Real Estate Chapter 17

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.

What is special about a universal agent?

A universal agent has power of attorney.

Which of the following best defines the term procuring cause?

Actions that demonstrate the unbroken efforts of an agent that are responsible for the buyer making a decision to complete the sale

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

What are the three primary areas of disclosure?

Agency, property condition, and environmental hazards

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

When the real estate agent has produced a buyer who is ready, willing and able, the agent has generally done what?

Earned a commission

Which of the following types of information can a licensee legally provided to both a principal and a customer?

Facts

Which of the following best defines negligent misrepresentation?

Failure to use ordinary or reasonable care in a situation

Which of the following duties best describes what an agent owes customers?

Fairness, care, and honesty

Which of the following does a principal owe to his or her licensee?

Information

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

Legal advice

Puffing is best characterized as which of the following?

Misrepresentation

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

Misrepresentation of the facts

Under what conditions can an agent provide advice and counsel to the customer?

Never

A person who hires an agent to represent his or her interests is known as what?

Principal

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

When a home is listed, what is the minimum which can be created?

Special agency

After listing a home with a broker, the seller told the broker NOT to disclose a major structural defect in the house. What should the broker do?

Tell the buyer of the defect prior to the writing of an offer or refuse the listing.

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.

Which of the following statements best defines agency?

The fiduciary relationship between the agent and the principal

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

When a licensee holds interest in a property transaction

Misrepresenting facts to a buyer might result in

a voided contract and loss of commission.

A contract in which an owner hires a broker to market the property creates an agency relationship between

broker and seller.

An agency relationship

can occur thru implication (what you might say or do) without a written contract.

The broker, who has listed a property for sale, has the obligation to

do whatever the owner has instructed him to do legally.

A special agent is also known as a

limited or specific agent.

Paul Shafer is acting as the agent of David Smith. He

must report all offers to Smith.

Agent Mary forgot to complete a sales contract rider. This resulted in a $300 loss for her client. Agent Mary's actions can be described as

negligent.

An agent is

one who represents and acts for another.

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.