listing?

Answer 28

A Special Agency (which is to find a buyer)

Question 29

What is a special Agency?

Answer 29

an Agent hired to perform a specific duty for a client.

Question 30

When a Real Estate Agent acts exclusively as Buyer’s Agent, he can’t do what?

Answer 30

Act as an Exclusive Agent of the Seller.

Question 31

When acting as a Listing Agent, a Real Estate Broker is liable to 3rd parties for:

Answer 31

His or Her own torts.

Question 32

Define Tort

Answer 32

A wrongful act or an infringement of a right (other than under contract) leading to civil legal liability.

Question 33

What is closest to the same relationship as b/w a Broker & Seller?

Answer 33

Trustee & Beneficiary

Question 34

What is true regarding escrow procedures

Answer 34

When the escrow req’ments have been met, the escrow Agency changes from a Dual Agency to a Separate Agency.

Question 35

What is not req’ed of a Licensee under the current Agency Disclosure Law?

Answer 35

Representation.