Unit 9 - Questions Flashcards
Brokers owe which of the following duties to consumers?
a) account for all monies entrusted to the broker by others
b) Provide expert advice on the transaction at all times
c) Exercise marginal skill and care
d) Never disclose confidential information
a) account for all monies entrusted to the broker by others
When a broker acts as a subagent of a listing broker, with all the obligations of a single agency, neither one represents..
a) the buyer
b) the agent
c) the principal
d) the reciprocal
a) the buyer
An employed salesperson who represents a broker and is accountable to the broker is called a ______________ of the employing broker.
Fiduciary
The body of law governing the relationship that an agent has with a principal is called
The Law of Agency
_____________ have the same duties and obligations to the seller as the seller’s agent.
Subagents
In the event that a licensee cannot give a consumer the written Consumer Notice in an initial face-to-face meeting,
a) the licensee must provide an oral disclosure and proceed under the rule
b) the licensee may not work with the consumer
c) the licensee may proceed to work with the consumer and give the disclosure later
d) the licensee must give the consumer the written consumer notice within 24 hours
a) the licensee must provide an oral disclosure and proceed under the rule
Unless exempted under the six-month rule, the broker must maintain records regarding disclosures for_______ years.
3
Brokers do not owe which of the following duties to consumers?
a) to exercise reasonable skill and care
b) to present all written offers and other communications in a timely manner
c) obedience to lawful instruction
d) to never disclose confidential information
d) to never disclose confidential information
A subagency relationship is most likely to occur when
a)the broker represents both the buyer and seller in the same transaction
b) the sales associate pays a motel clerk for leads
c) a broker sells the property himself and represents only the seller
d) the broker receives an offer on a listing from a co-broker through the MLS
d) the broker receives an offer on a listing from a co-broker through the MLS
Tim, a broker, has a listing agreement signed by a seller and a buyer client’s form signed by a buyer. Both designate Terrific Real Estate Co. as their broker. If Tim designates one salesperson to work with the seller and another salesperson to work for the buyer, what kind of agency is Tim practicing?
a) multiple agency
b) designated agency
c) transactional agency
d) reciprocal agency
b) designated agency
The kind of facts that could impact the cost for the buyer and affect the decision to buy, such as a leaky roof, are called
Material Facts
A buyer’s agent for Bob shows Bill, a second buyer, a property that Bob has expressed an interest in purchasing. Which of the following statements about this situation is TRUE?
a) the agent’s action is illegal because he represents Bob.
b) the agent’s action is legal only if he waits until Bob has made a decision
c) The agent’s action is legal because a buyer’s agent is always loyal to the seller
d) the agent’s action is legal because a buyer’s agent is not prohibited from showing others property while in an agency relationship with a different buyer
d) the agent’s action is legal because a buyer’s agent is not prohibited from showing others property while in an agency relationship with a different buyer
The listing broker representing a seller is asked by a potential buyer at an open house to represent her in buying the listed property. What type of agency would the broker and parties create if everyone agrees?
Dual Agency
In general, the employing broker is NOT responsible for the actions of licensees acting as
Rental Listing Refferal Agents
A broker, with the written consent of the ________________, may designate one or more licensees to act exclusively as the agent of the seller/landlord and one or more licensees to act exclusively as the agent of the buyer/tenant in the same transaction.
Prinicpals
A licensee acting as a transaction licensee owes no party any loyalty and can only provide
a) limited confidentiality
b) legal assistance with the contract
c) limited advocacy
d) minimal skill and care
a) limited confidentiality
Designated agent licensees owe all the agency responsibilities to the parties they represent in the transaction, plus confirmation that the broker is a _______________agent in the transaction.
Dual
A person who is empowered to act on the behalf of another is called
Agent
A licensee who does not represent the interest of anyone in a transaction but helps to implement the process of the transaction is acting as:
a transaction licensee
An employing broker supervising designated agents who are representing a seller and a buyer owes duties to both the seller and buyer as a ________ agent.
dual
Why are material defects important to the buyer?
a) the may affect the decision to buy
b) they reveal the seller’s reasons for selling
c) they explain agency relationships
d) they concern important tax consquenses
a) the may affect the decision to buy
According to Pennsylvania law, all of the following are allowable types of agency relationship EXCEPT
a)reciprocal agency
b) dual agency
c) transactional agency
d) seller’s agency (sub agency)
a)reciprocal agency
If a licensee is dealing with a prospective tenant for the purpose of rental only, and if the licensee is the actual owner/landlord of the property, which of the following applies?
a) no disclosure is required
b) disclosure is required at the same initial interview
c) disclosure by written statement may be used instead of Consumer Notice
d) oral disclosure is required
c) disclosure by written statement may be used instead of Consumer Notice
The main reason a broker practices designated agency is to protect the client’s
confidentiality
When a broker acts as a subagent of a listing broker, with all the obligations of a single agency, neither one represents..
the buyer
The required Consumer Notice disclosure must contain a statement informing sellers and buyers of their choices of agency relationship and of the fact that there must be___________________ between the broker and the consumer to establish agency.
a written agreement
Pennsylvania law requires that every consumer dealing with real estate be given a disclosure form, the “Consumer Notice,” at the first meeting where substantive discussion of real estate occurs. The disclosure..
a) can be prepared by an attorney of the broker’s choice
b) must suggest protections for consumers, no matter who prepares the form
c) should be prepared and submitted to the Commission for approval before use
d) is on a form provided by the Commission
d) is on a form provided by the Commission
A form of agency in Pennsylvania that allows one licensee in an office to exclusively represent the seller-client and a different licensee in the same office to exclusively represent the buyer-client is called
designated agency
An employing broker supervising designated agents who are representing a seller and a buyer owes duties to both the seller and buyer as a ________ agent.
dual
A licensee must present the Consumer Notice at the time of
any substantive discussion about real estate
Prima facie evidence is evidence that is
good and sufficient on its face.
When a brokerage office is practicing designated agency, only licensees who are _____________ can act in an agency relationship to either party in the transaction.
designated
