Chapter 4: Authorized Relationships: Duties & Disclosures (FITB)

Question 1

An agent that is empowered to perform a single act on behalf of his or her principal has a ____ agency.

Answer 1

special

Question 2

An agent whose continuing authority is limited to a single trade or business has a ____ agency.

Answer 2

general

Question 3

A sales associate is a ____ of the broker’s principal.

Answer 3

subagent

Question 4

A licensee can create an agency relationship ____ or ____.

Answer 4

accidentally or inadvertantly

Question 5

Before showing a property, allowing a buyer to sign an offer to buy, or a seller to sign a listing agreement, a licensee must provide the party with a written brokerage relationship form when acting in the capacity of a ____ relationship.

Answer 5

single agency, no brokerage

Question 6

A member of the public may select from one of three options when working with a broker which are ____ ____, ____ ____ and ____ ____ ____.

Answer 6

transaction broker, single agency, no brokerage relationship

Question 7

In a nonresidential transaction, a broker may assign one or more sales associates to represent a buyer and one or more sales associates to represent a seller in the same transaction as single agents if both parties have assets of ____ or more.

Answer 7

$1 million

Question 8

The Consent to Transition to Transaction Broker notice is required to be ____ or ____ for transition to occur.

Answer 8

initialed or signed

Question 9

If the principal refuses to sign or initial the Consent to Transition to Transaction Broker notice form, the broker is required to act as a ____ ____.

Answer 9

single agent

Question 10

Brokers are required to retain copies of all disclosure documents for transactions that have resulted in a contract being entered into for a period of at least ____ years.

Answer 10

5

Question 11

The only brokerage relationship that includes fiduciary duties is the ____ ____.

Answer 11

single agency

Question 12

A licensee assigned by a broker to act as a single agency of a buyer or seller in a nonresidential transaction is titled a ____ ____ ____.

Answer 12

designated sales associate

Question 13

Brokers in a nonresidential sale are not required to use ____ ____.

Answer 13

written disclosures

Question 14

Licensees using words or actions that mislead a member of the public can result in the creation of an ____ ____.

Answer 14

implied agency

Question 15

Agency relationships are legally based on ____ and ____.

Answer 15

trust and confidence