Agency And Listing

Question 1

Fiduciary relationship

Answer 1

Both agent and the sales person have a fiduciary responsibility to the owner which requires good faith and honesty

Question 2

Agency is created

Answer 2

By express written contract

Question 3

An agreement to pay consideration

Answer 3

Not essential to create an agency relationship

Question 4

Failure of licensee to disclose to his principal the full amount

Answer 4

Of his commission or profit may result in disciplinary action a licensee must reveal to the other party that he has a license whenever he is involved in a real estate transaction as a principal a licensee can’t purchase property through a dummy buyer

Question 5

If buyer is close relative to the broker

Answer 5

Must reveal this fact to the seller

Question 6

Agency

Answer 6

Found in the Civil Code this is a contractual relationship whereby an agent acts as a representative of the principal an agency is created when a principal execute a listing agreement of the racing a licensed real estate broker to be his agent

Question 7

accepting land as a commission

Answer 7

And selling it for profit acceptable behavior

Question 8

Rectification

Answer 8

Takes place when a friend supply of stuff course of girls and act that was performed on his behalf without his prior approval

Question 9

Divided agency

Answer 9

agent is acting for more than one writing in a transaction without knowledge and consent of all parties that disclosure act of 1988 requires the licensee to reveal to the client and customer he’s relationship as soon as possible in other words whether he is the agent of the seller buyer broker

Question 10

Dual agency

Answer 10

When an agent represents more than one party in a transaction both buyer and seller

Question 11

An agent must disclose all material facts to the third party buyer

Answer 11

But does not have a fiduciary duty to the third party

Question 12

An as is clause refers only to observable defects and does not eliminate the duty

Answer 12

To disclose material facts

Question 13

An agent incurs no liability if he does not disclose that an occupant

Answer 13

Died in the house more than three years ago or that previous occupant had aids hippa act

Question 14

The brokers entitled to a commission and indemnification from legal action if a contract is rescinded by a buyer due to

Answer 14

False information. Provided by the seller

Question 15

An agency may be terminated by agreement of the parties by the death of either party but expiration of the time. In the contract we announcement of the agency by the agent or revocation of the agency by the principal in the last two instances the party terminating the agreement may be liable for damages

Answer 15

The broker is entitled to a commission if he produces a buyer who is ready willingly enable to purchase a property on the exact terms of the listing contract or eight a binding contract arranged between the buyer and seller

Question 16

Commission is not set by the Law but rather buy the agreement in the listing agreement

Answer 16

The broker must be licensed at the time of the sale and have a written listing a contract in order to enforce the payment of a commission

Question 17

If neither party to a transaction is licensed the buyer does not want to disclose any profit he will make in the future of the sell of property

Answer 17

Laws

Question 18

Deposit and trust account the usual listing contracts authorities the broker to accept deposits

Answer 18

Trust account if you do Sherry account set up for clients funds only it cannot be commingled with business operating account or personal accounts

Question 19

Once the offer is accepted

Answer 19

The broker must give deposit if the principle demands it

Question 20

The broker may hold an uncashed check when directed to do so by the buyer

Answer 20

But he must inform the seller when presenting the offer

Question 21

Ernest money

Answer 21

Good faith deposit

Question 22

The broker must leave deposits into Esca into the hands of the principal and to the trust fund account by the third business day

Answer 22

Every does not use guilty of commingling

Question 23

Is the property is damage before the close of escrow the buyer may

Answer 23

Cancel the contract and have his deposit returned

Question 24

A brokers buyers agent if he is not authorized by the seller to accept the deposit in this case both the buyer and the broker would be liable if the deposit were misused or lost

Answer 24

The broker is the seller’s agent is the listing contract authorizes the broker to receive deposits the seller and the broker would be liable of the deposits were misused or lost

Question 25

If the booklet deposits a virus check and the buyer demand a refund before the offer is accepted the broker cannot return the deposit until the buyers check

Answer 25

Has cleared the account

Question 26

If there is a dispute between the buyer and the seller and the buyer wants to deposit back the broker can give the deposit back to him instead of the selling this is called

Answer 26

Interpleader action

Question 27

If a broker collects loan processing fees upfront

Answer 27

They must be placed in the trust account until earned

Question 28

When is brokers commissions is a percentage of the rents collected it does not represent commingling if commissions are withdrawn within

Answer 28

25 days

Question 29

Withdraws the broker and employee when authorized by the broker may make withdrawals salespersons employed by the broker or an unlicensed employee who is bonded

Answer 29

Anyone who broker authorizes who is employee

Question 30

A broker may withdraw funds from a trust account to pay for repairs on an apartment he manages

Answer 30

.

Question 31

A broker is allowed to have up to…… Of his own money in the trust account

Answer 31

200

Question 32

Any interes earned on funds in the trust account must be credited as a specificsd in a written agreement between principal and broker interest can’t accrue to benefit the broker

Answer 32

A broker must keep an accurate record of all trust funds which pass through his hands but a trust fund account is not required by law

Question 33

Reconciliation

Answer 33

Comparing the banks accounts with the broker records must be done monthly an unexplained overage must be kept in the trust account

Question 34

Exclusive right to sell

Answer 34

Broker is entitled to a commission no matter who sells the property including owner

Question 35

Net listing

Answer 35

The listing agreement states that the broker only receives compensation if the selling price exceeds the net amount that the seller wants

Question 36

Open listing

Answer 36

Non exclusive authority is given to many brokers no termination date is required

Question 37

Multiple listings mls

Answer 37

An exclusive listing generally an exclusive right to sell listing with the added responsibility on the part of the broker to distribute information through the multiple listing services share commission with cooperating brokers when bring in buyer

Question 38

Buyers listing

Answer 38

Exclusive authorization to locate property a contract which the broker is the agent of the buyer the brokers has no agency relationship with the seller or the listing broker once the property is located can become a dual agent for both parties if permission is obtained can represent other buyer as well

Question 39

Subagent

Answer 39

Broker who brings in buyer