Chapter 4 Review

Question 1

What type of agent may not bind the principal to a contract in most cases?

Answer 1

Special Agent

Question 2

The Criminal Antitrust Penalty Enhancement and Reform Act increased the maximum criminal penalty for individuals to what amount?

Answer 2

$1 million

Question 3

Which of the following duties best describes what an agent owes customers?

Answer 3

Fairness, care, and honesty

Question 4

Mary Smith asks Broker Jim to help her find her first home. Broker Jim takes Mary to see the home of Ben Brown listed by Broker Sara. In this scenario who is the customer?

Answer 4

Ben

Question 5

If an agency relationship arises because of the actions of the parties involved rather than by a written agreement, what is that agency called?

Answer 5

Ostensible agency

Question 6

In some transactions, a buyer or seller may request that he/she not be officially represented, when this occurs the relationship is said to be?

Answer 6

Non-agency

Question 7

An agent works ____ the principal and ____ the customer.

Answer 7

For, with

Question 8

An exaggerated comment by a licensee about a property’s benefits such as this statement, “This home has the most efficient floor plan of any of the homes in this neighborhood”, is called

Answer 8

Puffing

Question 9

Which of the following contracts does NOT create an agency relationship?

Answer 9

Purchase agreement

Question 10

Which type of agency cannot be revoked by the principal?

Answer 10

Agency Coupled with an Interest

Question 11

A salesperson sells a house listed by another company for $92,000. The salesperson’s company is to receive 50% of a 7% commission, what is the salesperson’s share of the commission if he received 45% of the amount his company receives?

Answer 11

$1,449

Question 12

The legal doctrine by which a person is prevented from asserting rights or facts that are inconsistent with a previous position or representation made by act, conduct or silence is called?

Answer 12

Estoppel

Question 13

A salesperson sells a house listed by another company for $192,000. The salesperson’s company is to receive 50% of a 7% commission, what is the salesperson’s share of the commission if he received 45% of the amount his company receives?

Answer 13

$3,024

Question 14

Which of the following tasks is a limited agent authorized to perform?

Answer 14

Cooperate with other brokers

Question 15

Which of the following information about a seller should a buyer’s agent NOT disclose to the buyer?

Answer 15

The seller is from Saudi Arabia.

Question 16

The person who is authorized to represent and act on the behalf of another person is a(n)

Answer 16

Agent.

Question 17

Which type of agency is a real estate brokerage based on in most cases?

Answer 17

Special Agency