Agency Basics 2 Flashcards
independent brokerage
A brokerage unaffiliated with a franchise. These do not require franchise fees, but they also do not offer franchise benefits.
competing broker
A broker who directly helps buyers and sellers with their real estate needs alongside their own agents.
experience requirements
Some brokerages in the state of Utah will not take brand new agents and require you to have been a licensee for a certain number of years and accumulated a certain transaction volume to indicate that you have some significant experience. Most brokerages will accept new licensees, and some have great training programs geared towards brand new licensees.
real estate franchise
Real estate companies with a national or global presence. These franchises require a fee in exchange for association with that company and brokerage, and they offer benefits to members.
non-competing broker
A broker who only serves the agents in their office.
specialty brokerage
A brokerage specializing in certain aspects of real estate. For example, some brokerages only represent buyers or only work with luxury real estate.
When choosing a broker, which of the following should you consider:
A: Training
B: Support
C: Compensation
D: All Of The Above
D: All Of The Above
Sunshine Realty only represents buyers. Which of the following statements are TRUE about Sunshine Realty’s services?
A: It Is A Full Service Brokerage
B: It Never Practices Limited Agency
C: It Takes Listings As Well As Represents Buyers
D: It Engages In Dual Agency
B: It Never Practices Limited Agency
reasonable efforts
Take the time to be thorough and make sure that all data is accurate. Note the sources for information, such as when an appraisal was done.
agency before contracts
You must have your agency relationship in place and verified before moving forward with a contract.
real estate licensee disclosure
If you intend to be a client, you must disclose in writing your licensee status to all parties prior to the contract. Even if your license is on inactive status, you have an obligation to disclose your status as a real estate licensee if you become a principal in a transaction.
willful misrepresentation
An occurrence in which an agent knowingly makes a false statement about a material fact.
latent defect
A hidden defect that would not necessarily be known to an ordinary, prudent buyer
In the state of Utah, an agent can only be compensated for their real estate services by:
A: The Buyer
B: The Seller
C: The Cooperating Broker
D: The Affiliated Brokerage
D: The Affiliated Brokerage
The third party or non-represented consumer is also referred to as the:
A: Client
B: Agent
C: Principal
D: Customer
D: Customer
Which of the following duties does an agent owe to customers?
A: Honesty
B: Accounting For Funds
C: Disclosure Of Material Facts
D: All Of The Above
D: All Of The Above
When an agent knows about a material fact and falsifies information, it is often referred to as:
A: Willful Misrepresentation
B: Puffing
C: Fraud
D: Negligent Misrepresentation
A: Willful Misrepresentation
A hidden defect that would not be known to an ordinary prudent buyer is also referred to as:
A: Willful Misrepresentation
B: Puffing
C: Latent Defect
D: Negligent Misrepresentation
C: Latent Defect
multiple listing service
A suite of services that brokers use to establish contractual offers of cooperation from broker to broker.
Julie lists her home for sale with Monica. Monica later brings Buyer Bill, who loves the property and wants to make an offer. Bill asks Monica to represent him. What fiduciary benefits will both Julie and Bill be giving up?
A: Accounting For Funds
B: Reasonable Care And Diligence
C: Obedience
D: Confidentiality
D: Confidentiality
Which fiduciary duty survives the transaction?
A: Loyalty
B: Disclosure
C: Confidentiality
D: Obedience
C: Confidentiality
Which of the following would NOT terminate an agency relationship?
A: The Property Was Condemned By The City
B: The Seller Died
C: The Transaction Closed Successfully
D: The Buyer Decided They No Longer Like Their Agent And Their Agency Agreement Had Not Yet Expired
D: The Buyer Decided They No Longer Like Their Agent And Their Agency Agreement Had Not Yet Expired
Agent Amanda has listed her own home for sale. An unrepresented buyer would like to make an offer on her home. Which of the following is NOT a legal option for Amanda?
A: She Can Represent The Buyer As A Limited Agent
B: She Can Refer The Buyer To Another Agent In Her Office
C: She Can Refer The Buyer To An Agent In Another Office
D: She Can Suggest The Buyer Continue To Be Unrepresented And Have Them Sign An Unrepresented Buyer Disclosure
A: She Can Represent The Buyer As A Limited Agent
Broker Bob can do which of the following as the agent for the seller?
A: Disclose The Seller’s Minimum Price
B: Champion The Seller At The Highest Level
C: Present Only The Best Offers To The Seller
D: Share With Cooperating Agents What The Seller’s Negotiating Strategy Is
B: Champion The Seller At The Highest Level
Broker Cheryl gets an angry phone call from a buyer who is working with Shauna, one of the agents in Cheryl’s office. The buyer wants to be released from her agency agreement and go hire another agent. Which of the following statements is FALSE?
A: The Buyer Cannot Be Released From Her Agency Agreement Because The Agreement Has Not Yet Expired
B: Cheryl And The Buyer Can Mutually Agree To Terminate The Agency Agreement Early
C: Cheryl Has The Authority To Designate Another Agent In Her Office To Represent This Buyer
D: This Buyer Is Stuck With Her Agent Forever
D: This Buyer Is Stuck With Her Agent Forever
Rebecca Realtor has a home listed. She has a buyer who falls in love with the home and wants to make an offer. Which statement is TRUE about what Rebecca should do in this situation?
A: She Can Write Up The Offer
B: She Has A Fiduciary Duty Of Obedience To Write Up The Offer For The Buyer
C: She Cannot Write Up The Offer For The Buyer Without First Getting A Limited Agency Consent Agreement Signed By Both The Seller
D: She Should Never Have Showed Her Buyer A Home She Had Listed
C: She Cannot Write Up The Offer For The Buyer Without First Getting A Limited Agency Consent Agreement Signed By Both The Seller
Jake is the agent for the seller. Which of the following statements is TRUE about Jake’s role in representing the seller?
A: Jake Can Accept An Offer On The Seller’s Behalf
B: Jake Can Make A Change In The List Price Without The Seller’s Approval
C: Jake Owes The Duties Of Loyalty And Confidentiality To The Seller
D: Jake Can Disclose The Existence Of Multiple Offers Without The Seller’s Permission
C: Jake Owes The Duties Of Loyalty And Confidentiality To The Seller
An agent stating: “This home has the most glorious mountain views of any home in the entire valley”. This is an example of:
A: Puffing
B: Negligent Misrepresentation
C: Fraud
D: Implied Agency
A: Puffing
In the state of Utah, all agency relationships are between the principal and _______
A: The Broker
B: The Agent
C: The Fiduciary
D: The Intermediary
A: The Broker
