Agency & Real Estate Brokerage 4

Question 1

A_____

Represents the Principal and Must Follow All the Principals Instructions Unless Violates the Law?

Answer 1

Agent -

Represents the Principal and Must Follow All the Principals Instructions - Unless Violates the Law

Chap 4

Question 2

Who Employs the Salesperson, When Broker is the Agent of The Client and Salesperson is Agent of Broker

Answer 2

Principal -

Principal Employs Salesperson, When Broker is the Agent of Client and Salesperson is Agent of Broker

Chap 4

Question 3

Persons represented by Outside Brokerage Firms.

Answer 3

Customer -

Represented by Outside Brokerage Firms

Chap 4

Question 4

If Both Parties are Represented by Your Brokerage Firm. These Parties Are Called?

Answer 4

Clients -

Both Represented by Your Brokerage Firm

Chap 4

Question 5

Fiduciary Duties to client, or C.A.R.L.O.D

1. Conf________,
2. Acc______,
3. R________ Care,
4. Loy___,
5. Ob_______,
6. Dis_______

Answer 5

C.A.R.L.O.D - Fiduciary Duties to client

1. Confidentiality,
2. Accounting,
3. Reasonable Care,
4. Loyalty,
5. Obedience,
6. Disclosure

Chap 4

Question 6

Duties to Customers - 5 (Fiduciary Duties):

Hint: Fairness Honestly Gives Good Faith that Customers Deserved

1. Fai______,
2. Hon______,
3. G____ Faith,
4. Compen_____,
5. Dis_____

Answer 6

Duties to Customers - 5 (Fiduciary Duties):

1. Fairness,
2. Honesty,
3. Good Faith,
4. Competency,
5. Disclosure

Hint: Fairness Honestly Gives Good Faith that Customers Deserved

Chap 4

Question 7

Agents Not Held Liable For Non-Disclosure Of:

1. Nat_____ Death,
2. Su____,
3. Hom____,
4. Felo_____,
5. S___ Offender Area
6. HIV or AIDS (Handicap Fair Housing Admin 1988)

Answer 7

Agents Not Held Liable For Non-Disclosure Of:

1. Natural death,
2. Suicide,
3. Homicide,
4. Felony,
5. Sex Offender Area
6. HIV or AIDS (handicap Fair Housing Admin 1988)

Chap 4

Question 8

Client’s Duties to Agent:

1. Comp_________,
2. Perf_______,
3. Indem________,

Answer 8

Clients Duties to Agent:

Compensation, Performance, Indemnification

Chap 4

Question 9

Ag_____

Created through Authorization of Principal, may or may not be in writing

Answer 9

Agencies -

Created through Authorization of Principal, may or may not be in writing

Chap 4

Question 10

L_____ A________

What Employment Contract Must Be in Writing, In Order to Collect a Fee in Court, and toComply with Arizona Statutes?

Answer 10

Written Listing Agreement -

Must be in Writing In Order to Collect a Fee in Court and Comply with Arizona Statutes.

Chap 4

Question 11

Ex______ Ag______

Type of Agency Created by“Specific Authorization” From Principal, “Verbally or Written.”

Answer 11

Expressed Agency -

“Specific Authorization,” from Principal in “Writing or Verbal.”

Chap 4

Question 12

Im______ A_____

Type of Agency Created By Actions - not In writing

Answer 12

Implied Agency -

Agency Created By Actions - not in writing.

Chap 4

Question 13

S__-______

What is the Salesperson To the Client called?

If the Broker Is the Agent of the Client. And the Salesperson Is the Agent of the Broker.

Answer 13

Sub-Agent -

The Saleperson Is the Sub-Agent to the Client.

If the Broker Is the Agent of the Client. And the Salesperson Is the Agent of the Broker.

Chap 4

Question 14

Cons____ to Limited Rep_______

When a Dual Agency Exist, Written Permission of Both Parties (Informed Consent) Is Necessary. This is called?

Answer 14

Consent to Limited Representation -

When a Dual Agency Exist, Written Permission of Both Parties (Informed Consent) Is Necessary.

Chap 4

Question 15

(READE) R___ Es____ Ag____ Dis_____ and El____ Form -

At First Substantive Discussion With Client, AZ Agents Should Use This Form.

Answer 15

(READE) Real Estate Agency Disclosure and Election form -

At First Substantive Discussion With Client, AZ Agents Should Use This Form.

Chap 4

Question 16

Unrep_____ Seller Com_______ Ag_______ -

In working with FISBO’s and Making an Offer as Buyer’s Agent, when Seller is Unrepresented.

What Form Maintains Single Agency and Gives Compensation to Buyer’s Agent?

Answer 16

Unrepresented Seller Compensation Agreement -

In FISBO Making an Offer as Buyer’s Agent.

This Form Maintains Single Agency and Gives Compensation to Buyer’s Agent.

Chap 4

Question 17

Person Authorized to Represent Another thru a Power of Attorney

Answer 17

Attorney in Fact -

Person Authorized to Represent Another thru a Power of Attorney

Chap 4

Question 18

Sp_____ (Spec___) Agency -

Limited Authority under Listing and Buyer Broker Agreements

Answer 18

Specific (Special) Agency -

Limited Authority under Listing and Buyer Broker Agreements

Chap 4

Question 19

G_____ Agency -

1. Agency Used for “Various Duties” - Personal and Business
2. “Property Management Listings,”
3. Agent Holds This Type of Agency to Broker.

Answer 19

General Agency -

1. Agency Used for “Various Duties“ - Personal and Business
2. “Property Management Listings,”
3. Agent Holds This Type of Agency to Broker.

Chap 4

Question 20

Un_____ Agency -

Agency has Authority Over All Matters of Principal.

Answer 20

Universal Agency -

Authority Over All Matters of Principal

Chap 4

Question 21

Im____ Notice -

Communicated To Agent, Automatic Notice to Principal.

Answer 21

Imputed Notice -

Communicated To Agent, Automatic Notice to Principal.

Chap 4

Question 22

Vic_____ Liab____ (Respondeat Superior) -

Concept that Principal is Responsible for Acts of Agent

Respondeat means “Let the Master Answer!”

Answer 22

Vicarious Liability (Respondeat Superior) -

Concept that Principal is Responsible for Acts of Agent

Respondeat means “Let the Master Answer!”

Chap 4

Question 23

G______ Liab_____ Ins______

Insures “Broker/Agent” Against Claims - When a 3rd Party Is Injured

Answer 23

General Liability Insurance -

Insures “Broker/Agent” Against Claims - When a 3rd Party Is Injured

Chap 4

Question 24

Extra Liablity Insurance for Major Claims and Lawsuits

Answer 24

Umbrella Insurance -

Extra Liablity Insurance for Major Claims and Lawsuits

Chap 4

Question 25

**What "Does Not" Terminate _Purchase Contract_ or _Lease_!**

Answer 25

**Death** - **_Does Not Terminate_** **Purchase Contract** or **Lease** **Chap 4**

Question 26

**_Reasonable Skill and Care_ 5 (Fiduciary Duty)** 1. **Con\_\_\_\_ Prep,** 2. **Mark\_\_\_\_**, 3. **Adv\_\_\_\_** on **Price**, 4. **Meeting** **Dea\_\_\_\_\_**, 5. **Disclosure** of **Mat\_\_\_\_ Facts**

Answer 26

**_Reasonable Skill and Care_ 5 (Fiduciary Duty)** 1. **Contract Prep,** 2. **Marketing**, 3. **Advising on Price,** 4. **Meeting Deadlines,** 5. **Disclosure of Material Facts** **Chap 4**

Question 27

**_Disclosure_** **_(Fiduciary Duties)_** - **Agents must make Full Disclosure:** 1. **Conf\_\_\_\_ of Interest**, 2. **Other Off\_\_\_\_** on **Property** 3. **Ag\_\_\_\_ Relationship Status** 4. **Mat\_\_\_\_ Defects** 5. **Info Mat\_\_\_\_** to **Client Int\_\_\_\_\_**

Answer 27

**_Disclosure_** **_(Fiduciary Duties)_** - **Agents must make Full Disclosure:** 1. **Conflicts of Interest**, 2. **Other Offers** on **Property** 3. **Agency Relationship Status** 4. **Material Defects** 5. **Info Material** to **Client Interest** **Chap 4**

Question 28

**7 Ways** to **Terminate Agency:** 1. **Perf\_\_\_\_\_\_**, 2. **Mutual Agr\_\_\_\_\_,** 3. **Exp\_\_\_\_\_,** 4. **Revo\_\_\_\_\_,** 5. **Des\_\_\_\_\_ of Property,** 6. **Ba\_\_\_\_\_\_ (BK),** 7. **Death of Prin\_\_\_\_\_ or Agent**

Answer 28

**7 Ways** to **Terminate Agency:** 1. **Performance**, 2. **Mutual** Agreement, 3. **Expiration**, 4. **Revocation**, 5. **Destruction** of Property, 6. **Bankruptcy** (BK), 7. **Death** of Principal or Agent **Chap 4**

Question 29

**Ag\_\_\_** - **Relationship When Hired To Act** **on Behalf of Principal**

Answer 29

**Agency** - **Relationship When Hired To Act** **on Behalf of Principal** **Chap 4**

Question 30

**New Homes** **Agency** - **Agents Represent** **S\_\_\_\_/Bui\_\_\_\_\_**

Answer 30

**New Homes** **Agency** - **Agents Represent** **Seller/Builder** **Chap 4**

Question 31

**This Agreement is Binding on Heirs of Buyer and Seller, If Either Dies**

Answer 31

**Purchase Agreement** - Binding on Heirs of Buyer and Seller if Dies. **Chap 4**

Question 32

Who is the Agent of the Client?

Answer 32

**Broker -** **Is the Agent of the Client** **Chap 4**

Question 33

When the Agent Only Represents One Party (Buyer or Seller)

Answer 33

**Single Agency -** When the Agent Only Represents One Party (Buyer or Seller) **Chap 4**

Question 34

**A Document** through which the **Client Authorizes the Agent to Act on His/Her Behalf.**

Answer 34

**Power of Attorney -** **A Document** through which the **Client Authorizes the Agent to Act on His/Her Behalf.** **Chap 4**

Question 35

**_Insures Licensees_ - _Against**_ _**Misrepresentations_ of Material Facts** the **Licensee Failed to Disclose** is called?

Answer 35

**Errors & Omissions Insurance -** **_Insures Licensees_ - _Against**_ _**Misrepresentations_ of Material Facts** the **Licensee Failed to Disclose** **Chap 4**

Question 36

1. **One Who Contracts His/Her Services to the Broker and Pays Own (Taxes and Social Secuirty)** 2. **_IRS Requires_**: **Written Independant Contractor Agmt** 3. **Broker Monitor Overall Performance Only**

Answer 36

**Independent Contractor -** 1. **One Who Contracts His/Her Services to the Broker and Pays Own (Taxes and Social Security)** 2. **_IRS Requires_**: **Written Independant Contractor Agmt** 3. **Broker Monitors Overall Performance Only** **Chap 4**

Question 37

**What Type of Fiduciary Duty?** **The Agent Must Place the Client's Interest Above the Agent's Interest**

Answer 37

**Loyalty (Fiduciary Duties) -** **The Agent Must Place the Client's Interest Above the Agent's Interest** **Chap 4**

Question 38

**What type of Fiduciary Duty?** **An Agent Must _Follow the Client's Instructions_ Unless They Violate The Law.** **Violations**: 1. Seller Asks to Violate Fair Housing Laws 2. Seller Asks Not To Disclose Defects In Property.

Answer 38

**Obedience (Fiduciary Duty) -** **An Agent Must _Follow the Client's Instructions_ Unless They Violate The Law.** **Violations**: 1. Seller Asks to Violate Fair Housing Laws 2. Seller Asks Not To Disclose Defects In Property. **Chap 4**

Question 39

**What type of Fiduciary Duty?** **The Agent Must Account To the Parties For All Monies the Agent Accepts In the Transaction.**

Answer 39

**Accounting (Fiduciary Duties) -** **The Agent Must Account To the Parties For All Monies the Agent Accepts In the Transaction.** **Chap 4**

Question 40

**What type of Fiduciary Duty?** **The Agent Must Keep Certain Information Confidential.** **_Examples_** 1. **Price Seller will Accept** 2. **Price Buyer will Pay** 3. **Duty Remains in Effect Indefinately After Expiration.**

Answer 40

**Confidentiality (Fiduciary Duties) -** **The Agent Must Keep Certain Information Confidential. What type of Fiduciary Duties** **_Examples_** 1. **Price Seller will Accept** 2. **Price Buyer will Pay** 3. **Confidentiality Remains in Effect Indefinately After Expiration.** **Chap 4**

Question 41

**The Sherman Anti-Trust Act regulates?** 1. Sale of Real Estate Across State Lines 2. Contracts that Fall Under Statute of Frauds 3. Brokerage Firms Agreeing to Change Their Fees From Commission Basis to Each Firm Charging Same Flat Rate 4. Disclosure of Finance Charges in a Loan

Answer 41

**The Sherman Anti-Trust Act regulates:** 1. Sale of Real Estate Across State Lines 2. Contracts that Fall Under Statute of Frauds 3. **Brokerage Firms Agreeing to Change Their Fees From Commission Basis to Each Firm Charging Same Flat Rate** 4. Disclosure of Finance Charges in a Loan **Chap 4**

Question 42

**The Agent shows Several House to a Buyer and tells Him that One House is the Best Investment. What type of Agency may the Saleperson be Creating?** 1. Expressed Agency 2. Implied Agency 3. General Agency 4. Specific Agency

Answer 42

**The Agent shows Several House to a Buyer and tells Him that One House is the Best Investment. What type of Agency may the Saleperson be Creating?** 1. Expressed Agency 2. **Implied Agency** 3. General Agency 4. Specific Agency **Chap 4**

Question 43

**A Special Agent Can Do All of the Following EXCEPT:** 1. Represent the Principal in All Real Estate Transactions 2. Represent the Principal in a Specific Real Estate Transaction 3. Sell Land 4. Find a Ready Will and Able Buyer

Answer 43

**A Special Agent Can Do All of the Following EXCEPT:** 1. **Represent the Principal in All Real Estate Transactions** 2. Represent the Principal in a Specific Real Estate Transaction 3. Sell Land 4. Find a Ready Will and Able Buyer **Chap 4**

Question 44

**A Property is Listed for Sale and Before Expiration the Principal is declared Bankrupt** 1. Terminated 2. Not Affected 3. Subjected to Court Review 4. Transferred to the Trustee

Answer 44

**A Property is Listed for Sale and Before Expiration the Principal is declared Bankrupt** 1. **Terminated** 2. Not Affected 3. Subjected to Court Review 4. Transferred to the Trustee **Chap 4**

Question 45

**All of the Following Situations would Legally Terminate a Listing EXCEPT:** 1. Death of the Listing Salesperson 2. Revocation By The Seller 3. Revocation By The Broker 4. Insanity of The Seller

Answer 45

**All of the Following Situations would Legally Terminate a Listing EXCEPT:** 1. **Death of the Listing Salesperson** 2. Revocation By The Seller 3. Revocation By The Broker 4. Insanity of The Seller **Chap 4**

Question 46

**If One Agent is Exclusively Representing the Seller, and the Buyer's Broker brings the Buyer and Seller together it would be a:** 1. Single Agency 2. Dual Agency 3. Universal Agency 4. Ratified Agency

Answer 46

**If One Agent is Exclusively Representing the Seller, and the Buyer's Broker brings the Buyer and Seller together it would be a:** 1. **Single Agency** 2. Dual Agency 3. Universal Agency 4. Ratified Agency **Chap 4**

Question 47

**The Concept that Informaiton given to Client's Agent has been given to Client is know as:** 1. Caveat Emptor 2. Respondent Superior 3. Vicarious Liability 4. Imputed Notice

Answer 47

**The Concept that Informaiton given to Client's Agent has been given to Client is know as:** 1. Caveat Emptor 2. Respondent Superior 3. Vicarious Liability 4. **Imputed Notice** **Chap 4**

Question 48

**Agency Types** 1. **\_\_\_\_\_ Agency - LImited Authority (Listing Agmt/Buyer Broker Agmt)** 2. **\_\_\_\_\_ Agency - Broader Authority - Bus and Personal (Property Management/Agent is to Broker)** 3. **\_\_\_\_\_\_ Agency - Authority in All Matters**

Answer 48

**Agency Types** 1. **Special Agency - LImited Authority (Listing Agmt/Buyer Broker Agmt)** 2. **General Agency - Broader Authority - Bus and Personal (Property Management/Agent-General to Broker)** 3. **Universal Agency - Authority in All Matters** **Chap 4**

Question 49

**Client Agent Liabilities** 1. **\_\_\_\_\_\_\_\_ Communication or Notice to Agent is Communication or Notice to Client** 2. **\_\_\_\_\_\_\_\_ Principle is Responsible for Acts of Agent**

Answer 49

**Client Agent Liabilities** 1. **_Imputed Notice_ - Communication or Notice to Agent is Communication or Notice to Client** 2. **_Vicarious Liability/Respondeat Superior_ - Principle is Responsible for Acts of Agent** **Chap 4**