Chapter 10- Practice quiz

All BUT which of the following are fiduciaries? A- principal B- Trustee C- guardian D- receiver

A-An agent is fiduciary for a principal, not vice-versa

Death of either the principal or agent terminates the: A- listing contract B- contract for sale C- deed D- mortgage

A- B,C, and D are not agency agreements as is the listing

A declaration made by a person to an official that he freely and voluntarily executed a deed is called an: A-authorized B- authorization C- authentication D- execution

A- Necessary for recording

A saleperson engaged by a real estate broker to show and sell properties: A- is an agent for the broker, who is an agent for the principal B- is himself the primary agent for the principal C- is a principal party to the transaction D- is a general agent

A- The broker is the agent and the salesperson is a sub-agent

To enforce his right to a commission a broker must: A: act under written authorization B: have an exclusive listing C: belong to the MLS D: be a Realtors

A- an oral authorization to sell real estate is unenforceable

Apollo Creed lists his house with the XYZ Realty Corp., for which Justin Case is the authorized broker. Which of the following statement is true? A- Mr.Creed's death will terminate the listing agreement B- Mr. Case's death will terminate the listing agreement C- The XYZ Realty Corp. is a general agent D- The listing is automatically renewable if it is an exclusive

A-The death of the agent will terminate the listing. In this question, the agent is XYZ Realty Corporation not Mr.Case

A principal agent relationship exists between the: A: broker and his salespersons B: salesperson and customer C: broker and cooperating broker D: broker and customer

A-a principal agent relationship exists between the broker and his or her salesperson. No fiduciary duty to customer.

A power of attorney is NOT necessarily revoked if: A- the principal dies B- the attorney in fact fails to use it for 90 days C-the principal records a declaration revoking it D- the attorney in fact dies

B- Non-use will not revoke a power of attorney

A customer may best be described as: A- always the buyer B-someone you work "with" C- Someone you work"for" D- the person to whom a fiduciary duty is owned

B- Real Estae agents work for clients and with customers. Fiduciary obligation

In a typical real estate listing contract, the broker would best be described as: A- a general agent B- a special agent C- the principal for the agent D- the principal for the sub-agent

B- see explanation to #17. A real estate property manager is usually a general agent

A person who is given authority to perform a specific legal duty by another is: A- a power of attorney B- an attorney in fact C- an attorney at law D- an executor

B- the power of attorney is the instrument creating the authority. The attorney in fact is the person to whom the authority was given

It would NOT be the responsibility of the broker ton inform the purchaser of which of the following? A- the basement floods B- the property, according to a map 100 years old, is located in a food area C- the price paid by the seller D- the house is infested with termites

C- The purchaser can ascertain this himself.The broker must disclose information about A,B or D.

Salespersons may accept compensation of their predetermined share: A- as indicated and given by the multiple listing service B- from the owner of the property C- from their employing broker D- from the cooperating broker

C- A salesperson may not accept compensation from anyone other then his or her employing broker

Any person, partnership or association or corporation who authorizes or employs another, called the agent, to perform certain acts on his behalf is the : A: agent B: broker C: principal D: assignor

C- Not spelled "principle"

One who has the right to sign the name of a principal to a contract of sale is: a) an attorney in fact b) a real estate broker c) a special agent d) an attorney at law

C- Only an attorney in fact has such authority

Which of the following will NOT terminate an agency relationship? A-revocation by the principal B-mutual consent C- reciprocity D- renunciation by the agent

C- Reciprocity deals with a mutual agreement by certain states to extend licensing privileges to linsees in each state

A real estate salesperson might lawfully accept an extra commission in a difficult sale from: A- an appreciative seller B- a thankful buyer C- a broker-employer D- the mortgage lender

C- Salesperson can only accept compensation from broker

An owner requests a broker to list a property for sale at $70,000 and offers to let the agent retain any amount above $65,000. On inspection, the broker believes the property is worth $80,000. The broker should? a. get a net listing for the property at $70,000. b. buy the property herself for $70,000. c. suggest that the owner list the property for 75,00 so that he will have room for bargaining d. inform the seller that the property is worth $80,000

C- The agent must disclose material facts to the client

The best description of a special agent would be a person who.: A: is an attorney B: is a broker C: has limited authority D: has contractual authority

C- The authority of the broker is limited to finding a buyer or tenant

An agent is considered to have earned his commission: A- only if title is transferred B- if he secures an offer from a prospective buyer C- if he produces a ready, willing and able buyer on the principal's terms D- when the principal signs a contract of sale

C- if the seller defaults, the agent may sue the seller for the commission. If the buyer defaults, the agent may take a direct action against the buyer

Which of the following is/are required to create an agency relationship? A- Written agreement B- compensation by principal C- consent of principal and agent D- All of the above

C- written agreement and compensation are not requisites to create an agency relationship

Which of the following persons would NOT have fiduciary duties to a principal? A- trustees B- administrators C- employers D- receivers

C-employees do not owe fiduciary obligations to an employer

Responsibilities of an agent in an agency relationship include all of the following EXCEPT: A-exercise of due care B- accountability C- obedience D- patience

D-Patience is not fiduciary obligation

All but one of the following owes a fiduciary obligation: A: executor B: guardian C: attorney D: mortgagor

D- A,B and C are fiduciaries. A mortgagor is debtor

A broker is: A-a principal to the salesperson B- the agent of a seller under a listing contract C- the agent of a buyer in a buyer-agency agreement D- all of the above

D- All statement are true

An agency agreement will be terminated by: A- the death of the agent B- the bankruptcy of the principal C- the death of the principal D- all of the above

D- Also by mutual agreement, accomplishment of objective and expiration of agreed period of time.

The commission rate for the sale of real estate is determined by: A- seller B-fixed schedules approved by the Real Estate Commission C- Scarcity of real estate for sale D- negotiation

D- Compensation is arrived at by agreement between the broker and owner

If a broker acts as a dual agent without disclosure, which of the following may occur? A- loss of license B- Rescission of contract C- Forfeiture of commission D- all of the above

D- Undisclosed dual agency is an act of fraud

The position of trust assumed by the broker as an agent for the principal is described most accurately as: A- trustee relationship B- trustor relationship C- confidential relationship D- fiduciary relationship

D- a position of trust

Known hidden defects in a property must be disclosed by A- seller only B- broker only C- confidential relationship D- Fiduciary relationship

D- broker and salesperson have fiduciary obligations; seller must disclose defects under case law