CHAPTER 6 -- LAWS OF AGENCY Flashcards
In describing the relationship between a seller and a salesperson employed by the listing broker, the salesperson is considered:
(A) an agent of the seller; (B) a subagent of the seller; (C) an employee of the seller; (D) an independent contractor, employed by the seller.
(A) an agent of the seller
Is an agent responsible for the wrongful acts of a subagent appointed with the seller’s approval?
No, the seller is.
A real estate broker who has been appointed as a subagent for a seller, with the seller’s approval, has which of the following duties?
(A) a fiduciary duty equally to both the buyer and the seller; (B) a fiduciary duty to the seller only; (C) a fiduciary duty to the seller and the broker who appointed him as a subagent; (D) a duty to be honest and fair to the seller and a fiduciary duty to the broker who appointed him as the subagent.
(B) a fiduciary duty to the seller only
When a real estate broker has been authorized by another real estate broker to act as a subagent for a seller and the seller has approved the appointment of the subagent, the subagent is primarily responsible to:
(A) the broker who appointed him; (B) the seller; (C) both the broker and seller equally; (D) neither the broker nor the seller.
(B) the seller
What are the four ways agency can be created?
1 - Express agreement (by words or written)
2 - Implied agreement (by acts and conduct, not words)
3 - Ratification (principal approves agency after it has been performed)
4 - Estoppel (person is barred from asserting or denying a fact because of their previous acts or words)
What is a statement made by a tenant confirming the terms of the lease and that the tenant has no claims against the landlord?
An estoppel certificate
When a real estate broker is employed to represent a seller in the sale of a property, the broker is usually employed to act as:
(A) a limited agent; (B) a privileged agent; (C) a general agent; (D) a special agent.
(D) a special agent
The agency of a real estate broker may be established by:
(A) express agreement; (B) implied agreement; (C) ratification or estoppel; (D) any of the above.
(D) any of the above
The term “estoppel” describes:
(A) an architectural element; (B) a plumbing fixture; (C) a document confirming the terms of a lease and that tenant has no claims against the landlord; (D) a trade fixture.
(C) a document confirming the terms of a lease and that tenant has no claims against the landlord
What are the three types of authority that can be conferred upon an agent?
1 - Actual authority
2 - Express authority (a contract precisely delineates)
3- Ostensible authority (providing services without knowledge the principal considered them an agent).
A broker provided agency services for both a buyer and a seller without the proper disclosures because he was unaware that both the buyer and the seller considered him to be their agent. Consequently, the broker was involved in which of the following?
(A) voidable agency; (B) accidental agency; (C) ostensible agency; (D) deniable agency
(C) ostensible agency
The fiduciary relationship between an agent and the principal is comparable to the relationship between:
(A) trustor and beneficiary; (B) mortgagor and mortgagee; (C) trustor and trustee; (D) trustee and beneficiary.
(D) trustee and beneficiary
The relationship of a broker representing a principal when dealing with a third party in selling, buying, or exchanging property is defined as all of the following EXCEPT:
(A) a fiduciary relationship; (B) an agency relationship; (C) an attorney-in-fact relationship; (D) broker/client relationship.
(C) an attorney-in-fact relationship
Agents must present offers to the seller until:
(A) opening of escrow; (B) buyer has qualified for the loan; (C) documents were already drawn; (D) close of escrow.
(D) close of escrow
If a real estate broker fails to obey all lawful instructions given by his principal, the broker could be:
(A) subjected to fine and/or imprisonment under the law; (B) prohibited by a court from working as a real estate broker; (C) liable in damages for any injuries suffered by the principal as a result; (D) all of the above.
(C) liable in damages for any injuries suffered by the principal as a result