Ch. 5 - National Brokerage Pg. 63 - Unit 1: Quiz

Which of the following best describes "agency coupled with an interest?"

When a licensee holds interest in a property transaction

An agent's duties to a principal include all of the following except which?

Legal advice

An agency relationship is created in each of the following situations EXCEPT which?

A broker shows a tenant an apartment.

Which BEST describes the role of a fiduciary?

A fiduciary relationship is established when a property manager agrees to represent an owner in leasing the owner's property.

Agent Sam told a buyer that the fence line also marked the property line. Agent Sam knew that the property line did not extend to the fence line. Agent Sam's actions are an example of what?

Active fraud

Which of the following is NOT a form of agency?

Closed agency

The principles of an agency relationship include all of these factors except which one?

Compensation

Which of the following duties is NOT owed to a customer?

Confidentiality

Which of the following is a common complaint buyers have against brokers?

Misrepresentation of the facts

Which duty requires that the agent act in good faith and obey the principal's directions?

Obedience

The act of creating an agency relationship in which the principal accepts the conduct of someone who acted without prior authorization is called what?

Ratification

Puffing is best characterized as which of the following

Subjective opinion

An agent fails to discover flood marks on the walls in the basement of a property. The agent sells the property, and the buyer later sues the agent for failing to mention the problem. Which statement best describes what can happen in this case?

The agent has an exposure to a charge of negligent misrepresentation.

Seller Joe Needy lists his home for $40,000 and the broker tells the prospective buyer to submit a low offer because the seller is desperate. The buyer offers $38,000 and the seller accepts. Which statement is TRUE about this situation?

The broker violated the agency relationship.

Matt Bower is a developer. Will Jones is a builder. Matt agrees to sell Will a lot, but he conditions the sale by insisting that Will agree to list the property with him after the home is built. What is this called?

Tie-in arrangement

Murphy, a buyer (customer), does not know about the leaking basement so he proceeds to make an offer. Should the broker (salesperson) who represents the seller have told Murphy about the defect?

Yes, any defects known to the broker should have been disclosed to Murphy.

The principal of Notice is sometimes called what?

disclosure

Agent Fred fronts his cousin Norm money to buy a client's house. Shortly after the closing, Agent Fred flips the house and realizes a substantial profit. Agent Fred's actions might be describe as

self-dealing.