Ch 2 Agency Relationships

Question 1

Special agency is also known as

Answer 1

Limited agency

Question 2

A general agency gives the right

Answer 2

To represent the principle in a particular type of transaction or business

Question 3

The authority that comes from specific instructions, either oral or written is

Answer 3

An Express authority

Question 4

The power to act for the principal and all transactions is what type of agency?

Answer 4

Universal agency

Question 5

If an agent has acted without prior authorization, and then the principal excepts payment, what has happened?

Answer 5

Agency by ratification

Question 6

In order for a agreement to be enforceable, it must be

Answer 6

In writing

Question 7

If an individual grants express authority to the agent to perform an act whether written or oral, what authority was given to the agent?

Answer 7

Agency by actual authority

Question 8

When actions lead one person to assume that another is an agent they have created a

Answer 8

Ostensible agency

Question 9

If an agent takes on powers beyond the scope of authority, given by the principal what type of agency is created

Answer 9

Agency by estoppel

Question 10

In agency couple with an interest this means

Answer 10

The agent/broker and close relatives are the owner of a property being so or is interested in the property

Question 11

A written listing agreement, or buyer representation agreement is evidence that the agency relationship exist, and gives the agent

Answer 11

Express authority

Question 12

Express authority can also come from

Answer 12

The principal specific oral instructions given to the agent

Question 13

Implied authority also means

Answer 13

Agency authority.. “The norm” or what is considered customary in the business

Question 14

Fiduciaries are held to

Answer 14

The highest amount of good faith, and are required to exclude all selfish interest and make for disclosure of all relevant facts

Question 15

What are the three categories or types of agencies?

Answer 15

Universal, general, special

Question 16

Universal agency is created with

Answer 16

A power of attorney

Question 17

As a universal agent, the individual has the power

Answer 17

To act for the principle in all transactions

Question 18

As a general agent

Answer 18

The individual has the right to represent his or her principal in a particular type of transaction or business

Question 19

What is the most common example of a general agent in real estate?

Answer 19

Property manager

Question 20

What are brokers not responsible for?

Answer 20

Timely renewal of licensing for license holders, CE requirements, adequate opportunities for generating income, company, car, health, insurance, vacation or disability benefits

Question 21

What is the most limited agency of all agencies?

Answer 21

Special agency

Question 22

In a special agency relationship

Answer 22

The agent may only perform limited duties for the principal they must only follow instructions of the principal.

Question 23

In real estate, what agreements establishes a special agency relationship between the broker and a seller or landlord

Answer 23

Listing agreement and a buyer tenant representation agreement

Question 24

What is the acronym for fiduciary duties to clients?

Answer 24

OLDCAR

Question 25

What does OLDCAR stand for?

Answer 25

Obedience, loyalty disclosure, confidentialities, accounting, and reasonable care

Question 26

Obedient means

Answer 26

An agent must follow all the clients lawful instructions

Question 27

Loyalty means

Answer 27

Putting the interest of a client first

Question 28

True or false: the license holder must present only some of the offers on your listing

Answer 28

False they must present all offers to the seller

Question 29

In a disclosure, an agent has what Duty

Answer 29

To disclose all information relating to the property and all properties in the transaction

Question 30

What do material facts include?

Answer 30

Defects in the title, encroachments, floodplain information, leases on the property, and any environmental issues affecting the property

Question 31

At first contact with a party to a potential transaction what must a license holder this close to that party?

Answer 31

Whom he or she represents

Question 32

True or false: an agent must keep any confidential information he or she learns about a Client confidential forever

Answer 32

True

Question 33

The mixing a client funds with a brokers, business operating or personal funds is

Answer 33

Commingling

Question 34

If a broker spends his or her clients funds without authorization, that broker is guilty of

Answer 34

Conversion

Question 35

When an agent in a potential party, enter a substantive discussion of a real estate transaction the party must be provided?

Answer 35

Information about brokerage services (IABS)

Question 36

What is the best way to secure a buyer as a client?

Answer 36

It is best accomplished by using a buyer representation agreement to formally established the brokers agency relationship with the buyer

Question 37

An example of a general agent in the world of real estate would be a

Answer 37

Property manager