Real Estate study chapter 4 (agency)

How long is a firm responsible for keeping and maintaining records to a transaction? 1. 10 years 2. 1 year 3. 2 years 4. 9 months

2 years

A licensee is: 1. Only a broker 2. Only a salesperson 3. Only a firm 4. A firm, a broker, or a salesperson defined under Wisconsin Statutes Chap 452

A firm, a broker, or a salesperson defined under Wisconsin Statutes Chap 452

Which of these is considered a multiple representation relationship? 1. A licensee acting for both the buyer and the seller in the same transaction 2. Two brokerage companies cooperating with each other 3. A licensee representing two or more sellers at the same time 4. A licensee listing and then selling the same property

A licensee acting for both the buyer and the seller in the same transaction

Under which of the following events would an agency relationship NOT be terminated? 1. Death, expiration, condemnation 2. Cancellation, rescission, subversion 3. Mutual agreement, breach 4. Bankruptcy, completion

Cancellation, rescission, subversion

A real estate licensee was representing a buyer. At their first meeting, the buyer explained that he planned to operate a dog grooming business out of any house he bought. The licensee did not check the local zoning ordinances to determine in which parts of town such a business could be conducted. Which agency duty did the licensee violate? 1. Care 2. Obedience 3. Loyalty 4. Accountability

Care

A licensee is required to obey which duty beyond the closing of the transaction even after the property is sold or transferred? 1. Loyalty 2. Skill & care 3. Obedience 4. Confidentiality

Confidentiality

When a firm has an agency agreement with more than one client who is a party in the same transaction and then the firm specifically enables and assigns a licensee associated with the firm on opposite sides in a property sale without entering dual agency to act as agents to work for one principle with fiduciary responsibility toward that principal this is referred to as: 1. Buyer agency 2. Universal agency 3. General agency 4. Designated agency

Designated Agency

A real estate licensee's responsibility to keep the principal informed of all the facts that could affect a transaction is the duty of _________? 1. care 2. obedience 3. confidentiality 4. disclosure

Disclosure

Holding authority over the property of another and responsibility over the property while acting on another behalf in their best interests is known as 1. Fiduciary 2. Skill and care 3. Honest and fair dealings 4. Obedience

Fiduciary

In Wisconsin, which of these is true concerning designated agency? 1. Designated agency is illegal 2. Designated agency is the same as creating implied agency 3. License law requires that the seller and the buyer be represented by different companies 4. License law requires the licensee to disclose that a designated agency relationship exists

License law requires the licensee to disclose that a designated agency relationship exists

Which of the following duties are owed to customers? 1. Customers are not owed any duties by license law, only clients under written agreement 2. Present contracts subjectively in a biased manner, disclosing the advantages of proposals 3. Provide accurate information regarding market conditions 4. Provide brokerage services with reasonable obedience

Provide accurate information regarding market conditions

Which of following would NOT be included under the definition of negotiation? 1. Completing appropriate forms or other writings to document the party's proposal consistent with the party's instruction 2. Setting appointment for showings, answering questions about prices and locations of property, meeting appraisers and inspectors 3. Presenting to a party the proposals of other parties to the transaction 4. Providing advice or opinions on matters that are material to a transaction

Setting appointment for showings, answering questions about prices and locations of property, meeting appraisers and inspectors

A seller lists her property with a local brokerage firm. The agency relationship between the seller and the firm is a 1. Special agency 2. General agency 3. Implied agency 4. Universal agency

Special Agency

A licensee lists a residence. The owner of the residence must sell the house quickly. To expedite the sale, the broker tells a prospective purchaser that the seller will accept at least $5,000 less than the asking price for the property. Based on these facts, which of these statements is TRUE? 1. The licensee has not violated his agency responsibilities to the seller 2. The licensee should have disclosed this information, regardless of its accuracy 3. The disclosure was improper, because it violates confidentiality 4. The relationship between the licensee and the seller allows this disclosure

The disclosure was improper, because it violates confidentiality

Which of these circumstances will terminate an agency relationship between a firm and seller? 1. The broker discovers that the market value of the property is such that she will not make an adequate commission 2. The owner abandons the property 3. The broker appoints other brokers to help sell the property 4. The owner declares personal bankruptcy

The owner declares personal bankruptcy

When a licensee is acting as an agent in a real estate transaction, a licensee may receive compensation for a referral to another party under which circumstances? 1. Under no circumstances 2. Only if the licensee tells the party, and the party says it is okay 3. When the referral fee is disclosed to the party in writing 4. When the services are related to that particular transaction

When the referral fee is disclosed to the party in writing

. A material adverse fact is: 1. a thing of such significance which is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects or would affect the party's decision to enter into a contract in a transaction 2. a fact or any statement of a fact by customer or client which is knowingly or unknowingly false 3. a fact discoverable through a licensee's due diligence which may or may not have a direct affect on the financing of a transaction 4. any fact discovered in the early stages of first contact, before there is a shift from a phase of providing information into a customer becoming a clien

a thing of such significance which is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects or would affect the party's decision to enter into a contract in a transaction

Which of the following are NOT duties owed by a licensee to all parties in a transaction? 1. duty to provide brokerage services honestly and fairly 2. duty to disclose material adverse facts in a timely manner in writing 3. Duty to keep information confidential 4. duty to disclose financial statements

duty to disclose financial statements

In real estate transactions, the term fiduciary typically refers to the 1. sale of real property as an investment consideration 2. person who gives someone else the legal power to act on her behalf 3. person who has legal authority power and responsibility to act on behalf of another 4. agent's relationship and duty to the principal

person who has legal authority power and responsibility to act on behalf of another

All of the following are a responsibility of the licensee EXCEPT? 1. an obligation to disclose all material adverse facts about the physical condition of the property 2. conduct a reasonably competent and diligent inspection of real estate 3. to have the technical knowledge, skills or training to be competent investigators of property 4. fiduciary responsibilities

to have the technical knowledge, skills or training to be competent investigators of property