Agency Quizzes

Fiduciary Duties 1. Broker's fiduciary duties are loyalty, honesty, confidentiality, good faith, and obedience. 2. Fiduciary duties keep buyers and seller honest and truthful.

1. Broker's fiduciary duties are loyalty, honesty, confidentiality, good faith, and obedience.

Express Agency 1. Following Oregon statute of frauds, it is written authorization for a broker to work on the behalf of a buyer or seller. 2. An agency created by the implied actions of the parties involved.

1. Following Oregon statute of frauds, it is written authorization for a broker to work on the behalf of a buyer or seller.

Good Faith 1. Good faith is a state of mind encompassing all other fiduciary obligations. 2. Good faith is a dollar estimate of a buyer's expenses to purchase a property.

1. Good faith is a state of mind encompassing all other fiduciary obligations.

Obligation to Third Parities 1. A broker owes third parties to a transaction the fiduciary obligation of honesty. 2. A broker has no obligation to third parties.

1. A broker owes third parties to a transaction the fiduciary obligation of honesty.

Principal 1. A buyer or seller in a real estate transaction. 2. A broker working under a principal broker assisting a buyer or seller with real estate.

1. A buyer or seller in a real estate transaction.

Agency 1. A fiduciary relationship in which an agent is authorized to act on the behalf of a principal. 2. A fiduciary relationship in which a buyer or seller are obligated to be truthful and honest to their broker.

1. A fiduciary relationship in which an agent is authorized to act on the behalf of a principal.

Unilateral Revocation 1. A person cannot be forced to work for another. 2. Upon the close of a transaction, a seller could decide not to pay a commission fee, claiming unilateral revocation.

1. A person cannot be forced to work for another.

Which of the following statements about Initial Agency Disclosure are true? 1. All licensees are required to provide an agency disclosure to any prospective client at the time of first contact. 2. The use of an agency disclosure is limited to the sale of residential property. 3. An agency disclosure is provided as a means to bind a prospective client to a broker. 4. An agency disclosure is only necessary when dealing with the selling and buying of single family homes.

1. All licensees are required to provide an agency disclosure to any prospective client at the time of first contact.

Fraud 1. An act of deliberately making a false statement, or failing to disclose a false statement. 2. If false information, not given in writing, a broker could not be charged with fraud.

1. An act of deliberately making a false statement, or failing to disclose a false statement.

Buyer-Broker Contract 1. An agency agreement giving a broker authority to interact with sellers' or seller's broker on behalf of their buyer. 2. Requires the seller to pay two commissions.

1. An agency agreement giving a broker authority to interact with sellers' or seller's broker on behalf of their buyer.

Agency Revocation 1. An agency relationship can be revocated by mutual consent, unilateral revocation, or rescission. 2. If a broker and a client revoke their agency relationship, they can never work together again.

1. An agency relationship can be revocated by mutual consent, unilateral revocation, or rescission.

Agency Completion 1. An agency relationship terminates upon the completion of a transaction. 2. An agency relationship cannot be completed.

1. An agency relationship terminates upon the completion of a transaction.

The duty of loyalty to a seller's best interest could be done by doing which of the following actions? 1. Keep the seller informed of changing market conditions and submit all written offers promptly. 2. Keep the seller informed of changing market conditions and prequalify all offers before presenting them to the seller. 3. Keep the seller informed of changing market conditions and negotiate the best price before presenting the offer to the seller. 4. Keep the seller informed of changing market conditions and only present offers close to the price the seller wants before presenting the offer to the seller.

1. Keep the seller informed of changing market conditions and submit all written offers promptly.

The first contact between Louise, the listing licensee representing the seller, and Susan, the purchaser, took place in the office. Under Oregon law, which of the following statements is true regarding this situation? 1. Louise must provide Susan a copy of the Initial Agency Disclosure Pamphlet. 2. Louise may give Susan a copy of the Initial Agency Disclosure Pamphlet. 3. Louise does not need to provide a copy of the Initial Agency Disclosure Pamphlet to Susan if Susan waves her right to disclosure. 4. Louise is under no obligation to provide a copy of the Initial Agency Disclosure Pamphlet to Susan unless Louise agrees to become a buyer's agent for Susan.

1. Louise must provide Susan a copy of the Initial Agency Disclosure Pamphlet.

Obligation of Dual Agency 1. Oregon statute allows a broker to represent both a buyer and a seller in the same transaction, with full written agency disclosure to all parties. 2. Dual agency is illegal in Oregon regardless of written acknowledgement.

1. Oregon statute allows a broker to represent both a buyer and a seller in the same transaction, with full written agency disclosure to all parties.

Under Oregon agency disclosure law which of the following statements is correct? 1. Prior to entering into a listing agreement a broker must give an Initial Agency Disclosure to the seller(s). 2. A Seller is prohibited from paying a buyer's agent a commission. 3. An Agency Disclosure binds a client to a broker and the agency cannot terminated without signing a termination agreement. 4. Once an Agency Disclosure has been presented a client cannot choose to work with another broker.

1. Prior to entering into a listing agreement a broker must give an Initial Agency Disclosure to the seller(s).

What law prescribes the rights and duties between a property manager and his clients? 1. The law of agency. 2. The statute of frauds. 3. The statute of limitations. 4. The fair housing act.

1. The law of agency.

Agency Relationship 1. The relationship of trust that exists between sellers, buyers, and their broker. 2. Agency relationships are between a managing principal broker and a client.

1. The relationship of trust that exists between sellers, buyers, and their broker.

Once an Oregon broker has established an agency relationship with a client can that agency relationship change? 1. Yes, the established relationship may be changed to disclosed dual agency if the seller and buyer agree to let the agent represent both parties in an offer to purchase. 2. No, it would be a conflict of interest for the broker to ask the seller if he could also represent a buyer in an offer to purchase. 3. No, a change in agency representation would be both an ethical and disclosure law violation. 4. No, to represent both parties after representing the sellers exclusively would most likely bring about a reprimand from the Real Estate Commissioner.

1. Yes, the established relationship may be changed to disclosed dual agency if the seller and buyer agree to let the agent represent both parties in an offer to purchase.

An owner of property gave a listing to a principal broker. Shortly thereafter the owner died. In this case the 1. agency is immediately terminated. 2. principal broker is entitled to his full commission from the estate. 3. listing agreement is binding on the heirs of the deceased owner. 4. principal broker is entitled to a reasonable time thereafter to procure a buyer during which time the listing will remain in force.

1. agency is immediately terminated.

A prospective buyer must be given an Initial Agency Disclosure Pamphlet by the real estate licensee 1. at first contact. 2. as soon as the prospective buyer's specific real property needs or financial information is discussed. 3. at any time as long as it is given before closing. 4. only when the buyer signs and earnest money agreement.

1. at first contact.

A seller of a parcel of real property told the broker that the roof leaked in the house on the property and a statement to that effect was included in the listing agreement. The seller told the broker to inform all prospective buyers of this fact, but the broker sold the property and failed to tell the buyer that the roof leaked. What recourse does the seller have against the broker if the buyer sues the seller for misrepresentation? The seller 1. can recover damages from the broker. 2. cannot recover his damages because the client is solely liable for the acts of the agent. 3. must seek redress only with the Real Estate Agency. 4. has no recourse because of caveat emptor.

1. can recover damages from the broker.

The prime obligation of an agent to the client is 1. loyalty. 2. deference. 3. mutual trust. 4. respect.

1. loyalty.

A buyer properly revoked his offer after receiving the property condition disclosure and requests the return of his earnest money. The broker 1. must promptly return the earnest money. 2. must obtain the seller's approval before releasing the earnest money 3. should file an interpleader to determine the disposition of the earnest money. 4. may, with the seller's permission, deduct part of his commission from the earnest money.

1. must promptly return the earnest money.

Confidentiality 1. Once a transaction is completed, a broker is no longer bound to keeping information confidential. 2. A broker is bound to keep secret all non-public information, unless instructed by their principal to reveal whatever information relevant to a transaction.

2. A broker is bound to keep secret all non-public information, unless instructed by their principal to reveal whatever information relevant to a transaction.

Honesty 1. It is all right for a broker to bend the truth if the overall outcome helps their client. 2. A broker is obligated to always be truthful with their client and all interested third parties to a transaction.

2. A broker is obligated to always be truthful with their client and all interested third parties to a transaction.

Under Oregon's agency disclosure law, a buyer's single agent responsibilities include which of the following? 1. A buyer's agent is only allowed to accept compensation from the buyer, not the seller. 2. A broker is responsible to provide an Initial Agency Disclosure to a buyer at first contact. 3. A seller could legally refuse to pay compensation to the listing agent if the broker was also representing the buyer per a limited agency disclosure. 4. A buyer would be relieved from paying a buyer broker fee if the listing agent shared the commission received from the seller with the buyer's broker.

2. A broker is responsible to provide an Initial Agency Disclosure to a buyer at first contact.

Obedience 1. If a broker can prove a client made them practice outside of the law, they would not be charged with illegal professional practice of real estate activity. 2. A broker must do what the client requires, within the bounds of law. An unlawful act cannot be justified under client obedience.

2. A broker must do what the client requires, within the bounds of law. An unlawful act cannot be justified under client obedience.

Disclosed Limited Agency Agreement 1. A broker is limited to representing only one party in a transaction. 2. An agency agreement between one broker, representing the buyer(s), and the seller(s) in the same transaction.

2. An agency agreement between one broker, representing the buyer(s), and the seller(s) in the same transaction.

Agency Expiration 1. Due to the obligation of confidentiality, an agency relationship can never terminate. 2. An agency relationship terminates upon the expiration of the contract.

2. An agency relationship terminates upon the expiration of the contract.

What is the relationship between a licensed broker and their client? 1. A fiduciary relationship. 2. An agency relationship. 3. An initial agency relationship. 4. A common law relationship.

2. An agency relationship.

Mutual mistake 1. A mutual mistake does not require both parties to believe something different. 2. Both parties enter into a contract under the same of different mistaken belief.

2. Both parties enter into a contract under the same of different mistaken belief.

When an Oregon licensee represents the buyer as the buyer's agent I. only the buyer may pay the the licensee's commission.. II. the licensee has an obligation to the seller of honest dealing and disclosure of material facts. 1. I only 2. II only 3. Both I and II 4. Neither I nor II

2. II only

A broker could lose their right to a commission by which of the following actions? 1. Representing a buyer while unlicensed. 2. Innocent misrepesentation 3. The broker moved to a different company before the transaction closed. 4. Presented a buyers offer of 30% less than the listed price.

2. Innocent misrepesentation

Obligations to a Buyer 1. Without a Buyer Broker contract a broker does not owe a buyer any obligations. 2. Oregon statute sets out specific obligations for a broker representing a buyer.

2. Oregon statute sets out specific obligations for a broker representing a buyer.

Obligations to a Seller 1. A principal broker is responsible for selecting which seller obligations his associated brokers must follow. 2. Oregon statute sets out specific obligations for a broker representing a seller.

2. Oregon statute sets out specific obligations for a broker representing a seller.

Loyalty 1. Loyalty requires a broker to follow a principal's instruction even when legally wrong. 2. Putting a principal's best interest first before the interest of the broker.

2. Putting a principal's best interest first before the interest of the broker.

Rescission 1. Rescission of a contract is the same as revoking. 2. Undoing a contract, by putting both parties in the same position as if the contract had never been entered into.

2. Undoing a contract, by putting both parties in the same position as if the contract had never been entered into.

Apparent Agency 1. When a third party gives a buyer or seller legal advice. 2. When a client's actions cause a third party to reasonably conclude an agency relationship exists.

2. When a client's actions cause a third party to reasonably conclude an agency relationship exists.

Disclosed Limited Agency Agreement for Buyers 1. A broker representing a buyer is not allowed to be a dual agent. 2. Written explanation of a broker's disclosed limited agency to a buyer in a real estate transaction.

2. Written explanation of a broker's disclosed limited agency to a buyer in a real estate transaction.

Disclosed Limited Agency Agreement for Sellers 1. Disclosed limited agency can be transferred to another party. 2. Written explanation of a brokers' disclosed limited agency to a seller in a real estate transaction.

2. Written explanation of a brokers' disclosed limited agency to a seller in a real estate transaction.

Oregon's agency disclosure law requires that a selling real estate licensee representing the seller give an Initial Agency Disclosure Pamphlet to a prospective buyer 1. only if the buyer signs an earnest money agreement. 2. at the first contact with the buyer who appears to be seeking representation. 3. within 10 days after the buyer contacts the licensee. 4. only if the licensee initiates the contact with the buyer.

2. at the first contact with the buyer who appears to be seeking representation.

Under Oregon's agency disclosure law, a seller's single agent 1. may accept a commission only from the seller. 2. is responsible for providing an Initial Agency Disclosure Pamphlet to the seller before entering into the listing agreement. 3. has no obligations to the buyers. 4. may not cooperate with a buyer's single agent.

2. is responsible for providing an Initial Agency Disclosure Pamphlet to the seller before entering into the listing agreement.

Marie Gregg acted on behalf of Tom Hilton without his authority, or even appearance of authority. At a later date, Hilton approved of her actions. Hilton's later approval of Gregg's actions would be an example of 1. express agreement. 2. ratification. 3. estoppel. 4. assumption of authority.

2. ratification.

When a broker represents both the seller and buyer under a disclosed dual agency, Oregon's agency disclosure law allows brokers to do which of the following? 1. A broker can let the buyer know the seller will take less without the seller's permission. 2. A broker can let the seller know the buyer is willing to pay more without the buyer's permission. 3. A broker must inform both parties that if there is any information they do not want the other party to know they must let the broker know at the time of dual agency. 4. If a buyer or seller agrees to a dual agency they must be aware that a broker must reveal all information to both parties at all times.

3. A broker must inform both parties that if there is any information they do not want the other party to know they must let the broker know at the time of dual agency.

The responsibilities of a broker in an agency relationship include which of the following? 1. Managing the property. 2. Providing financing. 3. Accountability for funds received. 4. Accepting an offer for the seller.

3. Accountability for funds received.

An Oregon broker who acts as a seller's agent is responsible for which of the following? 1. Explain to the seller the seller's obligations when filling out a Seller's Property Disclosure. 2. Explain what a seller can legally leave out of a Sellers Property Disclosure. 3. As a listing agent, give the seller an Initial Agency disclosure at the time of the listing presentation. 4. As the listing agent a broker should provide the buyer with an initial agency disclosure before presenting the offer to the seller.

3. As a listing agent, give the seller an Initial Agency disclosure at the time of the listing presentation.

A broker representing a buyer has an obligation to perform which of the following? 1. Provide legal advice regarding the Seller's Property Disclosure. 2. Provide a buyer with a comparative market analysis to substantiate the price the buyer is willing to offer the seller. 3. Provide a buyer with an initial agency disclosure upon first contact. 4. Disclose to the buyer that a particular home inspector pays the broker a finder's fee for each person ordering an inspection report through his company.

3. Provide a buyer with an initial agency disclosure upon first contact.

A valid contract employs someone to do specific legal tasks which involve representing the interests of the client to a third party. What kind of relationship is created by the contract? 1. Owelty 2. Lis pendens 3. Fee simple 4. Agency

4. Agency

Which of the following type of transactions requires a broker to provide an agency disclosure to a client? 1. An exchange of properties. 2. An option to purchase. 3. Listing a property for sale. 4. All of the above transactions would require a broker to provide an agency disclosure.

4. All of the above transactions would require a broker to provide an agency disclosure.

Under Oregon's agency disclosure law, a broker associated with a principal broker may represent both the seller and buyer by a disclosed limited dual agency relationship. In this type of agency relationship which of the following is correct? 1. The broker must agree to receive compensation from one party, not both. 2. In regards to confidentiality, both the buyer and seller would have to arrange with the broker's principal broker to know and hold any information not to be shared with the other party. 3. The buyers and sellers could openly negotiate the terms of the transaction without the benefit of the broker. 4. Both the buyers and the sellers are to be treated fairly and truthfully by the broker.

4. Both the buyers and the sellers are to be treated fairly and truthfully by the broker.

To create an agency requires two things; delegated authority and which of the following? 1. A compensation agreement. 2. A written agency agreement. 3. Reasonable care. 4. Consent to act.

4. Consent to act.

A broker is listing her neighbors' home. The commission should be determined by which of the following? 1. The size of the broker's firm. 2. Rates approved by the Real Estate Commissioner. 3. Rates approved by the local Board of Realtors. 4. Rates negotiated with her neighbor.

4. Rates negotiated with her neighbor.

To the seller, a real estate broker representing the seller usually is 1. a general agent. 2. a factor agent. 3. and ostensible agent. 4. a special agent.

4. a special agent.

The position of trust assumed by the broker as an agent for the client is described most accurately as a 1. trustee relationship. 2. trustor relationship. 3. confidential relationship. 4. fiduciary relationship.

4. fiduciary relationship.

A principal real estate broker 1. must only act for one party in a transaction. 2. may act for both parties if licensed for a minimum of one year. 3. is a fiduciary and has the duty to remain neutral. 4. may act for both parties with the knowledge and written consent of both.

4. may act for both parties with the knowledge and written consent of both.