Ch 4 Review Questions
A real estate broker takes a listing to sell someone's house. What is the relationship between the broker and the seller? a. Agent-principal b. Client-customer c. Agent-customer d. Principal-principal
a. Agent- principal
What part of fiduciary duties requires the agent to use her skills and abilities in her client's best interest? a. Obedience b. Care c. Disclosure d. Confidentiality
b. Care
Your seller client needs to sell his property quickly to take a job in another city. What do you do with this information? a. You tell the buyers this so the house sells quickly b. You keep this information confidential c. You tell the buyers only if they ask d. You reveal this information only to a buyer's agent
b. You keep this information confidential
An agent representing both a client and a customer would be practicing a. single agency b. dual agency c. exclusive agency d. open agency
b. dual agency
A real estate broker generally acts as what type of agent? a. Universal agent b. General agent c. Special agent d. Ratified agent
c. Special agent
A broker will earn a commission on the sale of a property whether or not she was the procuring cause of the transaction under what type of listing agreement? a. Open listing b. Multiple listing c. Exclusive agency listing d. Exclusive right to sell listing
d. Exclusive right to sell
What kind of relationship exists between an agent and a principal? a. Exclusive b. Special c. Compensatory d. Fiduciary
d. Fiduciary
To whom does an agent always owe her fiduciary responsibility? a. Buyer b. Seller c. Customer d. Principal
d. Principal
Which of the following types of information does not have to be disclosed to the seller client? a. The buyer's financial condition b. An offer that the agent feels is unacceptably low c. The fact that the buyer owns a part interest in a sailboat with the agent d. The occupation of the buyer
d. The occupation of the buyer
Accounting requires a. a monthly expense statement provided to the client b. the conversion of funds to pay expenses c. co-mingling of funds d. no co-mingling of funds
d. no co-mingling of funds
