Agency Relationships Practice Quiz Flashcards
The fiduciary obligations of a licensee acting in an agency capacity are:
Confidentiality
Reasonable care or skill
Full disclosure
Lawful obedience
In an agency relationship, the client has obligations towards the agent. What are some of those obligations
Indemnification
Renumeration
Disclosure of releveant information
Real estate professionals who deal with customers or third parties have certain obligations to these persons, what are they?
Act honestly
Provide competent service
Ensure their role is clearly understood
True or false: A licensee cannot be held responsible for incorrect information that has been extracted from an old MLS listing
False, licensees have been held responsible for false information that is written or oral
Can a brokerage pay a commission or a referral fee to an unlicensed person?
Yes, as long as they do not require a license for the activity they are earning a commission or fee for
Which type of agency relationship does the following definition represent: “A real estate brokerage can act as the client’s agent.”
Common law
True or false: RECA sanctions are always monetary
False
RECA sanctions can be monetary or non-monetary
License suspension/cancellation
Educational requirement
Letter of reprimand
Publication of the details of your offence
Some conducts that could lead to sanction?
Withholding material latent defect disclosure
Not completing forms and contracts correctly
Not submitting contracts to your brokerage on time
Being unprofessional with another licensee
What is implied agency
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
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
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
Define Transaction Brokerage
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
A sale forced by the courts as an act towards financial recovery for a third party, is known as which of the following options?
Judicial sale
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?
Freehold estate
True or False: Residential areas can contain leasehold properties
True
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?
Power of Attorney
