Chapter 23 - back of the Book Risk Management

Which of the following communication records must (as opposed to) be kept?

Copies of required communication to principals.

Which of the following is a common risk relating to the agency relationship?

Failing to inform and disclose properly.

How is an intentional misrepresentation penalized?

License discipline, fines and possible incarceration.

Keeping thorough records of every transaction is not only a risk management technique, it is

a legal requirement.

In performing a comparative market analysis, a licensee must be careful to

avoid creating a false impression that the licensee is a certified appraiser.

To reduce risks inherent in reporting transaction progress to a client, the licensee should

avoid statements of opinion and speculation in all reports.

A licensee risks violating antitrust law by

being present at a discussion of antitrust laws.

In fulfilling a listing agreement, one of the major risk areas is

exceeding the authority of the agreement

Even after giving buyer and seller the required information about property condition disclosures, the licensee may still be subject to legal action

failing to disclose known adverse facts.

What statement about a companies procedures manual as a risk management device is true

it can be a guide of compliance with the law.

How does disclosure manage risk

it deflects and reduces risk by preventing others from claiming they were misled.

How does sharing the qualifying function with a lender protect a licensee

it reduces the chance of presenting an offer from an unqualified buyer.

In what sense is the use of standardized form a risk management procedure?

it reduces the risk of committing an unauthorized practice of law.

The standard E & O policy covers damages resulting from

negligence, error or omission in carrying out professional services.

The best way to minimize the risk of violating fair housing laws is to

obtain education in the content and intent of the laws.

Of the following risk management strategies, the one that aims at minimizing both the severity and the likelihood of loss is

reduction

Insurance is a method of

risk outsourcing

What is an area of risk for unintentional misrepresentation?

stating that a client should seek legal counsel.

Regarding contracts and forms

the principals may make changes as long as they sign or initial each change.

A simple way of reducing the risk of committing an error or omission in the contracting process is

use a checklist of all items, contingencies, dates and responsibilities that must be met.