Unit 4 Binder- Real estate agency Flashcards
The real estate broker’s responsibility to keep the principal informed of all the facts that could affect a transaction is the duty of
Disclosure
Which of these could be considered dual agency?
A) The sponsored licensee acting for both the buyer and the seller in the same transaction
B) Brokers cooperating with each other
C) The broker representing different principals
D) The broker and listing and selling the same property
A) The sponsored licensee acting for both the buyer and the seller in the same transaction.
The relationship of a broker to her client is that of
A fiduciary
Which statement is TRUE regarding the duties of a real estate broker who is acting as the agent of the seller?
A) The broker is obligated to render faithful service to the principal.
B) It is acceptable for the broker to disclose the sellers minimum price
C) The broker should present to the seller only the highest offer on the property.
D) The broker can accept an offer on behalf of the seller.
A) The broker is obligated to render faithful service to the principal.
A licensee is permitted to represent both the seller and the buyer in the same transaction when
Both parties have been informed in writing and have agreed to the dual representation.
Which action is considered lawful practice in real estate brokerage?
A) Deceitful of dishonest practices
B) Negligent misstatements about the property
C) Omitted statements of material fact
D) “Puffing” statements about the property
D) “Puffing” Statements about the property
As an agent for the seller, a real estate broker can
Solicit an offer to purchase the property from a prospective buyer.
A seller has listed her home with a broker for $290,000 and the broker tells a prospective buyer to submit a low offer because the seller is desperate to sell. The buyer offers $285,000 and the seller accepts it. In this situation
The broker violated his agency relationship with the seller.
A listing broker was told by his principal not to advertise her property in a newspaper the was out of the area. The broker complied because he
Must obey the lawful instructions of his principal.
It is the duty of an agent to disclose to the principal every step taken in the transaction of the principal’s business. This is because the
Agent has a fiduciary obligations to the principal.
Upon discovering a latent defect in the property, the licensee should discuss the problem with the seller and then
Inform the prospective buyers of the defect.
Which phrase best defines the traditional law of agency?
The rules of law that define the responsibilities of an agent to the principal.
A broker who is the agent of the buyer should
Advise the buyer if the listing price of the sellers home is unrealistic.
