Agency

Which of the following is true of a buyer's agent?

Compensation may not necessarily come from the buyer

In describing an agency contract, which is most nearly correct?

Most multiple listings are exclusive listings

A fiduciary relationship may be terminated by

all of the above agreement,revocation, and death

Acting for more than one party in a transaction

makes the transaction void

Broker White obtained a deposit from buyer Farley. The seller did not accept the offer, however, and broker would not return deposit. Farley contacted the Real Estate Commissioner. The Commissioner can:

investigate as required by real estate law.

Broker Jones secured an agency listing in writing from the Johnson Co. on a commercial building that had been vacant for some months. The listing broker entered into a verbal agreement to share his commission with a cooperating broker. The cooperating broker procured a buyer, but broker Jones refused to split the commission. The cooperating broker:

may recover his share in court.

An agent who pays part of the commission to the buyer:

must inform the seller

All of the following statements concerning agency relationships are correct, except:

net listings are encouraged in California, because they avoid conflicts of interest in the agency relationship.

"A" has given "B" the impression that "X" is "A"'s agent even though "X" was never given the authority to represent "A". From "B"'s standpoint, the agency is:

ostensible

An agent who acts exclusively as the agent for the buyer may:

present offers to the seller with the seller's agent present.

The person who gives authority to an agent to represent his or her interests in dealing with a third party is the:

principal

By accepting the actions of an agent, even though there is no contract, a seller may create an agency by:

ratification

An agency relationship, such as in a listing, may be terminated by all of the following methods except:

revocation by the principal if the agent has an interest in the subject matter of the agency.

Broker Jones had signed an agreement to locate some property for her principal. Having found a property which suited the principal, Broker Jones determined that it could be purchased for less than her principal was willing to pay. She then bought the property and later sold it to her principal at the higher figure and kept the difference for herself. This would be called:

secret profit.

An agency relationship is created by all of the following except:

specific performance.

When a broker is representing the buyer exclusively under a buyer agency contract, which of the following is true?

The buyer's broker has no liability for acts of the listing broker

The real estate listing is classified as an employment contract under whose terms the owner of the property appoints and authorizes a real estate broker to act as his or her agent. Which of the following statements is CORRECT?

A broker has an enforceable right to a commission in an open listing if he is the "procuring cause" even if the owner sells through another broker.

What kind of agency is a listing?

A special agency

Under Article 3, Section 10176, of the California Real Estate Law, a broker could not be disciplined for which of the following?

Acting for more than one party in a transaction with the knowledge and consent of all parties thereto

Which of the following forms must be completed before an offer can be written?

Agency disclosure

Which of the following is not essential to the creation of an agency relationship?

Agreement to pay consideration

A licensee who misrepresents property to the buyer while acting as an agent of the seller, is subject to:

All of the above discipline,civil lawsuits,criminal penalties.

When a real estate agent acts as a dual agent for both the buyer and seller in a 1031 exchange, and does not disclose his dual agency to both parties, he may

All of the above provide grounds for either party to rescind the purchase agreement, be prevented from receiving any commission, be disciplined by the Real Estate Commissioner

What event does not terminate (or dissolve)an agency?

Death of listing agent (not broker)

To which of the following does a real estate agent owe a fiduciary duty?

Principal

Which of the following is not required of a licensee under the current agency disclosure law?

Representation

Michelle, a real estate broker, sold a condo that was listed by a broker from another company. What is her relationship to the listing broker?

Selling broker

If a broker dies after he or she has taken a listing, what happens to the agency relationship it created?

The agency immediately terminates.

Broker Bob collected rents from an apartment house under agreement with the owner. He had been collecting rents on the 1st of each month for several months and as of July 1, he had collected all but one. On July 2 the owner died. On July 3 the broker went to collect the last rental but the tenant refused to give the rent to the broker on the grounds that the owner had died and, therefore, the agency between broker and the owner was terminated. Which of the following is correct?

The tenant is correct

Which of the following is closest to the same relationship as between a broker and seller?

Trustee and beneficiary

Fiduciary applies to the relationships between people in many different positions. It does not apply to which of the following?

Trustor to beneficiary

Which of the following statements about escrow procedures is true?

When the escrow requirements have been met, the escrow agency changes from a dual agency to a separate agency

When may a real estate broker, acting as agent for the seller, refuse to submit a buyer's offer?

When the owner has given broker express instructions not to submit any further offers

California Real Estate Law imposes upon a real estate agent the highest obligation of undivided interest and loyalty to his principal. This relationship is comparable to that of:

a trustee to his beneficiary.

When a real estate agent acts exclusively as a buyer's agent, he can do all of the following except:

act as an exclusive agent of the seller.

A broker acting as agent for a principal has as much authority as:

the principal actually or ostensibly confers upon him.

A broker who is employed by the seller is liable to the buyer if:

he acts in excess of the terms of his contract

When acting as a listing agent, a real estate broker is liable to third parties for:

his or her own torts.

Which of the following would not be essential in order to create an agency relationship?

An agreement to pay commission

An agency relationship is said to create a fiduciary relationship between principal and agent. Of the following relationships, which illustrates a fiduciary responsibility?

Both Any trustee to a beneficiary, and Real estate broker to his client

The relationship of a real estate salesperson to his or her broker under the License Law is as:

an employee.

A person designated in a written power-of-attorney, to legally act for another in his stead is typically called a(n):

attorney-in-fact.

Ms. Seller had been showing homes to a young, newly married couple for quite some time and finally found one which they wanted to buy. But even with the best loan available, they did not have enough cash for the down payment. They felt that they could raise the additional money they needed by borrowing against their automobile and other sundry personal property. Under these circumstances, the broker should:

tell them it is their decision to make, but point out the pitfalls of this kind of financing.

Agency is referred to as the relationship between the agent and his principal. All of the following statements are correct about agency, except that

the principal must pay money to the agent to create an agency relationship

In regards to a listing contract, a fiduciary relationship exists between the broker and:

the seller.

An agent has only a duty of honesty and fairness in dealing with:

third parties.

The relationship of loyalty and trust that exists between a principal and agent most nearly resembles the relationship between:

trustee and beneficiary.

The fiduciary relationship between an agent and the principal is comparable to the relationship of a:

trustee to beneficiary

California Real Estate Law imposes upon a real estate agent the highest obligation of undivided interest and loyalty to his principal. This relationship is comparable to that of a:

trustee to the beneficiary.