Chapter 5
In which of the following situations would having a buyer-agency relationship be necessary to the buyer?
Buyer wants to remain anonymous Answers: More than one buyer Buyer requires VA financing Buyer wants to sell current property and purchase new one Buyer wants to remain anonymous
Ruth, a buyer's broker, asked the listing broker if she is willing to split the commission on a transaction. The listing broker would not agree to the split. What should Ruth do?
Correct Answer: Explain the situation to the buyer. Answers: Explain the situation to the buyer. Withdraw from the deal. Report the listing broker to TREC. Charge the buyer a special service fee.
Which of the following statements BEST describes a benefit of buyer agency to the broker?
Correct Answer: No liability for acts of the listing agent Answers: Fewer legal or ethical regulations Easier licensing procedure No fiduciary responsibility No liability for acts of the listing agent
Which of the following BEST explains why a buyer's broker may prefer to be paid directly by the buyer?
Correct Answer: Remove control of payment from a nonclient Answers: Remove control of payment from a nonclient Buyers pay higher rates than typical commission splits Opportunity to collect two commissions Receive payment even if transaction is not completed
Is it permissible for a seller to pay a buyer's broker fee?
Correct Answer: Yes, it should be stated in the contract. No, only the buyer can pay that fee. No, only the seller's broker can pay that fee. Yes, it can be decided at the closing. Yes, it should be stated in the contract.
Exclusive buyer's brokers do not
Correct Answer: take listings. Answers: represent buyers. split commissions. take listings. charge retainer fees.
A buyer agent provides which of the following services to a buyer?
Has fiduciary duties to the buyer Answers: Serves as a subagent of the seller Provides limited services to the buyer Has limited fiduciary duties to the buyer Has fiduciary duties to the buyer
Which of the following is a benefit to the broker of having an exclusive buyer agency agreement with a buyer?
Protects the broker's investment of time with the buyer Answers: Reduces the risk that the buyer will terminate the agreement Limits potential conflicts of interest for the broker Increases the likelihood the broker will gain referrals Protects the broker's investment of time with the buyer
Which of the following statements is TRUE regarding an exclusive buyer representation agreement?
There must be a definite termination date. The buyer client is free to work with any agent who finds a house for her. There must be a definite termination date. The agent only gets paid if the seller agrees to pay the agent at closing. The agent is free to work as a dual agent for both the seller and the buyer.
