Chapter 2 - Law of Agency

To easily remember the 6 fiduciary duties of an agent remember the acronym '___ ___'. 1. Obedience 2. Undivided Loyalty 3. Disclosure 4. Confidentiality 5. Accountability 6. Reasonable Care

Old Car

Section 442-C of NY real estate law

The broker may be liable for the agent's (salespersons ) acts.

A licensed real estate agent who acts on behalf of a tenant in a commercial property transaction. a. Tenant Agent - b. Broker's Agent - c. Seller's Agent d. Sub-Agent

a

A person who has oral or written authority, either express or implied, to act for or on behalf of a landlord. a.Landlord Agent - b. Broker's Agent - c. Client d. Implied Agency

a

A relationship in which the real estate agent is found to be the agent of both the buyer and seller in a transaction, but without the knowledge and informed consent of both parties. Undisclosed Dual Agency is illegal in all states. a. Undisclosed Dual Agency b. Informed consent c. Disclosed dual agency d. MLS Listing

a

An actual agency created by written or oral agreement between the principal and the agent. a. Expressed Agency b. Implied Agency c. Estoppel d. Price Fixing e. Group Boycott f. Market Allocation g. Tie-in arrangement

a

An agent who represents the buyer of real property. a. Buyer Agent - b. Broker's Agent - c. Client d. Implied Agency

a

An agent with the full authority over one property of the principal, such as a property manager. a. General Agent b. Special Agent c. Informed Consent d. Misrepresentation

a

Appointing one or more individual agents in a firm to represent only the interests of the seller and one or more different individual agents in the firm to represent only the interests of the buyer when a firm has an "in-house" dual agency situation. a. Designated Sales Agent b. Disclosed dual agency c.Undisclosed Dual Agency

a

Cooperating Agent: An agent who works with a different brokerage but cooperate in a particular transaction a.true b. false

a

Expressed Agency and Implied Agency are very similar but the difference is ____________ Agency is an Agency formed by making written/oral agreement a. Expressed Agency b. Implied Agency

a

Failing to disclose the "Dual Agency Relationship" violates the NY state Real Property Law. a. true b. false

a

Fiduciary Duties - The legal duty of a fiduciary to act in the best interests of the beneficiary. One common duty includes confidentiality. a. True b. false

a

In new york state a referral fee may be paid only with the informed consent of the client a. true b. false

a

One who undertakes to transact some business or to manage some affair for another by authority of the latter. a. Agent - b. Broker's Agent - c. Client d. Implied Agency

a

Referral Fee or payments made by an agent of broker to other parties as quid pro quo for referring customers can not be paid to sales person directly just as the commission. They both must be paid to the broker and given out after because the salesperson is the sub agent. a. true b. false

a

The _____________ acts as a middleman and who's role it is to bring together the parties to a transaction. a. Broker b. Tenant c. Salesperson

a

The principal must act to defend the agent in case the agent is sued while acting on behalf of the principal. this is known as... a. Indemnification b. informed consent c. misrepresentation

a

The seller or buyer agrees to dual agency before it occurs by indicating the same on the agency disclosure form. a. Advanced consent to Dual Agency b.Confidentiality c.Disclosure

a

Exclusive right to sell

a listing that gives the broker the right to collect a commission no matter who sells the property during the listing period.

A broker's agent is an agent that cooperates or is engaged by a listing agent or a buyer's agent (but does not work for the same firm as the listing agent or buyer's agent) to assist the listing agent or buyer's agent in locating a property to sell or buy, respectively, for the listing agent's seller or the buyer agent's buyer. a. Agent - b. Broker's Agent - c. Client d. Implied Agency

b

A person who on behalf of or for the benefit of another transacts business or handles money or property not the person's own; such relationship implies great confidence and trust a. Principal b. Fiduciary

b

An ______ Listing creates a dual agency where the buyer's agent becomes a sub agent of both the seller and the buyer. a. MKS b. MLS c. ALS

b

An agent with limited authority to act on behalf of the principal, such as created by a listing. a. General Agent b. Special Agent c. Informed Consent d. Misrepresentation

b

Expressed Agency and Implied Agency are very similar but the difference is ____________ Agency is an Agency formed by making written/oral agreement and is handed the keys to show the apartment. a. Expressed Agency b. Implied Agency

b

Form of agency that occurs when the words and actions of the parties indicate that there is an agency relationship a. Expressed Agency b. Implied Agency c. Estoppel d. Price Fixing e. Group Boycott f. Market Allocation g. Tie-in arrangement

b

Form of agency that occurs when the words and actions of the parties indicate that there is an agency relationship. a. Agent - b. Implied Agency - c. Principle d. Tenant's Agent

b

If a client or principal knows the property will jump in value soon because a knew whole foods is opening around the corner, (although that fact is not public) and the agent hears this from the principal, can the agent go tell the brokerage firm of this new finding. a. Yes b. No

b

In a dual agency you have undivided loyalty to both the buyer and seller a. T b. F

b

A situation in which one party is held partly responsible for the unlawful actions of a third party. a. Sub-Agent b. Misrepresentation c.Vicarious Liability

c

An agent who represents the seller of real property. a. Tenant Agent - b. Broker's Agent - c. Seller's Agent d. Sub-Agent

c

An agreement to do something or to allow something to happen only after all the relevant facts are disclosed. a. General Agent b. Special Agent c. Informed Consent d. Misrepresentation

c

Exclusive right to sell agreement typically has a term of ____ months. and then you have to resign a new agreement. (No automatic renewal) a. 3 b. 6 c. 9

c

If a salesperson lists a property via the Multiple Listing Service (MLS) the broker is the primary agent and the salesperson is the ____________ . additionally the perspective buyers agent whose brokerage ascents to the MLS cooperative arrangement is also a __________ of the client. a. implied agent b. primary agent c. sub agent

c

The Customer acts as _________ party to transaction. They are the 'Party' the agent brings to the princpal as seller or buyer of the property. a. first b. second c. third

c

The agent must not change/modify the financial terms of a deal and must act in the best interest of his.her client. this is an example of a.Disclosure b. Confidentiality c. Accountability

c

The employer of an agent or broker; the broker's or agent's client. a. Agent - b. Implied Agency - c. Principal d. Tenant's Agent

c

The one by whom a broker is employed. a. Agent - b. Broker's Agent - c. Client d. Implied Agency

c

The principle which prevents a person from asserting something contrary to what is implied by a previous action or statement of that person. a. Expressed Agency b. Implied Agency c. Estoppel d. Price Fixing e. Group Boycott f. Market Allocation g. Tie-in arrangement

c

An agent of a person already acting as an agent of a principal. a. Agent - b. Broker's Agent - c. Seller's Agent d. Sub-Agent

d

Conspiring to establish fixed fees or prices for services or products a. Expressed Agency b. Implied Agency c. Estoppel d. Price Fixing e. Group Boycott f. Market Allocation g. Tie-in arrangement

d

Making an intentionally false statement to induce someone to contract a. General Agent b. Special Agent c. Informed Consent d. Misrepresentation

d

Principal typically refers to a a.brokerage firm b. broker c. agent d. client

d

_______________ an agent is obligated to hold all information given to them from the principal in confidence. a. Obedience b. Undivided Loyalty c. Disclosure d. Confidentiality e. Accountability f. Reasonable Care

d

An agreement between members of a trade to exclude other members from fair participation in the trade. a. Expressed Agency b. Implied Agency c. Estoppel d. Price Fixing e. Group Boycott f. Market Allocation g. Tie-in arrangement

e

_______________: there can be no secret profits. All $ being exchanged must be disclosed by agent to principal. a. Obedience b. Undivided Loyalty c. Disclosure d. Confidentiality e. Accountability f. Reasonable Care

e

An agreement between members of a trade to refrain from competition in specific market areas. a. Expressed Agency b. Implied Agency c. Estoppel d. Price Fixing e. Group Boycott f. Market Allocation g. Tie-in arrangement

f

A contract where one transaction depends upon another. a. Expressed Agency b. Implied Agency c. Estoppel d. Price Fixing e. Group Boycott f. Market Allocation g. Tie-in arrangement

g