Section 4: Georgia Agency Basics Review Exams

A broker must disclose certain information to prospective real estate clients to comply with Georgia law. Which of the following disclosures are required? Any potential conflicts of interest A. Required B. Not Required

A

A broker must disclose certain information to prospective real estate clients to comply with Georgia law. Which of the following disclosures are required? Any type of agency offered, such as dual or designated agency A. Required B. Not Required

A

A broker must disclose certain information to prospective real estate clients to comply with Georgia law. Which of the following disclosures are required? Brokerage compensation policies A. Required B. Not Required

A

A broker must disclose certain information to prospective real estate clients to comply with Georgia law. Which of the following disclosures are required? Brokerage confidentiality rules A. Required B. Not Required

A

Acceptance after the fact, either through paperwork or actions of the parties A. Ratification B Estoppel

A

An agency relationship that exists because you behaved in a way that led the consumer to believe you're their agent A. Implied agency B. Express agency

A

Chip represents Ginger, the buyer. Raphael represents Tom, the seller. If Chip and Raphael are from the same brokerage, what is their agency relationship with their clients? A. They're designated agents; their broker is a dual agent. B. They're designated agents; their broker is also a designated agent. C. They're dual agents; their broker is also a designated agent. D. They're dual agents; their broker is also a dual agent.

A

Compensation Disclosures Which of these is true about disclosure of compensation policy details? A. Brokers should disclose how they will split compensation with other brokers to all parties. B. Brokers need only disclose compensation policies that affect how much the prospective client will pay. C. Brokers should never discuss the specifics of compensation unless they have a signed brokerage agreement in hand. D.Brokers aren't allowed to discuss brokerage compensation policies with customers, only clients.

A

Does the scenario resemble a ratification or estoppel situation? A seller agreed to leave a painting the buyer liked. As moving day approached, however, the seller was having trouble parting with her uncle's painting, so she took it with her. Then she contacted her agent to see if she could provide the monetary value of the painting instead of leaving the painting. An addendum to the contract was created, which the buyer signed. A. Ratification B. Estoppel

A

Eileen is an associate broker working with Nathan, a seller client. A buyer approaches Eileen about working with an agent to purchase Nathan's property. With her broker's permission, she provides the buyer with her co-worker, Jacob's, contact information. Both Eileen and Jacob work for the same sponsoring broker. What type of agency situation is this? A. Designated agency B. Seller agency C. Single agency D. Sub-agency

A

Hanna represents the buyer, and Hank, an agent from a different firm, represents the seller in the same transaction. What type of agency relationship does Hanna have with her client? A. Buyer agency B. Dual-license dual agency C. Seller agency D. Single-license dual agency

A

Justin is representing the seller in a transaction. Which of the following tasks is he permitted to perform for the unrepresented buyer as a non-agent? A. Explain to a buyer the purpose of the seller's property disclosure. B. Help the buyer get pre-approved for a mortgage loan. C. Help the buyer interpret the title policy exceptions. D. Help the buyer structure an offer to the seller.

A

Madeline works for a single-agency firm. If she wants to represent both the buyer and seller in a transaction, what must she do? A. She can't do this at her firm. B. She may act as a designated agent for one client and a representative agent for the other. C. She should get informed consent from both sides to represent them. D. She should have her broker act as a dual agent, and she can be a single agent for each party.

A

Paula provided her seller client, Amy, with a property disclosure form. Amy didn't claim any known structural or mechanical defects. One of the visitors at Paula's open house was a plumbing contractor who had repaired some pipes in the house and knew there was a major underlying problem. He was very upset that the issue wasn't disclosed. Is Paula legally liable for providing fraudulent information? A. No, licensees are not responsible for providing false information if they didn't know it was false. B. Yes, because Paula should have had an inspection done prior to holding the open house. C. Yes, ignorance of the condition doesn't negate liability. D. Yes, licensees are responsible for the accuracy of all disclosures.

A

Proper Disclosures Hannah is looking for a new rental condo and sat down with Mariel, a licensee, to see if she could represent her in her search. Identify whether she needs to make a required disclosure in each of the following situations. Does Mariel need to disclose that she represents Hannah's current landlord? A. Disclosure Required B. No Disclosure Required

A

Proper Disclosures Hannah is looking for a new rental condo and sat down with Mariel, a licensee, to see if she could represent her in her search. Identify whether she needs to make a required disclosure in each of the following situations. Mariel serves as a listing agent for several clients, and there's a chance that one of her existing clients may own a condo that's perfect for Hannah. Does Mariel need to explain dual agency? A. Disclosure Required B. No Disclosure Required

A

Proper Disclosures Hannah is looking for a new rental condo and sat down with Mariel, a licensee, to see if she could represent her in her search. Identify whether she needs to make a required disclosure in each of the following situations. Mariel's firm currently collects commissions contingent on whether transactions successfully close. The broker and associate brokers are voting next week on whether to charge retainer fees, as well. Does Mariel need to disclose this? A. Disclosure Required B. No Disclosure Required

A

Someone who has agency representation with the licensee is a ______. A. Client B. Consumer C. Customer D. Fiduciary

A

The Georgia Association of REALTORS® has created sample agreements to cover most agency situations and relationships. What's true about the forms? A. Licensees can use GAR forms or other attorney-written and approved forms, as long as key information is included. B. Licensees may not use the GAR forms without modification. C. Licensees must pay a royalty fee to use GAR forms. D. The Georgia Real Estate Commission requires licensees to use GAR forms.

A

What does BRRETA outline as a buyer broker's responsibility? A. Disclose adverse facts related to the buyer's financial ability to meet the contract terms. B. Disclose adverse neighborhood conditions to potential buyers and tenants. C. Seek a lease at the price and terms stated in the brokerage engagement D. Seek a property to lease at acceptable price and terms.

A

What happens if a real estate licensee acting as a finder performs duties beyond just introducing the buyer and seller? A. An agency relationship is created. The licensee can face disciplinary action if an agency is formed without proper agency disclosures. B. Nothing. The person has a real estate license and can perform other duties as needed. C. The licensee can get in trouble for acting as a dual agent. D. The licensee is guilty of misrepresentation.

A

Which duty requires a client to take an active and present role in a real estate transaction? A. Availability B. Compensation C. Indemnification D. Information

A

Which of the following agency-related disclosures does Georgia law require? A. Confidentiality policies B. Licensee expertise C. Number of annual transactions D. Number of failed transactions

A

Which of the following has the legal effect of preventing a person from making a claim based on her prior behavior or statements? A. Estoppel B. In rem proceeding C. Ratification D. Reaffirmation

A

Which of the following is NOT true about single agency? A. In single agency, one agent represents both the buyer and seller in the same transaction. B. Single agents still owe fiduciary duties to their clients. C. Some agencies choose to only allow single agency. D. This kind of agency provides the least risk

A

Which of the following written statements is required in a dual agency disclosure in Georgia? A. Confidential information won't be provided to the opposite party. B. Dual agency is the default relationship unless otherwise stated. C. Dual agency represents no conflicts of interest. D. The broker will not disclose relationships that might be impacted.

A

Which of these situations is an example of designated (appointed) agency? A. Jacob, a broker, acts as the dual agent and appoints Mark to represent the buyer and Todd to represent the seller in the same transaction. B. Marvel's broker at Homeworks Realty appoints her as the buyer's agent in a transaction. Tim's broker at Great Homes Real Estate appoints him as the seller's broker in the same transaction. C. Meredith's broker appoints her to represent both the buyer and the seller in a single transaction. D. Michele is the firm's managing broker. She's the designated dual agent in all dual agency transactions.

A

You have a listing agreement with Sam, which makes him your ______. A. Client B. Confidante C. Customer D. Friend

A

A broker must disclose certain information to prospective real estate clients to comply with Georgia law. Which of the following disclosures are required? The number of transactions the broker handles annually A. Required B. Not Required

B

A broker must disclose certain information to prospective real estate clients to comply with Georgia law. Which of the following disclosures are required? Whether the broker will be out of reach at any time during the engagement term A. Required B. Not Required

B

An agency relationship that is understood and agreed to by both parties A.Implied agency B. Express agency

B

Camille has a listing for a townhome, and appoints Ivy as her sub-agent. Ivy brings a buyer customer to the transaction, and the buyer purchases Camille's listing. What's true about the agency relationships in this situation? A. Camille owes her loyalty to Ivy. B. Ivy is Camille's sub-agent and owes loyalty to the seller. C. Ivy owes her loyalty to the buyer. D. The buyer is the sub-agent to the seller.

B

Does the scenario resemble a ratification or estoppel situation? The sellers left some storage shelving in the basement after they moved out. They purchased new ones, but then asked the buyers to let them in to retrieve the shelving they left. The buyers refused. The sellers threatened to sue, but their lawyer advised them they couldn't. A. Ratification B. Estoppel

B

Frank is representing Jonathan in the sale of his home. A buyer approaches Frank at Jonathan's open house, and Frank agrees to represent her in purchasing Jonathan's house. What must Frank do to avoid an illegal dual agency situation? A. Inform the buyer that he represents the seller. B. Obtain dual agency consent from all parties. C. Obtain dual agency consent from the buyer. D. Obtain dual agency consent from the seller.

B

If you're the buyer's agent, what must you do before showing a seller's property? A. Collect a retainer fee. B. Disclose your status as a buyer's agent to the listing agent. C. Gather as much personal information about the seller as possible. D. Let the buyer know you may have to serve as a sub-agent.

B

Larry is assisting a buyer who's making an offer on his client's listing. If Larry is too helpful to the buyer, what might occur? A. A potential bonus from the buyer B. Implied agency and undisclosed dual agency C. Implied friendship D. Undisclosed single agency

B

Marge is a licensee in a dual agency transaction with seller Steven and buyer Alda. In which of the following situations can Marge share what she knows with all parties without compromising her duty of loyalty? A. Alda tells Marge she wants to make an offer on Steven's property and asks Marge what she should offer, since Marge knows Steven's rock-bottom price. B. Alda tells Marge that she's hired an inspector to perform a property inspection. C. During the home inspection, Marge hears the buyer tell the inspector several times, "That's no big deal. I can fix that." The buyer lists those as repairs she wants the seller to make. D. Steven tells Marge he can reduce his price, and Alda tells Marge she can increase her offer.

B

Prevention of a legal claim that is contrary to the person's own actions A. Ratification B. Estoppel

B

Proper Disclosures Hannah is looking for a new rental condo and sat down with Mariel, a licensee, to see if she could represent her in her search. Identify whether she needs to make a required disclosure in each of the following situations. Mariel is already in a brokerage engagement with Hannah's cousin, Tara, to help Tara find a new house. Does Mariel need to disclose that relationship to Hannah? A. Disclosure Required B. No Disclosure Required

B

Terry represents seller Farrah, and Michael represents Troy, the buyer. Who is (or are) the principal(s) in this transaction? A. Farrah B. Farrah and Troy C. Terry and Michael D. Troy

B

What Determines Agency? If you want to determine agency relationships in a transaction, instead of "show me the money," the correct request is "show me the agency agreement." Check out your resource to learn why, then complete this quick exercise. As a real estate agent, you'll be compensated for the services you provide your clients (well, assuming the transaction closes). But is it compensation that defines your relationship, or is it something else? Identify which of these determines the existence of an agency relationship. A. Compensation B. Signed agency agreement C Verbal agreement to be a customer

B

What type of real estate agency relationship usually exists when a licensee has the broad responsibility of handling all of the details of a specific transaction? A. Designated B. General C. Special D. Universal

B

When is dual agency allowed in Georgia? A. At closing B. With both parties' consent C. With either the seller's or the buyer's consent D. With the lender's consent

B

Which of the following duties are owed to customers and other parties to a real estate transaction? A. Fairness and loyalty B. Honesty and fairness C. Honesty and obedience D. Obedience and loyalty

B

Which one of the following provides the best example of single agency? A. A broker acts as a dual agent to one party only. B. An agent from one firm acts as the agent for the buyer. C. Two agents from different firms each act as a subagent for the other. D. Two agents from one firm act, separately, as the agent for the buyer the agent for the seller.

B

Which type of agent is an escrow officer? A. General agent B. Limited agent C. Single agent D. Universal agent

B

Zeke represents a seller and receives an offer through another agent. The offer is higher than the listing price. The property is already listed at a very high price, and no other offers have been received. Is Zack obligated by his duties to the other party to disclose that the offer is too high? A. No, but Zeke should honor his duty to all parties by asking his client to decline the offer. B. No, his duty is to his own client. The buyer's agent must be responsible for advising on a fair price for the property. C. Yes, Zack must be honest and fair with all parties in the transaction. D. Zack can request that both parties consent to dual agency so that he can negotiate an honest price that will be fair to all.

B

A broker has two associate brokers who each represent an opposing side in the same transaction. What could the broker put in place to ensure confidential information is not being shared by the associate brokers? A. Do not allow the associate brokers to be in the office at the same time B. Fine the associate brokers if they talk to one another C. Put a firewall and other policies and procedures in place to address this situation D. Remove the water cooler from the office

C

Jennifer is selling her property and hired Larry as her agent. Jane brings her client, Andrew, a prospective buyer, to see Jennifer's property. What is Larry's role in this scenario? A. A buyer's agent B. A dual agent C. A seller's agent D. A sub-agent

C

Jerry is holding an open house for a property he's listing. He speaks to several visitors, but none of them discuss making an offer. What are these visitors called? A. Clients B. Consumers C. Customers D. Principals

C

Kevin listed his house with you but isn't offering a cooperating agent's commission. Ji-eun represents the buyer, Marta, and Marta's parents, Jean and Tom, are paying Ji-eun's commission. On which of these factors is your agency relationship based? A. Kevin is paying your commission. B. Kevin owns the property you've listed. C. Kevin signed a listing agreement with you. D. Marta's parents are paying the buyer's agent commission.

C

Leigh Ann is a licensee. Her cousin, Carly, is interested in buying a house. Leigh Ann shows Carly how to look for properties online and runs some CMAs for her. When Carly finds a property she likes and asks Leigh Ann to help her make the offer, Leigh Ann decides she should ratify the implied agreement with Carly. What are Leigh Ann's options for accepting an agency relationship after the fact? A. Continue to assist Carly and have her sign an estoppel certificate. B. Leigh Ann's only option is to get a signed listing agreement. C. Prepare an agency agreement or continue to assist Carly with the purchase. D. Prepare an estoppel certificate and a listing agreement.

C

Licensee Kennie Mae's neighbor, Buzz, wants to sell his house but doesn't want to sign an agency agreement. Kennie Mae works with Buzz to list and show the property and negotiate offers. After the property sells, Buzz discovers that Kennie Mae didn't present all offers to him, and he sues Kennie Mae. Kennie Mae claims that because she didn't have an agency agreement with Buzz, she wasn't required to perform all fiduciary duties. What legal principle applies here? A. Agency after the fact, because Kennie Mae continued to perform tasks for Buzz through the closing date. B. Law of agency, because Kennie Mae defined her agency relationship with Buzz through the tasks she performed. C. The doctrine of estoppel keeps Kennie Mae from disavowing the agency relationship because she provided agency tasks for Buzz. D. The ratification doctrine states that Kennie Mae ratified her relationship with Buzz by signing the closing paperwork.

C

Nevina may be creating an implied agency agreement if she does which of these? A. Contacts a mortgage broker to find out what first-time homebuyer programs are available B. Gives her neighbor a tour of another neighborhood home that's on the market C. Performs a CMA for an acquaintance and provides advice on setting a listing price based on other comparable properties in the area D. Speaks to a local civic club about the homebuying process

C

The buyer you're working with doesn't want to enter into an agency relationship. However, the buyer begins to rely more and more on your advice and, indeed, implied agency has begun! You could have avoided this issue by providing appropriate disclosures, but now that you've created implied agency, what should you do? A. Create an estoppel agreement with the buyer. B. Disclose to all sellers your relationship with the buyer. C. Ratify the implied agreement by getting a signed agency agreement. D. Terminate the agency relationship.

C

What can a transaction broker do for a customer? A. Advocate for the customer. B. Negotiate an agreeable price. C. Process paperwork. D. Recommend terms.

C

What can be said about a designated agent's duties? A. They must be negotiated ahead of time. B. They're the same as a dual agent's duties. c. They're the same as a single agent's duties. D. They're the same as the duties to a customer.

C

What can be said about dual agency consent? A. It isn't required. B. It must be oral. C. It must be written. D. It's illegal.

C

When appropriate, with whom can designated agents share their client's confidential information? A. A closing attorney B. A lender C. The broker D. The other designated agent

C

Gillian is a real estate licensee who attends a party at the home of a mortgage broker, Tim, with whom she has worked in the past. At the party, Tim offers her tickets to a concert, saying that he can't use them. She accepts gladly, and laughs when Tim says as he hands the tickets over, "And all I ask in return is that you send a customer or two my way!" Is Gillian guilty of a violation? A. No, but Tim is. B. No, there is no violation. C. Not unless she neglects to disclose the exchange and the value of the tickets to her broker within three days. D. Yes, Gillian is guilty of violating RESPA by accepting what amounts to a referral fee from a mortgage broker.

D

If you represent the buyer and seller in the same transaction, what type of agency relationship do you have with your clients? A. Buyer agency B. Dual-license dual agency C. Seller agency D. Single-license dual agency

D

Single agency firms prohibit their licensees from doing what? A. From giving their clients real estate-related advice B. From handling escrow funds C. From providing transactional information to their customers D. From representing the buyer and seller in the same transaction

D

Stacey, a buyer, is working with Rebecca, a licensee, in a state that doesn't recognize or permit implied agency. Rebecca doesn't represent Stacey, however, and is performing only ministerial tasks for her. Which of these statements about this situation is correct? A. Rebecca can't work with Stacey without an agency agreement. B. Rebecca is acting in an agency capacity for Stacey. C. Stacey is Rebecca's client. D. Stacey is Rebecca's customer.

D

Which of the following duties is owed to both clients and customers? A. Accountability B. Confidentiality C. Obedience D. Prompt presentation of all written offers and counter-offers

D

Which of the following is a designated dual agency situation? A. Connie represents the seller in a transaction. Jeff represents the buyer in the same transaction. Connie and Jeff work for different firms. B. Jeannette represents the seller in a transaction. Stacy is working with a buyer customer, but represents the seller as a sub-agent. Jeanette and Stacy work for the same firm. C. Keith represents both the buyer and the seller in the same transaction. D. Robert represents the seller in a transaction, while Brian represents the buyer in the same transaction. Robert and Brian work for the same firm.

D