various types of agency relationships common in the real estate profession

Question 1

A ___ agent is a person empowered to do anything the principal could do personally

Answer 1

universal

Question 2

In Illinois, a written ___ is required to create a universal agency

Answer 2

power of attorney

Question 3

A ___ agent may represent the principal in a broad range of matters related to a particular business or activity

Answer 3

general

Question 4

The ___ agent may bind the principal to any contract within the scope of the agency’s authority.

Answer 4

general

Question 5

A property manager is typically considered a ___ agent to the property owner.

Answer 5

general

Question 6

Who are the general agents to their sponsoring broker?

Answer 6

Brokers and managing brokers

Question 7

Brokers and managing brokers are __ agents to their sponsoring broker.

Answer 7

General

Question 8

A ___ agent is authorized to represent the principal in one specific act or business transaction only, under detailed instructions.

Answer 8

special

Question 9

A real estate licensee is usually a ___ agent to a client.

Answer 9

special

Question 10

A special agent representing a seller helps them find…

Answer 10

A buyer for the property

Question 11

A special agent representing a buyer helps them find…

Answer 11

Property that fits the buyer’s criteria

Question 12

As a special agency, a licensee may not bind the principal to a ___.

Answer 12

contract

Question 13

A special ___ is another legal means of authorizing an agent to carry out only a specified act or acts.

Answer 13

Power of attorney

Question 14

A ___ agent is a person authorized by the sponsoring broker to act as the agent of a specific principal.

Answer 14

designated

Question 15

A ___ agent is the only licensee in the company who has a fiduciary responsibility toward their assigned principal.

Answer 15

designated

Question 16

If one licensee in the company is a designated agent, who are the others are free to act as agents for?

Answer 16

The other party in a transaction

Question 17

Mickey and Minne are both agents working for the same company. Both of them are representing two opposing clients for the same property. Mickey is the designated agent for the seller, while Minnie is acting as an agent for the buyer. Doing this allows two agents from the same company to represent opposite sides of the sale without entering ___ agency.

Answer 17

Dual

Question 18

In Illinois, a sponsoring broker entering into a brokerage agreement must designate those licensees employed by or affiliated with the sponsoring broker to act as ___ agents of that client to the exclusion of all other licensees employed by or affiliated with the sponsoring broker.

Answer 18

legal

Question 19

In Illinois, licensees must advise a consumer in writing before acting as their ___.

Answer 19

designated agent

Question 20

In Illinois, a ___ agent may disclose confidential information of a client to the sponsoring broker or persons specified by the sponsoring broker for the benefit of the client in regard to a possible transaction.

Answer 20

designated

Question 21

In Illinois, a designated agent may disclose confidential information of a client to the ___ for the benefit of the client in regard to a possible transaction.

Answer 21

sponsoring broker

Question 22

In Illinois, a designated agent may disclose confidential information of a client to the persons specified by ___ for the benefit of the client in regard to a possible transaction.

Answer 22

the sponsoring broker

Question 23

A(n) ___ agency is when an agent or firm represents only one party exclusively in a real estate transaction, and the agent and firm’s fiduciary and statutory duties are provided only to that one party.

Answer 23

single

Question 24

A ___ agency licensee may represent buyers and sellers, however they cannot represent both in the same transaction.

Answer 24

single

Question 25

An agency relationship is established by ___, ___, or ___.

Answer 25

Contract Agreement Implication

Question 26

In Illinois, is it required by law for the listing sponsoring brokerage to share the listing commission with the buyer's sponsoring brokerage?

Answer 26

no

Question 27

A ___ agency is an arrangement where an owner may employ a sponsoring broker to market, lease, maintain, or manage the owner's property.

Answer 27

Property Management Agency

Question 28

Who is made the agent of the property owner thorugh a property management agreement?

Answer 28

Sponsoring broker

Question 29

In a property management arrangement, who has fiduciary responsibility to the owner?

Answer 29

Sponsoring broker

Question 30

In ___ agency, the agent represents two principals in the same transaction.

Answer 30

dual

Question 31

___ agency requires equal loyalty to 2 separate principals at the same time

Answer 31

dual

Question 32

Real estate licensing laws permit dual agency ONLY if...

Answer 32

Both parties involved in the transaction are informed and consent in writing

Question 33

In Illinois, all parties involved in a transaction through a dual agency must give...

Answer 33

Consent and confirmation to the arrangement in writing

Question 34

A real estate licensee is the agent for the owner of a large mansion. A prospective buyer comes into the licensee's office and asks her to represent him in a search for a modest home. After several weeks of activity, including low offers unsuccessfully negotiated by the licensee, the prospective buyer spots the For Sale sign in front of the mansion. He tells the licensee that he wants to make an offer and asks for the licensee's advice on a likely price range. This is putting the licensee in a difficult position of being a(n) ___ agent.

Answer 34

dual

Question 35

___ Agency is when one licensee represents the interests of both the buyer & seller.

Answer 35

dual

Question 36

___ Agency is when the licensee represents the interest of both the lessor and lesee in a transaction.

Answer 36

dual

Question 37

Can a licensee collect a referral fee for referring a consumer to another licensee after the consumer has refused dual agency?

Answer 37

yes

Question 38

A licensee must disclose to a ___ all sources of compensation related to the transaction received by the licensee from a third party.

Answer 38

client

Question 39

___ agency describes a business model where licensees in an office may represent both buyers and sellers.

Answer 39

designated

Question 40

What is it called when a sponsoring broker assigns one agent to represent the buyer and another agent to represent the seller?

Answer 40

designated agency

Question 41

___ agency is created when an agent is authorized to perform a particular act

Answer 41

special

Question 42

In a special agency, the agent is helping their client with BOTH selling and buying a new home. True or false?

Answer 42

False

Question 43

In a special agency, the agent is helping their client with selling their home, but NOT with buying a new home. True or false?

Answer 43

true

Question 44

___ agency is created when an agent is authorized to perform multiple acts on behalf of a client.

Answer 44

general

Question 45

A broker associate is generally hired to act as a ___ agent to the sponsoring broker,

Answer 45

general

Question 46

An agent's authority to act as a universal agent comes from a legal form called a ___.

Answer 46

Power of Attorney

Question 47

A client is moving to Paris and provides their agent with a document authorizing them to act as a property manager for their property while they are abroad, as well as investing in profits into the stock market for them. What type of agency is this an example of?

Answer 47

Universal Agency

Question 48

___ grants an agent the power to perform on their behalf.

Answer 48

Power of attorney

Question 49

___ agency eliminates the apparent conflict of interest when the buyer and seller are both represented by the same brokerage company, because each party has their own specific licensee to represent their interest.

Answer 49

designated

Question 50

John and Mary both work for ABC Real Estate and they are both representing clients in a transaction for the same property. John is working with the seller while Mary is working with the buyer. How is this not a conflict of interest?

Answer 50

John and Mary are designated agents

Question 51

John and Mary both work for ABC Real Estate and they are both representing clients in a transaction for the same property. John is working with the seller while Mary is working with the buyer. Because John and Mary both work under the same sponsoring broker, are they authorized to share confidential information about their party in transaction without consent from their clients?

Answer 51

no

Question 52

Larry, Moe, and Joy are all on a Real Estate team. Larry is the listing agent and the designated agent for the seller. Is Larry allowed to share confidential information about his client with Moe and Joy? Why or why not?

Answer 52

No because Moe and Joy are not the designated agent

Question 53

Larry, Moe, and Joy are all on a Real Estate team that will be representing a seller. Can all three of them be designated to represent the same client?

Answer 53

Yes, as long as all designated agent's names are written in the listing agreement

Question 54

Written consent from both parties must be given ___ acting as a dual agent.

Answer 54

Before

Question 55

If a licensee is acting as a dual agent for two opposite sides of a transaction, can they advise or counsel either client?

Answer 55

no

Question 56

If a licensee is acting as a dual agent for two opposite sides of a transaction, are they authorized to disclose any material facts to either client?

Answer 56

yes

Question 57

Is a dual agent authorized to advise either client to make a counter offer, or counsel them pricing?

Answer 57

No

Question 58

Is a dual agent authorized to provide each client with the CMA and a comparative market analysis for the property?

Answer 58

Yes

Question 59

After consenting to a dual agency in writing, next a ___ must also be in writing stating that both parties have agreed that the same licensee will represent both sides of the transaction.

Answer 59

Confirmation

Question 60

Real estate licensees are required to ___ the parties they represent.

Answer 60

Disclose

Question 61

Licensees in Illinois are considered to be representing the consumer they are working with as the consumer's ___ agent, unless there is a written agreement between the sponsoring broker and the consumer providing that there is a different relationship.

Answer 61

designated

Question 62

In Illinois, how must a consumer be advised that a designated agency relationship exists?

Answer 62

In writing

Question 63

When must a consumer be advised in writing about a designated agency relationship?

Answer 63

Before the licensee begins to work as a designated agent to the client

Question 64

The ___ is required to disclose their compensation to the consumer.

Answer 64

sponsoring broker

Question 65

___ is when the dialogue between a licensee and consumer moves from casual conversation to the consumer's motives, objectives, financial qualifications, and other confidential information that, if disclosed, could harm the consumer's bargaining position.

Answer 65

substantive

Question 66

Illinois requires a ___ form to be provided to the consumer (seller or buyer) at first substantive contract and before the broker associate receives any confidential information.

Answer 66

Disclosure of No Agency form

Question 67

Licensees must ___ any interest, direct or indirect, that they have in the property that is the subject of a transaction

Answer 67

Disclose in writing

Question 68

If a real estate licensee has any ownership of the property that is being sold, what are they required to do if they are representing the sale of this property?

Answer 68

Disclose in writing

Question 69

If a real estate licensee is a member of the LLC that owns the property that is being sold, what is the licensee required to do if they are representing the sale of this property?

Answer 69

Disclose in writing

Question 70

Joe is an agent who is representing a seller for a property. His client happens to be his second cousin. Is Joe required to disclose in writing that his client is a family member?

Answer 70

yes

Question 71

If a real estate agent is representing a client who happens to be related to them, is this something that needs to be disclosed in writing?

Answer 71

yes

Question 72

There is a law in Illinois called the "Illinois statute of ___ and ___" that applies when someone dies but does not have a will.

Answer 72

Descent and Distribution

Question 73

Is a licensee required to disclose in writing that they are an Illinois Real Estate Licensee when they are representing themself in a transaction?

Answer 73

yes

Question 74

___ agent is empowered to do anything the client could do personally.

Answer 74

universal

Question 75

___ agent is authorized by the broker to act as the agent of a specific client.

Answer 75

designated

Question 76

___ agent is authorized to represent the client in one specific act.

Answer 76

special

Question 77

___ agent represents the client in a broad range of matters related to a particular activity

Answer 77

general

Question 78

___ agent represents two clients in the same transaction

Answer 78

dual

Question 79

In ___ agency relationships, the agent represents one party

Answer 79

single

Question 80

In Illinois, is it legal to offer subagency by a multiple listing service?

Answer 80

no

Question 81

___ agency firms work with both buyers and sellers, including buyers and sellers in the same transaction, and will consider dual agency in the event it develops or assign designated agents to each of the two parties.

Answer 81

Non-single-agency firms

Question 82

Illinois has adopted statutes that replace the common law of agency and amplifies it. True or false?

Answer 82

True

Question 83

An unintentional or inadvertent dual agency can result in the sales contract being rescinded and the commission being forfeited. True or false?

Answer 83

True

Question 84

An unintentional or inadvertent dual agency can result in a lawsuit. True or false?

Answer 84

True