part 4

Which of the following best defines negligent misrepresentation?

Failure to use ordinary or reasonable care in a situation

Which of the following duties best describes what an agent owes customers?

Fairness, care and honesty

If a cooperating broker accepts the offer of subagency from a listing broker, to whom does the cooperating broker owe fiduciary duties?

Seller

A broker can enter into a single agency agreement with any of the following except?

Seller and buyer

What do we call an agent who represents a seller exclusively in a real estate transaction?

Single agent

What is an agent called who represents only one person in the transaction, either the buyer or the seller?

Single agent

When a home is listed, what is the most limited agency that can be created?

Special agency

When a seller gives permission to a broker to submit the property to the MLS, the seller is authorizing the broker to make a blanket unilateral offer of what to all the other members of that MLS?

Subagency

Which of the following would be deemed an advantage of a subagency arrangement?

Subagency is an easy way for the cooperating broker to share in the commission.

Puffing is best characterized as which of the following

Subjective opinion

After listing a home with a broker, the seller told the broker NOT to disclose a major structural defect in the house. What should the broker do?

Tell the buyer of the defect prior to the writing of an offer or refuse the listing.

An agent fails to discover flood marks on the walls in the basement of a property. The agent sells the property, and the buyer later sues the agent for failing to mention the problem. Which statement best describes what can happen in this case?

The agent has an exposure to a charge of negligent misrepresentation.

Which of the following statements best defines agency?

The fiduciary relationship between the agent and the principal

Matt Bower is a developer. Will Jones is a builder. Matt agrees to sell Will a lot, but he conditions the sale by insisting that Will agree to list the property with him after the home is built. What is this called?

Tie-in arrangement

What is the primary purpose for agency disclosure?

To remove any confusion about who the agent is working for

What condition occurs when dual agency is not disclosed and agreed to in writing?

Undisclosed dual agency

Which of the following types of agency is not allowed in most states?

Undisclosed dual agency

Which of the following best describes "agency coupled with an interest?"

When a licensee holds interest in a property transaction

Murphy, a buyer (customer), does not know about the leaking basement so he proceeds to make an offer. Should the broker (salesperson) who represents the seller have told Murphy about the defect?

Yes, any defects known to the broker should have been disclosed to Murphy.

Misrepresenting facts to a buyer might result in

a voided contract and loss of commission

A contract in which an owner hires a broker to market the property creates an agency relationship between

broker and seller.

A special agent is also known as a

limited or specific agent.

Agent Mary forgot to complete a sales contract rider. This resulted in a $300 loss for her client. Agent Mary's actions can be described as

negligent.

The Criminal Antitrust Penalty Enhancement and Reform Act increased the maximum criminal penalty for individuals to what amount?

$1 million

Violations of the Sherman Anti-Trust Act can include prison terms and fines of up to how much per violation?

$1,000,000

Revocation of a broker's license results in

termination of the relationship.

In most states, in all residential transactions when must licensees give potential sellers or buyers a written disclosure form?

At first substantive contact

All of the following may involuntarily terminate an agency relationship except which?

Expiration of the agreement term

An agency relationship is created in each of the following situations EXCEPT which?

A broker shows a tenant an apartment.

Which BEST describes the role of a fiduciary?

A fiduciary relationship is established when a property manager agrees to represent an owner in leasing the owner's property.

What are the two forms of fraud?

Active and passive

What are the three primary areas of disclosure?

Agency, property condition, and environmental hazards

Before a buyer broker shows a property, what must he or she disclose to the seller?

Buyer agency relationship

What is the arrangement called when the agent is accountable only to the buyer?

Buyer's agent

The principles of an agency relationship include all of these factors except which one?

Compensation

Once an agency relationship has been terminated, which of the following responsibilities remain in place?

Confidentiality

When the agency relationship has been terminated, the licensee is no longer considered the principal's agent and does not owe any further duties to the principal, except for the following

Confidentiality

Which of the following duties is NOT owed to a customer?

Confidentiality

Which of the following terminations of an agency relationship could result in legal or financial ramifications?

Renunciation by the client

What form of limited agency is a good alternative to dual agency?

Designated agency

What do you call a licensed real estate salesperson, working under the supervision of a real estate broker, who has been assigned to represent a client when a different client is also represented by such real estate broker in the same transaction?

Designated agent

The principal of Notice is sometimes called what?

Disclosure

What exists when a real estate firm or a real estate licensee represents both the seller and the buyer or the landlord and the tenant in the same transaction?

Dual agency

Which type of compensation is more likely to be used in a commercial rather than a residential transaction?

Retainer

Sally is a subagent working for Seller Pat. What does Sally owe to Buyer Brad?

Honesty and fair dealing

A subagent owes customer level services to the buyer which include which of these?

Honesty, fair dealing and the proper disclosure of pertinent facts that affect the value of the property

Licensee Jim listed a property and Licensee Sally sold the property to her client. Jim and Sally work for the same brokerage. This type of sale is known as what?

In-house sale

Which of the following does a principal owe to his or her licensee?

Information

An agent's duties to a principal include all of the following except which?

Legal advice

What is the term given to the person who has entered into a listing agreement with a seller?

Listing agent

Designated agency means the clients do not have the full level of fiduciary duties available to them that they would have if they were fully involved in seller agency or buyer agency. In this situation, the client gives up the fiduciary duty of undivided what?

Loyalty

Which duty requires that the agent act in good faith and obey the principal's directions?

Obedience

What is a form of implied agency relationship created by the actions of the parties involved rather than by written agreement?

Ostensible agency

Which of these is not a violation of Sherman Antitrust laws?

Redlining

An agency relationship

can occur through implication (what you might say or do) without a written contract