AGENCY LAW

27. The licensee must provide a pamphlet on the law of real estate to all parties to whom he or she renders brokerage services prior to which of the following events?

Any of the above

31. The licensee must deliver all documents signed by the parties, including earnest money receipts, listing agreements, and the closing statement to the signor __________.

At the time of signing

1. Bill Smith is the listing agent, which makes him also the seller's agent. The buyer asks Bill why the seller wants to move.

Bill cannot answer the question because as the seller's agent he must be confidential.

17. In a dual agency situation, a licensee may collect a commission from both the seller and the buyer if _________.

Both parties give their informed consent to the dual compensation

12. The most common way to enter into buyer agency is the __________.

Buyer agency agreement

5. Dual agency requires disclosure to which parties of the transaction?

Buyer and seller

29. The listing agreement with a seller has expired and the seller lists with a different brokerage firm. The original listing agent now has a buyer interested in the seller's property. The original listing agent _________.

Cannot disclose to the buyer offers received on the seller's property while it was listed with that listing agent

23. The Real Estate Brokerage Agency Law requires that the licensee do all of the following EXCEPT __________.

Conduct a property inspection

32. The most important types of antitrust violations in the real estate industry are: __________.

Conspiracy to Fix Prices, Imbalanced Commission Splits, Conspiracy to Boycott

35. An owner hired a property manager. This relationship is BEST described as an agency relationship that

Creates general agency

21. Two separate licensees from the same brokerage wish to represent different parties to a transaction. In this situation, __________.

Each licensee represents only the party with whom he or she has an agency relationship

34. A seller has called a licensee to schedule an appointment to list her house. If the seller lists the house, this would be best described as a/an __________.

Express agency

33. An agency relationship that is created by the actions of the parties is a/an __________.

Implied agency

16. A buyer prospect is interested in seeing a house listed with a real estate company but does not wish to enter into a buyer agency agreement. A broker from the real estate company can show the buyer an in-house listing if the __________.

Licensee provides the buyer with an agency disclosure that the real estate company represents the seller

11. The most common way to enter into seller agency is the __________.

Listing agreement

36. Which of the following groups of responsibilities BEST describe the duties of an agent to a client?

Loyalty, conflicts of interest, expert advice, and confidentiality

4. What is not a type of agency?

Non-Specific agency

19. The licensee must provide a pamphlet on the law of real estate agency to all parties to whom the licensee renders brokerage services when the party __________.

Performs any of the above

37. The main purpose of Antitrust Laws are to __________.

Promote the policy and practice of competition

9. What act does not terminate agency?

Revocation by escrow agent

15. In Washington, most confidential information concerning a principal may not be disclosed. However, which information must be disclosed?

That which relates to material facts about the property

25. A Washington licensee has entered into a listing agreement with the seller. Another licensee, who has been working with a buyer, learns of the property through the MLS. Typically the second, cooperating licensee would represent

The buyer as an agent

7. The following is the definition of designated agency.

The buyer's agent and the seller's agent being from the same office requires the designated broker to be the designated agency (dual agency).

8. What is a subagent in a transaction?

The buyer's or seller's agent

26. In a "split" or "designated" agency transaction, who is actually considered a dual agent?

The designated broker

10. What duties of agency continue after termination?

The duty to not disclose confidential information still remains.

2. The seller's agent is required to disclose which of the following to the buyer?

The house is in the federally proclaimed flood plain.

18. The agency pamphlet is designed to inform and educate the public concerning agency law. In a real estate transaction, __________.

The licensee must give one to all parties to whom the licensee renders real estate brokerage services

14. A real estate licensee has signed a tenant representation agreement with a tenant who is looking for an apartment to rent. The licensee does not charge a fee to prospective tenants; rather, the licensee receives a commission from landlords. The licensee tells a landlord that the prospective tenant could probably pay a somewhat higher rent than the landlord is asking. Which of the following statements is TRUE?

The licensee's disclosure violated the statutory duties owed to the tenant.

22. Even if a buyer assumes they have a relationship with the licensee which constitutes buyer agency, if the licensee has entered into a written agreement with the seller, the licensee is the agent of __________.

The seller

24. A buyer who is a client of Tim, the licensee, wants to purchase a house that Tim has listed for sale. Which of the following statements is TRUE?

The seller and buyer must be informed of the situation and agree in writing to the licensee representing both of them.

3. Which is an example of implied agency?

The seller's actions indicated that the agent was in fact their listing agent.

38. A licensee negotiated a sales contract for a buyer client. A property inspection was conducted which the buyer accepted. The licensee did not charge a commission for the transaction. Three months after the property sold, the buyer discovered a latent defect and sued. Which of the following is true?

The seller, licensee, and property inspector may find themselves named in the suit.

13. What duties (responsibilities) are the same for the licensee to a client, customer, or third party?

To deal honestly and in good faith

28. Two separate licensees from the same brokerage wish to represent different parties in the same transaction (i.e., one represents the seller and the other the buyer). Is this legal in Washington?

Yes, each licensee represents only the party with whom he or she has an agency relationship.

30. A real estate company has entered into agency agreements with both a seller and a buyer. The buyer is interested in making an offer on the seller's property. Can this occur?

Yes, if both the buyer and seller give their consent to dual agency.

20. A licensee listed Bill's house and served as a seller's agent. After the house is under contract, Bill wants to buy another house and wants to be represented by his listing agent. Can the listing agent now represent Bill?

Yes, the licensee may now represent Bill as a buyer's agent.

6. When a licensee is working with a buyer or seller but not representing them, this is called __________.

non-agency