Test 9

Nick signs a listing agreement with Broker Bob. Linda asks Broker Alice to represent her as a buyer of a condo. What do we know to be true about both of these scenarios?

Both Nick and Linda have created express agency with their brokers

The most common type of agency between brokers and their sales agents is:

general agency

What are the two main categories of disclosure?

Agency disclosure and disclosure of material facts

Which of the following provides the BEST definition of a ministerial act?

An action performed for another according to established procedures or guidelines and without the need for discretion or individual judgment

What are the duties that survive termination?

Confidentiality & Accounting

Which of the following is NOT one of the three classifications of agency in terms of scope of authority?

Express

When is it generally considered acceptable to share a client's financial condition?

It is appropriate to share that a client has the ability to get financing needed to make the purchase but nothing more.

When Brandon's listing agent pointed out the moisture stains in the corner of his basement, Brandon said that he'd repaint that area. He asked his agent not to mention to potential buyers that the basement can flood during spring rains. Does Brandon have a duty of obedience to his client in this situation?

No, because the duty to obey does not apply if the request is unethical.

A real estate agent has the ability to sign a listing agreement on behalf of their broker under:

general agency

In terms of scope of authority granted, what are the three classifications of agency?

Special General Universal

Which of the following is an example of express agency?

Ted calls Broker Joe asking for help in selling his condo

An agent advises his seller client to hold off on accepting any offers, as the agent is hoping for a big offer resulting in a better commission. What is TRUE of this situation?

The agent is violating the fiduciary duties he owes to his client by putting his own interests first.

What is the most accurate description of the term "first substantive contact"?

The critical point at which agency disclosure is required and which generally occurs at the first face-to-face meeting with the customer.

A rental property owner recently became concerned about the work of his property management company. He notified them that he no longer needed their services and asked for a full accounting of all money received by them. Which of the following is NOT true?

The property management company has a right to refuse the request

When licensees happen to be principals in a transaction, what is their obligation to the other party?

They need to disclose this as a potential or real conflict of interest

Why do license holders operating as property managers typically have the classification of agency that they do?

They typically have general agency because their responsibilities are ongoing, and they need the ability to bind

A listing agreement is an agency agreement between whom?

a seller and a broker

An over-anxious license holder named Jenny knew her neighbor Tom was considering selling his house. Although Tom hadn't signed a representation agreement with Jenny, he also didn't object when Jenny brought clients by to see his place. Things got ugly when some buyers made an offer on Tom's house only to hear it really wasn't for sale. The buyers, who missed out on the opportunity to make an offer on another home because of their interest in Tom's place, sued both Tom and Jenny. What form of agency might be pointed to as the legal basis for the buyers' lawsuit?

agency by estoppel

Which of the following is NOT one of the duties a principal owes to the agent?

confidentiality

Which of these is a type of agency relationship that is created as a result of an explicit oral or written agreement?

express agency

In order to place a listing in the MLS, a broker would need to create what form of agency with their seller client?

express written agency

The duty of obedience does not include requests or instructions that are:

illegal or unethical in any way

A client request or instruction that is either illegal or unethical does NOT fall under the duty of:

obedience

Which of these duties is the obligation of an agent to carry out the legal and ethical instructions of their client?

obedience

Which of these is a legal instrument used to confer the right of one individual to act on behalf of another?

power of attorney

What does agency coupled with interest refer to?

situations where the broker's interest in the property is greater than that found in a typical transaction

When a broker signs a listing agreement with a seller, what type of agency is MOST commonly created?

special agency