Chapter 11: Agency (Real Estate)

Which of the following situations has the potential for creating an implied dual agency?

A listing agent's subagent learns that a potential buyer has made false claims about his financial qualifications and does not inform the listing agent

Which of the following is most likely a dual agency situation?

One agent represents both sides in a transaction

In which of the following contact situations would a seller's agent be expected to disclose his agency relationships?

The agent is showing the client's property to a prospective buyer.

If an agency relationship terminates because one of the parties defaulted, which of the following is true?

The defaulting party may have a financial liability

Which of the following is true of the connection between compensation and the agency relationship?

The relationship is independent of any compensation arrangement

A subagent is technically the agent of

a broker who has an agency relationship with a client.

The agent and principal may terminate the agency relationship by mutual consent

at any time

The level of competence that a principal has the right to expect from an agent is generally that which is

comparable to that of other practitioners in the area.

One of the agent's fiduciary duties that continues even after a listing agreement expires is

confidentiality

If a potential buyer discloses financial qualifications to a seller's agent, the agent is required to

disclose the information to the seller.

Among the duties of a broker who is acting as a transaction broker, or facilitator, is

disclosing material facts that affect the value of the property to both parties

Among the fiduciary duties imposed on a real estate agent is the requirement to

present all offers to the principal.

The defining feature of a special agency is that the agent has authority to perform

specific activities on behalf of the principal, as defined in the agency agreement.

A buyer's broker owes the full set of fiduciary duties to

the buyer

The agency relationship is defined by

the laws of agency