Chapter 4 Review 3

A broker received an offer on a listing that is under the listing prince and includes a binder deposit. Before notifying the seller a verbal offer was presented for the same listing at the asking price, but without a binder deposit. What should the broker do

present both offers to the seller

All of the following statements about single agency relationships are accurate, EXCEPT

Only a broker has fiduciary duties to his or her principal. A sales associate is a general agent of the employing broker and is a subagent of the brokers principal. As a subagent, acting on behalf of the broker, the sales associate owes fiduciary duties to the principal.

What should an agent do if the principal gives instructions that are illegal

advise the principal that he or she is unwilling to proceed and withdraw from the transaction if the principal persists

Which of the following statements accurately describes an arm's length relationship

each party in a transaction acts in his or her own best interest with no fiduciary duty to the other party. This is the opposite of a fiduciary relationship, where an agent has the duty to act in the best interest of the principal.

Who is the principal in a single agency relationship

employer (either the seller of the buyer, but never both in the same transaction) with whom a broker enter into a single agency relationship.

When is it necessary for a broker to transition form a single agent to a transaction broker

if the broker is representing both parties in the same transaction as a single agent.

What type of brokerage relationship would most likely be appropriate for a seller who needs limited services in a for-sale-by owner sale

no broker relationship notice even though a signature is not provided.

Which form of brokerage relationship owes fiduciary duties to the principal

single agency relationship is the only one that establishes a fiduciary relationship, which legally allows the principal to place trust and confidence in the agent.

All of the following statements about a single agency relationship are accurate, except

the broker can represent both parties in a transaction if the single agent notice specifies that relationship

What is the confidentiality duty of a broker who transitions from a single agent to a transanction broker

the broker must never disclose confidential information that he or she has learned about the principal.