CH -1 WA

Which of the following would not be an example of dual agency? A. An agent represents a seller in transaction whom the agent represented as a buyer a decade ago B. An agent represents both parties in a transaction with their written consent c. Both the buyer's and seller's agents represent the same broker the buyers' best interest D. A seller's agent provides advice to potential buyers, creating the impression that he was acting in

A. An agent represents a seller in a transaction whom the agent represented as a buyer a decade ago Explanation: An agent may represent the same person in successive transactions without a dual agency being formed. Dual agency may be created by written agreement or an agent's inadvertent actions.

2. A listing agent begins giving suggestions regarding an offer amount to some prospective buyers at an open house, without explaining that she is representing the sellers. Which of the following statements is NOT true? A. The agent has not violated any duties, because she is not performing real estate services for the buyers B. The agent is not acting in accordance with her agency status The agent may be considered an undisclosed dual agent D. The agent could be sued by both the buyers and the sellers

A. The agent has not violated any duties, because she is not performing real estate services for the buyers Explanation: The agent has become an undisclosed dual agent, and she could be sued by both the buyers and the sellers if they suffer financial harm as a result of her failure to disclose her agency status and fulfill her fiduciary duties.

7. Which of the following would be considered a material fact that an agent would be compelled to disclose? A. The roof leaks during rainy weather B. The house was once the site of a suicide C. The house was once rented by gang members D. The house was once the headquarters for a doomsday cult

A. The roof leaks during rainy weather Explanation: An agent must disclose latent defects that would not be discovered through ordinary inspection, such as a leaking roof. It is not material if the house was the site of a crime, gang activity, or political or religious activity.

A dual agent owes agency duties to: A. both parties B. neither party c. whichever party she began working with first D. the seller

A. both parties Explanation: A dual agent owes agency duties to both parties. For instance, a dual agent will not be allowed to disclose either party's confidences to the other party.

All of the following may be special benefits of buyer agency, EXCEPT: A. duty of reasonable care and skill B. duties of loyalty and confidentiality C. objective advice on properties D. help with negotiation

A. duty of reasonable care and skill Explanation: All licensees owe the duty of reasonable care and skill to all parties, without regard to the agency relationships involved.

Services a seller's agent may lawfully provide to a buyer include all of the following EXCEPT: A. providing advice regarding an amount to offer the sellers B. disclosing pertinent information about the property and neighborhood C. helping the buyer secure financing D. presenting the buyer's offer to the seller

A. providing advice regarding an amount to offer the sellers Explanation: A seller's agent may help the buyers fill out a purchase offer form and present it to the sellers, but must always act in the seller's best interest, and so should not give the buyers negotiating suggestions.

Which of the following is not a common law method of creating an agency relationship? A. By express agreement B. By necessity c. By ratification D. By estoppel

B. By necessity Explanation: Under common law, an agency relationship may be created by express agreement, ratification, or estoppel.

15. Which of the following is the customary method through which a buyer's agent may be compensated? A Hourly rate B. Commission split with listing agent C. Flat fee paid by buyer D. Percentage of sales price, paid by buyer

B. Commission split with listing agent Explanation: In most cases, a buyer's agent will be paid through a commission split, in which the buyer's agent receives a portion of the commission paid to the listing agent. All of the other options are allowable, but commonly used only if buying a property not listed with an MLS.

Any real estate agent who is representing a party to the transaction is considered a: A. co-agent B. cooperating agent C. dual agent D. principal

B. cooperating agent Explanation: Under an offer of cooperation provision in a listing agreement, other agents from an MLS are considered cooperating agents (not agents of the seller).

A buyer representation agreement: A. cannot include an extender clause B. may include an extender clause c. is invalid without an extender clause D. is invalid if it includes an extender clause

B. may include an extender clause Explanation: A buyer representation agreement may include an extender clause, but that isn't an essential provision.

6. An agent receives an offer of $250,000 on a property that she has listed for $255,000. When she is about to present the offer to the sellers, another offer comes in for $200,000. She should: A. present the lower offer only if the sellers reject the higher offer B. present both offers at the same time C. present the higher offer only after the sellers reject the lower offer D. discard the lower offer, as it is clearly frivolous

B. present both offers at the same time. Explanation: An agent must present all written communications to the principal in a timely manner, even if it's an offer the seller is likely to reject.

Which of the following is not a duty owed to every party in a transaction? A. Reasonable care and skill B. Honesty and good faith C. Confidentiality D. Accounting

C. Confidentiality Explanation: An agent owes the duty of confidentiality only to his or her principal.

Which of the following could not be considered confidential information? A. The sellers are divorcing and need a quick sale B. The buyer has received a large inheritance and can afford to pay the listing price in cash C. The basement is subject to flooding during winter rains D. The buyer has made his top offer

C. The basement is subject to flooding during winter rains

9. If you are a licensee who is also a principal in a real estate transaction, you will have to disclose all of the following EXCEPT that you are: A a licensed real estate agent B. purchasing or selling the property for your benefit C. a dual agent D. intending to profit from the transaction

C. a dual agent Explanation: A licensee acting as a principal in a transaction is not a dual agent. He should never offer to represent the other party in such a transaction.

Disclosure of and consent to a dual agency: A. are not required in a transaction where both agents work for the same brokerage B. must occur only after the parties sign the purchase and sale agreement C. must be in writing D. allow the agent to promote the interest of one party over that of another party

C. must be in writing Explanation: Dual agency is legal in Washington only if it is disclosed and consented to in writing. Written agency agreements with both parties are also required.

12. You represent the seller in a transaction. You receive a low-ball offer from a buyer that you represented several years ago when he was selling a property. You know that he iS wealthy and will be able to afford the full amount. You may: A. tell the seller, since it's in her best interest B. Not tell the seller, unless you receive both parties' consent to dual agency c. not tell the seller, since you continue to owe the duty of confidentiality D. tell the seller if the statute of limitations has run out on your agency agreement with the buyer

C. not tell the seller, since you continue to owe the duty of confidentiality Explanation: The duty of confidentiality survives the end of an agency relationship, especially if you encounter your former principal on the opposing side of a new transaction.

14. In which of the following real estate transactions would a principal not be vicariously liable for the actions of her agent? A.= principal instructed an agent not to mention a latent defect B. A principal learned that an agent had not revealed a latent defect, and approved the agent's actions after the fact C. An agent arranged a sale of a property without revealing latent defects, from which the seller profited; the agent then died D. An agent did not reveal a latent defect, but the principal had no knowledge of the agent's actions until a lawsuit was filed

D. An agent did not reveal a latent defect, but the principal had no knowledge of the agent's actions until a lawsuit was filled Explanation: A principal may be vicariously liable for an agent's actions if the principal participated in or authorized the agent's acts, or if the principal benefited from the act and an injured party would be unable to enforce a judgment against the agent.

By what point in a transaction must you disclose your agency status in writing? A. Closing B. When first meeting any potential party to the transaction C. Whenever performing any agency duties D. Before a party signs an offer in the transaction

D. Before a party signs an offer in the transaction Explanation: You must disclose your agency status in writing before a party to the transaction signs an offer.

1. A person who has been authorized by another person to represent that person in a transaction is a/an: A. agent B. principal C. fiduciary D. Both A and C

D. Both A and C Explanation: A person who represents another in a transaction is an agent. Because of the position of trust that an agent is in, an agent is also considered to be a fiduciary.

20. An agent who does not represent either party in a transaction, but acts as a neutral facilitator, would be a/an: A. dual agent B. subagent C. interagent D. non-agent

D. non-agent Explanation: A non-agent does not represent either party in a transaction. He acts as an intermediary or facilitator.