Unit 4 Quiz

Acts a licensee may perform for a consumer that are informative only are referred to under Illinois law as

(C) ministerial

Which statement is TRUE regarding the duties of a real estate broker who is acting as the agent of the seller?

(A) The broker is obligated to render faithful service to the principal.

Which of these would be considered dual agency?

(A) The sponsored licensee acting for both the buyer and the seller in the same transaction

A property manager is hired to manage a property while the owner is overseas for two years. The property manager is

(A) a general agent

A seller has listed her home with a broker for $290,000, and the broker tells a prospective buyer to submit a low offer because the seller is desperate to sell. The buyer offers $285,000 and the seller accepts it. In this situation,

(A) the broker has violated his agency relationship with the seller

The real estate broker's responsibility to keep the principal informed of all the facts that could affect a transaction is the duty of

(B) Disclosure

Which of these best describes the statue of the common law of agency in Illinois as it relates to broker/client relationships?

(B) It has been replaced by statutory rules.

It is the duty of an agent to disclose to the principal every step take in the transaction of the principal's business. This is because the

(B) agent has fiduciary obligations to the principal.

Under Illinois law, a licensee owes a third party disclosure of

(B) all known adverse facts about the property's physical condition

Which of these is illegal in an Illinois agency agreement?

(B) an automatic extension clause

A listing broker was told by his principal not to advertise her property in a newspaper that was out of the area. The broker complied because he

(B) must obey the lawful instructions of his principal

As an agent for the seller, a real estate broker can

(B) solicit an offer to purchase the property from a prospective buyer

In Illinois, a licensee working with a buyer sells a property listed by another brokerage firm in the MLS. The licensee has been working with the buyer for many months but does not have a written agency contract with the buyer. This licensee has created an implied agency with

(B) the buyer

Illinois law requires brokers to deliver true copies of all documents to the parties within how many hours of their signing

(C) 24 hours

A broker who represents the seller is showing a house to a prospective buyer. The broker knows that the house occasionally has seepage in the basement. Which of these is TRUE?

(C) Withholindg the information prevents the buyer from making an informed decision.

The relationship of a broker to her client is that of

(C) a fiduciary

Under Illinois law, the person who receives brokerage services but is not represented by the broker is called a

(C) consumer

A buyer who is shown properties listed for rent by a broker is the broker's

(C) customer or client

Upon discovering a latent defect in the property, the licensee should discuss the problem with the seller and then

(C) inform any prospectivebuyers of the defect

Which action is considered lawful practice in real estate brokerage?

(D) "Puffing" statements about the property

Which phrase best defines the traditional law of agency?

(D) The rules of law that define the responsibilities of an agent to the principal

A broker who is the agent of the buyer should

(D) advise the buyer if the listing price of the seller's house is unrealistic

Illinois law does not recognize

(D) undisclosed dual agency

A licensee is permitted to represent both the seller and the buyer in the same transaction when

(D)both parties have been informed in writng and have agreed to the dual representation