Unit 3: Responsibilities of Agents

Which of these duties is owed by all parties to a transaction?

Adherence to contractual terms

Which of these statements about duties is true if a South Carolina licensee is acting as a dual agent?

Agency duties may be limited.

Marge is a licensee in a dual agency transaction with seller Steven and buyer Alda. In which of the following situations can Marge share what she knows with all parties without compromising her duty of loyalty?

Alda tells Marge that she's hired an inspector to perform a property inspection.

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

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

Which of the following questions can an agent in a dual agency transaction answer without breaching her duties to either client?

Are you aware of any structural issues with the property?

Assuming that dual agency is legal where these scenarios occur, and the licensees' brokerages permit it, which of these situations demonstrates illegal dual agency?

At an open house Tom is holding for his client, Rod, a buyer says she wants to make an offer. She details her situation; Tom waits until she finishes and then suggests that she offer a non-refundable earnest money deposit to strengthen her offer.

Shania is a South Carolina licensee. Where can she find which agency relationships are permitted in her brokerage?

Brokerage written policy manual

Hanna represents the buyer, and Hank, an agent from a different firm, represents the seller in the same transaction. What type of agency relationship does Hanna have with her client?

Buyer agency

In a real estate transaction, which two parties are owed the same duties?

Customers and other parties

Which of the following is the duty of a buyer in a real estate transaction?

Disclose issues with financing

Donald is selling his home in a historic neighborhood. He knows there is an issue with a leaky roof in one of the back bedrooms. What should Donald do?

Donald must disclose the leaky roof to his agent and potential buyers.

You represent the buyer, and another licensee from your brokerage represents the seller in the same transaction. What type of agency relationship do you and the other licensee have with your clients?

Dual-license dual agency

Which of these tasks must a licensee perform for buyer clients?

Ensure that the buyer receives copies of all signed paperwork.

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

Ensure the buyer understands the importance of due diligence to include a professional inspection of the property.

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

Ensure the collection of the earnest money deposit from the buyer.

Which of the following is an example of an agent exercising the duties owed to customers and other parties?

Francine disclosed information about the flooding basement to the buyer and buyer's agent.

Erik is acting in a single agency capacity in a transaction. What does this mean?

He's representing (and owes undivided loyalty to) either the buyer or the seller.

Which of the following duties are owed to customers and other parties to a real estate transaction?

Honesty and fairness

You represent Ember as her listing agent. Ashley is the buyer, and Trinity represents her. What duties do you owe Trinity?

Honesty and fairness

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

Inform sellers of their responsibility to make all required property condition disclosures.

Jason is the seller's agent. His seller has a leaky roof he'd rather keep secret from buyers. What should Jason do?

Inform the seller that the roof leak is a material fact that he is obligated to disclose to buyers.

Camille has a listing for a townhome, and appoints Ivy as her sub-agent. Ivy brings a buyer customer to the transaction, and the buyer purchases Camille's listing. What's true about the agency relationships in this situation?

Ivy is Camille's sub-agent and owes loyalty to the seller.

Which of the following is an example of sub-agency?

Kayla is a licensee with ABC Realty and lists a property for seller Devon. Maurice is a salesperson with XYZ Realty Group and brings a buyer to the table, but owes fiduciary duties to the seller.

Kelly decided to sell her home and signed an exclusive right-to-sell listing agreement with her agent, Thomas. Soon after the listing was published on the MLS, Kelly declined to make the property available for showings. What could be the result of Kelly's actions?

Kelly could be charged with breach of contract.

Buyer Kristin has a buyer agency agreement with Carlotta, a licensee. Kristin's brother, Dalton, is going to showings with Kristin and working to help her decide which house is the best fit. Who is/are Carlotta's client(s)?

Kristin

Which of these is an example of a sub-agency relationship?

Morris, who's licensed independently, finds a buyer customer for Greg's listing with Marvel Homes and is obligated to act in the best interest of Marvel Homes' client.

In which of these situations has the licensee compromised the duties of loyalty and disclosure?

Nate didn't tell his client about a conflict of interest related to the sale of the client's property.

You're representing Abe and Ben in a dual agency situation. Abe tells you something that would give Ben a distinct advantage if he knew. Do you tell Ben?

No, because you can't share one client's confidential information with another client.

Zack represents a seller and receives an offer through another agent. The offer is higher than the listing price. The property is already listed at a very high price, and no other offers have been received. Is Zack obligated by his duties to the other party to disclose that the offer is too high?

No, his fiduciary duty is to his own client. The buyer's agent must be responsible for advising on a fair price for the property.

As a licensee, you'll have several tasks you must perform for your buyer client. One of these tasks is to ______.

Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license

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

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

Orla represents the seller, and Pardeep, an agent from a different firm, represents the buyer in the same transaction. What type of agency relationship does Orla have with her client?

Seller agency

What happens if a principal to a transaction fails to meet her duties?

She can be charged with breach of contract.

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.

Monica's business is booming. She's representing an owner who's selling a $500,000 home on one side of town, and a buyer who's purchasing a $300,000 property on the other side of town. As it happens, the seller and buyer both know each other from church and have been talking to others about Monica's talents, which has brought in several new leads for her to pursue. What type of agency relationship does Monica have with the seller and buyer?

She is each party's single agent.

Mavis is a buyer's agent working with Blaine, an unrepresented seller. Mavis's buyer, Cintra, makes an offer on Blaine's property. Mavis assists Blaine with the paperwork. What's Mavis's relationship to the parties?

She's an agent to Cintra, and the seller is her customer.

If you represent the buyer and seller in the same transaction, what type of agency relationship do you have with your clients?

Single-license dual agency

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

Sofia is Luciana's customer.

Assume that a statutory duty in South Carolina conflicts with a common law fiduciary duty. Which prevails?

Statutory duty

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 square footage and potential as an investment. Which of the following is true about this situation?

The Stinsons and Vera have an agency agreement.

In a buyer agency relationship, who does the licensee represent?

The buyer

In a seller agency relationship, which party does the licensee represent?

The seller

Randy, a licensee, is in a seller agency relationship with Brent, a seller. The buyer is Tim. Who's Randy's client?

The seller (Brent)

In a buyer agency relationship, what relationship does the seller have to the licensee?

The seller is the licensee's customer.

In a real estate transaction in which you represent the seller, your duty to other parties is to ______.

Treat them honestly and fairly

Savvy's buyer client made an offer on a property but is having second thoughts. Savvy tells her client that she'll ask the seller's agent for an extension on the inspection period "to gather more bids," and use that time to look at other properties to avoid losing out on the current property. Savvy's client found a property she liked better, so they made an offer. The offer was accepted, so Savvy contacted the first property's agent to terminate that offer. Is this wrong?

Yes, she did not treat the other party honestly, or act in good faith.