Unit 2: Fiduciary Duties Unit Exam

Newt's buyer client isn't happy with him. The buyer has accused Newt of breaching his duty of ______ by mishandling the earnest money.

Accounting

Which of the following statements about the fiduciary duty of confidentiality is true?

It doesn't extend to material facts relating to the property.

Which of these situations addresses the fiduciary duty of confidentiality?

Jeanette, a seller's agent, tells the buyer's agent that her client must sell his home because of an illness.

Which of these is an example of an agent NOT executing the duty of reasonable skill and care?

Marta agreed to list a commercial property even though her expertise is in residential real estate.

Carrying out a client's instructions describes the duty of ______.

Obedience

Shari's clients want her to post that there are "no showings on weekends" on the MLS. Shari knows that will significantly cut down on their market exposure. Her duty of reasonable skill and care is in conflict with her duty of ______.

Obedience

Which of the following is an example of the duty of loyalty?

Putting the client's interest first

The duty of reasonable skill and care assumes that agents can provide expert advice to their clients in which area?

Real estate

What does the letter R in the acronym for fiduciary duties (OLD CAR) stand for?

Reasonable skill and care

A seller tells his agent that he has to sell his house quickly because of a divorce proceeding and that he's willing to accept less than his list price. His agent tells a buyer that the seller will accept as much as $10,000 less than the list price. Which of these is true?

The agent has breached his duty of confidentiality to his client.

Which fiduciary duty may continue even after the transaction closes?

The duty of accounting

Phoebe is careful to never act outside of her scope of expertise. She's a real estate professional and proud of it, so when asked for advice about legal matters, inspection results, flaws in construction, or shoddy building materials, she always refers them to a professional in that field. Which duty is Phoebe demonstrating?

The duty of reasonable skill and care

Monica meets a colleague from another firm, Kate, for lunch, and discovers that a former seller client, Reuben, is now Kate's buyer customer. Monica tells Kate, "You know Reuben inherited a bunch of money right before he sold his house, right?" Which of these statements is true?

This is a breach of confidentiality because confidentiality survives forever.

Which of these would be a breach of Margo's fiduciary duty of confidentiality?

When asked by the buyer's agent if the seller was firm on his price, Margo said, "Everything's negotiable," and winked at the other agent.