unit 4 quiz

In a dual agency situation, a licensee may represent both the seller and the buyer if

both parties give their informed consent, in writing, to the dual agency.

The six common law fiduciary duties are

COLDAC: care, obedience, loyalty, disclosure, accounting, and confidentiality.

In Illinois, a real estate broker hired by an owner to sell a parcel of real estate must comply with the

Illinois statute called the Real Estate License Act of 2000, as amended in 2020.

In Illinois, which of these is TRUE concerning designated agency?

License law requires the licensee to disclose, in writing, that a designated agency relationship exists.

A licensee who has contracted with an apartment building owner to manage a highrise apartment is probably

a general agent.

Which of these is considered dual agency?

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

Which of these BEST describes an agent?

a person who is placed in a position of trust and confidence

In real estate transactions, the term fiduciary typically refers to the

agent's relationship to the principal.

Broker A tells a prospective buyer, ' "This property has the most beautiful view." In fact, the view includes the back of a shopping center. In a separate transaction, broker B fails to mention to some enthusiastic potential buyers that a six-lane highway is planned for construction within 10 feet of a house the buyers think is perfect. Based on these facts, which of these statements is TRUE?

broker A is merely puffing; broker B has misrepresented the property.

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?

care.

A real estate licensee's responsibility to keep the principal informed of all the facts that could affect a transaction is the duty of

disclosure.

A seller listed his property with a brokerage company. The agency relationship between the seller and the sponsoring broker is what type of agency?

special

Under Illinois agency law, which of these is TRUE?

sponsoring brokers may designate which sponsored licensee represents the client.

Which of these statements is TRUE of a real estate broker acting as the agent of the seller?

the broker is obligated to render faithful service to the seller.

A buyer comes into a real estate broker's office and asks the broker to represent her while searching for a home in the $190,000-$200,000 price range. The broker recalls a house for sale by an owner listed at $198,000. The broker calls the owner of the house, asking for permission for his client to see the house. Based on these facts, which of these statements is TRUE?

the for-sale-by-owner seller is the Broker's customer; the buyer is a client.

Which of these events will terminate an agency in a broker-seller relationship?

the owner declares personal bankruptcy.

A buyer who is a client of the broker wants to purchase a house that the broker has listed for sale. Which of these statements is TRUE?

the seller and the buyer must give written consent for the broker to represent them both.

A seller lists his home with a real estate broker for $289,500 and has given written permission for dual agency. Later the same day, a potential buyer comes into the broker's office and asks for general information about homes for sale in the $250,000-$300,000 price range. Based on these facts, which of these statements is TRUE?

the seller is the broker's client; the broker must obtain written consent for dual agency from the buyer if intending to show his own listing.

A sponsoring broker listed and sold a home. The seller had told the sponsoring broker that the home was structurally sound. This information was passed on to a prospective buyer by one of the licensee's sponsored by the broker. If the sponsoring broker has no way of knowing that this information is false, who will likely be held liable if a latent defect is later discovered?

the seller.

A broker 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?

unless given written permission from the seller to do so, the disclosure was improper,