Chapter 5

Which of the following provides an example of a universal agent?

A court-appointed guardian

Lisa is holding an open house for her client, Tim. Several couples stop by. Aarthi and Ram don't interact with Lisa at all. Gina and Reggie talk with Lisa about the property; they're not working with another licensee. Marcus and Marvin stop by and talk with Lisa about the property; they're already working with another licensee. Which parties are considered consumers at this point?

Aarthi and Ram

Licensees owe many duties to customers and third parties in a transaction. Indicate which of the following are duties to all parties. Choose the three that apply.

Account for earnest money deposits (t) Disclose any negative facts about the property or the transaction (t) Forward all offers and counter-offers (f) Maintain confidentiality of all privately shared information (t) Obey client instructions as long as they are lawful (f)

Alison was thrilled to meet with Brent. In a matter of days, she executed (signed) an agency agreement with Brent, searched for properties on the multiple listing service, and had several showings scheduled. Who's who in this scenario? Match the terms to the appropriate party, but let's see if you can do so without the help of your resource. Agent:

Alison

Alison was thrilled to meet with Brent. In a matter of days, she executed (signed) an agency agreement with Brent, searched for properties on the multiple listing service, and had several showings scheduled. Who's who in this scenario? Match the terms to the appropriate party, but let's see if you can do so without the help of your resource. Fiduciary:

Alison

Tennessee law requires that licensees disclose timely and accurate market conditions to whom?

All parties

Which one of the following provides the best example of single agency?

An agent from one firm acts as the agent for the buyer.

Alison was thrilled to meet with Brent. In a matter of days, she executed (signed) an agency agreement with Brent, searched for properties on the multiple listing service, and had several showings scheduled. Who's who in this scenario? Match the terms to the appropriate party, but let's see if you can do so without the help of your resource. Client:

Brent

Alison was thrilled to meet with Brent. In a matter of days, she executed (signed) an agency agreement with Brent, searched for properties on the multiple listing service, and had several showings scheduled. Who's who in this scenario? Match the terms to the appropriate party, but let's see if you can do so without the help of your resource. Principal:

Brent

We've learned about the role of a non-agent and the fact that the non-agent owes the fiduciary duty of confidentiality. What other two fiduciary duties do you think a non-agent owes the parties in the transaction? Select "Confidentiality" and two more.

Confidentiality Accounting Reasonable skill and care

Specifically, what does the fiduciary duty of disclosure relate to?

Conflicts of interest, material facts, and adverse material facts

Javier represents Marcus, who's selling his rental property to Ben. Ben is represented by another real estate licensee, Francis. What is Ben's relationship to Javier?

Customer

What kind of agency relationship enables two licensees in the same Tennessee brokerage to work with two parties in a transaction?

Designated agency

Ned represents Sofia in the sale of her townhome. Luciana represents Sofia's buyer, Arturo. What is Luciana's responsibility to Sofia?

Disclose that the buyer will not have the funds for the down payment unless he sells his current home.

Your buyer client, Ben Dalton, tells you two weeks before closing that he's lost his job. He doesn't have any other income at the moment, and may not be able to follow through on his purchase of the house you're helping him buy. However, he doesn't want to miss out on his dream home and is optimistic that he'll find something soon, so he asks you to keep it confidential. What should you do?

Disclose this fact to all parties to the transaction if Ben refuses to do so.

Which one of the following tasks must licensees perform for seller clients?

Ensure that the buyer's earnest money is deposited.

A licensee must perform which of the following tasks for a buyer client?

Ensure the buyer understands the importance of due diligence, including a professional inspection of the property.

Conducts duties of property managers

General agent

Jenna signs a designated agency agreement with Tom so that he can represent her in her condo search. Javier, another licensee in Tom's office, has a client selling a condo that sounds perfect for Jenna. Who's the dual agent in this situation?

No one, since Tom is a designated agent

Is the broker ever a dual agent in Tennessee?

Only when clients are represented in traditional agency relationships.

What can a facilitator do for a customer?

Process paperwork

Brian is an affiliate broker and a member of the local men's fraternal organization, Brothers United. Brothers United wants to purchase some land for recreational purposes, and the board president signs an agency agreement with Brian so he can represent the organization in its property search. Brian identifies three land tracts and sets up appointments to tour them, but he doesn't disclose to the sellers' agents or the sellers that he's a member of the organization. Which agency duty did he violate?

Prohibition against undisclosed representation when there's personal interest

What responsibility does the seller's agent have to the seller?

Seek a sale at the best price at terms that are acceptable to the seller.

Madeline works for a single-agency firm. If she wants to represent both the buyer and seller in a transaction, what must she do?

She can't do this at her firm.

Stacey, a buyer, is working with Rebecca, a licensee, in a state that doesn't recognize or permit implied agency. Rebecca doesn't represent Stacey, however, and is performing only ministerial tasks for her. Which of the following statements about this situation is correct?

Stacey is Rebecca's customer

You are representing Buyer Helen in a multiple-offer situation. Which of the following pieces of advice should you refrain from giving Helen?

Submit a small earnest money deposit.

After a few meetings, the Stinsons sign a listing agreement with broker Vera so she can sell their house. The house has already generated interest from a potential buyer named Sergei, who has spoken with Vera about the house's price and square footage. Which of the following is true about this situation?

The Stinsons and Vera have brokerage relationship agreement.

Adam signed a designated seller agency agreement with Marco as his designated agent. Another licensee in Marco's firm, Helen, has a potential buyer for Adam's property. What are the potential conflicts of interest?

There is no conflict since designated agency creates a relationship between Adam and Marco only.

What's another name for a facilitator?

Transaction broker

In any transaction, Tennessee law requires licensees to disclose their agency status in writing to whom?

Unrepresented buyers or sellers

Someone who acts on behalf of someone else

agent

What's the term for someone who's been given the authority to act on behalf of someone else?

agent

Indicate whether each of these would be a component of a traditional agency agreement, a designated agency agreement, or both. Must be disclosed to unrepresented parties in the transaction

both

Indicate whether each of these would be a component of a traditional agency agreement, a designated agency agreement, or both. Must be documented in writing

both

Someone who has agency representation with the real estate licensee

client

Someone who uses or purchases a product or service

consumer

An unrepresented ______ who's a party to a transaction is known as a principal.

customer

Rhonda is an unrepresented buyer who's purchasing Tony's townhome. Gary represents Tony in the sale of his property. What's Rhonda's relationship to Gary?

customer

Someone who's working with a real estate licensee, but isn't represented by him

customer

Indicate whether each of these would be a component of a traditional agency agreement, a designated agency agreement, or both. Agency relationship between individual licensee and client

designated

Appointed by the brokerage's broker to represent one party in an in-house transaction

designated agent

Designated to perform fiduciary duties to a client

designated agent

Known also as an appointed agent or assigned agent

designated agent

A transactional broker is a limited agent to the seller.

f

A universal agent is a facilitator.

f

Edwin collects rents, evicts tenants, and enters into leases on behalf of his boss, the property owner. Edwin is a designated agent.

f

Jamie acts as an intermediary, liaison, and negotiator for her client, but she's not authorized to make decisions on her client's behalf. Jamie's primary role is to help her client find and buy a house. Jamie is a general agent.

f

The two types of agency available in Tennessee are designated agency and exclusive agency.

f

Someone who's in a position of trust and loyalty

fiduciary

Property managers most often serve as which type of agent?

general

What type of real estate agency relationship usually exists when a licensee has the broad responsibility of handling all of the details of a specific property?

general

Enters into contracts on the client's behalf

general agent

Handles all dealings for a specific piece of client property

general agent

Take a look at the Working with a Real Estate Professional disclosure form. Which of the following duties are owed only to clients?

loyalty, obedience

Someone who represents neither party in the transaction

non-agent

Someone who's a party to a transaction OR the person for whom the agent acts

principal

When working with a client on a real estate sale, a real estate licensee is usually acting as which type of agent?

special

Acts as an intermediary, but doesn't make decisions or enter into contracts on the client's behalf

special agent

Acts with limited authority on a client's behalf

special agent

Covers most real estate transactions involving a buyer and seller

special agent

A non-agent is a facilitator.

t

An escrow officer is a limited agent.

t

Harriet has just been appointed guardian of her 12-year-old niece, Annabel, whose parents were tragically killed in an automobile accident. Harriet is a universal agent.

t

Ingo and Amy both work at the same firm and are involved in the same transaction, in which Amy represents the seller and Ingo represents the buyer. Ingo owes fiduciary duties to the buyer, and Amy to the seller. Ingo and Amy are designated agents.

t

Indicate whether each of these would be a component of a traditional agency agreement, a designated agency agreement, or both. Agency relationship between broker/brokerage and client

traditional

Indicate whether each of these would be a component of a traditional agency agreement, a designated agency agreement, or both. Could introduce unintended dual agency

traditional

As a court-appointed guardian, Marion serves as which type of agent?

universal

Considered an uncommon role for a real estate agent

universal agent

Empowered to do anything the principal could do personally

universal agent

Holds the most authority of any agent

universal agent