Section 10 Unit 2

In a single agency relationship, a firm represents ______. a. Both the seller and buyer b. Either the buyer or the seller c. Neither party d. The seller only

b. Either the buyer or the seller

Which of the following duties does a licensee owe to a buyer with whom no agency agreement exists? a. Advocacy b. Confidentiality c. Honesty d. Loyalty

c. Honesty

A licensee has a written listing agreement with a seller. Who is the licensee's client? a. Both the seller and the buyer b. The buyer c. The licensee's broker d. The seller

d. The seller

If you've shown Suzie three properties, and she decides to put an offer in on one of them but hasn't signed an agency agreement with you, who do you represent? a. Both Suzie and the seller b. No one c. Suzie d. The seller

d. The seller

Buyer Kristin has a buyer agency agreement with Carlotta, a licensee. Kristin's brother, Dalton, is going to showings with Kristin and helping her decide which house is the best fit. Who is/are Carlotta's client(s)? a. Kristin b. Kristin and Dalton c. Kristin and the seller d. The seller

a. Kristin

At a sales meeting you learn that one of your firm's listings must sell that week. "Get 'er sold!" your broker tells you. "The clients must move out in 40 days." You'd really like to get that sale. What can you tell prospective buyers? a. "I'd love to show you one of my firm's listings." b. "The negotiating power is all in your hands." c. "The seller is highly motivated." d. "The seller must sell this week."

a. "I'd love to show you one of my firm's listings."

You meet a prospective buyer at a holiday party. The buyer is already represented by an agent, but wants to pick your brain about one of your firm's listings. Which of the following are you allowed to do? a. Disclose that you represent the seller. b. Give advice on an appropriate offer. c. Listen to the buyer's motivation to buy. d. Offer to represent the buyer as a designated agent.

a. Disclose that you represent the seller.

A licensee must perform which of the following tasks for a buyer client? a. Ensure the buyer understands the importance of due diligence, including a professional inspection of the property. b. Review the seller's property disclosures and show the buyer the ones that you believe are important. c. Show the buyer properties that you are listing for other sellers. d. Tell the buyer how much earnest money she should put down to ensure the deal goes through.

a. Ensure the buyer understands the importance of due diligence, including a professional inspection of the property.

You're doing an open house for your seller, and a prospective buyer walks in. The buyer begins asking you about the property's value in relation to others for sale. You offer to show the other properties to the buyer. What agency violation, if any, have you committed? a. Failed in undivided loyalty to seller, acted as undisclosed dual agent, did not disclose agency relationship b. Failed to disclose agency relationship c. Neglected duty of single-marketing d. None

a. Failed in undivided loyalty to seller, acted as undisclosed dual agent, did not disclose agency relationship

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. In single agency, one agent represents both the buyer and seller in the same transaction.

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. She can't do this at her firm.

Violet is acting as a single agent. Her client asks her a complicated question about taxes. How should Violet answer? a. "As a single agent, I'm not allowed to provide you with any advice about your transaction." b. "I'm not a tax attorney, so I can't answer that. Let me see if I can find one for you to ask." c. "Let's browse the Internet together and see if we can figure this out." d. "This is the kind of question I need to refer to my managing broker. I'll ask her and get back to you."

b. "I'm not a tax attorney, so I can't answer that. Let me see if I can find one for you to ask."

Which of the following is true of agency agreements? a. A landlord and an agent will sign an exclusive-right-to-sell listing agreement. b. A listing agreement is an express agreement. c. An open listing agreement provides the highest form of protection for the listing agent. d. A property management agreement is an agreement between a landlord and a tenant.

b. A listing agreement is an express agreement.

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 sub-agent for the other. d. Two agents from one firm act, separately, as the agent for the buyer the agent for the seller.

b. An agent from one firm acts as the agent for the buyer.

A licensee has several tasks to perform for seller clients. What's one of those tasks? a. Advise sellers on the property conditions they shouldn't disclose to the buyer. b. Communicate all offers and counter-offers to the sellers. c. Disclose to the sellers that if the property doesn't sell within 60 days, the asking price must be lowered. d. Ensure an implied agency agreement is in place.

b. Communicate all offers and counter-offers to the sellers.

Janelle's a broker who owns a small firm. She has decided that the firm will be a single agency firm. This means that her agents represent ______. a. Both parties in all of their transactions b. Either the buyer or the seller in each transaction c. Lenders and other third-party service providers d. Only sellers

b. Either the buyer or the seller in each transaction

Which of these tasks must a licensee perform for buyer clients? a. Advise the buyer on how to get the seller to come down on the asking price. b. Ensure that the buyer receives copies of all signed paperwork. c. Explain to the buyer how to deposit the earnest money into the seller's personal checking account. d. Explain to the buyer that there's really no need to review transaction documents because they're all standard.

b. Ensure that the buyer receives copies of all signed paperwork.

Erik is acting in a single agency capacity in a transaction. What does this mean? a. Erik isn't part of a realty team within his brokerage firm. b. He's representing (and owes undivided loyalty to) either the buyer or the seller. c. He's working as a non-agent for either the buyer or seller. d. His firm doesn't allow dual agency.

b. He's representing (and owes undivided loyalty to) either the buyer or the seller.

Sara is your buyer customer. She doesn't want to sign a buyer agency agreement. What duty do you owe her? a. Confidentiality b. Honesty and fairness c. Negotiation of the best price d. Undivided loyalty

b. Honesty and fairness

When there is no agency agreement in place between you and a buyer, which of the following duties do you owe that buyer? a. Confidentiality b. Honesty and fairness c. Negotiation of the best price d. Undivided loyalty

b. Honesty and fairness

It's the policy of Kathleen's brokerage to only practice single agency. Which of the following best describes this? a. Representing both buyers and sellers in the same transaction b. Representing either the buyer or the seller in a transaction, but never both at the same time c. Representing only buyers in all transactions d. Representing only sellers in all transactions

b. Representing either the buyer or the seller in a transaction, but never both at the same time

After a few meetings, the Stinsons sign a listing agreement with broker Vera so she can sell their house. The house has already generated interest from a potential buyer named Sergei, who has spoken with Vera about the house's price and square footage. Which of the following is true about this situation? a. Because Vera now has a sub-agency relationship with the Stinsons, she shouldn't talk to Sergei until the house is officially on the market. b. The Stinsons and Vera have brokerage relationship agreement. c. Vera has an agency agreement with Sergei. d. Vera should disclose the dual agency that has been created by her direct assistance to the buyer

b. The Stinsons and Vera have brokerage relationship agreement.

In a buyer agency relationship, whom does the licensee represent? a. Both the seller and the buyer b. The buyer c. The listing firm and the buyer d. The seller

b. The buyer

In a buyer agency relationship, what relationship does the seller have to the licensee? a. The seller is the licensee's client. b. The seller is the licensee's customer. c. The seller is the licensee's fiduciary. d. The seller is the licensee's nemesis.

b. The seller is the licensee's customer.

Which one of the following tasks must licensees perform for seller clients? a. Dictate the listing price of the property. b. Drive the sellers around to show them other properties that are for sale in their neighborhood. c. Ensure that the buyer's earnest money is deposited. d. Show the sellers how they can market their property.

c. Ensure that the buyer's earnest money is deposited.

Your seller client directs you to not do any showings until Monday, which is fine because you believe you have a buyer who will want to make an offer Monday. But on Sunday you get a call from another agent who has a very interested cash buyer who's leaving town that day and must see the property Sunday. What fiduciary duties are in conflict here? a. Accountability and Obedience b. Obedience and Disclosure c. Obedience and Loyalty d. Personal Interest and Disclosure

c. Obedience and Loyalty

Karla works for a single-agency firm. Which of these actions is she NOT allowed to take? a. Giving her client the duty of obedience b. Helping another broker in her firm with some transactional work c. Representing both the buyer and the seller in the same transaction d. Representing the seller in multiple transactions

c. Representing both the buyer and the seller in the same transaction

Which of the following is a buyer's agent's task or duty? a. Advocating for the seller b. Negotiating for the seller c. Representing the buyer's interests d. Reviewing transactional documents with the seller

c. Representing the buyer's interests

As a licensee, you'll have several tasks you must perform for your buyer client. One of these tasks is to ______. a. Coach the buyer on how to negotiate the terms of the sales contract to be completely in the buyer's favor d. Explain to the buyer why it's unnecessary to have a professional inspection done on a new home c. Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license d. Show properties the buyer might qualify for if he would put down more earnest money

c. Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license

Mavis is a buyer's agent working with Blaine, an unrepresented seller. Mavis's buyer, Cintra, makes an offer on Blaine's property. Mavis assists Blaine with the paperwork. What's Mavis's relationship to the parties? a. She's a buyer's agent to Cintra and an undisclosed dual agent with the seller. b. She's a dual agent to the buyer and seller. c. She's an agent to Cintra, and the seller is her customer. d. The seller and buyer are her customers.

c. She's an agent to Cintra, and the seller is her customer.

When a licensee represents a seller, which one of the following statements is true about the licensee's ability to list other properties that are for sale? a. The licensee isn't permitted to list other properties for sale. b. The licensee is permitted to list other properties for sale as long as they're not competing properties. c. The licensee is permitted to list other properties for sale, even if they're competing properties. d. The licensee must list the seller's property only for the first 90 days, after which the licensee may list other properties.

c. The licensee is permitted to list other properties for sale, even if they're competing properties.

Ned represents Sofia in the sale of her townhome. Luciana represents Sofia's buyer, Arturo. What is Luciana's responsibility to Sofia? a. Assist Sofia in the performance of tasks that Sofia needs to accomplish in order to get to a successful closing. b. Contact the tax assessor's office for an estimate of the real property taxes. c. Disclose that the buyer is a registered sex offender. d. Disclose that the buyer will not have the funds for the down payment unless he sells his current home.

d. Disclose that the buyer will not have the funds for the down payment unless he sells his current home.

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. From representing the buyer and seller in the same transaction

Estelle is representing seller Margaret. Which of the following tasks is one that Estelle is required to perform as Margaret's agent? a. Determine the property's listing price based on comparables. b. Give the buyer's earnest money to Margaret to deposit into her personal checking account. c. Hire someone to market the property. d. Inform Margaret about required property condition disclosures.

d. Inform Margaret about required property condition disclosures.

If you tell a buyer customer about the need of your firm's seller client to sell, in spite of the seller instructing that no one be told, what duty or duties are you breaking? a. Accountability and loyalty b. Disclosure, loyalty, and accountability c. Obedience, accountability, and disclosure d. Obedience, loyalty, and confidentiality

d. Obedience, loyalty, and confidentiality

Which of these documents does NOT establish an agency relationship between a client and a licensee? a. Brokerage agreement b. Buyer representation agreement c. Listing agreement d. Purchase agreement

d. Purchase agreement

What responsibility does the seller's agent have to the seller? a. Advocate for and ensure the sale is profitable for the seller. b. Advocate for the seller and help present the property in the best light, even if it means covering up material defects. c. Ensure the sale is profitable for the seller. d. Seek a sale at the best price at terms that are acceptable to the seller.

d. Seek a sale at the best price at terms that are acceptable to the seller.

If a buyer wants to write an offer and asks for your help but doesn't want to sign an agency agreement with you, who do you represent? a. Both the buyer and the seller b. No one c. The buyer d. The seller

d. The seller

In a seller agency relationship, to which party does the licensee owe undivided loyalty? a. Both the seller and the buyer b. The broker c. The buyer d. The seller

d. The seller

Who does the agent assisting the buyer in a transaction represent if there's no buyer agency agreement? a. No one b. The buyer in a sub-agency capacity c. The customer d. The seller

d. The seller

Without a buyer agency agreement in place, which party does the agent who's assisting the buyer represent? a. No one b. The agent c. The buyer d. The seller

d. The seller

Licensee Randy has a written listing agreement with Brent, a seller. The buyer is Tim. Who is Randy's client? a. Both the seller (Brent) and the buyer (Tim) b. Randy's broker c. The buyer (Tim) d. The seller (Brent)

d. The seller (Brent)