Law of Agency

Question 1

In an agency relationship, the ________ is the person who does the hiring

Answer 1

principal

Question 2

A real estate licensee who is authorized to assist the “real” agent is referred to as a subagent.

Answer 2

True

Question 3

When the “other party” knows there is a principal, but not who the principal is, that is a partially disclosed principal. This is:

Answer 3

Legal

Question 4

When the agent acts as if he/she were the principal, the principal is undisclosed. Usually this is:

Answer 4

Illegal

Question 5

Name the 4 real estate agent’s fiduciary responsibilities:

Answer 5

O.D.A.MI
The Rule of Obedience
The Rule of Disclosure, 
The Rule of Accounting
The Rule of Monetary Interest

Question 6

The principal’s obligation to the agent is to pay compensation, to perform, and to legally indemnify the agent in possible legal actions

Answer 6

True

Question 7

A licensee listed a house and represents the:

Answer 7

Seller

Question 8

The listing agent had both parties sign the Limited Agency Consent Agreement. He/she represents the:

Answer 8

Buyer and Seller

Question 9

A licensee has a contract to help the buyers find a property. He/she represents the:

Answer 9

Buyer

Question 10

Dual, or limited, agency is _______________as long as both parties agree to it in writing; or in other words, the agent obtained informed consent.

Answer 10

Legal

Question 11

The two primary people in ANY agency relationship are the

Answer 11

Agent and Principal

Question 12

A broker who has signed a listing with a seller is an example of a:

Answer 12

Specific Agent

Question 13

An agent who does all things for and in behalf of his principal is a(n) __________ agent.

Answer 13

Universal

Question 14

An agent who uses his/her expertise to accomplish the objectives of the principal is a(n) __________________ agent (an example is a property manager).

Answer 14

General

Question 15

An agent who is authorized to sign documents for the principal is a(n) ________ __ ____, and has a Power of Attorney.

Answer 15

an attorney-in-fact,

Question 16

19. Fiduciary. This term is sometimes used as a noun to refer to the agent.

Answer 16

True

Question 17

When the agent of the seller suggested the buyer might want to offer 90% of the listed price, he/she might have created implied or dual/limited agency.

Answer 17

True

Question 18

In Utah, in order to represent someone as an agent, you must have a(n) _________________ contract.

Answer 18

Written

Question 19

When the principal approves the agency after it is performed and agrees to pay a commission, it is said to be:

Answer 19

Ratified

Question 20

A sheriff’s sale would be an example of agency by:

Answer 20

Statute

Question 21

The court “stopping the stopping” would create agency by:

Answer 21

Estoppel

Question 22

A principal who is known to the “other party” or customer is _______________ disclosed.

Answer 22

Fully

Question 23

Agency can be terminated by ____________ agreement.

Answer 23

Mutual

Question 24

Agency can be terminated by fulfilling terms of the:

Answer 24

Contract

Question 25

Agency can be terminated by________ by the agent.

Answer 25

Abandonment

Question 26

T/F. Agency can be terminated by death or insanity of either parties.

Answer 26

True

Question 27

Agency can be terminated by destruction of the:

Answer 27

Property

Question 28

Agency can be terminated by change of law, such as a change in _________ for the area.

Answer 28

Zoning