Chapter 4

Regarding Single Agency, which of the following statements is most correct?

A licensee is prohibited from representing the buyer and seller as a single agent in the same transaction.

When can both parties in a transaction pay a broker a commission?

When both parties agree to the dual commission

Who owes fiduciary duties in a single agency relationship?

The broker only

Which of the following statements regarding a broker is correct?

A broker must follow all legal instructions of the principal or withdraw.

As an agent, a broker is employed by and acts on behalf of whom?

A principal

In regards to agency relationships, which statement is most correct?

A special agent is only authorized to perform a single act on behalf of the principal.

Which of the following statements best describes a transaction broker?

A transaction broker provides limited representation to both parties.

Fairness and honesty are required of all licensees in which relationship?

Any real estate transaction

What is an agent required to do in an agency relationship?

Attempt to obtain the most favorable price and terms on behalf of the principal

Bob is a licensed sales associate, employed by broker Jerry. Broker Jerry fails to pay Bob a commission, so Bob resigns and is hired by Broker Sam. Bob decides to sue for his commission. Which of the following is accurate regarding this scenario?

Bob cannot bring a legal action for the claimed commission against anyone other than Broker Jerry.

A prospective purchaser made a written offer to purchase a home listed by broker B. Prior to presenting the offer, a second prospective purchaser made a verbal offer of $180,000, but did not put the offer in writing, and did not provide any earnest money. Which of the following best describes this scenario?

Brokers are required to present all offers.

According to the Brokerage Relationship Disclosure Act, which is the only brokerage relationship form that must be signed or initialed?

Consent to Transition to Transaction Broker

A broker failed to advise a principal regarding the value of the owner's property prior to accepting a listing. Which fiduciary duty did the broker breach?

Disclosure

Which transaction is NOT included in the definition of a residential transaction?

Dispositions of business interests involving property of five or more residential units

Which of the following best describes the practice of dual agency in Florida?

Dual agency is a violation of Florida Statute 475.

Broker Tom sold a property which was listed with broker Alice. Tom was unable to attend the closing, so Alice collected the entire commission. Alice refused to pay Tom his share of the commission. What could Alice be charged with?

Failure to account

Which relationship is NOT adversarial?

Fiduciary

Broker Joan just received an oral offer to purchase listed property. No earnest money accompanied the oral offer. Which of the following statements is correct?

Joan must present the offer.

When can an agent disclose confidential or harmful information about a principal?

Never

Which of the following statements best describes policy and procedure manuals?

Policy and procedure manuals are useful in maintaining good relations.

Which activity is NOT exempt from the requirement to provide disclosures under the Brokerage Relationship Disclosure Act?

Showing property to a party that is not being represented

Which brokerage relationship status includes a full fiduciary relationship?

Single Agency

Mary, an Ohio broker, accompanied a customer to Florida and met with broker Stan in his office in Miami. While Stan showed the customer property and obtained a binding contract for the purchase of a condominium, Mary took some time off and went to the beach. When Mary returned to Stan's office, she discovered that Stan had written a contract and demanded a share of the commission. Which statement is correct?

Stan may share the commission with Mary.

Which of the following does NOT control agency relationships in real estate?

The Department of Financial Services

. A seller entered into a No Brokerage Relationship and informed the Agent that he/she is selling the home due to a divorce, and for that reason would take $20,000.00 below market value. The Agent told a potential buyer "If I were you, I would offer $20,000 less than the asking price. The seller is in in the middle of a nasty divorce, and you'll likely get a good deal." Which of the following statements is correct?

The agent may disclose the above information in a No Brokerage Relationship.

A real estate licensee who is working with a seller receives a call from another broker stating that, "I am representing the buyer as the buyer's broker and I'm standing in front of one of your listed properties with my buyer." Which of the following is correct regarding this scenario?

The agent who is calling is in a single agency relationship.

In many brokerage relationship situations, the broker gives permission for the sales associate to work directly with a principal. Which of the following is true in this situation?

The sales associate has a fiduciary relationship with both the broker and the principal.

A broker has appointed two sales associates to act as agents in a nonresidential transaction, one for the seller and one for the buyer. Which statement is correct?

The sales associates are referred to as designated sales associates.

Anxious to close a deal, a sales associate agreed to kick back part of his/her commission to the buyer. Which of the following best describes this situation?

This arrangement is acceptable provided all parties are notified and agree.

A home was listed and sold within 24 hours. The buyer felt that the broker did not earn the full commission called for in the contract and requested that the broker rebate $3,000 at closing. The broker agreed. Which of the following statements is correct?

This is legal, provided all parties are informed and agree.

In which of the following situations does a general agency relationship exist?

Whan a sales associate is employed by a broker

Sal, a properly licensed Arizona broker, forms a relationship with Betty, a properly licensed Florida broker. Sal agrees to refer potential buyers to Betty, and in return, Betty agrees to pay Sal 25% of her commission as a referral fee. Jorge, a competitor of Betty's, discovers the relationship and files a complaint with DBPR. After investigating the complaint, it will be determined that:

the Florida real estate license law was not violated