Module 2 - Agency Review

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Market value is an estimate of the price at which a property will sell at a particular time. the same thing as market price. the price at which a property sold. an archaic term that has been replaced by "sales price."

an estimate of the price at which a property will sell at a particular time.

A licensee preparing a CMA must be careful to use the term "market value" whenever possible. avoid creating a false impression that the licensee is a certified appraiser. show a low suggested selling price to avoid a complaint of misrepresenting the value. include the results of a certified appraisal in the analysis.

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

What should you do before adding a client's personal email address to your email mailing list? Pay the client a $1 gratuity fee. Register the client's email address with a local real estate organization. Ask the client for permission. Close a real estate transaction with the client.

Ask the client for permission

Broker Ellen and Broker Jeff work for Principal Broker Carter. Ellen listed Manna's property. Jeff's buyer, Professor Gotz, made an offer to purchase Manna's property. Principal Broker Carter is in a ____________ relationship with regard to Buyer Professor Gotz. Single agency Disclosed limited agency

Disclosed limited agency

roker Nina and Broker Vesta work for Principal Broker Griffin. Vesta is working with Marlin, who is interested in purchasing a property in McMinnville. Nina's client, Cody, is also looking to purchase a property in McMinnville. A very well priced property has recently been listed by a competing brokerage. Nina and Vesta present the property to their buyers and both Cody and Marlin are interested in making an offer on the property. Principal Broker Griffin is in a ____________ relationship with Buyer Cody. Single agency Disclosed limited agency

Disclosed limited agency

A broker for Company A represents both the seller and the buyer in a transaction. What relationship does the broker's principal broker have with each client? Disclosed Limited agent of the seller and single agent of the buyer. Single Agent of both the buyer and seller. Disclosed limited agent of the buyer and single agent of the seller. Disclosed limited agent of both the buyer and seller.

Disclosed limited agent of both the buyer and seller. When buyer and seller are represented by the same broker, the broker and the principal broker are engaged in a disclosed limited agency relationship with both clients.

Which of the following types of buyer broker agreements will give the licensee the most protection in terms of receiving a commission? Exclusive agency agreement. Stated agency agreement. Open agency agreement. Exclusive right agency agreement.

Exclusive right agency agreement.

A fee-for-service broker must not charge for a CMA, even if the purpose of the CMA is to establish the value of a property in pursuit of a listing contract. True False

False A licensee is permitted to charge a fee for a CMA, but a written service agreement would be required in fee-for-services situations. In the case of a CMA prepared under a fee-for-services arrangement, it must be emphasized that the CMA can only be prepared for the purpose of determining an asking or offering price for the seller or buyer.

Does the definition of real property include leasehold estates? No Yes

Which one of the following would NOT be addressed in a buyer broker agreement form? Non-discrimination provisions. Property listing period and expiration date. Broker compensation method and terms. Identification of the parties.

Property listing period and expiration date

"SEO" stands for what? Search Engine Optimization. Search Engine Operator. Social Engineering Organization. Software Engineering Organization.

Search Engine Optimization.

Which statement is TRUE? The agency disclosure pamphlet is to be given after the licensee has had a discussion with a known buyer relating to a specific property. The agency disclosure pamphlet is required to be given to everyone the licensee makes contact with. The agency disclosure pamphlet is to be delivered upon first contact unless you know the party is not seeking representation. The agency disclosure pamphlet should be delivered only in person.

The agency disclosure pamphlet is to be delivered upon first contact unless you know the party is not seeking representation.

One of the parties to an agency relationship defaults and the agreement terminates. Which of the following is true? The defaulting party may have a financial consequence. All obligations are extinguished. The damaged party has no claim against the defaulting party. Both parties must continue to perform all other obligations of the agreement.

The defaulting party may have a financial consequence.

What does "codified" mean? (ORS) To be arranged by a systematic code To be found in violation of a particular statute To become obsolete on a certain date

To be arranged by a systematic code

Fiduciary responsibilities require the agent to know every contingency deadline date and precisely what steps are required for a waiver of the contingency. True False

True Fiduciary responsibilities require the agent to know every contingency deadline date and precisely what steps are required for a waiver of each contingency.

When must a listing agent disclose his or her agency relationship to prospective tenants or buyers? Immediately following any offer executed by the customer. Upon initial contact. Immediately prior to the initial contact. Whenever substantive communication is made beyond casual conversation.

Whenever substantive communication is made beyond casual conversation.

If the client requires the licensee to commit an unlawful act, what should the broker do? Report the seller to the Real Estate Commissioner. Charge the seller with fraud. File a civil suit against the seller. Withdraw as the seller's agent.

Withdraw as the seller's agent.

Fred Sanford listed his junkyard with his friend Bubba Bexly, the principal broker at Watts Area Realtors. Thirty days after taking the listing, Bubba died from a heart attack. Fred's listing agreement is terminated because of death. change in the law. mutual agreement. unilateral discharge.

death. Death of either the principal or agent terminates agency relationships.

The prime fiduciary duty of an agent is loyalty. mutual trust. respect. deference.

loyalty.

An agent is operating as a disclosed dual agent on a transaction. In this case, the agent must not represent one party's interests to the detriment of the other. must operate without a listing agreement. must require that the principals refrain from disclosing any material facts to him. must be obedient and loyal to both parties.

must not represent one party's interests to the detriment of the other.

The meaning and salient characteristics of the agency relationship should be disclosed to the client prior to completing a listing agreement. upon the initial contact with the person. prior to showing properties. prior to or upon completion of an offer.

prior to completing a listing agreement. An agent who intends to represent a seller or owner must disclose the import of the proposed agency relationship in writing before the listing agreement is executed.

All of the actions of the buyer's agent are dedicated to promoting only the interests of the buyer. developing and maintaining a web presence. self-promotion, creating signs, and locating future referrals. communicating directly with the seller.

promoting only the interests of the buyer

Marie acted on behalf of Paul without his authority, but at a later date Paul approved of her actions. Paul's approval of Marie's action would be an example of assumption of authority. ratification. estoppel. express agreement.

ratification

Commingling is the opposite of mixing. separation. subrogation. subordination.

separation.

Which of the following are duties owed by the agent to the principal? 1) Loyalty 2) Accounting 3) Disclosure 4) Contrition 5) Obedience 6) Care 1, 3, 4, 5 and 6 1, 2, 3, 5, and 6 1, 3, 4, and 6 All of the above

1, 2, 3, 5, and 6 "Contrition" is not a fiduciary duty; the state of feeling remorseful and regretful.

An agency relationship can be created by which of the following? Express consent Necessity Implied consent Estoppel 1, 2 and 3 1 and 3 None of the above All of the above

All of the above

An agency relationship can be created by which of the following? Express consent Necessity Implied consent Estoppel 1,2 and 3 1 and 3 None of the above All of the above

All of the above

Why might a first-time buyer seek to be represented by a buyer's agent? They are usually very inexperienced. Representation will provide help in purchase negotiations. The buyers agent will guide the buyer in the closing process. All of the above.

All of the above. First time buyers are usually very inexperienced in real estate matters. As a result, representation is critical to persons in this category. Representation will assist the buyer in the purchase process on issues ranging from property selection, property evaluation, purchase negotiations and closing process.

Commingling occurs when 1)client funds are mixed with the agent's personal account. 2)the agent's funds are mixed with the clients' trust account funds. 2 only 1 only Both 1 and 2 Neither 1 nor 2

Both 1 and 2

The listing licensee's responsibilities in presenting a written offer include 1)presenting all written offers before the seller accepts an offer. 2)helping the seller to understand the ramifications and practical effects of the offer. 2 only Both 1 and 2 1 only Neither 1 nor 2

Both 1 and 2

Which activity might lead a client to believe that a licensee is a certified appraiser? Writing a description of the property. Discussing comparable sales with a seller. Preparing a CMA. Researching ownership documents.

Preparing a CMA.

What should be the biggest concern when dealing with "virtual tours"? Privacy Internet access Expense Bandwidth

Privacy

Broker Barley works for Principal Broker Duke. Barley is working with Ms. May to find her a new home. Principal Broker Duke is in a ____________ relationship with regard to Buyer Ms. May. Disclosed limited agency Single agency

Single agency

The Initial Agency Disclosure Pamphlet should be given to the real estate consumer for inquires made A) in-person B) by telephone C) by e-mail D) through the internet A and C only A, B, C, and D A only A, C, and D only

The pamphlet should be given in all of the above situations.

pending and closed sales and active, sold, and expired listings. True False

True

A subagent is the agent of a broker who has an agency relationship with a client. the seller. the client's and the customer's agents. the buyer.

a broker who has an agency relationship with a client. in a subagency, a broker or licensed salesperson works as the agent of a broker who is the agent of a client. Subagents might include a cooperating licensed broker, that broker's licensed salespeople, and the listing broker's licensed salespeople, all of whom agree to work for the listing broker on behalf of the client.

An agent who agrees to work without compensation is called a gratuitous agent. unemployed. a gratis agentus. a free agent.

a gratuitous agent.

One of the agent's fiduciary duties that continues even after a listing agreement expires is diligence. confidentiality. obedience. disclosure.

confidentiality. The confidentiality standard is one of the duties that extends beyond the termination of the listing: at no time in the future may the agent disclose confidential information.

Broker Don works for Prudent Realty, listed a house and found a buyer who wrote an offer. Under Oregon license law, Don is the legal agent of the seller, the buyer, and his principal broker. his principal broker. the seller. the buyer.

his principal broker. Under Oregon license law, a broker is the agent of the principal broker and sub-agent of the principal broker's clients.

ratification.

One benefit to buyer's agency is that the efforts of the buyer's agent are not compromised by any obligation to represent the seller. promote the interests of the buyer. preserve confidential information. close the transaction.

represent the seller. the efforts of the buyer's agent are not compromised by any obligation to represent the seller.

An agency coupled with an interest means the licensee received an interest-bearing note in payment of the commission. a suit has been filed for commission and the principal broker has filed a lien against the seller's property. the agency relationship cannot be terminated by the client before the expiration date of the contract without cause. the licensee has made a secret profit at the expense of the client.

the agency relationship cannot be terminated by the client before the expiration date of the contract without cause. If an agent has possession or control of the property of the principal, the agent has an agency coupled with an interest. The principal cannot revoke the agency unless there is a cause, since the agent has some legal right in the property.

Which of the following is NOT necessary in order to create an agency relationship? Agreement of the parties to the agency. Capacity of the agent. Competency on the part of the client. A limited power of attorney.

A limited power of attorney.

Who may compensate a buyer's agent? A buyer. A listing agent. A seller. None of these. All of these.

All of these. A buyer's agent may receive compensation in a real estate transaction from any number of sources. The compensation may be received from the buyer, the seller, both the seller and the buyer, or more commonly under today's MLS systems, through the listing broker.

A person who allows another person to act on their behalf is a third party. an agent. a principal.

a principal.

Which of the following are duties owed by the agent to the principal? 1)Loyalty 2)Accounting 3)Disclosure 4)Contrition 5)Obedience 6)Care 1, 3, 4, 5 and 6 1, 2, 3, 5, and 6 1, 3, 4, and 6 All of the above

1, 2, 3, 5, and 6 "Contrition" is not a fiduciary duty; the state of feeling remorseful and regretful.

Which one of the following is NOT a person who could benefit from using the services of a buyer agent? First-time buyers. A person who needs to find a buyer for his property. Buyers who want to remain anonymous. A real estate investor.

A person who needs to find a buyer for his property. A person who needs to find a buyer would look to his listing agent for assistance.

Which fiduciary duties are owed by an agent representing a client in a single agency representation? A)The duty of care. B)The duty of disclosure. C)The duty of providing tax and legal advice. D)The duty of obedience. A, B, and D only. A, B, C, and D. A, B, and C only. A and B only.

A, B, C, and D.

Willow has Zander's ranch listed for sale. Zander isn't making his mortgage payments and is facing a foreclosure action. Without Zander's consent, Willow tells buyers that Zander is desperate to sell and encourages them to make any offer. Which fiduciary duty did Willow violate? Accounting Obedience Disclosure Confidentiality Care

Confidentiality the fiduciary duty of confidentiality requires the agent not to disclose confidential matters about the client. Confidentiality is one of the duties that extends beyond the agency contract (listing, property management, buyer broker) and at no time in the future may the agent disclose confidential information.

Absent the seller's written consent, which of the following facts should NOT be disclosed? Termite droppings appear under wooden deck posts. The seller is going through a divorce. Large cracks are found in the foundation. The house is located on an active fault line.

The seller is going through a divorce. The duty of loyalty requires that information relating to confidential matters gained from the principal may not be disclosed. The seller's marital status is not a material fact regarding the sale of the property.

Specific performance is a method to terminate a contract. one party to a contract asking the court to order the other party to perform the contract promises. one party to a contract voluntarily performing the contract promises.

one party to a contract asking the court to order the other party to perform the contract promises.

Broker Ruby works for Principal Broker Trent. Ruby has been working with two different buyers, Mr. Van and Stu, who both want to buy a property in the West Hills. Ruby presents a new property listing that just came on the market to both Mr. Van and Stu. Both buyers express interest in making an offer on the West Hills property. Broker Ruby is in a ____________ relationship with regard to Buyer Stu. Disclosed limited agency Single agency

Disclosed limited agency

Broker Ellen and Broker Jeff work for Principal Broker Carter. Ellen listed Manna's property. Jeff's buyer, Professor Gotz, made an offer to purchase Manna's property. Principal Broker Carter is in a ____________ relationship with regard to Seller Manna. Disclosed limited agency Single agency

Disclosed limited agency Single agency

What is the name of the fiduciary duty that requires the agent to act in good faith according to the instructions and wishes of the principal? Obedience Care Responsibility Disclosure

Obedience Obedience requires the agent to act in good faith according to the instructions and wishes of the principal. However, this duty is not absolute and the agent does not have to and should not act in an illegal or unethical manner if so instructed by the principal.

Which fiduciary duty requires an agent to obey the lawful instructions of a client relating to the transaction? loyalty care disclosure obedience accounting

Obedience is the duty of an agent to obey all lawful instructions of the client relating to the transaction.

Isabel received a full price offer on Roxie and Franklin's townhouse from cooperating broker Paul. The offer is contingent on the sale and closing of the buyers' existing house. Isabel takes the time to make sure that Roxie and Franklin understand the details of the offer, as well as what it means to accept an offer that is contingent on the sale of the buyer's property. Isabel's actions are an example of the fiduciary duty of: loyalty care accounting obedience disclosure

care The fiduciary duty of care requires the agent to be proactive, competent, act within the bounds of her expertise, and to use her skills and knowledge to the best of her ability for the betterment of her client. Isabel's actions are an example of the fiduciary duty of care, also referred to as skill, care, and diligence.

Most property owners who become unhappy with their listing agent are unhappy because the licensee failed to _____________ after the listing was taken. communicate conduct inspections sell the property collect additional property details

communicate Most property owners who become unhappy with their listing agent are unhappy because the licensee failed to COMMUNICATE after the listing was taken.

The affirmative duties owed by a licensee to a seller, buyer, or in disclosed limited agency situations as set forth in ORS, Chapter 696 are suggested conduct. statutory requirements. optional duties to be exercised by licensee discretion. common law duties.

statutory requirements. ORS stands for Oregon Revised Statutes. Statutes are laws enacted by the legislature. The affirmative duties of the real estate licensee are statutory and found in ORS 696.

A buyer agent or tenant representative should disclose their agency relationship to the owner's agent immediately prior to the initial contact. immediately following any offer executed by the landlord. immediately prior to substantive contact. upon initial contact.

upon initial contact. A buyer agent must disclose the agency relationship to the seller or seller's agent on first contact. Substantive contact is assumed to occur immediately in this circumstance.

A seller who agrees in the listing agreement to pay a percentage of the sale price of his property as commission to the licensees involved in the transaction has automatically created an agency relationship with both the listing agent and the selling agent. True False

False Payment or the promise of payment of a real estate commission or other fee does not by itself create an agency relationship. While the listing itself will create an agency relationship between the listing agent and the seller, the payment of commission by the seller to the selling agent (buyer's agent) does not create an agency relationship between the seller and the selling agent.

The duty of honest and fair dealings requires the disclosure of all _________ facts to a third party. Important Substantial Material Trivial

Material Out of the duty of honest and fair dealing comes the duty for a real estate agent to disclose all material facts to a third party that are known, as well as those discoverable by reasonable efforts to investigate.

Broker Ellen and Broker Jeff work for Principal Broker Carter. Ellen listed Manna's property. Jeff's buyer, Professor Gotz, made an offer to purchase Manna's property. Broker Jeff is in a ____________ relationship with regard to Buyer Professor Gotz. Single agency Disclosed limited agency

Single agency

Which one of the following statements is FALSE with respect to the affirmative duties owed by an agent who represents only the seller? The agent must advise the client to seek expert advice on matters that are beyond the scope of the agent's expertise. The agent must maintain confidential information from or about the seller. The agent has the affirmative duty to investigate matters outside of the scope of the agent's expertise. The agent must exercise reasonable care and diligence.

The agent has the affirmative duty to investigate matters outside of the scope of the agent's expertise. Unless agreed in writing, a seller's agent has no duty to investigate matters that are outside the scope of the agent's expertise.

Which of the following would be considered dual agency? 1)Two licensees cooperating with each other to sell the same piece of property 2) A licensee who acts for both the buyer and seller Both 1 and 2 1 only 2 only Neither 1 nor 2

2 only A dual agency is when the same licensee represents the buyer and seller in the same transaction or when representing multiple buyers when offering on the same property.

Oregon Real Estate Agency terminology is defined in ORS 695. 696. 697.

696.

An agent must A) be honest and fair in dealings. B) accept only those tasks that can be skillfully performed. C) assume liability for wrongful or detrimental acts. A only A and B only B and C only A, B, and C

A, B, and C To be honest and fair in dealings, to relinquish tasks that could be more skillfully performed by another and to assume liability for any act that is wrongful or detrimental to the benefit of the principal are all duties of the agent.

Samuel Roth, the general managing partner of the Western Timber Limited Partnership, made an offer to purchase 500 acres of second growth timber in Lane County in the name of the company. This is an example of a/an ___________ principal. partially disclosed disclosed undisclosed

disclosed Because the offer to purchase is made in the company's name, this is an example of a disclosed principal.

Beni, while showing a listing to George, overheard the seller telling a neighbor that she was going to reduce the price of her house by $10,000. Beni immediately told George about overhearing the conversation. This is an example of the fiduciary duty of loyalty disclosure obedience care accounting

disclosure The fiduciary duty of disclosure requires the agent to make full disclosure of property condition and material facts. This duty also means that the agent should disclose all known information that can affect the decision-making process of his client. Beni complied with her fiduciary duty of disclosure.

his principal broker. Under Oregon license law, a broker is the agent of the principal broker and sub-agent of the principal broker's clients.

Jensen Manufacturing Corp wants to buy land for a distribution center in a new industrial park near Portland International Airport. They made their offer in the name of Western Associates, LLC so as to not alert their competitors of the attempted purchase. This is an example of a/an _____________ principal. undisclosed partially disclosed disclosed

partially disclosed Because the existence of the principal is disclosed but the identity is concealed, this is an example of a partially disclosed principal.

Niko Corporation wants to buy a large parcel of land in Eugene and build a manufacturing plant. Niko will pay cash for the property. Because of their well-known financial prosperity, they do not want the seller to know they are the purchaser. Niko Corporation contacts Broker Jason and instructs him to prepare a cash offer in the name of SM LLC, an LLC owned by Niko. This is an example of a/an_____ principal. disclosed undisclosed partially disclosed

partially disclosed Because the third party knows that there is a principal but does not know the identity of the principal, Niko is a partially disclosed principal.

Oregon license law makes a broker an agent of the Oregon Real Estate Agency. client. brokerage. principal broker.

principal broker.

A contingency is an event that may or may not occur. that won't occur. that is sure to occur.

that may or may not occur.

ORS calls the dollar amount offered to a seller from a buyer the negotiated price. the sales price. the offered price.

the offered price. Offering price is the amount, expressed in dollars, specified in an offer to purchase for which the buyer is willing to buy the property.

A personal services contract CANNOT be assigned. True False

True A personal services contract CANNOT be assigned.

A salesperson, without an oral or written listing agreement, brings potential buyers to the seller. The seller says, "You can bring me buyers if you want, but I'm not paying you a commission." The salesperson then continues to direct buyers to the property. Which of the following is true about this situation? There is no agency relationship, and therefore the seller will owe no commission if one of the salesperson's buyers buys the property. The seller and agent have an illegal, undisclosed agency relationship. The agent has an open exclusive agency listing with no commission agreement, and therefore owes no fiduciary duties to the seller. An implied agency may have been created, with obligations to perform for both seller and agent.

An implied agency may have been created, with obligations to perform for both seller and agent. clients and agents may also create an implied agency listing based on substantive actions rather than on an express agreement. For example, if a seller allows a broker to undertake certain activities toward effecting a transaction without a specific authorization, but with full knowledge and consent, an implied agency may have been created.

Which two words should licensees avoid using in preparing a CMA? Appraisal and Certified. Appraisal and Value. Worth and Appraisal. Value and Worth.

Appraisal and Value. In preparing a Comparative Market Analysis, licensees should guard against using the terms "appraisal" and "value," which are reserved for the use of certified appraisers. Misuse of these terms could lead to a charge of misrepresenting oneself as an appraiser.

When preparing to create a website, which one of the following is something you would NOT want to do? Visit other licensees' websites to understand its strengths and weaknesses. Find another agent's website to frame as your own. Learn proper internet etiquette. Define the specific goals of the website.

Find another agent's website to frame as your own.

Which of the following is a licensee required to do with the Agency Disclosure Pamphlet? Keep a copy of the initialed pamphlet for three years. Have the prospective buyer acknowledge receipt of the pamphlet. Deliver the pamphlet to a prospective buyer or seller upon first contact. Have the prospective seller initial the pamphlet for the licensee's records.

Deliver the pamphlet to a prospective buyer or seller upon first contact. The transfer of the pamphlet from agent to consumer need not be recorded, nor does the consumer need to acknowledge the receipt of the pamphlet. It simply needs to be delivered. However, it would be wise to keep records of when and where pamphlets are given, in the case that the licensee is ever accused of failing to give the pamphlet.

Disclosed limited agency

When a broker enters into a listing agreement, the broker has agreed to accept which of the following? Fiduciary and contractual obligations with the client. Fiduciary obligations with the customer. Contractual obligations with cooperating brokers. Fiduciary relationships with client and customer.

Fiduciary and contractual obligations with the client. A listing agreement establishes an agency relationship between agent and client that commits the agent to the full complement of fiduciary duties to the client in fulfilling the agreement.

After getting the listing, the agent should meet with the seller to discuss steps to take to make the property saleable. Which of the following would NOT make a property more appealing to buyers? Having the seller present to answer questions during showings. Making needed repairs. Staging the house. Clearing away clutter.

Having the seller present to answer questions during showings. in this meeting the listing agent should identify items that the seller could do to make the property more saleable. These things could range from removing excessive clutter to making repairs on needed structural or property system components. In addition, the agent should give the owner instructions to follow that will aid in a successful sale of the property. These instructions may include items such as how to handle the family pet(s) during showings, how to stage the house for showing, and other helpful hints. The agent should also explain to the owner that when a property is being shown, the best thing for them to do is leave the property during the showing. Potential buyers are hesitant to express their true feelings about a property during a showing if the seller is present.

Which of the following is a dual agency situation? Two agents share the exclusive right to represent the same client on all transactions. One agent represents both sides in a transaction. One agent represents two sellers at the same time. A selling agent from one brokerage works with a listing agent from another brokerage to complete a transaction.

One agent represents both sides in a transaction.

Paul signed a standard exclusive right to sell listing agreement with Steven, a Principal Broker. The listing price for his country estate was set at $900,000. After 2 months and numerous open houses, Steven received a cash offer from buyer Tom for $795,000 with a closing in two weeks. The time given to respond to the offer was 24 hours. Since Paul was out of the country and could not be reached, Steven signed Paul's name as the seller in the belief that Paul would not want to lose the deal. Upon his return, Paul felt the price was too low and refused to proceed to closing. Based upon the above facts, which one of the following statements is true? Steven must pay the $105,000 difference in price because he signed the earnest money agreement on behalf of Paul. Tom must sue Steven to force Paul to sign the deed. Tom can enforce the contract against Steven since he signed as seller. S teven exceeded his authority as an agent and Paul can have the contract voided.

Steven exceeded his authority as an agent and Paul can have the contract voided.

An agent enters into a listing agreement with a homeseller, but then becomes too busy to professionally fulfill the terms of the agreement. To solve the dilemma, the agent assigns the agreement to another licensee in the office. Which of the following is true about this situation? The new listing agent acquires the full set of fiduciary duties owed to the client. The agent cannot assign the listing agreement. The new broker has to split any commission that results with the assigning broker. The original broker has to disclose the assignment to the seller.

The agent cannot assign the listing agreement. Since a listing agreement is a personal service contract, it is not assignable. In particular, a broker cannot assign a listing to another broker.

What is the relationship between a buyer broker and the seller if the seller is represented by another agent? Single agency. Customer. Disclosed limited agent. Third Party.

Third Party. Because the seller is represented by another licensee, the seller is the third party to the buyer's broker. A customer is an unrepresented party.

Implied agency arises when an agent accepts an oral listing. a principal agrees to all terms of a written listing agreement, whether express or implied. a party creates an agency relationship outside of an express agreement. a principal accepts an oral listing.

a party creates an agency relationship outside of an express agreement. an agency relationship can arise by implication, intentionally or unintentionally. Implication means that the parties act as if there were an agreement. For example, if an agent promises a buyer to do everything possible to find a property at the lowest possible price, and the buyer accepts the proposition, there may be an implied agency relationship even though there is no specific agreement.

Licensees who desire to meet the needs of internet clients have to develop and maintain a television advertisement campaign. a home office. a web presence. an internet service provider.

a web presence.

The standard of care and competence that a principal can expect from an agent is generally that which is necessary to earn the promised compensation. specified in the agency agreement. necessary to procure a customer. comparable to that of other practitioners in the area.

comparable to that of other practitioners in the area. The agent is hired to do a job, and is therefore expected to do it with diligence and reasonable competence. Competence is generally defined as a "standard of practice" equal to the level of real estate marketing skills and knowledge of other practitioners in the area.

he duties of a transaction broker or facilitator include choosing to obey the instructions of one party and informing the other party of the decision. helping the two parties achieve their respective objectives. disclosing material facts that affect the value of the property to both parties. preserving the confidentiality of information received from either party.

disclosing material facts that affect the value of the property to both parties. In the role of facilitator, the broker's only fiduciary duties and standards of conduct are those of accounting; skill, care, and diligence; honesty and fair dealing; and disclosure to both parties of all material facts in residential sale transactions affecting the property's value. Some states do not allow for this form of relationship in a real estate transaction.

Audrey wants to take a vacation. To do so, she authorizes an agent to conduct the operations of one of her business enterprises. The kind of agency she has established is limited. universal. general. special.

general in a general agency, the principal delegates to the agent ongoing tasks and duties within a particular business or enterprise. Such delegation may include the authority to enter into contracts.

The essential foundation of the agency relationship consists of service, marketing, and respect. diligence, results, and compensation. good faith, trust and confidence. mutual respect, compensation, and confidentiality.

good faith, trust and confidence. the essence of the agency relationship is trust, confidence, and mutual good faith. The principal trusts the agent to exercise the utmost skill and care in fulfilling the authorized activity, and to promote the principal's best interests. The agent undertakes to strive in good faith to achieve the desired objective, and to fulfill the fiduciary duties.

Unlike appraisals, CMAs use pricing information from active and pending listings. sold listings only. pending and closed sales and active, sold, and expired listings. sold listings and pending sales.

pending and closed sales and active, sold, and expired listings.

An agent informs a buyer that a provision in a contract is very commonplace. After explaining the clause, the agent assures the buyer that the clause does not mean anything significant. If something goes wrong with the transaction, the agent could be liable for practicing law without a license. violating duties owed a customer. intentional misrepresentation. misinterpreting the clause.

practicing law without a license. An agent should not act or speak outside the agent's area of expertise. A customer may rely on anything an agent says, and the agent will be held accountable. For example, an agent represents that a property will appreciate. The buyer interprets this as expert investment advice and buys the property. If the property does not appreciate, the buyer may hold the agent liable.

Agent Gerry has executed an exclusive buyer broker agreement with the Andersons. The agent subsequently places an offer with Melinda, the exclusive selling agent for the Lincolns, to buy their lakefront property. The offer contains provisions for the Lincolns to pay the brokerage commission, which the Lincolns agree to. Given this set of circumstances, Gerry owes the full set of fiduciary duties to Gerry's broker. the Lincolns. the Andersons. Melinda's broker.

the Andersons. Since Gerry executed an agency agreement with the Andersons, they become the client and the Lincolns the customer, regardless of who pays the commission.

A principal instructs an agent to market a property only to families on the west side of the university campus, which is an illegal instruction based on Fair Housing Law. The agent refuses to comply. In this case, the agent is liable for breaching the listing terms. the agent should obey the instruction to salvage the listing. the agent has not violated fiduciary duty. the agent has violated fiduciary duty.

the agent has not violated fiduciary duty.

The agency relationship is defined by the law of real estate contracts. the agreement between a principal and an agent. the REALTOR® Code of Ethics. the laws of agency, or in some states, by statute.

the laws of agency, or in some states, by statute. In every state, a body of law, generally called the law of agency, defines and regulates the legal roles of this relationship. While the relationship is subject to contract law, agency law dictates how the relationship will achieve its purposes, regardless of what the listing contract states.

The Agency Disclosure Pamphlet is required to be delivered to the real estate consumer upon first contact, whatever form of contact that may be. after the licensee has had an initial discussion with a buyer relating to a specific property. in person. only if the licensee determines the prospect to be a serious buyer or seller.

upon first contact, whatever form of contact that may be. Regardless of whether it is by email, phone or in person, a licensee is required to give the agency disclosure pamphlet upon first contact.

Which statement is correct about the Agency Disclosure Pamphlet? Personal delivery of the pamphlet is preferred over delivery by mail or by electronic means. The pamphlet should be delivered only to prospective sellers. If there is any doubt as to whether to give someone the pamphlet, it should be given. The pamphlet should be delivered only to serious buyers.

If there is any doubt as to whether to give someone the pamphlet, it should be given.

If there is any doubt as to whether to give someone the pamphlet, it should be given. if there is any doubt about whether to give the pamphlet, it would never hurt to give it. Licensees can be penalized for failing to give the pamphlet whereas they cannot be penalized for giving the pamphlet when it isn't needed.

A limited power of attorney.

Which of the following would be considered dual agency? 1)Two licensees cooperating with each other to sell the same piece of property 2)A licensee who acts for both the buyer and seller Both 1 and 2 1 only 2 only Neither 1 nor 2

2 only A dual agency is when the same licensee represents the buyer and seller in the same transaction or when representing multiple buyers when offering on the same property.

Which of the following points is NOT typically used in a listing presentation? The reason why to use the licensee's brokerage company The licensee's resume and references to former clients A real estate purchase offer from a potential buyer A list of services the seller will receive from the licensee

A real estate purchase offer from a potential buyer in a listing presentation you are trying to persuade the seller to list with your company and yourself. You would include points such as the services you can offer, why your company is the best choice to use, your resume and experience, a possible marketing plan, and a list of past clients who agreed to be contacted as references. A purchase agreement is not typically included in a listing presentation.

An agent must A) be honest and fair in dealings. B) accept only those tasks that can be skillfully performed. C)assume liability for wrongful or detrimental acts. A only A and B only B and C only A, B, and C

Which of the following is NOT an advantage of buyer agency? Buyers can freely communicate confidential information without fear that disclosing that information will weaken the buyer's negotiating position. Buyers will have the benefit of a licensee's expertise in finding the right property, negotiating the purchase, and attending to closing details. The efforts that a buyer's agent exerts on behalf of the buyer are not compromised or limited by any obligation to represent the seller. Absolving the buyer of the responsibility of disclosing a child support judgment as a possible hurdle to obtaining financing to the seller.

Absolving the buyer of the responsibility of disclosing a child support judgment as a possible hurdle to obtaining financing to the seller.

Which of the following are true? (check all that apply) The same fiduciary duties are owed to a customer as are owed to a client. Death or incapacity of the agent automatically terminates an agency agreement. A broker is a subagent of the clients with whom they work. Most agency relationships require a written agreement.

All are true EXCEPT the duties owed to a customer are significantly less than those owed to a client.

Which of the following automatically terminates an agency relationship under the law? (check all that apply) A change in the law that makes the purpose of the contract illegal. The death of the agent. Fulfillment of the purpose of the contract. The expiration of the agency agreement.

All of the above automatically terminate an agency relationship. When looking at it from an Oregon real estate law perspective, the agency relationship is between the principal broker and the buyer/seller, with the brokers acting as sub-agents of the agent (principal broker). The death of the principal broker would end the agency relationship, but the death of the sub-agent (the broker) would not. The principal broker could assign a new sub-agent to represent the buyer/seller.

Which of the following does NOT terminate an agency relationship? A material change in circumstance. A bankruptcy of either the principal or agent. An implied agency. The unilateral discharge of the agent by the principal.

An implied agency An agency relationship can be terminated by bankruptcy of either the principal or agent, a material change in circumstances, unilateral discharge of the agent by the principal, a change in law that makes the relationship illegal, one of the parties dies or becomes incapacitated, the agreement expires, or the agreement is performed and ended.

Which always has to be disclosed in a disclosed limited agency, even without written permission? That the buyer will pay more than offered. That the seller will accept a lower price posted in the MLS. Confidential information relating to either the buyer or seller. Any material fact that failure to disclose would constitute fraudulent misrepresentation.

Any material fact that failure to disclose would constitute fraudulent misrepresentation. A licensee can never withhold information that by doing so would constitute misrepresentation.

The principal brokers are 1)responsible for the professional estate activities of their associated brokers. 2) responsible for the advertising done by their associated brokers. 1 only 2 only Both 1 and 2 Neither 1 nor 2

Both 1 and 2 Principal brokers are responsible for the professional estate activities of their associated brokers and the advertising done by their associated brokers

The principal brokers are 1)responsible for the professional estate activities of their associated brokers. 2)responsible for the advertising done by their associated brokers. 1 only 2 only Both 1 and 2 Neither 1 nor 2

Both 1 and 2 Principal brokers are responsible for the professional estate activities of their associated brokers and the advertising done by their associated brokers

Both 1 and 2 The listing broker should present all offers to the seller and help the seller to understand each offer before an offer is accepted.

Agency law as applied to the practice of real estate in Oregon is based upon A) common law. B) statutory law. Both A and B B only A only Neither A nor B

Both A and B

Agency law as applied to the practice of real estate in Oregon is based upon A)common law. B)statutory law. Both A and B B only A only Neither A nor B

Both A and B

Which of the following is FALSE? Buyer agency agreements with buyers must always be in writing to be valid. An important function of the buyer's agent is to assist the buyer in determining an offering price for a property. Written buyer's broker agreements must contain a beginning and ending date. The exclusive right to represent agreement affords the agent the most protection with respect to compensation.

Buyer agency agreements with buyers must always be in writing to be valid.

Which fiduciary duty requires the agent to protect the principal from foreseeable risks of harm? Care Confidentiality Loyalty Accounting

Client The buyer-client should receive the highest standard of representation. The six fiduciary duties of care, loyalty, confidentiality, accounting, obedience, and disclosure form the relationship between the agent and the buyer-client. Customers and third parties will receive a lower standard of fiduciary duties.

An agency relationship may be involuntarily terminated for which of the following reasons? Condemnation of the property. Renewal of the agent's license. Mutual consent. Full performance.

Condemnation of the property.

Deliver the pamphlet to a prospective buyer or seller upon first contact.

Broker Basil works for Principal Broker Karen. Basil listed Anna's house. Buyer Mary called Basil and asked to see the listing. Basil showed Anna's house to Mary and she decided to make an offer. Basil wrote the offer for Mary. Principal Broker Karen is in a ____________ relationship with Seller Anna. Disclosed limited agency Single agency

Disclosed limited agency

Broker Nina and Broker Vesta work for Principal Broker Griffin. Vesta is working with Marlin, who is interested in purchasing a property in McMinnville. Nina's client, Cody, is also looking to purchase a property in McMinnville. A very well priced property has recently been listed by a competing brokerage. Nina and Vesta present the property to their buyers and both Cody and Marlin are interested in making an offer on the property. Principal Broker Griffin is in a ____________ relationship with Buyer Cody. Single agency Disclosed limited agency

Disclosed limited agency

Which statement is correct? If the agent pretends to be acting for herself, she's probably representing a disclosed principal. The agent represents the disclosed third party. Disclosed, Undisclosed, and Partially Disclosed are all types of principals.

Disclosed, Undisclosed, and Partially Disclosed are all types of principals. The agent never represents the third party. The third party is called the third party because no contract exists between the agent and the principal to the third party. If the agent pretends to be acting for herself, she is representing an undisclosed principal.

Which is FALSE about Disclosed Limited Agency? Disclosed Limited Agency occurs when a licensee represents both the buyer and seller in the same transaction. Either the buyer or seller can waive their right to sign the Disclosed Limited Agency Agreement when they are in a limited agency representation situation. There are separate Disclosed Limited Agency Agreement forms for a seller and a buyer. The duties of the licensee listed in the Disclosed Limited Agency Agreement must be discussed with the buyer and seller.

Either the buyer or seller can waive their right to sign the Disclosed Limited Agency Agreement when they are in a limited agency representation situation. Neither party can waive "the right" to sign the Disclosed Limited Agency agreement when they are in a limited agency representation situation. Plain and simple.

Which statement is true? The prospect must acknowledge receipt of the Initial Agency Disclosure Pamphlet. The licensee must keep a record of delivery of the Initial Agency Disclosure Pamphlet for nine years. If there is any doubt about whether to give the Initial Agency Disclosure Pamphlet, then it should be given. The licensee must memorialize in the transaction file the date and time the Initial Agency Disclosure Pamphlet was delivered.

If there is any doubt about whether to give the Initial Agency Disclosure Pamphlet, then it should be given.

Which of the following information can the disclosed limited agent disclose without consent from the clients? That the seller will accept a price lower or agree to terms less favorable than the listing price or terms. Confidential information relating to either the buyer or seller. That the buyer will pay a price greater or agree to terms more favorable than the offering price or terms. Information that would be considered a fraudulent misrepresentation should failure to disclose occur.

Information that would be considered a fraudulent misrepresentation should failure to disclose occur. The disclosed limited agent must disclose all information that, if not disclosed, would be considered to be a fraudulent misrepresentation.

Ricky and Lucy Ricardo have been looking for a house in the Country View Estates subdivision of Eugene using the services of Ethel Mertz of Mertz Realty and Property Management. The Ricardos are having a hard time finding a house because of low inventory and the exclusivity of the neighborhood. Ethel also is personally looking for a house in the same neighborhood and rushes out to look at a brand new listing. Ethel realizes the house will work well for Ricky and Lucy but decides to withhold telling them about it. Ethel submits a purchase offer on the house for herself. Which fiduciary duty did Ethel violate? Disclosure Loyalty Accounting Obedience Care

Loyalty The fiduciary duty of loyalty requires the agent to place client interest above customer and self. Ethel violated the fiduciary duty of loyalty.

Which statement is false? When the consumer indicates to you that they are already working with another real estate broker, you are not required to give the agency disclosure pamphlet. The real estate broker has the responsibility to ask the consumer if they are already working with another real estate broker. No agency disclosure pamphlet is required if the initial contact with the buyer was by telephone and about a specific property. If a property inquiry is by email, then the licensee can reply to the email and attach the agency disclosure pamphlet.

No agency disclosure pamphlet is required if the initial contact with the buyer was by telephone and about a specific property. It is required for an Initial Agency Disclosure Pamphlet to be given on first contact with the real estate consumer, regardless of the type of contact, the type of agency relationship or the type of property, so long as the consumer is not working with another real estate agent

If an agent obeys an unlawful instruction of the principal, is the agent protected from liability because of the fiduciary duty of obedience? No. Obedience is not an excuse to break the law. Yes. The agent should always honor the principal's wishes. Only if the law "broken" was a FEDERAL law. Only if the law "broken" was a STATE law.

No. Obedience is not an excuse to break the law. An agent does not have to and should not act in an illegal or unethical manner if so instructed by the principal.

Which of the following affirmative duties owed by an agent who represents only the seller may be waived? A)To advise the seller to seek expert advice on matters beyond the agent's expertise. B)To maintain confidential information about the seller after the termination of the agency relationship. C)To make continuous, good faith efforts to find a buyer for the property, with the exception that the seller's agent is not required to seek additional offers to purchase the property while the property is subject to a contract of sale. Only C can be waived. Only B can be waived. Only A can be waived. Neither A, B, nor C can be waived.

Only C can be waived. The only affirmative duty that can be waived by the seller is the duty for the agent to continue to seek additional offers after the seller has accepted an offer.

The type of agency relationship that compensates the agent, only if the buyer uses the agent's services in a particular transaction, is known as what? Express Agency Agreement. Closed Agency Agreement. Open Agency Agreement. Fee Simple Agency Agreement.

Open Agency Agreement. An open agency agreement means that the broker will be compensated ONLY if the buyer uses his/her services in the transaction.

After placing an advertisement on the Internet, what should a licensee do to ensure that it is not misleading? Pay for advertisement placement on other licensee's websites. Craft the advertisement in another licensee's name and direct all traffic to the licensee's own website. Periodically review the advertisement to make sure it is current and up-to-date. Make sure that the image used is enhanced as much as possible.

Periodically review the advertisement to make sure it is current and up-to-date.

Which one of the following is NOT a topic that should be covered by a buyers agent during the "needs assessment" phase of a buyers agency relationship? Learn the needs and wants of the buyer. Explain the process of buying a property. Prepare an offer to purchase a property. Outline the relationship between the buyer and the agent.

Prepare an offer to purchase a property During the needs assessment stage, one of the first things the agent should do is involve the buyer in an orientation session. For the agent, the goal of this meeting should be to understand the needs and wants of the buyer. For the buyer, the goal of this session should be a thorough understanding of the events, procedures, and considerations necessary to accomplishing a successful transaction.

Broker Nina and Broker Vesta work for Principal Broker Griffin. Vesta is working with Marlin, who is interested in purchasing a property in McMinnville. Nina's client, Cody, is also looking to purchase a property in McMinnville. A very well priced property has recently been listed by a competing brokerage. Nina and Vesta present the property to their buyers and both Cody and Marlin are interested in making an offer on the property. Broker Vesta is in a ____________ relationship with Buyer Marlin. Single agency Disclosed limited agency

Single agency

A broker for Company A represents the seller and a different broker for Company A represents the buyer. What type of relationship does each broker have with their client? Disclosed limited agency. Single agency. Exclusive Agency General agency.

Single agency.

During Spike's listing for Buffy's house, he is contacted by Willow who asks Spike to show her the house. Spike politely explains to Willow how Oregon agency law works and that he is representing only Buffy. Spike is a dual agent. Spike is a limited agent. Spike is a single agent. Spike is a gratuitous agent

Spike is a single agent. A single agent represents only one party to the transaction.

Paul signed a standard exclusive right to sell listing agreement with Steven, a Principal Broker. The listing price for his country estate was set at $900,000. After 2 months and numerous open houses, Steven received a cash offer from buyer Tom for $795,000 with a closing in two weeks. The time given to respond to the offer was 24 hours. Since Paul was out of the country and could not be reached, Steven signed Paul's name as the seller in the belief that Paul would not want to lose the deal. Upon his return, Paul felt the price was too low and refused to proceed to closing. Based upon the above facts, which one of the following statements is true? Steven must pay the $105,000 difference in price because he signed the earnest money agreement on behalf of Paul. Tom must sue Steven to force Paul to sign the deed. Tom can enforce the contract against Steven since he signed as seller. Steven exceeded his authority as an agent and Paul can have the contract voided.

Steven exceeded his authority as an agent and Paul can have the contract voided.

Which statement is FALSE about the acknowledgement of existing agency relationships? The acknowledgements of agency relationships by the seller and buyer are usually incorporated into most standard form real estate sale agreements. At the time of signing the offer to purchase, the buyer shall acknowledge the existing agency relationships, if any. At the time the seller accepts an offer to purchase, the seller shall acknowledge the existing agency relationships, if any. The agency acknowledgements by the buyer and seller must be in a separate document and may not be in the offer to purchase.

The agency acknowledgements by the buyer and seller must be in a separate document and may not be in the offer to purchase. Both the buyer and seller must sign a final agency acknowledgment at the time of signing the offer to purchase.

When representing a buyer, which is FALSE? The agent can arbitrarily decide to disclose confidential information when disclosure is deemed in the best interest of the buyer. The agent must disclose known material facts that would not be apparent or readily ascertainable by the buyer. The agent must deal in good faith. The agent must exercise reasonable care and diligence.

The agent can arbitrarily decide to disclose confidential information when disclosure is deemed in the best interest of the buyer. The agent must deal in good faith, exercise reasonable care and diligence, and disclose known material facts that would not be apparent or readily ascertainable by the buyer. Without instructions from the buyer, the agent cannot disclose confidential information about the buyer; the agent CANNOT arbitrarily disclose confidential information.

A principal discloses to her agent that she would sell a property for $500,000. During the listing period, the house is listed and marketed for $530,000. No offers come in, and the listing expires. Three weeks later, the agent confides to a customer that the seller would have sold for less than the listed price. Which of the following is true? The agent has created a dual agency situation with the customer. The agent has fulfilled all fiduciary duties, since the listing has expired. The agent has violated the duty of confidentiality. The agent is violating the duties owed this customer.

The agent has violated the duty of confidentiality. an agent may not disclose any information that would harm the client's interests or bargaining position, or anything else the client wishes to keep secret. The confidentiality standard is one of the duties that extends beyond the termination of the listing: at no time in the future may the agent disclose confidential information

In which of the following contact situations would a seller's agent be expected to disclose his agency relationships? The agent answers questions about the client's property for a telephone caller responding to a newspaper ad. The agent is showing a potential buyer houses in a certain price range in the multiple listing book. The agent tells an acquaintance at a party about the client's property. the agent is showing the client's property to a prospective buyer.

The agent is showing the client's property to a prospective buyer. Agency disclosure must occur upon "substantive contact" between the listing agent and a customer. Examples of substantive contact include: showing the prospect a property; eliciting confidential information from a prospect regarding needs, motivation, or financial qualification; and executing a contractual offer to sell or lease.

Which statement is FALSE regarding the affirmative duties owed by an agent who represents only the buyer? The agent must disclose known material facts that would not be apparent or readily ascertainable by the buyer. The agent must exercise reasonable care and diligence. The agent must deal in good faith with the buyer. The agent may disclose the buyer's confidential information if the agent deems it in the best interest of the buyer.

The agent may disclose the buyer's confidential information if the agent deems it in the best interest of the buyer. The only instance in which an agent may disclose the buyer's confidential information is if the agent is under subpoena or court order. Even after the agency relationship has terminated, the agent must still maintain this level of confidentiality.

Which of these statements is NOT TRUE about Open Agency Agreements? The broker will be compensated only if the buyer uses his/her services in the transaction. It permits the buyer to work with more than one buyer agent at a time. There is no incentive for loyalty. The broker will get compensated even if another broker ultimately writes the offer.

The broker will get compensated even if another broker ultimately writes the offer. In an open agency relationship the broker will be compensated ONLY if the buyer uses his/her services in the transaction.

Steve sends you a contact message through your website, asking if you can represent him as a buyer and help him find a property to buy. How long should you wait before replying to Steve's email? The email should be replied to as quickly as possible. Steve can expect an internet-standard 2 day wait before receiving a reply. You can wait 24 hours before sending a reply. Emails do not need to be replied to.

The email should be replied to as quickly as possible. Do reply promptly to all inquiries received from your website. Remember, the Internet is in real time. Delays are not expected.

Which of the following is FALSE? A written buyer's broker agency agreement, while not the only avenue of establishing the agency relationship, is the preferable way to establish an agency relationship with a buyer. The exclusive agency buyer representation agreement affords the agent more protection with respect to compensation than the exclusive right agreement. The exclusive right to represent agreement affords the agent the most protection with respect to compensation. An important function of the buyer's agent is to assist the buyer in determining an offering price for a property.

The exclusive agency buyer representation agreement affords the agent more protection with respect to compensation than the exclusive right agreement.

Which one of the following is NOT a factor when assisting the buyer in determining a fair offering price for a property? The Comparative Market Analysis (CMA) on similar properties in the area. The condition of the property. The local customs regarding the presentation of the offer to the seller. The listing price and length of time on market compared with average market time.

The local customs regarding the presentation of the offer to the seller. local customs may determine how the offer is presented to the seller, but does not have a factor in determining the price to offer for the seller's property.

Which of the following is true of the connection between compensation and the agency relationship? If an agency relationship exists, the principal must provide valuable consideration to the agent. If an agency relationship exists, the agent is entitled to compensation. An agreement to give and receive compensation creates an agency relationship. The relationship is independent of any compensation arrangement.

The relationship is independent of any compensation arrangement. it is important to understand that the agency relationship does not require compensation or any form of consideration. Nor does compensation define an agency relationship: a party other than the principal may compensate the agent.

Which statement is TRUE? When ordered by the client, the buyer's agent has to investigate matters that are outside the scope of the agent's expertise. The affirmative duties of the agent can be waived by the buyer. The affirmative duties of the agent can be waived by the seller. The seller can only waive the agents affirmative duty to continuously find a buyer for the seller's property.

The seller can only waive the agents affirmative duty to continuously find a buyer for the seller's property. The only affirmative duty a seller can waive is the agent's affirmative duty to continuously find a buyer for the seller's property. Additionally, a seller's agent is not required to seek additional offers to purchase the property while the property is subject to a contract for sale.

The seller can only waive the agents affirmative duty to continuously find a buyer for the seller's property. the only affirmative duty a seller can waive is the agent's affirmative duty to continuously find a buyer for the seller's property. Additionally, a seller's agent is not required to seek additional offers to purchase the property while the property is subject to a contract for sale.

What is the relationship between a buyer broker and the seller if the seller is represented by another agent? Single agency. Customer. Disclosed limited agent. Third Party.

Third Party Because the seller is represented by another licensee, the seller is the third party to the buyer's broker. A customer is an unrepresented party.

A dual agent's first duty is to disclose the agency relationship to both principal parties or to withdraw from one side of the duality. After disclosing, the agent must obtain the written consent of both parties. If both parties accept the dual agency, the agent owes all the fiduciary duties to both parties except full disclosure, undivided loyalty, and exclusive representation of either principal's interests. True False

True Undisclosed dual agency is illegal. A dual agent's first duty is to either disclose the agency relationship to both principal parties and obtain their written consent to represent both parties or to withdraw from representing one of the parties.

When executing the property selection phase of representing a buyer, the best approach for a buyer's agent is to: Suggest to the buyer that they do a computer search and advise the agent which properties they would like to see. Use as many sources as possible when searching for properties that match the desires of the buyer. Take a hands-off approach to let the buyer feel more comfortable with the selection process. Provide a list of possible matches to the buyer by way of an MLS printout and instruct the buyer to drive by the homes.

Use as many sources as possible when searching for properties that match the desires of the buyer.

Withdraw as the seller's agent.

Henry Standing Bear hired Branch Connelly to locate some land in Hood River County where the Confederated Tribes of the Warm Springs could build their next casino. During the property search, Hood River County passed a law making it illegal to locate a casino inside of their county. The agency relationship between Henry and Branch is terminated because of mutual agreement. unilateral discharge. death. a change in the law.

a change in the law. The subsequent illegality of the subject of the contract terminates the agency relationship.

A contingency in a real estate sale contract is an optional and unilateral action that either party may take at the request of the other party a condition added to the contract, that if unmet, renders the contract unenforceable. a promise by either the buyer or seller to perform an action. contingent acts either the buyer or seller may take to satisfy a contract requirement.

a condition added to the contract, that if unmet, renders the contract unenforceable.

A licensee seeking to represent both the seller and buyer in the same transaction must have both sign a disclosed limited agency agreement. a buyer representation agreement. a dual agency notification. a listing agreement.

a disclosed limited agency agreement. When representing both the buyer and seller in the same transaction, the licensee must have both parties sign a disclosed limited agency agreement.

According to the NAR® Code of Ethics, an "agent" is defined as a real estate licensee (including brokers and sales associates) acting in an agency relationship as defined by state law or regulation. a registered member of the National Association of REALTORS®. the person(s) or entity(ies) with whom a REALTOR® or a REALTOR®'s firm has an agency or legally recognized non-agency relationship. a person who has a signed agency contract to represent a principal in a real estate transaction.

a real estate licensee (including brokers and sales associates) acting in an agency relationship as defined by state law or regulation. "Agent" means a real estate licensee (including brokers and sales associates) acting in an agency relationship as defined by state law or regulation.

Christine asked Spencer to come list her house. In preparation for his listing appointment, Spencer compiled his market statistics, prepared his formal CMA for presentation, and concluded that Christine should consider listing for between $465,000 and $480,000. During the presentation but before Spencer had an opportunity to discuss his CMA, Christine offered that she was very familiar with all of the prices in the area and that her house couldn't possibly be worth more than $400,000, which is at least $65,000 less than Spencer's professional price opinion. To complete his fiduciary responsibilities, Spencer should acknowledge that price is ultimately her decision and then offer his professional price opinion and thoroughly discuss the CMA with her. stop talking, list the property for the $400,000, and not show Christine the CMA. suggest to Christine that she pays for a professional real estate appraisal. refuse to list the property if she insists on listing below his suggested price range.

acknowledge that price is ultimately her decision and then offer his professional price opinion and thoroughly discuss the CMA with her. spencer's should let Christine know that she is in control of pricing, but show her his CMA, indicating that market statistics show she could get much more for the property. To fulfill the fiduciary duty of care (reasonable care and diligence), licensees must offer their price opinions based on available market data, even if the client interferes. After giving Christine all of the data, and if she still wants to list at $400,000, it is okay to proceed to list the property.

A real estate listing agreement is: an employment contract. an obligation to sell. a purchase contract. All of the above

an employment contract. A real estate listing contract is an employment contract between a principal broker and a property owner. It is not an offer to purchase or any obligation that the seller *must* sell within the term of the contract.

In real estate, a CMA is an appraisal used by lenders to determine the value of the loan's collateral. an informal estimate used to determine a property's listing price. a country music award show. a compensation agreement between a buyer and a licensee.

an informal estimate used to determine a property's listing price.

During the needs assessment stage, one of the first things the agent should do is involve the buyer in negotiations. the escrow process. an orientation session. a mortgage application.

an orientation session. One of the first things the agent should do is involve the buyer in an orientation session. For the agent, the goal of this meeting should be to understand the needs and wants of the buyer. For the buyer, the goal of this session should be a thorough understanding of the events, procedures, and considerations necessary to accomplishing a successful transaction.

Agent Michael is showing his new listing to a buyer who informs him that he has just inherited five million dollars. Michael is now bound by fiduciary duty to keep the information in confidence. disclose the information to the buyer's agent. disclose the information to the seller. verify the buyer's statements before disclosing them to the client.

disclose the information to the seller. An agent has the duty to inform the client of all material facts, reports, and rumors that might affect the client's interests in the property transaction. This includes: the agent's opinion of the property's condition; information about the buyer's motivations and financial qualifications; discussions between agent and buyer regarding the possibility of the agent representing the buyer in another transaction.

Mary and Jennifer want to make an offer to purchase 7236 SW Hermosa and instruct their agent to write the offer using their legal names, Mary Famosa and Jennifer Santee. This is an example of partially disclosed principals. disclosed principals. undisclosed principals.

disclosed principals The third party knows that there are principals and knows the identity of the principals. Therefore, Mary and Jennifer are disclosed principals.

Ethel, a broker for Mertz Realty and Property Management, listed Ricky and Lucy's house and then suffered a heart attack and died one month later. Fred, Ethel's principal broker, must get Ricky and Lucy to sign a new listing contract. handle the listing himself or assign it to another broker in his office. do nothing because Ethel's executor will decide what happens with Ethel's clients. advise Ricky and Lucy to list their property with another brokerage.

handle the listing himself or assign it to another broker in his office. Because the listing agreement is legally binding between Fred and Ricky and Lucy, Fred has to either handle Ethel's listing himself or assign them to another broker who works for him. This personal service contract does not terminate on Ethel's death because the actual agent in this relationship is the principal broker, Fred. Ethel is a sub-agent.

A property seller empowers an agent to market and sell a property on his behalf. The kind of agency represented is special. universal. no agency. general.

special. Under a special agency agreement, the principal delegates authority to conduct a specific activity, after which the agency relationship terminates. In most cases, the special agent may not bind the principal to a contract. Real estate brokerage is commonly based on a special agency.

The real estate sale agreement contains an open-ended home inspection contingency: if the buyer doesn't complete inspections within a reasonable time, the transaction is canceled. Three months into the contract, the buyer still hasn't ordered the home inspection. The normal inspection contingency period is just 10 business days. Which of the following is true? The buyer can continue indefinitely to find an inspector and the seller's house has to stay off the market. The buyer's agent did a good job at drafting the contingency. The seller's agent properly advised the seller about the necessity of having a contingency expiration date. The seller can cancel the contract since it can be ruled invalid because of poor drafting. The seller can cancel the contract since it can be ruled invalid because of poor drafting.

he seller can cancel the contract since it can be ruled invalid because of poor drafting. The seller may cancel the contract if the buyer's agent includes a poorly drafted contingency since it can be ruled invalid. A contingency that is too broad, vague, or excessive in duration may invalidate the entire contract on the grounds of insufficiency of mutual agreement. A contingency should be explicit and clear, have an expiration date, and expressly require diligence in the effort to fulfill the requirement.

An owner's agent is showing a buyer a residential property for sale. The buyer notices water stains on the foundation walls and floor, and informs the agent. The appropriate course of action for the agent is to immediately contract to paint the ceiling. immediately contract to repair the roof. suggest the buyer make a lower-price offer. inform the seller.

inform the seller. an agent has the duty to inform the client of all material facts, reports, and rumors that might affect the client's interests in the property transaction.

Because many buyers find properties by using an online MLS, the main task for today's listing agent is to optimize the property so that it will always be among the top search results. keep the property listed at a low enough price to attract buyers. promote the listing through broker and public open houses. list the property at a reasonable price and assist the seller in making the property saleable.

list the property at a reasonable price and assist the seller in making the property saleable. The listing agent's main task is to list the property at a reasonable market price and assist the seller in making that property saleable.

The degree of authority granted by a residential brokerage listing agreement generally allows the agent to market, sell and show the property. create contractual obligations for the client. negotiate the selling price between client and customer. hire inspectors, and other individuals to prepare the property for marketing.

market, sell and show the property. Special agency limits the scope of the broker's authority to specific activities, generally those which generate customers and catalyze the transaction. A special agency agreement usually does not authorize a broker to obligate the client to a contract as a principal party. Normally, principals do not delegate the authority to negotiate price to an agent in a residential transaction.

Fred, principal broker at Mertz Realty and Property Management, entered into a one-year property management agreement with his friend and client, Ricky Ricardo, for his 96-unit apartment complex. Ricky is upset with Fred's service so to save their friendship they agree to terminate their contract before its expiration date. Ricky and Fred terminated their agency relationship by change in the law. death. mutual agreement. unilateral discharge.

mutual agreement Both parties agreed to end the relationship early by mutual agreement. Mutual agreement terminates agency relationships.

When preparing a CMA the licensee should never adjust the value of the comparable properties. add value to the subject property if a feature is superior to the comparable. subtract value from the subject if a feature is inferior to the comparable. never adjust the subject property.

never adjust the subject property. alue adjustments are made to the comparable properties.

Among the fiduciary duties imposed on a real estate agent is the requirement to refuse offers the agent knows will be unacceptable to the principal. advise the principal against accepting an offer that is below full price. present all offers to the principal regardless of their amount. advise a prospect that the principal will not accept the prospect's offer in order to elicit a better offer.

present all offers to the principal regardless of their amount. A conventional listing agreement does not authorize an agent to obligate the client to contracts, and it does not allow the agent to conceal offers to buy, sell, or lease coming from a customer or another agent. Further, since a client relies on a broker's representations, a broker must exercise care not to offer advice outside of his or her field of expertise.

In the case of personal service contracts, the death of either the principal or the agent converts the personal service contract to a third party contract. terminates the agency relationship. will shift the agency relationship to the deceased's heirs. has no affect on the agency relationship.

terminates the agency relationship. A contract whereby the promisor is to perform certain services of a personal nature, a personal service contract, cannot be performed by an assignee or successor and is discharged by the death of either party, whether the principal or the agent; a personal service contract terminates on the death of either the principal or the agent.

A principal has all of the following responsibilities and duties to the agent, EXCEPT to act in good faith and be honest in all dealings with the agent. to cooperate with the agent and not hinder the agent's performance. to compensate the agent only if satisfied with the agent's service. to reimburse the agent for expenses if the agency agreement requires reimbursement.

to compensate the agent only if satisfied with the agent's service.

Raul Ruiz contacts his broker to purchase a house in Sunriver. Because he is so famous, he does not want to make the offer in his name and asks the broker to make the offer in her name. This is an example of a/an _____ principal. disclosed undisclosed partially disclosed

undisclosed Because the third party neither knows who the principal is nor knows that another principal exists, Paul is an undisclosed principal.

Star, the President of Good Coffee Corporation, entered into a buyer agency agreement with her brother-in-law, Buck, to find her a suitable location for her next coffee shop. After 60 days, Buck failed to present Star with any properties so Star fired Buck. Star terminated her contract with Buck by death. unilateral discharge. mutual agreement. change in the law.

unilateral discharge. Star fired Buck. In contract law, this is known as a unilateral discharge. Unilateral discharge terminates agency relationships.

Module 2 - Agency Review

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