Chapter 5 - Agency Relationships

Which of the following is NOT a reason for an involuntary termination of agency?

Agreement expiration (reasons include agent abandonment, destruction of the property through fire, and breach of contract)

If a dual agency relationship is not agreed to in writing by both clients, the relationship is

All of the above: a breach of the agent's fiduciary responsibilities to the client, an undisclosed dual agency, and a violation of NYS license law)

Which part of the New York license law requires agency disclosures?

Article 12-A, Section 443

Mary has a listing agreement with Broker Tom. Mary tells Tom she wants him to use broker agents to help sell her property. Tom gets Larry, Gail, and Bill; who all work for other firms, to help find a buyer. Who would be vicariously liable for Bill's actions?

Broker Tom

An agency relationship may be involuntarily terminated by which of the following?

Condemnation of the property (not by performance, by termination of the relationship by mutual agreement, or by the expiration of the agency agreement)

Which type of agency relationship do most New York real estate firms practice?

Consensual dual agency

Usually, dual agency must be disclosed at the time it arises; so the seller - agree to dual agency at the time he or she signs the listing

Does not have to

All of the following are common types of agency relationships that exist except

Facilitator agency

When is dual agency allowed in New York?

Only with disclosure and informed consent

Under what circumstances does New York allow dual agency and what is it called?

Only with disclosure and informed consent, known as consensual dual agency

What section of law allows a broker to accept a referral fee from a party the broker does not represent?

Section 175.7 of the NY Real Property Law

A(n) -- is the transferor in a residential real property transaction

Seller

If a cooperating broker accepts the offer of subagency from a listing broker, to whom does the cooperating broker owe fiduciary duties?

Seller

What do we call an agent who represents a seller exclusively in a real estate transaction?

Single agent

Which is the most confusing form of agency relationship?

Subagency

Which of the following would be deemed an advantage of a subagency arragement?

Subagency is an easy way for the cooperating broker to share in the commission

Which of the following types of agency is not allowed in New York?

Undisclosed dual agency

When may a broker accept a referral fee from a party he or she does not represent?

When the broker obtains the agreement of all involved parties

Designated dual agency is an important alternative to dual agency because it can eliminate the potential conflict involved in a(n) -- agreement

consensual dual agency