Real Estate Pre License Unit 4

Which of the following statement about dual agency in Florida is correct?

A dual agency is illegal

What is the correct procedure when transitioning from a single agent to transaction broker relationship?

A principal agrees to all terms of a transition to transaction broker, and signs the disclosure

Which statement is incorrect?

A single agent is an agent of an agent

Which of these statements is correct?

Agency by implication may be created if someone reasonably believes that someone else is acting as his or her agent, and the agent fails to correct the mistake

Which of these statements is False?

An agent is not bound to inform the client of all facts that might affect the client's interests in the Transaction.

Which of the following statements is correct?

Auctioning of real property does not require agent disclosure. /Agents are not required to provide disclosure when appraising real property./There are no disclosure requirements for renting or leasing real property as per Florida statute 475.278.

F.S. 475.278(5) (a) agency disclosure requirements do not apply to which of the following;

Auctions

When purchasing a commercial property from a seller without the services of a real estate professional, a buyer would be well advised to carefully verify information conveyed regarding the property. This is sometimes referred to as:

Caveat Emptor

Unwritten law is also called:

Common Law

When the law comes from the precedent, or an earlier action, or outcome of a previous case, it is known as:

Common law

If an agent decides to represent a client and customer in the same transaction, what type of agency has occurred?

Dual Agency

Which of the following types of relationship may a real estate licensee not provide to principals and/ or customers?

Dual agency relationship

What name is given to a type of a relationship that exists between an agent and a principal?

Fiduciary

Helen is the principal of an agent. She delegates the agent the responsibility of conducting ongoing tasks, of one of her businesses. The agency is acting as a

General Agency

An agent meets with a client in their home for the first time, and the couple decides to sign the listing agreement authorizing the Broker as their listing agent. The agent loves the home and believes it would make a great starter home for Jack, her 'neighbor's son. The agent holds an open house and receives two offers along with 'Jack's offer. These offers are all very similar. Then just before she (agent) leaves to present the offer, she gets a new offer, which is much better than the current offers. Even though she wants Jack to get the home, she shows all offers to her client. Which of the six agent responsibilities did the agent demonstrate?

Loyalty

An agent must provide the relevant disclosure forms, in which of the following relationships?

Relationship between seller and agent/Relationship between buyer and agent

A real estate broker who is authorized by a principal to perform a specific task is known as a:

Special agent

Which of the following statements stands for Reasonable skill and care?

The agent must provide his clients with quality, knowledgeable, and prudent service and live up to the trust they place in him/ her.

Which statement is correct?

The definition of a designated sales associate is one that provides fiduciary duties to a principle with a net worth of $1 million or more/A dual agency occurs when an agent provides fiduciary duties to a buyer and seller, in the same transaction/Special agency occurs when a principal delegates to a broker a specific task

Which of the following is a fiduciary?

agent

What type of relationship occurs between the broker and the seller, when a real estate broker takes a listing to sell someone's house?

agent-principal

The body of law that grew from customs and practices is:

common law

Which of the following duties are not included in a no brokerage relationship between an agent and a customer?

confidentiality

In a real estate transaction, the relationship of the potential buyer to the Broker is best described as:

customer

Common law has been created by

development of traditions and the outcomes of law cases

Which of the following fiduciary duties requires an agent to make known to his or her principal all facts necessary to make an informed and intelligent decision?

disclosure

Failure to inform all principals that a licensee is acting as an agent for more than one party in a transaction is known as:

dual agency

A sub-agency can occur while a sales associate is representing:

either buyer or seller

A principal:

empowers another to act for him/her.

When dealing in residential property, which of the following instances, is a violation of real estate law?

failure to give the agency disclosure form(s) before, or at the time of, entering into a listing agreement or an agreement for representation or before the showing of the property

The seller of a property instructs an agent to market and sell his property. The agent is working in the form of a

general agency

A real estate agent John from the same brokerage finds a seller for a buyer representative's client. What type of agent is John?

subagent

An agent owes his principal all of the following duties except:

the duty of development

A dual agency is when the real estate agent represents:

the seller and buyer

Bob is a broker. He provides limited representation to both the buyer and the seller in the residential transactions. Bob is acting as a

transaction broker