Unit quiz 10 Flashcards
Misrepresentation or omission might result in broker liability
A) only if intentional.
B) unless it was considered puffing.
C) even if unintentional.
D) unless unintentional.
C) even if unintentional.
In a dual agency situation, a broker may represent both the seller and the buyer in the same transaction if
both parties consent in writing to the dual agency.
Dual agency requires nothing less than written, informed consent from both parties.
True or false: Any family relationship of the parties or whether they have legal representation does not change this rule.
True
Which of the following is considered dual agency?
A) A real estate professional’s representing more than one principal
B) Two brokerage companies cooperating with each other
C) A real estate professional’s acting for both the buyer and the seller in the same transaction
D) A real estate professional’s listing and then selling the same property
C) A real estate professional’s acting for both the buyer and the seller in the same transaction
In dual agency, the real estate professional represents two principals in the same transaction.
Which of the following is considered dual agency?
A) A broker acting for both parties in the same transaction
B) A broker representing more than one principal
C) A broker listing a property and then, after it is relisted with another broker, selling the same property
D) Two brokerage companies cooperating with each other
A) A broker acting for both parties in the same transaction
The laws enacted by a legislature make up
A) administrative law.
B) statutory law.
C) common law.
D) judicial law.
B) statutory law.
The relationship of broker to client in an agency relationship is that of
A) a trustee.
B) a fiduciary.
C) a subagent.
D) an attorney-in-fact.
B) a fiduciary.
The client in an agency relationship is
the principal to whom the agent gives advice and counsel.
The agent’s fiduciary relationship of trust and confidence with the principal means that the broker owes the principal certain specific duties.
A broker helps a buyer and a seller with paperwork but does not represent either party. This relationship is
A) a designated agency.
B) dual agency.
C) a transactional brokerage.
D) prohibited in all states because a broker must always represent one party.
C) a transactional brokerage.
A nonagent (transactional broker, facilitator, coordinator, or contract broker) is not an agent of either party. A nonagent’s job is simply to help both the buyer and the seller with the necessary paperwork and formalities involved in transferring ownership of real property.
The individual who is authorized and consents to represent the interests of another person is
an agent
The relationship in which the agent is held in a position of special trust and confidence by the principal is
a fiduciary
Buyers hire an agent to help them purchase a home and want seller financing because they filed for bankruptcy two years ago. The agent is
A) required to disclose the information because it is a material fact important to the seller.
B) not required to disclose the information because the seller might reject the offer.
C) not required to disclose the information because the agent has no agency relationship with seller.
D) required to disclose the information under the Fair Credit Registry Act.
A) required to disclose the information because it is a material fact important to the seller.
Most state statutes require that material facts to a transaction, such as credit issues, be disclosed to a seller, even if the buyer is a client. Such disclosure is not prevented by the requirement for client confidentiality.
Upon discovering a latent defect in a property, the real estate professional should discuss the problem with the seller and then
A) tell the seller that the defect must be repaired.
B) personally arrange for the repairs.
C) contact the city building inspector about the defect.
D) inform any prospective buyers of the defect.
D) inform any prospective buyers of the defect.
A seller’s agent is expected to disclose information about material defects in the property to prospective buyers.
What does the phrase the law of agency is a common law doctrine mean?
A) It is part of a body of law established by tradition and court decisions.
B) It is a legal doctrine that is not unusual.
C) It is one of the rules of society enacted by legislatures and other governing bodies.
D) It may not be superseded by statutory law.
A) It is part of a body of law established by tradition and court decisions.
The basic framework of the agency law that governs the legal responsibilities of real estate brokers to the people they represent is known as
common law.
