Real Estate Principles - Chapter Six; The Law of Agency

An agent owes which of the following to a third party? a.) Duty of disclosure b.) Duty of representation c.) Duty of trust d.) Fiduciary duties

a.) (Duty of disclosure)

The MOST commonly used form of listing agreement is the a.) exclusive right to sell. b.) exclusive agency. c.) net agreement. d.) open agreement.

a.) (exclusive right to sell.)

When an agent represents both they buyer and the seller in the same transaction, this action is a.) known as dual agency. b.) an example of subagency. c.) prohibited by the MLS. d.) against the law.

a.) (known as dual agency.)

Real estate commission rates are a.) always 4 percent. b.) negotiable. c.) subject to cancellation. d.) fixed by law.

b.) (negotiable.)

One of the MOST important duties of agent to principal is the duty of a.) salesmanship. b.) beneficial conduct. c.) loyalty. d.) hard work.

c.) (loyalty.)

The Real Estate Law treats a salesperson as a.) a dual agent. b.) a general agent. c.) an independent contractor. d.) an employee of the broker.

d.) (an employee of the broker.)

For tax purposes, a salesperson can work for the broker as a.) a dual agent. b.) a subagent. c.) a partner. d.) an independent contractor.

d.) (an independent contractor.)

A nonexclusive listing agreement is also known as a.) a net listing. b.) an agency listing. c.) an option listing. d.) an open listing.

d.) (an open listing.)

An agent is authorized to act in place of the principal by a a.) multiple listing clause. b.) listing agreement. c.) purchase contract. d.) power of attorney.

d.) (power of attorney.)

A real estate agent works for the a.) third party. b.) real estate board. c.) Bureau of Real Estate. d.) principal.

d.) (principal.)