Chapter 10 Flashcards
All but one of the following owes a fiduciary obligation:
A: executor
B: guardian
C: Attorney
D: mortgager
D: mortgager
A, B and C are fiduciaries. A Mortgager is a debtor ( the buyer)
Fiduciary- a person in a position of great trust and confidence, as the relationship between principal and agent
One who has the right to sign the name of the 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
C: an attorney-in-fact
one who is authorized to perform certain acts for another under a power of attorney
A real estate salesperson might lawfully accept an extra commission in a difficult sale from:
A: an appreciative seller
B: a thankful buyer
C: broker-employer
D: the mortgage lender
C: broker-employer
You put in the hard work so they compensate you more for your work and dedication. ( my thoughts on it)
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
C: principal
-the employer of an agent or broker. .
An agent is considered to have earned his commission:
A: only if title is transferred
B: if he secures an offer from a prospective buyer
C: if he produces a ready, willing, and able buyer on the principal’s terms
D: when the principal signs a contract of sale
C: if he produces a ready, willing, and able buyer on the principal’s terms
Think of principal as your employer Asset Living
A broker is:
A: a principal to the salesperson
B: the agent of the seller under a listing contract
C: the agent of a buyer in a buyer-agency agreement
D: all of the above
D: all of the above
AGAIN ALWAYS PICK “all of the above” if it is an option. It is always the correct answer
Salesperson 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
C: from their employing broker
This is the only one that makes sense to me because (key word-“employing”) Your boss/company
The commission rate for the sale of real estate is determined by:
A: seller
B: fixed schedules approved by the REC
C: scarcity of real estate law
D: negotiation
D: negotiation
Which of the following persons would NOT have fiduciary duties to a principal?
A: Trustees
B: Administrators
C: Employees
D: Receivers
C: Employees
The position of trust assumed by the broker as an agent for the principal is described most accurately as:
A: trustee relationship
B: trustor relationship
C: confidential relationship
D: fiduciary relationship
D: fiduciary relationship
Know hidden defects in a property must be disclosed by:
A: seller only
B: broker only
C: salesperson only
D: seller, broker, salesperson
D: seller, broker, salesperson
Makes sense right?
The seller tells the broker, the broker tells the salesperson, the salesperson tells the buyer
An owner request a broker to list his property for sale at $70,000. Upon inspection, the broker believes at 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.
C: inform the seller that his property is worth $80,000
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: broker and his salespersons
Principal is ex: Asset Living and the agent is YOU
A person who is given authority to perform a special legal duty by another is:
A: a power of attorney
B: an attorney-in-fact
C: an attorney- at-law
D: an executor
B: an attorney-in-fact
LOOK AT Question #2.
it is the same answer
A salesperson engaged by 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: is an agent for the broker, who is an agent for the principal
The broker is the agent and the salesperson is a sub-agent
All BUT which of the following are fiduciaries?
A: Principal
B:Trustee
C: Guardian
D: Receiver
A: Principal
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
C: has limited authority
A Special Agent is: a person who is authorized to perform ONLY CERTAIN specified functions on behalf of his or her principal-( Asset Living)
It would NOT be the responsibility fo the broker to inform the purchaser of which of the following:
A; the basement floods
B: the property, according to a map 100 years ago is located in a flood area
C: the price paid by the seller
D: the house is infested with termites
C: the price paid by the seller
All the other answers you had BETTER tell the buyer. Think about it as if you are the buyer. Wouldn’t you want to know the other 3 options?
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
B: a special agent
Process of elimination:
General agent is the property manager- like Denise
Principal is like Asset Living
So the only other choice for a broker is B
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
B: the attorney-in-fact fails to use it for 90 days
Non use will NOT revoke a Power of Attorney
A declaration made by a person to an official that he freely and voluntarily executed a deed is called an:
A: acknowledgement
B: authorization
C: authentication
D: execution
A: acknowledgement
Death of either the principal or agent terminates the:
A: listing contract
B: contract for sale
C: deed
D: mortgage
A: listing contract
An agency agreement will be terminated by:
A: the death of an agent
B: the bankruptcy of the principal
C: the death of the principal
D: all of the above
D: all of the above
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
C: Reciprocity
Reciprocity-is an agreement the allows real estate agents or brokers to practice in more than one state without having to obtain a new license in each state
Responsibilities of an agent in an agency relationship include all to the following EXCEPT:
A: exercise of due care
B: accountability
C: obedience
D: patience
D: patience
ha ha patience is NOT a responsiblity
Easy quesiton
To enforce his right to a commission a broker must:
A: act under written authorization
B: have an exclusive listing
C: belong to the MLS- Multiple Listing Service
D: be a Realtor
A: act under written authorization
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: Mr. Creed’s death will terminate the listing agreement
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
C: consent of principal and agent
Ok this is the first one that is not All of the above
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.
B: someone you work with
I don’t understand this at all. Maybe ask Denise about this one
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: forfeit of commission
D: All of the above
D: All of the above
