Agency Relationships Practice Quiz Flashcards

1
Q

The fiduciary obligations of a licensee acting in an agency capacity are:

A

Confidentiality

Reasonable care or skill

Full disclosure

Lawful obedience

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2
Q

In an agency relationship, the client has obligations towards the agent. What are some of those obligations

A

Indemnification

Renumeration

Disclosure of releveant information

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3
Q

Real estate professionals who deal with customers or third parties have certain obligations to these persons, what are they?

A

Act honestly

Provide competent service

Ensure their role is clearly understood

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4
Q

True or false: A licensee cannot be held responsible for incorrect information that has been extracted from an old MLS listing

A

False, licensees have been held responsible for false information that is written or oral

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5
Q

Can a brokerage pay a commission or a referral fee to an unlicensed person?

A

Yes, as long as they do not require a license for the activity they are earning a commission or fee for

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6
Q

Which type of agency relationship does the following definition represent: “A real estate brokerage can act as the client’s agent.”

A

Common law

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7
Q

True or false: RECA sanctions are always monetary

A

False

RECA sanctions can be monetary or non-monetary

License suspension/cancellation

Educational requirement

Letter of reprimand

Publication of the details of your offence

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8
Q

Some conducts that could lead to sanction?

A

Withholding material latent defect disclosure

Not completing forms and contracts correctly

Not submitting contracts to your brokerage on time

Being unprofessional with another licensee

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9
Q

What is implied agency

A

It is created by the provision of advice or services to an individual in a way that implies an agency relationship, or that the consumer is relying on the licensee as their agent

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10
Q

True or False: As a licensee it is a conflict of interest if as a a designated agent you show a client a property owned by a seller you also represent

A

False

Merely showing a client a property owned by a seller you represent is not a conflict of interest

If the client were to become interested in the property, that would constitute a conflict of interest

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11
Q

Define Transaction Brokerage

A

When both seller and buyer have agreed to use a single agent. The agent can assist the buyer and seller by providing facilitation services by collecting documents and answering factual questions

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12
Q

A sale forced by the courts as an act towards financial recovery for a third party, is known as which of the following options?

A

Judicial sale

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13
Q

The most common type of property in real estate trade that is dependent on the seller’s proprietary rights as well as the buyer’s desired future form of ownership is called which of the following options?

A

Freehold estate

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14
Q

True or False: Residential areas can contain leasehold properties

A

True

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15
Q

A legal authorization that gives a designated person, termed the agent, the power to act for another person, known as the principal, is called which of the below terms?

A

Power of Attorney

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