Understanding Limited Agency

Question 1

limited agency

Answer 1

A completely different role from that of a typical agent, one in which you have to be careful what you’re doing to not violate your obligations to both sides. You essentially become a neutral third party, helping both sides to a limited degree. It can be more profitable, as you get both commissions, but you must be very careful to not break the law while doing so. Issues regarding limited agency are the number one reason why agents get sued.

Question 2

Utah Division of Real Estate website

Answer 2

Found at www.realestate.utah.gov. This website includes important statutes to know as an agent, such as unlawful acts for licensed real estate agents.

Question 3

Another name for limited agency is:
A: Fiduciary Agency
B: Disclosure Agency
C: Dual Agency
D: Subagency

Answer 3

C: Dual Agency

Question 4

The Limited Agency Consent Agreement must be signed by a buyer before:
A: A Buyer Goes To Look At Property
B: A Buyer Enters Into A Real Estate Purchase Contract
C: A Buyer Completes Their Due Diligence
D: A Buyer Goes To Settlement

Answer 4

B: A Buyer Enters Into A Real Estate Purchase Contract

Question 5

As an agent, where can you find forms, documents, policies, regulations and important statues?
A: Google
B: Www.realestate.utah.gov
C: Www.realestate.com
D: Www.realestateutah.com

Answer 5

B: Www.realestate.utah.gov

Question 6

What is an informed consent?
A: Is An Agreement By A Party To A Contract Or An Element Of The Contract Made After The Party Has Been Advised Of Material Facts
B: Is An Agreement Between Two Parties
C: Non- Negotiable Agreement Between Parties
D: A Verbal Agreement Between Two Parties

Answer 6

A: Is An Agreement By A Party To A Contract Or An Element Of The Contract Made After The Party Has Been Advised Of Material Facts

Question 7

Real Estate Licensing and Practices Act

Answer 7

State legislature affecting the practice of real estate in Utah. The Utah Division of Real Estate is the regulatory agency in charge of managing licensees, who gets a license, and who gets a license suspended or revoked. They are in charge of investigating potential complaints or violations and deciding what to do.

Question 8

informed consent

Answer 8

Both the buyer and the seller in a transaction must understand their rights to representation and what they would be giving up by allowing a limited agency as part of the transaction. Acting for more than one party in a transaction without the informed consent of the parties is prohibited by law.

Question 9

Limited Agency Disclosure and Consent

Answer 9

A written document which clearly explains what a person is giving up when they decide to hire a sales agent or broker as a limited agent.

Question 10

agency before contracts

Answer 10

All agency relationships - including those requiring the Limited Agency Consent Form - must be established and have the correct forms signed before you ever touch a contract. You have no authority to negotiate on behalf of anyone until you have agency relationships established.

Question 11

dual agency

Answer 11

Another term for limited agency. A situation in which an agent represents both a buyer and a seller.

Question 12

criminal penalties for violation of chapter

Answer 12

An individual required to be licensed under this chapter who violates this chapter, in addition to being subject to a license sanction or a fine ordered by the commission, is, upon conviction of a first violation, guilty of a class A misdemeanor. Criminal penalties for violations of real estate licensure law can include prison time.

Question 13

in-house sale

Answer 13

A situation in which the buyer and the seller are both represented by one or more agents in the same brokerage.

Question 14

Conflicts with an in-house sale

Answer 14

Discussions between agents affiliated with the same brokerage who are involved in a limited agency must abide by policies that protect the confidentiality of discussions between agents
and access to confidential files.

Question 15

The Limited Agency Consent Agreement needs to be signed by:
A: The Buyer, The Seller, And The Agent Or Broker
B: The Buyer And The Agent Or Broker
C: The Seller And The Agent Or Broker
D: The Buyer And The Seller

Answer 15

A: The Buyer, The Seller, And The Agent Or Broker

Question 16

Which of the following factors apply to undisclosed dual agency?
A: Is A Serious Violation Of State Law
B: Can Result In Loss Of Commission Or Lawsuit
C: Can Result In License Suspension Or Revocation
D: All Of The Above

Answer 16

D: All Of The Above

Question 17

weakening the bargaining position of the other party

Answer 17

Unnecessarily revealing information that reduces the ability of one party of a transaction to fairly negotiate. For example: specifically mentioning the price the buyer or seller will accept to the other party.

Question 18

Comparative Market Analysis

Answer 18

This analysis gives an agent’s client insight into what amount of money might be reasonable to offer or accept for the sale of a property. In a limited agency, since this information could be advantageous to either side, the same one must be given to both parties.

Question 19

agency duties of limited agents

Answer 19

The following fiduciary duties are compromised for limited agents: Loyalty, Confidentiality, Disclosure

Question 20

In a Limited Agency situation, the duties that are “limited” are:
A: Obedience, Loyalty, Disclosure
B: Loyalty, Confidentiality, Accounting For Funds
C: Loyalty, Confidentiality, Reasonable Care And Diligence
D: Loyalty, Confidentiality, Disclosure

Answer 20

D: Loyalty, Confidentiality, Disclosure

Question 21

If an agent practicing limited agency does a Comparative Market Analysis for one client, then _______________
A: They Must Give The Same CMA To The Other Client
B: They Should Not Give The CMA To The Other Client Unless The Client Asks For One
C: They Can Only Give A Copy To The Other Client With Their Broker’s Permission
D: They Can Only Give A Copy To The Other Client With The First Client’s Written Permission

Answer 21

A: They Must Give The Same CMA To The Other Client

Question 22

One (Single) Agent Limited Agency

Answer 22

A transaction in which a single agent represents both the buyer and the seller and is the only agent involved.

Question 23

Two (Double) Agent Limited Agency

Answer 23

A transaction in which a single brokerage represents both the buyer and the seller, but different agents within the brokerage represent the buyer and the seller.

Question 24

conflict of interest as a limited agent

Answer 24

If you are involved as a principal in the transaction (even if you only have 1% ownership), you are prohibited from serving as
a limited agent in that transaction.

Question 25

limited agency agreements with two agents

Answer 25

Both agents must be present and participate in a two agent limited agency agreement

Question 26

brokerage policy on limited agencies

Answer 26

Some brokerages do not allow their agents to practice limited agency at all. When you find a broker to work with, be sure that you are clear on policies related to limited agency.

Question 27

Robert Realtor has a home listed. He has a buyer who falls in love with the home and wants to make an offer. Which statement is TRUE about what Robert should do in this situation?
A: Robert Can Write Up The Offer
B: Robert Has A Fiduciary Duty Of Obedience To Write Up The Offer For The Buyer
C: Robert Must Get A Limited Agency Consent Agreement Signed By Both The Seller And The Buyer Prior To Writing The Offer.
D: Robert Should Never Have Showed His Buyer A Home He Had Listed

Answer 27

C: Robert Must Get A Limited Agency Consent Agreement Signed By Both The Seller And The Buyer Prior To Writing The Offer.

Question 28

Stephanie is an agent. She has listed her own home for sale. A buyer comes along and falls in love with Stephanie’s home and wants to make an offer. The buyer doesn’t have an agent. What can Stephanie do?
A: With Full Disclosure And Informed Consent, Stephanie Can Represent The Buyer
B: With Her Broker’s Permission, Stephanie Can Represent The Buyer
C: With Full Disclosure, Informed Consent And Her Broker’s Permission, Stephanie Can Represent The Buyer
D: Under No Circumstances Can Stephanie Represent This Buyer

Answer 28

D: Under No Circumstances Can Stephanie Represent This Buyer

Question 29

Which statement is true?
A: Transferring Of A Deed Is Not Valid
B: Dual Agency Is Not Limited Agency
C: Informed Consent Is Non Valid Agreement Between Two Parties
D: If You Are Involved As A Principle In The Transaction, You Are Prohibited From Serving As A Limited Agent In That Transaction

Answer 29

D: If You Are Involved As A Principle In The Transaction, You Are Prohibited From Serving As A Limited Agent In That Transaction

Question 30

A transaction in which a single agent represents both the buyer and the seller and is the only agent involved is often referred to as:
A: Two Agent Only
B: One Agent Only
C: One Single Agent Limited Agency
D: One Double Agent Limited Agency

Answer 30

C: One Single Agent Limited Agency

Question 31

A transaction in which a single brokerage represents both buyer and seller, but different agents within the brokerage represents the buyer and seller:
A: Two (Double)Agent Limited Agency
B: One Agent Limited Agency
C: Both Buyer And Seller Transaction
D: Only One Agent Limited Agency

Answer 31

A: Two (Double)Agent Limited Agency

Question 32

On the Limited Agency Consent Agreement, the section describing the duties of a Seller’s Agent can be found in:
A: Section 1
B: Section 3
C: Section 5
D: Section 7

Answer 32

B: Section 3

Question 33

On the Limited Agency Consent Agreement, the section describing the duties of a Buyer’s Agent can be found in:
A: Section 1
B: Section 3
C: Section 4
D: Section 5

Answer 33

C: Section 4

Question 34

On the Limited Agency Consent Agreement, the section describing Limited Agency can be found in:
A: Section 1
B: Section 5
C: Section 7
D: Section 9

Answer 34

B: Section 5

Question 35

On the Limited Agency Consent Agreement, the section dealing with Authorizations for Limited Agency can be found in:
A: Section 1
B: Section 5
C: Section 7
D: Section 9

Answer 35

D: Section 9

Question 36

Section 9 of the Limited Agency Consent Agreement specifically indicates consent to Limited Agency and also indicates:
A: Whether There Is One Agent Or Two Agents Involved In The Transaction
B: The Name Of The Agent(S)
C: Disclosure That The Company Participates In In-House Sales
D: All Of The Above

Answer 36

D: All Of The Above

Question 37

In a Limited Agency situation, the duties that are “limited” are:
A: Obedience, Loyalty, Disclosure
B: Loyalty, Confidentiality, Accounting For Funds
C: Loyalty, Confidentiality, Reasonable Care And Diligence
D: Loyalty, Confidentiality, Disclosure

Answer 37

D: Loyalty, Confidentiality, Disclosure

Question 38

The person in charge of the operations of the company and the conduct of real estate agents in a real estate office is called a(n):
A: Principal Or Branch Broker
B: Sales Agent
C: Associate Broker
D: Transaction Broker

Answer 38

A: Principal Or Branch Broker

Question 39

The person responsible for assisting the seller in locating a buyer and in negotiating a transaction suitable to the seller’s specific needs is called a(n):
A: Buyer’s Agent
B: Selling Agent
C: Seller’s Agent
D: Transaction Coordinator

Answer 39

C: Seller’s Agent

Question 40

The person responsible for assisting the buyer in locating and negotiating the acquisition of a property suitable to that buyer’s specific needs is called a(n):
A: Buyer’s Agent
B: Listing Agent
C: Seller’s Agent
D: Transaction Coordinator

Answer 40

A: Buyer’s Agent

Question 41

Another name for a Limited Agency situation is a(n):
A: Subagency
B: Designated Agency
C: Express Agency
D: In-House Sale

Answer 41

D: In-House Sale