legal aspects chapter 5 quiz

A broker must maintain records of any transaction for at least ........after closing?

3 years

An agency relationship may be terminated by which of the following means...?

Accomplishment of purpose Expiration of the agency agreement Mutual agreement

This refers to the relationship between principal and the principal's agent which arises out of a contract, wherein the agent is employed by the principal to do certain acts dealing with a third party...?

agency

This refers to a listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract...?

exclusive right to sell agreement

Which of the following offers the most amount of protection to the broker...?

exclusive right to sell agreement

This refers to a person or an organization acting as the agent for others in negotiating the purchase and sale of real property or other commodities for a fee...?

real estate broker

A person performing any of the acts included in the definition of real estate broker but while associated with and supervised by a broker, is referred to as a...?

real estate salesperson

A broker is entitled to a commission if they find a ready, willing, and able buyer for the seller...? (t/f)

true

A property manager is an example of a general agent...?(t/f)

true

If a broker represents a seller in a transaction, who operates as a third party to the agency relationship...?

a prospective buyer

An agency relationship is created between a seller and a/an...?

broker

An agent with full authority over one property of the principal is known as a...?

general agent

Agency that exists as a result of actions of the parties is known as...?

implied agency

Which of the following offers the least amount of protection to the broker...?

open listing

An open listing is an example of an exclusive listing contract...? (t/f)

true

One who acts for and with authority from another called the principal is known as a/an...?

agent

A licensed real estate broker who chooses to work under the name and supervision of another licensed broker is referred to as a/an...?

associate broker

An agent's compensation for performing the duties of the agency is known as a...?

commission

An agency relationship created by oral or written agreement between a principal and the agent is known as...?

express agency

A contract that has been put into words, either spoken or written, is referred to as a/an...?

express contract

This refers to a person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another...?

independent contractor

A listing contract between a seller and broker creates what type of agency...?

special agency

A real estate salesperson must work under a sponsoring broker...?(t/f)

true

Ostensible agency is typically created by estoppel...? (t/f)

true

Express agency is created through which of the following...?

a listing contract

A real estate agent typically serves as a/an...?

special agent

A contract in which a property owner employs a real estate broker to market the property described in the contract is known as a...?

listing contract

This refers to the adoption or approval of an act performed on behalf of a person without previous authorization, after the acts have been performed...?

ratification

An agent with limited authority to act on behalf of the principal is known as a...?

special agent

A real estate broker cannot collect a commission unless he/she has an express contract with the seller...? (t/f)

true