Section 2: Unit 16: Agency Relationship

1 of 9 - Which of the following is prohibited in an agency relationship? A licensed broker refusing to cooperate with a subagent in a real estate transaction A licensed broker compensating another broker who is not acting on behalf of a client A licensed broker cooperating with another broker who is not acting on behalf of a client A licensed broker agreeing to compensate a subagent in the real estate transaction

A licensed broker agreeing to compensate a subagent in the real estate transaction

define a limited agent and describe when a broker can act as a limited agent.

A limited agent is a licensed broker who represents both the buyer and the seller or both the landlord and the tenant in a real estate transaction. A broker can act as a limited agent only when all parties involved in the real estate transaction have signed a written consent.

9 of 9 - The written agreement between a limited agent and the clients must not contain which of the following? A statement that the limited agent must not disclose why any party wants to buy, sell, or lease the property. A statement that all parties must consent to the limited agency A statement that the limited agent will not disclose that the buyer is willing to pay more than the offered purchase price. A statement that each party has read and understood any limited agency discloser

A statement that all parties must consent to the limited agency

define agency relationship and then give 2 examples of the relationship not existing when a licensed broker is working with and representing an individual in a real estate transaction.

Agency relationship is a relationship that is established when a licensed broker represents a client in a real estate transaction. Example 1 - An agency relationship does not exist when there is a written agreement stating otherwise. Example 2 - An agency relationship does not exist when the broker is helping the individual as a customer without compensation.

list 5 responsibilities a broker has to the client when an agency relationship exists.

Broker must disclose the nature of the agency relationship to the seller, landlord, buyer, or tenant. Broker must promote the interests of the seller, landlord, buyer, or tenant by seeking a price or lease rate that is satisfactory to the client. Broker must present all offers to the client immediately. Broker must tell the client about any adverse fact or risk related to the property or real estate transaction when the broker knows about the fact or risk. Broker must advise the client to get expert advice regarding any adverse fact or risk that is outside the broker's expertise.

2 of 9 - Which of the following is required of the broker after the termination of an agency relationship? The broker must account for any money or property received during the relationship. The broker must disclose all information that had been deemed confidential during the relationship. The broker must continue fulfilling any obligations agreed upon during the relationship. The broker must reimburse the client for any difference between listing price and actual selling price of the property.

The broker must account for any money or property received during the relationship.

5 of 9 - Which of the following is prohibited in an agency relationship? a licensed broker cooperating with another broker who is not acting on behalf of a client a licensed broker agreeing to cooperate with a subagent in a real estate transaction a licensed broker refusing to compensate a subagent in the real estate transaction a licensed broker compensating another broker who is not acting on behalf of a client

a licensed broker agreeing to cooperate with a subagent in a real estate transaction

7 of 9 - A licensed broker who represents both the buyer and seller in a real estate transaction is in an agency relationship with both the buyer and seller. violating real estate laws. a limited agent. a managing broker.

a limited agent.

explain when an agency relationship ends if the relationship is not fulfilled or completed.

he relationship ends at a time when whichever of the following happens first: an expiration date agreed upon by the involved parties arrives; or t he involved parties terminate the relationship.

4 of 9 - A broker representing the buyer or tenant in an agency relationship must not tell the buyer or tenant any adverse facts about the real estate transaction. must account for any money received from the buyer or tenant. must promote the interests of the seller or landlord. is obligated to find other properties to purchase or lease even after the buyer or tenant is under contract to buy or lease one property in case the contract is cancelled.

must account for any money received from the buyer or tenant.

6 of 9 - A broker representing the seller or landlord in an agency relationship must tell a prospective buyer why the seller is selling the property. has equal responsibility to any buyer or tenant as the broker does to the seller or landlord. to help sell or lease the property, must tell the buyer or tenant the seller or landlord will take less than the asking price for the property. must tell the buyer or tenant any adverse facts the broker knows about the property's physical condition.

must tell the buyer or tenant any adverse facts the broker knows about the property's physical condition.