Chapter 4 Agency

Which of the following would be considered dual agency?

A broker's acting for both the buyer and the seller in the same transaction.

Broker LaRue's newest salesperson, Shandra, lists a unit in a condominium building for sale. In this transaction Shandra

Acts on behalf of LaRue, her broker

A broker who is the agent of the buyer should do which of the following?

Advise the buyer if the listing price of the seller's house is unrealistic

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

Both parties have been informed and agree to the dual representation

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

Disclosure

Which of the following would be considered lawful practice in real estate brokerage?

Exaggerated statements about the property

The relationship of a broker to his or her client is that of a/n

Fiduciary

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

General agent

Mr. Mole's house has been listed for sale for more than one year and he is very anxious to move into a retirement community. Salesperson Rachel, who is a subagent of the seller, tells a prospective buyer to make a low offer because she is sure that the seller will accept it. Regarding Rachel's conduct, all of the following would be true EXCEPT

She acted appropriately to get the seller's property sold

A broker who represents a seller under an exclusive-agency listing receives two offers for the property at the same time, one from one of his salespeople and one from the salesperson of a cooperating broker. What should the broker do?

Submit both offers at the same time

Broker Sven, in the course of selling a home to customer Nancy, told her that the foundation was "solid as a rock" when he knew for a fact that it was slowly sinking into the landfill on which it was built. Now that the sale is settled, which of the following is LEAST LIKELY to happen to Sven?

Successful defense against all charges based on loyalty to his client-seller

Two salespeople working for the same broker obtained offers on a property listed with their firm. The first offer was obtained early in the day. A second offer for a higher purchase price was obtained later in the afternoon. The broker presented the first offer to the seller that evening. The broker did not inform the seller about the second offer so that the seller could make an informed decision about the first offer. Which of the following is true?

The broker ha no authority to withhold any offers from the sellers

A seller has listed her home with a broker for $190,000. The listing broker tells a prospective buyer to submit a low offer because the seller is desperate to sell. The buyer offers $185,000 and the seller accepts it. In this situation,

The broker has violated his agency relationship with the seller.

Which of the following best defines the law of agency?

The rules of law that apply to the responsibilities of a person who acts as agent for another

A salesperson who is employed by a broker told a prospective buyer that the house she was looking at is "the best house in the area" Because of this statement,

The salesperson was guilty of puffing

In designated Agency all of the following apply EXCEPT

The same agent may represent both the buyer and seller at the same time

A salesperson who represents the seller is showing a house to a prospective buyer-customer. The salesperson knows that the house has water problems in its basement. Which of the following is true?

Withholding the information prevents the buyer from making an informed decision

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

agent has fiduciary obligations to the principal

Broker Joan shows properties listed for sale with her company to prospect Karl. Karl has refused buyer representation Karl is Joan's

customer

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

inform any prospective buyers of the defect

When Broker Hearn was told by his principal not to advertise her property in a certain newspaper, which was out of the area, Hearn complied because he

must obey the lawful instructions of his principal.

A real estate broker acting as the agent of the seller

must promote and safe guard the seller's best interest

The type of agency practiced in which there is only ever one client is

single agency

As an agent for the seller a real estate broker can

solicit an offer to purchase the property from a prospective buyer

A broker has an exclusive-right-to-sell on a building. The owner is out of town when the broker gets an offer from a buyer to purchase the building provided the seller agrees to take a purchase money mortgage. The buyer must have a commitment from the seller before the seller is scheduled to return to the city. Under these circumstances the

the broker must obtain the signature of the seller to effect a contract

A salesperson sells buyer Fred's property listed by another brokerage firm in the Multiple Listing System. The salesperson has been working with Fred for many months but does not have an agency contract with him. This salesperson has fiduciary obligations to

the seller

Broker Smith is helping a buyer and seller fill out a sales contract, but is not representing either party. Broker Smith is a/n

transactional broker