Chapter 5- Agency Relationships

Which of these is not a way a buyer's agent might receive compensation?

Agent gets everything above the net price set by the seller.

What is an in-house sales agreement?

An in-house sales agreement is used for signatures of the buyer and/or the seller in agreement to allow a dual agency in the particular transaction.

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 for Mary's property. Who would be vicariously liable for Bill's actions?

Broker Tom

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

By destruction of the property through fire, vandalism or natural disaster

When the agency relationship has been terminated, the licensee is no longer considered the principal's agent and does not owe any further duties to the principal, except for the following?

Confidentiality and accounting

Which is the most confusing form of agency relationship?

SUBAGENCY is probably the most confusing of all agency relationships due to the complexity of duties owed to different parties in the transaction.

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

This form is required by New York law and is designed to help the consumer make informed choices about the relationship he or she may want to have with any real estate licensees?

The New York State Disclosure Form For Buyer and Seller

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

If an agent enters into an agency agreement with a buyer, the agent becomes the buyer's agent, also known as ___________ brokerage.

buyer

Before a buyer broker shows a property, he or she must disclose his or her________________relationship to the seller.

buyer agency

Which type of agency would be most advantageous to a buyer?

buyer brokerage

Designated dual agency is an important alternative to dual agency because it can eliminate the potential conflict involved in a __________________ arrangement.

consensual dual agency

What is a licensed real estate salesperson, working under the supervision of a real estate broker, who has been assigned to represent a client when a different client is also represented by such real estate broker in the same transaction called?

designated agent

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

As of January 1, 2011 the new residential disclosure form allows for advanced approval by each customer and client for_________ agency.

dual

Which agency relationship can most easily result in a conflict of interest for the broker?

dual agency

Subagents working for the seller have what duty to the buyer?

honesty

With regard to compensation in cooperative sales, the____________ broker will be the person who handles the commission splits for the transaction.

listing

A buyer's agent is generally paid by the traditional commission arrangement between the listing broker and the cooperating broker whereby the___________pays the commission, which is then split between the listing agent and the buyer agent.

seller

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

seller

A broker can enter into a single agency agreement with any of the following except?

seller and buyer

common types of agency relationships that exist

single agency, consensual dual agency, seller/landlord agency BUT NOT facilitator agency

What is an agent called who represents only one person in the transaction, either the buyer or the seller?

single agent

What does a client give up in a designated agency?

the broker's fiduciary duty of undivided loyalty