Chapter 4: Authorized Relationships: Duties & Disclosures (MC) Flashcards
Who owes fiduciary duties in an agency relationship?
a. the broker only
b. the principal only
c. both parties
d. neither party
a. the broker only
Which activity is NOT exempt from the requirement to provide disclosures under the Brokerage Relationship Disclosure Act?
a. sales staff at a new development center
b. showing property to a party that is not being represented
c. a bona fide “open house” or model home showing that does not involve eliciting confidential information, the execution of a contractual offer or an agreement for representation, or negotiations concerning price items, or conditions of a potential sale
d. responding to general factual questions from a potential buyer or seller concerning properties that have been advertised for sale
b. showing property to a party that is not being represented
As an agent a broker is employed by and acts on behalf of a
a. buyer.
b. seller.
c. customer.
d. principal.
d. principal.
A general agency relationship exists when a
a. broker is employed to market a property.
b. sales associate is working with a customer.
c. sales associate is employed by a broker.
d. broker is employed by a buyer.
c. sales associate is employed by a broker.
Broker Joan just received an oral offer to purchase listed property. No earnest money accompanied the oral offer. Joan
a. must present the offer.
b. should not present the offer since no earnest money deposit was received.
c. must advise the customer an earnest money deposit is required to make an offer valid.
d. should reject the offer on behalf of the seller.
a. must present the offer.
A transaction broker
a. is an agent of both parties.
b. has fiduciary duties to the seller.
c. has fiduciary duties to the buyer.
d. provides limited representation to both parties.
d. provides limited representation to both parties.
Which fiduciary duty would a broker breach by failure to advise a principal regarding the value of the owner’s property prior to accepting a listing?
a. loyalty
b. disclosure
c. accounting
d. obedience
b. disclosure
Broker Tom sold a property listed with broker Alice. Tom was unable to attend the closing and broker Alice collected the entire commission. Should broker Alice refuse to pay broker Tom his share of the commission, broker Alice could be charged with
a. failure to account.
b. collecting an overage.
c. commingling.
d. fraud.
a. failure to account.
Mary, an Ohio broker, accompanied a customer to Florida and met with broker Stan in his office in Jacksonville. While Stan showed the customer property and obtained a binding contract for the purchase of a condominium, Mary took some time off and went to the beach. On returning to Stan’s office, Mary discovered Stan had written a contract and demanded a share of the commission. Which statement is correct?
a. Stan may share the commission with Mary.
b. Mary violated the real estate license law by accompanying the customer to Florida.
c. If Stan pays Mary a share of the commission, Stan will be in violation of the license law.
d. If Stan pays Mary a share of the commission, both Stan and Mary will be in violation of the license law.
a. Stan may share the commission with Mary.
In an agency relationship an agent must
a. obtain the highest price possible.
b. attempt to obtain the most favorable price and terms on behalf of the principal.
c. obtain the lowest price possible.
d. negotiate the transaction to receive the highest possible commission.
b. attempt to obtain the most favorable price and terms on behalf of the principal.
When can an agent disclose confidential or harmful information about a principal?
a. at any time
b. during the fiduciary relationship period only
c. after the transaction is completed and the fiduciary relationship is over
d. never
d. never
Which transaction is NOT included in the definition of a residential transaction?
a. unimproved property intended for four units or less
b. agricultural properties of 10 acres or less
c. leases with options to purchase all or a portion of improved property of four or less residential units
d. dispositions of business interests involving property of five or more residential units
d. dispositions of business interests involving property of five or more residential units
Both parties in a transaction can pay a broker a commission when
a. the broker has performed.
b. both parties are aware of the dual commission.
c. both parties are being represented by the broker.
d. both parties agree to the dual commission.
d. both parties agree to the dual commission.
Agency relationships in real estate are NOT controlled by
a. Chapter 475, Florida Statutes.
b. common law.
c. the Brokerage Relationship Disclosure Act.
d. the Department of Financial Services.
d. the Department of Financial Services.
Policy and procedures manuals are
a. maintained by all real estate offices.
b. required by law.
c. a major cause of arguments.
d. useful in maintaining good relations.
d. useful in maintaining good relations.
