Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Real Estate (NJ) > (Ch. 10) Agency > Flashcards

(Ch. 10) Agency Flashcards

1
Q

All but one of the following owes a fiduciary obligation:

A) executor
B) guardian
C) attorney
D) mortgagor

A

(D)

A,B and C are fiduciary. A mortgagor is a debtor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q
  1. One who has the right to sign the name of his principal to a contract of sale is:

(A) a real estate broker.
(B) a special agent.
(C) an attorney-in-fact.
(D) an attorney-at-law.

A

(C)

Only an attorney-in-fact has such authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q
  1. A real estate salesperson might lawfully accept an extra commission in a difficult sale from:

(A) an appreciative seller.
(B) a thankful buyer.
(C) a broker-employer.
(D) the mortgage lender.

A

(C)

Salesperson can only accept
compensation from broker.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q
  1. Any person, partnership, association or corporation who authorizes or employs another, called the agent, to perform certain acts on his behalf is the

(A) agent.
(B) broker.
(C) principal.
(D) assignor.

A

(C)

Not spelled “principle.”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q
  1. An agent is considered to have earned his commission:

(A) only if title is transferred if he secures an offer from a prospective
(B) buyer.
(C) if he produces a ready, willing and able buyer on the principal’s terms of
(D) the principal signs a contract when sale.

A

(C)

If the seller defaults, the agent may sue the seller for the commission. If the buyer defaults, the agent may take a direct action against the buyer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q
  1. A broker is:

(A) a principal to the salesperson (B) the agent of a seller under a listing contract.
(C) the agent of a buyer in a buyer-agency agreement.
(D) All of the above.

A

(D)

All statements are true

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q
  1. Salespersons may accept compensation of their predetermined share:

(A) as indicated and given by the multiple listing service.
(B) from the owner of the property.
(C) from their employing broker.
(D) from the cooperating broker.

A

(C)

A salesperson may not accept compensation from anyone other then his or her employing broker.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q
  1. The commission rate for the sale of real estate is determined by:

(A) seller.
(B) fixed schedules approved by the Real Estate Commission.
(C) scarcity of real estate for sale.
(D) negotiation.

A

(D)

Compensation is arrived at by agreement between the broker and owner.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q
  1. Which of the following persons would NOT have fiduciary duties to a principal?

(A) Trustees.
(B) Administrators.
(C) Employees
(D) Receivers

A

(C)

Employees do not owe fiduciary obligations to an employers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q
  1. The position of trust assumed by the broker as an agent for the principal is described most accurately as:

(A) trustee relationship.
(B) stor relationship.
(C) confidential relationship.
(D) fiduciary relationship

A

(D)

A position of trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q
  1. Known hidden defects in a property must be disclosed by:

(A) seller only.
(B) broker only.
(C) salesperson only.
(D) seller, broker and salesperson.

A

(D)

Broker and salesperson have fiduciary obligations; seller must disclose defects under case law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q
  1. An owner requests a broker to list his property for sale at $70,000. Upon inspec- tion, the broker believes the property is worth $80,000. The broker should:

(A) get a net listing for the property at $70,000 (B) buy the property himself for $70,000.
(C) inform the seller that his property is worth $80,000
(D) suggest that the owner list the property for $75,000 so that he will have room for bargaining

A

(C)

The agent must disclose material facts to the client

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q
  1. A principal-agent relationship exists between the

(A) broker and his salespersons
(B) salesperson and customer.
(C) broker and cooperating broker.
(D) broker and customer.

A

(A)

A principal agent relationship exists between the broker and his or her salespersons. No fiduciary duty to customer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q
  1. A person who is given authority to perform a specific legal duty by another is:

(A) a power of attorney.
(B) an attorney-in-fact.
(C) an attorney-at-law.
(D) an executor.

A

(B)

The power of attorney is the instrument creating the authority. The attorney-in-fact is the person to whom the authority was given

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q
  1. A salesperson engaged by a real estate broker to show and sell properties:

(A) is an agent for the broker, who is an agent for the principal
(B) is himself the primary agent for the principal
(C) is a principal party to the transaction.
(D) is a general agent.

A

(A)

The broker is the agent and the salesperson is a sub-agent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q
  1. All BUT which of the following are fiduciaries?

(A) Principal
(B) Trustee.
(C) Guardian.
(D) Receiver.

A

(A)

An agent is a fiduciary for a principal, not vice-versa

17
Q
  1. The best description of a special agent would be a person who

(A) is an attorney.
(B) is a broker.
(C) has limited authority.
(D) has contractual authority

A

(C)

The authority of the broker is limited to finding a buyer or tenant.

18
Q
  1. It would NOT be the responsibility of the broker to inform the purchaser of which of the following?

(A) The basement floods
(B) The property, according to a map 100 years old, is located in a flood area.
(C) The price paid by the seller.
(D) The house is infested with termites

A

(C)

The purchaser can ascertain this himself. The broker must disclose information about A, B or D

19
Q
  1. In a typical real estate listing contract, the broker would best be described as:

(A) a general agent
(B) a special agent.
(C) the principal for the agent.
(D) the principal for the sub-agent

A

(B)

The authority of the broker is limited to finding a buyer or tenant. A real estate property manager is usually a general agent.

20
Q
  1. A Power of Attorney is NOT necessarily revoked if:

(A) the principal dies.
(B) the attorney-in-fact fails to use it for 90 days.
(C) the principal records a declaration revoking it.
(D) the attorney-in-fact dies.

A

(B)

Non-use will not revoke a power of attorney.

21
Q
  1. A declaration made by a person to an official that he freely and voluntarily executed a deed is called an:

(A) acknowledgment.
(B) authorization.
(C) authentication.
(D) execution.

A

(A)

Necessary for recording

22
Q
  1. Death of either the principal or agent terminates the

(A) listing contract.
(B) contract for sale.
(C) deed
(D) mortgage.

A

(A)

B, C, and D are not agency agreements as is the listing

23
Q
  1. An agency agreement will be terminated by

(A) the death of the agent.
(B) the bankruptcy of the principal.
(C) the death of the principal.
(D) all of the above.

A

Also by mutual agreement, accomplishment of objective and expiration of agreed period of time.

24
Q
  1. Which of the following will NOT terminate an agency relationship?

(A) Revocation by the principal
(B) Mutual consent.
(C) Reciprocity.
(D) Renunciation by the agent

A

(C)

Reciprocity deals with a mutual agreement by certain states to extend licensing privileges to licensees in each state

25
Q
  1. Responsibilities of an agent in an agency relationship include all of the following EXCEPT:

(A) exercise of due care.
(B) accountability.
(C) obedience.
(D) patience

A

(D)

Patience is not a fiduciary obligation

26
Q
  1. To enforce his right to a commission a bro- ker must:

(A) act under written authorization.
(B) have an exclusive listing.
(C) belong to the MLS
(D) be a Realtor.

A

(A)

An oral authorization to sell real estate is unenforceable

27
Q
  1. Apollo Creed lists his house with the XYZ Realty Corp., for which Justin Case is the authorized broker. Which of the following statements is true?

(A) Mr. Creed’s death will terminate the listing agreement.
(B) Mr. Case’s death will terminate the listing agreement.
(C) The XYZ Realty Corp. is a general agent. (D) The listing is automatically renewable if it is an exclusive.

A

(A)

The death of the agent will terminate the listing. In this question, the agent is XYZ Realty Corporation, not Mr. Case.

28
Q
  1. Which of the following is/are required to create an agency relationship?

(A) Written agreement.
(B) Compensation by principal
(C) Consent of principal and agent.
(D) All of the above

A

(C)

Written agreement and compensation are not requisites to create an agency relationship

29
Q
  1. A customer may best be described as:

(A) always the buyer.
(B) someone you work “with.”
(C) someone you work “for.”
(D) the person to whom a fiduciary duty is owed

A

(B)

Real estate agents work “for” clients and “with” customers. Fiduciary obligations are owed to the client, not the customer.

30
Q
  1. If a broker acts as a dual agent without disclosure, which of the following may occur? (A) Loss of license.
    (B) Rescission of contract.
    (C) Forfeiture of commission.
    (D) All of the above.
A

(D)

Undisclosed dual agency is an act of fraud

Real Estate (NJ) (30 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions