General Principles of Agency Flashcards
Under the terms of their listing contract, the owners may sell their house themselves and pay no commission. If their agent sells it, a commission will be due. What kind of listing contract do the owners have?
Exclusive agency listing.
A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the broker has earned his commission when
the seller accepts the offer.
A couple listed their home with a broker. After 2 months, the seller found a buyer, and the sale closed. The seller was not obligated to pay a commission to the broker. This listing was MOST likely
an exclusive agency listing.
A licensee has an agency representation agreement with a buyer. When showing another company’s listing, what obligation does the licensee have to the seller and the listing broker at the other company?
Disclose the agency relationship when arranging the showing and disclose material information about the buyer if presenting an offer.
A realty firm has just entered into an agreement to represent a home builder in the sale of a new subdivision. The firm has located several potential buyers and five homes have been sold to purchasers that the firm’s agents have contacted. The realty firm has an agency relationship with
the builder.
An exclusive right to sell listing obtained by a broker associate belongs to
the employing broker only.
The day after a broker’s listing on a house expired, it was listed with another broker and offered in the MLS. Several days later, a third licensee called the first broker and asked for the key to show the home. The broker should inform the caller that
he is no longer the listing agent.
A licensee has entered into a dual agency agreement. In this situation, it is critical that all parties understand that it is impossible for the licensee to fully perform for either party the traditional common-law agency duty of
Loyalty
A broker supplies the financing for a project to build condominiums with the stipulation that he has the exclusive right to sell the completed condos. Which of the following BEST describes this relationship?
Agency coupled with an interest.
A real estate salesperson is representing only the buyer in a transaction. Which of the following actions would be a violation of the salesperson’s agency duties to the client?
disclosing the highest price the buyer is willing to pay
