Law 4 - Quiz

Question 1

The Guide to Agency Relationship must be provided to the prospective party in all of the following situations EXCEPT:

A. The conclusion of the second contact between the licensee and the party.
B. Prior to receiving confidential information from the prospective party.
C. Entering into a representation agreement with a prospective party.
D. The conclusion of the initial contact between the licensee and the party.

Answer 1

D. The conclusion of the initial contact between the licensee and the party.

Question 2

Licensees must deliver The Guide to Agency Disclosure Form (not Consumer Guide).

A. In the period immediately following the presentation of a written offer to purchase.
B. Prior to any confidential information being disclosed to the licensee by the buyer or seller.
C. Immediately upon meeting the buyer or seller.
D. Within 3 business days of the written offer to purchase being presented.

Answer 2

A. In the period immediately following the presentation of a written offer to purchase.

Question 3

The principal broker in a designated agency situation:

A. Remains a dual agent and liable to both the buyer and seller.
B. Is not liable if his designated agents breach their fiduciary duties.
C. Does not represent the buyer or seller in any capacity.
D. Remains liable to only the buyer or seller depending on whom he/she represents.

Answer 3

A. Remains a dual agent and liable to both the buyer and seller.

Question 4

The regulations requiring agency disclosure must be followed in which of the following situations?

A. Property management contracts.
B. Commercial transactions.
C. Residential transactions.
D. Auctions.

Answer 4

C. Residential transactions.