Agency and Ethics Flashcards
All but one of the following own a fiduciary obligation:
A) Executor
B) Guardian
C) Attorney
D) Mortgagor
D) Mortgagor
An executor owes a duty to the estate. A mortgagor is a debtor.
One that has the right to sign the name of his principal to a contract of sale is:
A) A real estate broker
B) A special agent
C) An attorney-in-fact
D) An attorney-at-law
C) An attorney-in-fact
A broker is an agent with limited authority
Any person, partnership, association or corporation who authorizes or employees another, called the agent, to perform certain acts on his behalf is the:
A) Agent
B) Broker
C) Principal
D) Assignor
C) Principal
Not spelled “principle”
It is an unethical practice for a broker representing the seller to:
I. Advise the seller of the highest price he believes a prospective purchaser is willing to pay
II. Advise a prospective purchaser of the lowest price the seller is willing to accept.
A) I Only
B) II Only
C) Both I and II
D) Neither I nor II
B) II Only
II. Advise a prospective purchaser of the lowest price the seller is willing to accept.
When a broker signs a contract to manage an owner’s property, he becomes a:
A) Lessor
B) Trustee
C) Receiver
D) Fiduciary
D) Fiduciary
The commission rates for the sale of real estate are determined by:
A) Seller
B) Fixed schedules approved by the Real Estate Commission
C) Scarcity of real estate for sale
D) Negotiation
D) Negotiation
A fiduciary relationship could exist between a client and all of the following except a:
A) Trustee
B) Administrator
C) Appraiser
D) Receiver
C) Appraiser
In handling a real estate transaction, a broker should:
I. Provide his client with a statement of the receipts and disbursements of client’s money
II. Not reveal building code violations to his client
A) I Only
B) II Only
C) Both I and II
D) Neither I nor II
A) I Only
I. Provide his client with a statement of the receipts and disbursements of client’s money
A broker has the duty of accounting and must disclose pertinent facts about the property
A seller tells her broker that termites have destroyed the roof and that the swimming pool is in violation of the city setback requirements. Which of the following must the broker’s salesperson disclose to a prospective buyer?
I. Condition of roof
II. Pool violation
A) I Only
B) II Only
C) Both I and II
D) Neither I nor II
C) Both I and II
I. Condition of roof
II. Pool violation
A power of attorney for real property:
I. Must be in writing
II. Is revoked by the death of either party
A) I Only
B) II Only
C) Both I and II
D) Neither I nor II
C) Both I and II
I. Must be in writing
II. Is revoked by the death of either party
When a salesperson makes a misrepresentation of a material fact, the salesperson is liable:
I. Only when he makes the statement with a malicious intent
II. Even if he is not a principal to the transaction
A) I Only
B) II Only
C) Both I and II
D) Neither I nor II
B) II Only
II. Even if he is not a principal to the transaction
Innocent or intentional misrepresentations can cause damage even if salesman is not eh buyer or seller, just the agent.
A salesperson employed by a real estate broker to show and sell property to a client:
A) Is an agent for the broker, who is an agent for the principal
B) Is himself an agent for the principal
C) Is a principal party to the transaction
D) Is an independent contractor
A) Is an agent for the broker, who is an agent for the principal
The broker is the agent and the salesperson is an authorized sub-agent of the broker
The best description of a special agent would be a person who:
A) Is an attorney
B) Is a broker
C) Has limited authority
D) Has contractural authority
C) Has limited authority
The listing broker owes a fiduciary responsibility to whom?
A) Listing salesman
B) Buyer
C) Seller
D) Buyer’s Agent
C) Seller
All of the following normally are dual agency situations except:
A) One sales-person represents the seller and another salesperson in the same company represents the buyer
B) The listing salesperson sells to former customer
C) The listing salesperson represents the buyer
D) The listing salesperson sells to a former long-time client.
B) The listing salesperson sells to former customer
