Chapter 11 Quiz

A person having authority under a power of attorney is called a(n)

Attorney-in-Fact

Who can sign a document on your behalf?

Attorney-in-Fact

An authorization to sell consists of a mutual agreement between broker and seller and is considered a(n)

Contract for personal services

The relationship of a licensed real estate broker to the principal is best described by which of the following terms?

Fiduciary

All of the following would be the responsibility of a real estate agent EXCEPT

Financing

A licensed real estate salesperson is which type of agent to his or her broker?

General

When a broker represents only a buyer in a transaction, which of the following duties would a buyer broker owe the seller?

Honesty

The Real Estate Recovery Fund must have a minimum balance of $600,000 by what date?

June 30

Which of the following would create an agency relationship?

Listing Agreement

How much would a licensed real estate salesperson have to pay into the Real Estate Recovery Fund at the next renewal when the reserve falls below $600,000?

$10

What is the maximum amount of money which someone may recover from the Real Estate Recovery Fund per transaction?

$30,000

Which of the following would require a dual agency disclosure?

A salesperson in a branch office of a company that represents the buyer, and an associate company that represents the seller

A licensed broker employed by a principal may NOT

Accept or reject offers of purchase

Which of the following would NOT terminate an agency relationship?

Acceptance of offer and opening escrow

A person who is authorized to represent the interest of another is called a(n)

Agent

A broker is hired by a seller to sell the client's real property. The broker must obey which of the following?

All lawful instructions of the client

A real estate broker in the typical agency relationship with a client is a(n)

Special Agent

A broker has earned a commission when

The broker secures a willing and able buyer who makes an offer meeting the seller's terms

Which of the following statements is FALSE regarding the Real Estate Recovery Fund?

The claimant must be a resident of Arizona

You previously closed a real estate transaction for a client who is now deceased. You tell another agent about a bank account that the deceased person's spouse didn't know about. Which of the following describes this action?

Unethical because of fiduciary duties