4.4 Exam

Which of these questions can an agent in a dual agency transaction answer without breaching her duties to either client?

Are you aware of any structural issues with the property?

Madeline works for a single-agency firm. If she wants to represent both the buyer and seller in a transaction, what must she do?

She can't do this at her firm.

Ned represents Sofia in the sale of her townhome. Luciana represents Sofia's buyer, Arturo. What is Sofia's relationship to Luciana?

Sofia is Luciana's customer.

In a seller agency relationship, which party does the licensee represent?

The seller

Marge is a licensee in a dual agency transaction with seller Steven and buyer Alda. In which of the following situations can Marge share what she knows with all parties without compromising her duty of loyalty?

Alda tells Marge that she's hired an inspector to perform a property inspection.

Which one of the following provides the best example of single agency?

An agent from one firm acts as the agent for the buyer.

Assuming that dual agency is legal where these scenarios occur, and the licensees' brokerages permit it, which of these situations demonstrates illegal dual agency?

At an open house Tom is holding for his client, Rod, a buyer says she wants to make an offer. She details her situation; Tom waits until she finishes and then suggests that she offer a non-refundable earnest money deposit to strengthen her offer.

Hanna represents the buyer, and Hank, an agent from a different firm, represents the seller in the same transaction. What type of agency relationship does Hanna have with her client?

Buyer agency

You represent the buyer, and another licensee from your brokerage represents the seller in the same transaction. What type of agency relationship do you and the other licensee have with your clients?

Dual-license dual agency

Which of these tasks must a licensee perform for buyer clients?

Ensure that the buyer receives copies of all signed paperwork.

A licensee must perform which of the following tasks for a buyer client?

Ensure the buyer understands the importance of due diligence to include a professional inspection of the property.

Which of the following tasks must licensees perform for seller clients?

Ensure the collection of the earnest money deposit from the buyer.

Which of the following is an example of an agent exercising the duties owed to customers and other parties?

Francine disclosed information about the flooding basement to the buyer and buyer's agent.

Erik is acting in a single agency capacity in a transaction. What does this mean?

He's representing (and owes undivided loyalty to) either the buyer or the seller.

Which of the following duties are owed to customers and other parties to a real estate transaction?

Honesty and fairness

You represent Ember as her listing agent. Ashley is the buyer, and Trinity represents her. What duties do you owe Trinity?

Honesty and fairness

Which one of the following tasks must a licensee perform for seller clients?

Inform sellers of their responsibility to make all required property condition disclosures.

Camille has a listing for a townhome, and appoints Ivy as her sub-agent. Ivy brings a buyer customer to the transaction, and the buyer purchases Camille's listing. What's true about the agency relationships in this situation?

Ivy is Camille's sub-agent and owes loyalty to the seller.

Jason is the seller's agent. His seller has a leaky roof he'd rather keep secret from buyers. What should Jason do?

Jacob, a broker, acts as the dual agent and appoints Mark to represent the buyer and Todd to represent the seller in the same transaction.

Which of these situations is an example of designated (appointed) agency?

Jacob, a broker, acts as the dual agent and appoints Mark to represent the buyer and Todd to represent the seller in the same transaction.

Buyer Kristin has a buyer agency agreement with Carlotta, a licensee. Kristin's brother, Dalton, is going to showings with Kristin and working to help her decide which house is the best fit. Who is/are Carlotta's client(s)?

Kristin

You're representing Abe and Ben in a dual agency situation. Abe tells you something that would give Ben a distinct advantage if he knew. Do you tell Ben?

No, because you can't share one client's confidential information with another client.

Zack represents a seller and receives an offer through another agent. The offer is higher than the listing price. The property is already listed at a very high price, and no other offers have been received. Is Zack obligated by his duties to the other party to disclose that the offer is too high?

No, his fiduciary duty is to his own client. The buyer's agent must be responsible for advising on a fair price for the property.

Frank is representing Jonathan in the sale of his home. A buyer approaches Frank at Jonathan's open house, and Frank agrees to represent her in purchasing Jonathan's house. What must Frank do to avoid an illegal dual agency situation?

Obtain dual agency consent from all parties.

When representing the seller, what duty do you owe a buyer?

Present offers from the buyer to your seller.

Orla represents the seller, and Pardeep, an agent from a different firm, represents the buyer in the same transaction. What type of agency relationship does Orla have with her client?

Seller agency

After a few meetings, the Stinsons sign a listing agreement with broker Vera so she can sell their house. The house has already generated interest from a potential buyer named Sergei, who has spoken with Vera about the house's square footage and potential as an investment. Which of the following is true about this situation?

The Stinsons and Vera have an agency agreement.

When a licensee represents a seller, which one of the following statements is true about the licensee's ability to list other properties that are for sale?

The licensee is permitted to list other properties for sale, even if they're competing properties.