unit 4- real estate

At any time during an agency relationship, if the principal or agent decide to terminate the agency, they can do so through:

mutual rescission

After agency has been terminated, a broker must use ________ to prevent employees from disclosing confidential client information.

reasonable care

Withdrawing consent to act on the principal's behalf is a:

renunciation by the agent.

Termination of an agent's authority due to death or insanity is based upon protecting the principal's estate from fraudulent activity from:

the agent

When does an agent's authority cease if a property is condemned or destroyed?

upon notice of the fact

Written brokerage agreements must contain the essential elements of a valid ________ to be enforceable.

contract

Which type of agency is created after the fact when the principal agrees to be bound by the actions of another person who was acting without authority?

Agency by ratification

Which of the following is not considered an act of the parties?

Bankruptcy of the agent

Which of the following constitutes a breach of contract? Informing third parties that an agency relationship has been terminated A client firing the broker for a valid reason Failing to perform one part or all of the terms and conditions Refusing to perform an act that may cause damages to another person

Failing to perform one part or all of the terms and conditions

Which of the following is not a fundamental aspect of a valid real estate contract? The contract must be in writing for the broker to receive compensation The contract must have a valid object It must be supported by sufficient evidence The parties must consent to the agreement

It must be supported by sufficient evidence

What is the commonality among agreement, estoppel, and ratification?

Ways to create an agency agreement

Identify the true statement regarding bankruptcy of the principal or agent. -Insolvency of the principal automatically terminates the agent's authority. -If the law has assumed control over the principal's property, the agent has authority to deal with the principal's property that is subject to the bankruptcy. -Bankruptcy of the principal is an invalid reason for termination of agency. -The bankruptcy of an agent terminates his or her authority to conduct transactions on behalf of the principal.

The bankruptcy of an agent terminates his or her authority to conduct transactions on behalf of the principal.

Which of the following is not an element necessary for agency by ratification? The agent must have stated that he or she acted on behalf of the principal The principal has given the agent express authority The principal must have had the ability to complete the action at the time the agent entered the contract The principal must know all material facts

The principal has given the agent express authority

A broker is entitled to compensation:

after the agency relationship is terminated.

All of the following duties cease upon agency termination, except: loyalty. obedience. confidentiality. disclosure.

confidentiality

After the agency relationship is terminated:

each party may have certain rights stemming from that relationship.

All of the following would terminate the principal-agent relationship by operation of law, except: supervening illegality. expiration of the agreement term. property condemnation. death of the principal or agent.

expiration of the agreement term.

In a real estate agency relationship, an ________ written agreement, usually in the form of a listing contract or buyer representation agreement, authorizes the broker to represent the principal.

express