section 5 exams

Fiduciary

10. In general, a person in a position of loyalty and trust is a(n) ______.

general

A ______ agent handles all of the details of a specific transaction.

special or specific

A ______ agent has limited scope of authority.

fiduciary

A ______ is someone has been placed in a position of loyalty and trust.

principal

A customer is known as a ______ when the customer is a party to a transaction, such as a buyer or a seller.

Ensure the buyer understands the importance of due diligence to include a professional inspection of the property.

A licensee must perform which of the following tasks for a buyer client

customers

A licensee owes ______ certain duties, but representation is not one of those duties.

fiduciaries

A real estate licensee working with a client, mortgage lenders, and attorneys are all examples of ______.

The agent has breached his duty of confidentiality to his client

A seller tells his agent that he has to sell his house quickly because of a divorce proceeding and that he's willing to accept less than his list price. His agent tells a buyer that the seller will accept as much as $10,000 less than the list price. Which of these is true?

The broker becomes incapacitated.

Agency may be legally terminated in which of the following ways?

limited agent

An escrow officer works in a limited capacity to serve the parties, so is a ______.

Customer

An unrepresented ______who's a party to a transaction is known as a principal.

The duty of accounting

Antje's clients closed on their property yesterday, but Antje still has some paperwork that she needs to deliver to them as soon as possible. Under which fiduciary duty is Antje acting?

April and Wayne

April and Wayne are the buyer and seller of a condo. Steve represents April, and Wanda represents Wayne. Who are the principal(s) in this sales transaction?

Yes

Can broker incapacitation legally terminate an agency agreement?

No

Does Tennessee allow implied agency?

Yes

Does the duty of confidentiality remain even after agency is terminated?

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

Erik is acting in a single-agency capacity in a transaction. What does this mean?

Buyer agency

Hanna represents the buyer, and Hank, an agent from a different firm, represents the seller in the same transaction. What type of agency relationship does Hanna have with her client?

Disclosure

If you fail to notify your client of a conflict of interest, in addition to the duty of loyalty, what other duty have you breached?

The seller is the licensee's customer.

In a buyer agency relationship, what relationship does the seller have to the licensee?

The seller

In a seller agency relationship, who does the licensee represent?

Only when clients are represented in traditional agency relationships.

Is the broker ever a dual agent in Tennessee?

Customer

Javier represents Marcus, who's selling his rental property to Ben. Ben is represented by another real estate licensee, Francis. What's Ben's relationship to Javier?

Only confidentiality and accountability

Jeremy's seller clients have completed closing and moved out of their house, and are just waiting for Jeremy to send them a copy of the final transaction documents. Which fiduciary duties does Jeremy still owe them?

Jessie should disclose this to her buyer.

Jessie, the buyer's agent, decides to informally inspect the property while she waits for the professional inspection. She notices a small puddle of water in the basement behind a stack of boxes. Later, Jessie calls the seller's agent and tells him what she found. The agent tells her not to worry; the seller is aware of the leak and plans to have it fixed within the week. Which one of these statements about this situation is true? • Since the seller intends to fix the leak, Jessie doesn't need to disclose it to her buyer. • Jessie can check the basement later to be sure the leak is fixed. • Jessie can rely on the inspector to discover and disclose the leak. • Jessie should disclose this to her buyer.

Jim must disclose that Rolly is his partner and that Rolly intends to subdivide the property to make a profit.

Jim represents Joel in the sale of Joel's country acreage and house. Jim's business partner, Rolly, is interested in purchasing the property to subdivide. Which statement best represents the disclosure requirements regarding this transaction?

Kristin

Kristin has a buyer agency agreement with Carlotta, a licensee. Kristin's brother, Dalton, is going to showings with Kristin and working to help her decide which house is the best fit. Who is/are Carlotta's client(s)?

• customers • clients

Licensees typically work with ______ (interested parties) and ______ (represented parties).

Aarthi and Ram

Lisa is holding an open house for her client, Tim. Several couples stop by. Aarthi and Ram don't interact with Lisa at all. Gina and Reggie talk with Lisa about the property; they're not working with another licensee. Marcus and Marvin stop by and talk with Lisa about the property; they're working with another licensee. Which parties are considered only consumers at this point?

Micah may lose the client's business.

Micah's client often tells him to do things that Micah doesn't necessarily agree with and that create a lot more work for him. Micah has multiple clients and can't spend all of his time doing the bidding of just one demanding woman. Micah decides to pick and choose which of his client's instructions he is going to follow. What might be the consequence if Micah doesn't fulfill his duty of obedience to his client?

special

Most real estate transactions are ______ agency.

client

Only a ______ receives agency representation under an agency agreement.

agency agreement

Only a client receives agency representation under an ______.

General

Paulo is a property manager for several large properties. Which type of agent is he in relation to his landlord/client?

General

Property managers most often serve as which type of agent?

general

Property managers often serve as ______ agents because they are given the authority to act on the property owner's behalf, and are responsible for handling all details regarding the owner's property.

general

Property managers often serve as ______ agents.

general agents

Property managers often serve as ______.

A customer

Rhonda, who's buying Tony's town home, is unrepresented. Gary, a real estate licensee, represents Tony in the sale of his property. What's Rhonda's relationship to Gary?

No, because an agent's duty of confidentiality never ends.

Shannon just helped Linda sell her property. When agency between Shannon and Linda terminates, can Shannon disclose confidential information that Shannon learned while Linda was a client?

Obedience

Shari's clients want her to post that there are "no showings on weekends" on the MLS. Shari knows that will significantly cut down on their market exposure. Her duty of reasonable skill and care is in conflict with her duty of ______.

The duty of obedience

Simone can't believe that her client won't let her put a lockbox on the property. How does he expect other agents to be able to show the home? Oh well, it's not as if he's asking her to do something illegal. The client's wish is her command. What fiduciary duty is this an example of?

Client

Someone who has agency representation with the licensee is a ______.

Consumer

Someone who uses or purchases a product or service

Agent

Someone who's been given the authority to act on behalf of someone else is a(n) ______.

agent

Someone who's been given the authority to act on someone else's behalf in some capacity.

Farrah and Troy

Terry represents Farrah, the seller. Michael is working with Troy, the buyer, but doesn't have an agency relationship with him. Who is/are the principal(s) in this transaction?

Confidentiality

The agent owes the client the duty of ______, even after agency is terminated.

Real estate

The duty of reasonable skill and care assumes that agents can provide expert advice to their clients in which area?

written, bilateral

The only way to create agency in Tennessee is through a ______ agreement.

Confidentiality

What duty can a seller still expect from an agent after agency terminates?

Breaching your duty to your actual client

What might you be doing if you treat a customer as a client?

To inform the buyer that the agent represents the seller

What responsibility does a seller's agent have to the buyer?

general agent

What type of agent has the responsibility of handling all details of a specific transaction?

Universal agent

What type of agent is a court-appointed guardian, whose authority would likely be over a person and the person's property?

special or specific agents

What type of agents do real estate licensees most often serve as? They have a limited scope of authority when compared to a general agent.

General

What type of real estate agency relationship usually exists when a licensee has the broad responsibility of handling all of the details of a specific transaction?

Someone who uses or purchases a product or service

What's a consumer?

It's illegal.

What's true about implied agency in Tennessee?

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

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?

Special

When working with a client on a real estate sale, a real estate licensee is usually which type of agent?

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

Which of the following is an example of single agency? • A broker acts as a dual agent to one party only • Two agents from different firms, where one acts as a sub-agent for the other • An agent from one firm acts as the agent for the buyer • Two agents from one firm, where one acts as an agent for the buyer and the other is the agent for the seller

A court-appointed guardian

Which of these is an example of a universal agent?

Jeanette's agent tells the buyer's agent that her client must sell his home because of an illness.

Which of these situations addresses the fiduciary duty of confidentiality?

When asked by the buyer's agent if the seller was firm on his price, Margo said, "Everything's negotiable," and winked at the other agent.

Which of these would be a breach of Margo's fiduciary duty of confidentiality? •Under court order, Margo revealed conversations about the financial status of her previous client. • Margo told a potential buyer that the city council was considering rezoning the area around the property to commercial/light industrial. • When asked by the buyer's agent if the seller was firm on his price, Margo said, "Everything's negotiable," and winked at the other agent. • Margo told her seller client Troy the percentage commission split she gets from her broker.

Ensure that the buyer receives copies of all signed paperwork.

Which one of the following tasks must a licensee perform for her buyer client?

Inform sellers of their responsibility to make all required property condition disclosures.

Which one of the following tasks must a licensee perform for seller clients?

Implied

Which type of agency is illegal in Tennessee?

Limited agent

Which type of agent would an escrow officer be?

Loyalty

While hosting an open house, Liza speaks with prospective buyers. They're interested in the house, but think the listing price is a little high. They ask her what other incentives they could include in their offer to get the seller to come down on their price. If Liza helps them, what duty may she be breaching?

Client

You have a listing agreement with Sam, which makes him your ______.

Customers

You're holding an open house for Brenda. Walt and Mary walk in and ask for a flyer that gives details about the property. Walt and Mary are now your ______.

Universal agents

______ have broad authority to act in all capacities for another.

agent

often used to refer to a real estate licensee