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Agency & RE Brokerage > Law & Agency Relation/Fiduciary Duty/Due Dilligence > Flashcards

Law & Agency Relation/Fiduciary Duty/Due Dilligence Flashcards

1
Q

The seller’s agent could disclose the seller’s financial situation:

a. if the seller authorizes the broker to do so
b. to close the sale
c. to impress the buyer
d. if the buyer asks

A

A.

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2
Q

If an agent owes fiduciary duties to the client, what duties does the client owe to an agent

a. compensation, indemnification, and performance
b. cooperation, confidentiality, and correction
c. honesty, disclosure and unsurance
d. info, independence, and inspection

A

A

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3
Q

A RE broker’s duties to the principal do not include

a. due care
b. financial trust
c. maintenance of the listed property
d. obedience

A

C.

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4
Q

If you listed a property and represented the seller, which of the following would be a customer?

a. broker
b. seller
c. listing agent
d. prospective buyer

A

D.

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5
Q

The relationship of a licensed RE broker to the principal is best described by which of the following

a. trustee
b. salesperson
c. fiduciary
d. beneficiary

A

C.

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6
Q

A person who is aurthorized to represent the interest of another is called

a. client
b. agent
c. principal
d. customer

A

B.

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7
Q

R was the listing broker for N. The listing expired and N has now engaged P as a broker. R knows that N will accept $50,000 less than the listed price. Broker R:

a. may never disclose this info
b. may disclose this info only with the written permission of the seller and P, the listing agent
c. may disclose it bc the agency terminated, and no fiduciary duty remains
d. may disclose if asked by the buyer who broker R now represents

A

B. may disclose only with written….

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8
Q

A person who hires another individual to act for him is called the

a. agent
b. principal
c. fiduciary
d. attorney in fact

A

B. principal

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9
Q

If a salesperson representing a buyer works in one office and a broker representing a seller works in a branch under the same designated broker, the buyer’s agent can

a. let the buyer know the seller is going thru a divorce
b. suggest an offer price to the buyer
c. tell the prospective buyer that the seller is willing to take $10,000 les than the listed price
d. inform the buyer that they should get an inspection

A

D. inform…

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10
Q

Which of the following would create an agency relationship

a. commission agreement
b. listing agreement
c. purchase contract
d. rental agreement

A

B. listing….

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11
Q

The agency of a RE broker with a client is establised by

a. implied contract
b. estoppel
c. expressed contract
d. ratification

A

C.

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12
Q

The agent shows several housed to a buyer and tell himn that one house is the best investment for him. What type of agency may the saleperson be creating

a. expressed agency
b. implied “
c. general “
d. specific “

A

B. implied

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13
Q

What authorizes an idividual to sign or execute a contract on behalf of another

a. attorney at law
b. attorney in fact
c. power of attorney
d. specific agency

A

C.

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14
Q

A person authorized to act on someone else’s behalf and perform various business transaction is

a. special agent
b. general “
c. ostensible “
d. ratified “

A

B.

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15
Q

Under a typical listing agreement, what is the agency created b/w the broker and seller

a. special agency
b. universal “
c. general”
d. ostensible “

A

A.

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16
Q

A special agent can do all of the following except

a. represent the principal in all RE transactions
b. represent the princ in a specific RE transaction
c. sell land
d. find a ready, willing, and able buyer

A

A.

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17
Q

The agency created b/w the broker and seller in a signed listing is

a. expressed agency
b. implied “
c. “ of necessity
d. ostensible agency

A

A.

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18
Q

A property is listed for sale and before expiration of the listing the principal is declared bankrupt. The list is

a. terminated
b. not affected
c. subjected to court review
d. transferred to the trustee

A

A.

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19
Q

All of the following situations would legally terminate a listing except

a. death of the listing salesperson
b. revocation by the seller
c. “ “ the broker
d. insanity of the seller

A

A.

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20
Q

If the seller were to die during the term of the listing, the

a. listing is binding on the heirs
b. listing is terminated but the broker is entitle to commission
c. listing is terminated
d. broker can collect full commission

A

C.

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21
Q

Errors and omissions insurance covers a licensee for

a. car accidents
b. civil wrongs
c. transactions involving prop the licensee owns
d. mistakes due to negligence

A

D.

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22
Q

A seller who is going out of town authorizes a friend to sign the closing papers. this auth creates a

a. general agency
b. specific “
c. prop management agrmnt
d. listing agrmnt

A

B.

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23
Q

Errors and omission insurance would cover the broker in the event that

a. a property is damaged
b. a visitor fall in the office
c. a client alleges misrepresentation
d. broker severs a salesperson for no valid reason

A

C.

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24
Q

A licensed RE salesperson is which type of agent to his/her broker

A. general

b. specific
c. universal
d. attorney in fact

A

A. general

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25
Q

Which of the following would not terminate an agency relationship

a. destruction of the prop
b. death of the seller
c. acceptance of offer and opening escrow
d. court order

A

C.

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26
Q

If one agent is exclusively representing the seller and a buyer’s broker brings the buyer and seller together, it would be a

a. single agency
b. dual agency
c. universal agency
d. ratified agency

A

A. Single

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27
Q

A RELATIONSHIP CREATED WHEN SOMEONE HIRES ANOTHER TO ACT ON THEIR BEHALF IS:

A

AGENCY

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28
Q

AGENTS WORK FOR THEIR:

A

CLIENTS/PRINCIPALS

29
Q

AGENTS WORK WITH THE:

A

CUSTOMERS

30
Q

THE ACRONYM TO REMEMBER THE SIX FIDUCIARY DUTIES IS:

A

OLDCAR

31
Q

THE SIX FIDUCIARY DUTIES ARE:

A

OBEDIENCE
LOYALTY
DISCLOSURE
ACCOUNTING
REASONABLE SKILL, CARE & DILIGENCE

32
Q

THE FIDUCIARY DUTY THAT SURVIVES THE END OF AN AGENCY RELATIONSHIP IS:

A

CONFIDENTIALITY

33
Q

AN AGENT MUST OBEY A CLIENT’S:

A

LEGAL INSTRUCTIONS

34
Q

THE FIDUCIARY DUTY THAT PROHIBITS AN AGENT FROM DISCLOSING A CLIENT’S MOTIVATION IS:

A

CONFIDENTIALITY

35
Q

THE FIDUCIARY DUTY THAT REQUIRES AN AGENT TO PLACE THE CLIENT’S INTEREST ABOVE ALL OTHER INTERESTS IS:

A

LOYALTY

36
Q

THE DUTY THAT REQUIRES AN AGENT TO FOLLOW A CLIENT’S INSTRUCTIONS IS:

A

OBEDIENCE

37
Q

THE DUTY THAT REQUIRES AN AGENT TO PROTECT A CLIENT FROM FORSEEABLE HARM IS:

A

REASONABLE SKILL AND CARE AND DIILIGENCE

38
Q
A
39
Q

An agency created through specific instructions to the agent is a(n):

A

Expressed agency

40
Q

An agency through the acts of an agent is a(n):

A

Implied agency

41
Q

An agency in which the agent represents only one party is a:

A

Single agency

42
Q

In new home sales the licensee working in the on-site subdivision office represents the:

A

builder

43
Q

The agency relationship that is formed when the agent represents both the buyer and seller or the landlord and tenant in the same transaction is a:

A

Dual Agency

44
Q

In order to be a dual agent, the agent must have written consent of both parties:
TRUE/FALSE

A

TRUE

45
Q

The agency of a real estate broker w/ a client is established by:
a. implied contract
b. estoppel
c. expressed contract
d. ratification

A

C.

46
Q

The agent shows several houses to a buyer and tells him that one house is the best investment for him. What type of agency may the salesperson be creating?
a. expressed agency
b. implied agency
c. general agency
d. specific agency

A

B. implied

47
Q

What authorizes an individual to sign or execute a contract on behalf of another?
a. attorney at law
b. attorney-in-fact
c. power of attorney
d. specific agency

A

C. poa

48
Q

A person authorized to act on someone else’s behalf and perform various business transactions is a(n):
a. special agent
b. general agent
c. ostensible agent
d. ratified agent

A

B. general

49
Q

Under a typical listing agreement, what is the agency created between the broker and seller?
a. special agency
b. universal agency
c. general agency
d. ostensible agency

A

A. special
AKA Specific

50
Q

A special agent can do all of the following except:

a. represent the principal in all real estate transactions
b. represent the principal in a specific real estate transaction
c. sell land
d. find a ready, willing, and able buyer

A

A.

51
Q

The agency created between the broker and seller in a signed listing is an:
a. expressed agency
b. implied agency
c. agency of necessity
d. ostensible agency

A

A.

52
Q

A property is listed for sale and before expiration of the listing the principal is declared bankrupt. The listing is:
a. terminated
b. not affected
c. subject to court review
d. transferred to the trustee

A

A.

53
Q

All of the following situations would legally terminate a listing except:
a. death of the listing salesperson
b. revocation by the seller
c. revocation by th broker
d. insanity of the seller

A

A. death

54
Q

If the sellers were to die during the term of the listing the:

a. listing is binding on their heirs
b. listing is terminated but the broker is entitled to a commission
c. listing is terminated
d. broker can collect full commission

A

C.

55
Q

Which of the following situations would most likely allow the seller to unilaterally terminate a listing without liability for a commission?

a. the broker failed to market the property as promised
b. the supply of buyers is at a seasonal low
c. the seller no longer wants to sell
d. the agent failed to follow instructions to ignore material defects

A

A.

56
Q

Which of the following requires informed consent of the parties?
a. single agency
b. subagency
c. fiduciary
d. dual agency

A

D.

57
Q

If one agent is exclusively representing the seller and a buyer’s broker brings the buyer and seller together, it would be a(n):

a. single agency
b. dual agency
c. universal agency
d. ratified agency

A

A. Single agency

58
Q

The concept that information given to a client’s agent has been given to the client is known as:

a. caveat emptor
b. respondent superior
c. vicarious liability
d. imputed notice

A

D.

59
Q

The idea that principles may be held liable for the acts of their agents is

a. vicarious liability
b. imputed notice
c. fiduciary duty
d. caveat emtor

A

A.

60
Q

Which of the following is not a type of insurance that protects a real estate broker from liability

a. E&O insurance
b. Mortgage insurance
c. General liability insurance
d. Umbrella Insurance

A

B.

61
Q

In the sale of new homes in a subdivision, the on-site real estate licensee typically represents all of the following except the:

a. buyer
b. builder
c. seller
d. seller’s broker

A

A. buyer

62
Q

If an agent who represents a buyer lists a property that is “for sale by owner,” what would be created?

a. single agency
b. dual agency
c. unrepresented seller compensation agreement
d. power of attorney

A

B.

63
Q

A licensed real estate salesperson is which type of agent to his or her broker?

a. general
b. special
c. universal
d. attorney-in-fact

A

A. general

64
Q

Which of the following would not terminate an agency relationship?

a. destruction of the property
b. death of the seller
c. acceptance of offer and opening escrow
d. court order

A

C.

65
Q

A real estate broker in the typical agency relationship with a client is a(n):

a. implied agent
b. ostensible agent
c. special agent
d. general agent

A

C. special

aka Specific agent

66
Q

A person having authority under a power of attorney is called a(n):

a. principal
b. grantor
c. attorney-in-fact
d. trustee

A

C.

67
Q

Which of the following would require a dual agency disclosure?

a. the licensee is the buyer’s cousin

b. the seller and buyer are represented by two different brokerage firms affiliated with the same national franchise company

c. a salesperson in a branch office of a company that represents the buyer, and an associate broker in the main office of the same company that represents the seller

d. a licensee is purchasing a property from a seller who is represented by another brokerage firm

A

C.
because both licensees work for the same brokerage firm

68
Q
A

Agency & RE Brokerage (1 decks)

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