Chapter 7 Practice Quiz
Which statement is true about universal agents? A) Having power of attorney is one type of universal agent. B) It is a common role for real estate brokers. C) It means a real estate broker can represent both buyers and sellers. D) A universal agent deals with all of a person's business affairs, but never their personal affairs such as healthcare.
A) Having power of attorney is one type of universal agent.
What is a principal? A) The person whom the agent represents. B) The same thing as an employer. C) A principal has the same relationship to an agent that a managing broker has with a broker. D) A principal is a person who an agent is trying to make an agreement with.
A) The person whom the agent represents.
Who are the parties that are ALWAYS involved in an agency relationship? A) The principal, the agent and at least one third-party. B) The agent and a subagent only. C) The principal and the agent only. D) The principal, the agent a subagent only.
A) The principal, the agent and at least one third-party.
An agreement to pay or the payment of some form of compensation to a broker establishes which type of agency relationship between the broker and the principal client? A) This will NOT establish any type of agency relationship. B) A buyer's agency is established. C) A seller's agency is established. D) A dual agency is established.
A) This will NOT establish any type of agency relationship.
Transaction Broker status by any licensee: A) Must be confirmed in writing prior to execution of a real estate contract. B) Is an informal, oral agreement. C) Means that the licensee has equal fiduciary responsibility to both parties to the transaction. D) Is a type of dual agency agreement.
A) Must be confirmed in writing prior to execution of a real estate contract.
A broker in Washington state is obligated to provide specific duties to all the parties of real estate transactions, regardless of whether the broker is representing the individual as their agent. Which of these duties can be waived? A) None can be waived. B) Confidentiality can be waived. C) Loyalty can be waived. D) Accounting can be waived.
A) None can be waived.
If a real estate agent is representing a buyer in a transaction in Washington, whose interests must be placed ahead of all others? A) the buyer's interest B) the broker's interest C) the seller's interest D) both the buyer and the seller's interest
A) the buyer's interest
A real estate broker operates as a ...........agent. A) Special B) General C) Universal D) Dual
A) Special
Who acts as the principal to the listing broker? A) The seller B) The buyer C) The broker D) Both the seller and buyer
A) The seller
Which statement is true of the third party in a real estate agency relationship? A) The third party is called the customer. B) The third party is only the person who actually buys the house, not potential buyers. C) The third party is only potential customers, not the person who actually buys the house. D) The third party is everyone who is not the agent, principal or subagent, including all real estate agents, mortgage brokers and home inspectors.
A) The third party is called the customer.
An agency relationship created by oral or written agreement between principal and the agent is known as...? A) Express agency B) Dual agency C) Implied agency D) Ostensible agency
A) Express agency
What acronym can be used to help recall the duties of a Transaction Broker? A) HARD B) SOFT C) KIND D) RAIN
A) HARD
The standard commission split is ................. between a listing broker and a cooperating broker. A) There is no "standard" split. B) 50-50 (Fifty/Fifty) C) 60-40 (Sixty/Forty) D) 70-30 (Seventy/Thirty)
A) There is no "standard" split.
Does a dual agent to any transaction earn the entire commission? A) Yes. B) No, the dual agent is only entitled to half the commission. C) Only if the seller signed an "Exclusive Right to Sell" agreement. D) The commission is subject to negotiation if there is no "cooperating" broker.
A) Yes.
What contract may be used to create an express agency relationship between a buyer and broker? A) A buyer representation agreement B) An exclusive listing agreement C) A sales contract D) An exclusive right to sell agreement
A) A buyer representation agreement
The timing of the provision of the Law of Agency Pamphlet is critical because this disclosure must be given before the earliest of all of these events except: A) After any party acknowledges and agrees to the creation of a dual agency relationship. B) Before a party signs an offer to purchase real property in the State of Washington. C) Before a party to the transaction signs a broker agency agreement. D) Before a party waives their rights regarding agency relationships, dual agency, or a seller's or buyer's agent's duties.
A) After any party acknowledges and agrees to the creation of a dual agency relationship.
A designated broker may receive compensation from...? A) All of the above. B) Only the seller or landlord. C) Either the seller or a buyer. D) A tenant or a third party.
A) All of the above.
Violating an anti-trust law could mean which of the following? A) All of the answer choices provided are correct. B) Up to three years in jail. C) Up to a $100,000 fine for an individual. D) Up to a $1,000,000 fine for a business.
A) All of the answer choices provided are correct.
What are ways in which an agency relationship can be terminated? A) All of the answer choices provided are correct. B) Completion of the transaction C) Mutual agreement of the parties D) Expiration of the listing contract
A) All of the answer choices provided are correct: - Completion of the transaction - Mutual agreement of the parties - Expiration of the listing contract
Tom is acting as an agent for property owner Bill in a building that has rent restrictions. Tom has been knowingly charging rents that are above the maximum that is legally allowed. Which statement is true about Bill's liability? A) All of the answer choices provided are correct. B) If Tom is acting as the general agent for Bill, then Bill could be held liable, regardless of whether he is aware of the increased charges. C) If Tom is acting as a special agent for Bill, but has been authorized to set the rent rates and giving higher profits to Bill, then the agency relationship could have transformed from special agent to general agent and Bill could be held liable. D) Bill has signed an agreement for Tom to be his special agent in renting apartments. The agreements state the legal rents that should be charged for each unit that. Tom has been charging tenants more without Bill's knowledge and pocketing the difference. Only Tom is liable.
A) All of the answer choices provided are correct: - If Tom is acting as the general agent for Bill, then Bill could be held liable, regardless of whether he is aware of the increased charges. - If Tom is acting as a special agent for Bill, but has been authorized to set the rent rates and giving higher profits to Bill, then the agency relationship could have transformed from special agent to general agent and Bill could be held liable. - Bill has signed an agreement for Tom to be his special agent in renting apartments. - The agreements state the legal rents that should be charged for each unit that. Tom has been charging tenants more without Bill's knowledge and pocketing the difference. Only Tom is liable.
Why is dual agency problematic? A) All of the answer choices provided are correct. B) It makes it difficult for the agent to uphold their fiduciary responsibility to both principals. C) It can occur without the agent realizing it. D) If both parties are not made aware of it being in effect, then it is always illegal.
A) All of the answer choices provided are correct: - It makes it difficult for the agent to uphold their fiduciary responsibility to both principals. - It can occur without the agent realizing it. - If both parties are not made aware of it being in effect, then it is always illegal.
What is the difference between a subagent and an agent? A) An agent is authorized by a principal to represent them; a subagent is authorized by an agent to represent the principal the agent represents. B) A regular agent must put the principal's interests first, but a subagent puts their own interests first and the principal's interests second. C) A subagent and an agent are both authorized by the principal to represent them, but the subagent has been working for a shorter period of time than the agent. D) An agent represents a principal while a subagent represents a third party
A) An agent is authorized by a principal to represent them; a subagent is authorized by an agent to represent the principal the agent represents.
What is a special agent when referring to the real estate industry? A) An agent who is granted limited authority on behalf of the principal. Almost all real estate agents are acting as special agents. B) A real estate agent who specializes in specific types of properties, such as only working on commercial sales or single-family home rentals. C) A real estate agent who only helps at the end of the sale after a buyer's offer has been accepted. They help negotiate the details for closing. D) An agent who works with the buyer's and seller's agents to negotiate the best deal for everyone.
A) An agent who is granted limited authority on behalf of the principal. Almost all real estate agents are acting as special agents.
A consumer who works with a facilitator (or a Transaction Broker) is sometimes considered: A) An unrepresented party. B) Dumb. C) Unable to afford the services of a real estate agent. D) Lucky to have the advice of an impartial representative.
A) An unrepresented party.
What happens if there is a misunderstanding or disagreement about amount of commission due a cooperating licensee? A) Arbitration is customary. B) The participating agent loses. C) The listing agent must pay out of his or her own share. D) The primary listing broker should cover any shortfall to a cooperating broker.
A) Arbitration is customary.
You are the listing agent for Ivan Beeker, who has recently discovered there is a lien on his property that must be resolved prior to listing the property for sale. You refer Ivan to a property attorney and municipal authorities who can help him clear the lien quickly. Which of the following best describes this scenario? A) As a real estate licensee, you are not required to offer advice outside your area of expertise, such as legal advice. B) You are referring him to someone else because this is not your problem. C) You are referring him to the appropriate experts to fulfill your obligation to act with confidentiality. D) You tell Ivan you cannot help him and void the sales contract based on the owner's incompetence.
A) As a real estate licensee, you are not required to offer advice outside your area of expertise, such as legal advice.
When is the commission paid to a listing broker? A) At the time of property closing, when the property deed is transferred to a new owner. B) When the listing agreement is signed. C) When the seller accepts an offer from a cooperating agent. D) Within 30 days after a seller moves out.
A) At the time of property closing, when the property deed is transferred to a new owner.
Bailey is a real estate broker working with Lenore who wants to buy a home, and who has signed a buyer's agreement with Bailey's office. Bailey shows Lenore a house which her office has the exclusive listing on, but it will expire in less than a week. Lenore says it's not exactly what she's looking for, but maybe she should just put an offer on it. Bailey saw a new listing on MLS that morning that sounds like it is exactly what Lenore was looking for. Which is true? A) Bailey should tell Lenore about the new listing. B) Bailey shouldn't mention the new listing, she would risk causing her managing broker to lose the exclusive listing. C) Bailey shouldn't mention the new listing, then the deal will have to go through a different seller's brokerage, and she wouldn't be able to represent Lenore as well. D) Bailey realizes that she made a mistake and never explained dual agency to Lenore, even though this listing is also represented by her office. She should tell Lenore that she is ineligible to buy that house, but she has a better home to show her anyway.
A) Bailey should tell Lenore about the new listing.
What is the worst way to terminate an agency relationship? A) Breach of contract B) Full performance C) Expiration of the listing contract D) Mutual agreement of the parties
A) Breach of contract
To whom must a transaction broker disclose property details? A) Buyer and seller equally. B) Only the qualifying broker. C) The seller. D) The buyer's agent.
A) Buyer and seller equally.
An exclusive ............ is expected to prepare themselves through education and to competently stand up for the buyer at all times. Please fill in the blank with the best answer based on the definition given. A) Buyer's Agent B) Seller's Agent C) Accountant D) Principal
A) Buyer's Agent
Chris is a real estate broker who has been working with Jake to help him sell his home. Which statement is true: A) Chris should make sure that the broker he works for establishes a clear agency agreement with Jake. B) Chris should negotiate an agency agreement with Jake and sign a listing agreement as soon as possible. C) So long as Chris establishes an agency relationship by implication, everything will work out. D) Chris should explain how agency relationships work in real estate and tell Jake that now she will be his agent in selling his house.
A) Chris should make sure that the broker he works for establishes a clear agency agreement with Jake.
If an earthquake significantly damages the seller's property, how might the agency relationship between the seller and broker be terminated? A) Destruction of the property B) Full performance C) Breach of contract D) Operation of law
A) Destruction of the property
Which of the following is true regarding a Transaction Broker's commission or compensation? A) Determined in advance by written agreement. Compensation may be received from either or both parties to the agreement. B) Always split 50-50 between seller and buyer or lessor and lessee. C) Always paid by the seller or landlord. D) Paid in advance by a buyer or prospective tenant.
A) Determined in advance by written agreement. Compensation may be received from either or both parties to the agreement.
Pace Walker is the buyer's broker for Ellen Rigby. After a recent showing, Pace finds out that crime rates have doubled in the last five years and that traffic noise from the highway is clearly audible from within the home. When Ellen asks about property values, Pace not only answers her question, but shares what he knows about crime rates and traffic noise as well. Ellen decides to keep looking. What duty has Pace fulfilled? A) Disclosure B) Broker C) Accounting D) Principal
A) Disclosure
Which term is NOT an example of how an agency relationship can be created in real estate? A) Double agency B) Express agency C) Ostensible agency D) Implied agency
A) Double agency
A buyer representation agreement creates what type of agency? A) Express agency B) Implied agency C) Ostensible agency D) Double agency
A) Express agency
A listing contract between a broker and client creates what type of agency? A) Express agency B) Dual agency C) Implied agency D) Ostensible agency
A) Express agency
Ideally, which is the best kind of agency relationship to enter into? A) Express agency B) Dual agency C) Implied agency D) Ostensible agency
A) Express agency
A cooperating broker is entitled to half the commission paid by the seller to the listing broker. True or False? A) False. Although it is common practice to share a commission with a participating broker who brings a buyer, there is no mandate to do so. B) True, except that the split does not have to be 50-50. C) False. A buyer's agent is obligated to collect a fee from the buyer. D) Ture, the commission is always set at 50-50.
A) False. Although it is common practice to share a commission with a participating broker who brings a buyer, there is no mandate to do so.
What role refers to the responsibility you have to act as an agent, or champion, for your client? A) Fiduciary B) OLDCAR C) Confidentiality D) Appraiser
A) Fiduciary
Which is an example of implied agency? A) Franz has been so helpful for Frank and Pat in finding the house of their dreams. He's shown them houses that are on the MLS listed with other agencies as well as listings he has in his office. When Frank and Pat talk about how stressful the search is, Franz says "don't worry, I've got your back." Frank and Pat believe Franz is working for them, but they've never discussed it directly. B) A developer wants to purchase a new lot. Lucy takes her to do a drive by of the lot, and quotes a price. Lucy doesn't say that that's her appraisal of market value, not the listing price, because the office that has the listing listed the price absurdly high and she's certain the owner's will sell for market value. C) Paul is a real estate broker who agrees to sell Astrid's home. They shake hands, but don't sign any papers. D) Jamie is a broker with an exclusive listing for Jerry's house. Janie, one of his clients who wants to buy, decides she wants to purchase Jerry's house. Jamie represents both the buyer and seller, but fails to have either party sign a dual agency agreement.
A) Franz has been so helpful for Frank and Pat in finding the house of their dreams. He's shown them houses that are on the MLS listed with other agencies as well as listings he has in his office. When Frank and Pat talk about how stressful the search is, Franz says "don't worry, I've got your back." Frank and Pat believe Franz is working for them, but they've never discussed it directly.
A property manager operates as a ..............agent. A) General B) Special C) Universal D) Dual
A) General
Lionel is a real estate managing broker who signs a listing agreement with Rachel to sell her house. The listing agreement contains the marketing plan, the listing price, the listing expiration, and the commission as well as other pertinent information. Before showing any prospective buyers the house, he always gives the customer a consumer notice that states that he represents the seller of the house as the principal, and does not represent the customers. Which two things are true about Lionel's agency relationship with Rachel? A) He is a special agent and a single agent. B) He is a special agent and a dual agent. C) He is a general agent and a dual agent. D) He is a general agent and a subagent.
A) He is a special agent and a single agent.
Is a transaction broker authorized to collect compensation for services? A) If there is a written agreement with seller, buyer, landlord or tenant. B) No. C) Always. D) Only from the qualifying broker.
A) If there is a written agreement with seller, buyer, landlord or tenant.
Agency that exists as a result of actions of the parties is known as...? A) Implied agency B) Ostensible agency C) Express agency D) Dual agency
A) Implied agency
Leila is representing buyers, Steve and Angie. The buyer wants to place an offer on a home that is listed at $800,000. It's been on the market for over a year, and the seller's broker mentioned that the owner would gladly take any offer that was over $700,000. Steve and Angie love the house and are worried that if they don't bid correctly, they might lose out. They think they should offer above asking price, and suggest putting in an offer of $825,000. Which statement is true? A) It is Leila's responsibility to let Steve and Angie know that a much lower offer would very likely be accepted. She should mention how long the house has been on the market and the likelihood that an offer significantly below the asking price will likely be accepted. B) Leila should tell Steve and Angie to offer $650,000. Who knows, the seller might be desperate enough to accept it, and she'll be saving her clients a lot of money! C) Leila should put in the offer of $825,000. Her split of the commission will be much higher! D) Leila should recommend offering $800,000, saying that's the lowest the seller will go, but she's pretty sure it will be accepted. She'll save Steve and Angie $25,000 while still getting a great deal for the sellers, the other broker and her. Everyone is happy!
A) It is Leila's responsibility to let Steve and Angie know that a much lower offer would very likely be accepted. She should mention how long the house has been on the market and the likelihood that an offer significantly below the asking price will likely be accepted.
Which statement is true about dual agency? A) It must always be disclosed to the competing principals. B) It is illegal under all circumstances. C) It is legal under all circumstances, no disclosure is necessary. D) It is assumed that everyone practices dual agency unofficially, so it's not that big of a deal.
A) It must always be disclosed to the competing principals.
Susan is a real estate broker and believes that she owes every person she works with the same benefits of an agency relationship. Why is she incorrect? A) It's not possible to put two competing interests first, but that is what an agency relationship requires. B) The agent must put their client's interest above their own. C) The agent owes a fiduciary duty of loyalty to the principal. D) All of the answer choices provided are correct.
A) It's not possible to put two competing interests first, but that is what an agency relationship requires.
Julie is a real estate broker who has been trying to sell a home for their brokerage's client for 6 months. Her very good friend, Jenny, mentions she's looking to buy and Julie thinks the house will be a great match for her friend. Her friend does love the house and wants to put an offer in at asking price. Which statement is true? A) Julie should very carefully explain that she represents the seller's interest in this transaction, and while Jenny is her friend, her loyalty must be to the seller's interests in all things related to this transaction. B) Julie figures that Jenny has bought a home previously, so she'll know all about agency relationships. C) The deal is pretty simple, Jenny is offering asking price, so Julie doesn't see any conflicts of interest arising. D) Jenny is Julie's friend, and Julie is only the subagent. Her broker is the agent, so it doesn't matter if Julie is more loyal to Jenny in this transaction.
A) Julie should very carefully explain that she represents the seller's interest in this transaction, and while Jenny is her friend, her loyalty must be to the seller's interests in all things related to this transaction.
Remy Pascal is a broker representing seller Carl Smith. Remy decides that the property is a great candidate for a quick flip and makes an offer on the home. Immediately after purchasing the home, Remy resells it for a profit. In this case, Remy has not acted appropriately to safeguard Carl's interest above his own. Which fiduciary duty has Remy violated? A) Loyalty B) Appraiser C) Disability D) Reliable Care
A) Loyalty
If a real estate broker in Washington represents a seller, but reveals information that adversely impacts the seller's interest in the transaction, what duty has the agent breached? A) Loyalty. B) Confidentiality. C) Disclosure. D) Conflict of Interest.
A) Loyalty.
Specific terms and requirements of any commission split...? A) Must be in writing, and must be agreed to by all parties, including sellers, buyers, brokers and designated agents or licensees. B) Are considered confidential, and must not be shared with anyone other than the seller. C) Are a separate agreement between the listing agent and the buyer's agent, or between the two agents negotiating a lease transaction. D) Depend on the practices of an individual brokerage firm.
A) Must be in writing, and must be agreed to by all parties, including sellers, buyers, brokers and designated agents or licensees.
Who is represented by a Transaction Broker in a real estate sale? A) No single party. B) The seller. C) The buyer. D) The listing broker.
A) No single party.
Only one seller's duty may be waived by the seller. Which seller's agent duty can be waived in Washington by a client? A) Once the agent has an offer to purchase on the seller's property, they have no additional obligation to seek additional purchase offers on the same property. B) Brokers acting as a seller's agent are obligated to guide their client, the seller, to experts on subject matters that go beyond the seller's agent area of expertise. C) A broker representing a seller in a real estate transaction in Washington State must maintain a strict loyalty to the seller as created by the agency relationship. D) A licensed broker who represents a seller in a real estate transaction must disclose any conflicts of interest in a potential transaction in a timely manner.
A) Once the agent has an offer to purchase on the seller's property, they have no additional obligation to seek additional purchase offers on the same property.
Which of the following is an example of a universal agent? A) Power of attorney B) Real estate managing broker C) Property manager D) Real estate broker
A) Power of attorney
Sydney's brother Lawrence is a real estate broker in a prestigious brokerage that is a member of several active MLS services. Sydney wants to sell her condo, and she wants to negotiate a listing agreement with her brother that will allow him to make 100% of the commission. Which statement is true? A) Sydney should negotiate a listing agreement with Lawrence's sponsoring broker. It's very unlikely she'll be able to get 100% for Lawrence, but she may be able to negotiate a listing agreement that gives Lawrence a significant split of any commission as a subagent. B) If Lawrence works as Sydney's general agent then he is permitted to enter into this agreement. C) Because they are family, Lawrence can represent Sydney as her special agent and collect the full commission directly from Sydney. D) Lawrence tells Sydney that as long as they don't make any official agreements then he can represent her directly, and she can pay him directly, without going through his sponsoring broker.
A) Sydney should negotiate a listing agreement with Lawrence's sponsoring broker. It's very unlikely she'll be able to get 100% for Lawrence, but she may be able to negotiate a listing agreement that gives Lawrence a significant split of any commission as a subagent.
Dougie owns a 16-unit rental building and goes into a real estate brokerage that has been recommended to him. He speaks to the broker, Tara, and explains what services he would like from the brokerage. He wants someone who will choose new tenants, set the rental rates based on market value and relevant laws, and sign all the leases on his behalf, as well as hiring anyone needed to conduct maintenance and repairs. Basically, Dougie is moving to Florida, and he doesn't want to have to worry about the rental property anymore. Which response of Tara's makes the most sense: A) Tara will happily provide that service as her office offers property management. In that capacity, she will be a general agent to Dougie for that property, she will bill him a set fee for this service every month. B) Tara explains that she is unable to provide this service, because she is a licensed real estate broker. She is only legally allowed to accept commissions, and unless there is a high turnover in the building, it will not be worth all of the work for the amount of commissions she would be able to make. C) Tara explains that she is only able to carry out these responsibilities if she is made a universal agent, and can represent Dougie in all scenarios. If something happens to Dougie while he is in Florida, Tara may be responsible for additional responsibilities, such as accessing any of Dougie's finances in order to pay for building repairs. D) Tara says that she is happy to carry out all of these responsibilities as his real estate agent representing him in finding new renters. She knows Dougie owns a great deal more property that he is likely to sell soon, and offering this service will help her get the listing. She won't be liable for anything that goes wrong in the building as she's only the special agent.
A) Tara will happily provide that service as her office offers property management. In that capacity, she will be a general agent to Dougie for that property, she will bill him a set fee for this service every month.
An agency relationship begins when a real estate broker in Washington chooses to provide real estate services to a principal client. An established agency relationship will continue until all of the following occur, except: A) The agency relationship continues until the real estate broker fails at completing the agreed-upon tasks. B) The agency relationship continues until it expires on the agreed-upon expiration date. C) The agency relationship continues until both parties mutually agree to end it. D) The agency relationship continues until one party notifies the other party that the relationship has been terminated.
A) The agency relationship continues until the real estate broker fails at completing the agreed-upon tasks.
Which is true about agency relationships? A) The agent owes the most loyalty to the principal. B) The agent should be loyal to the principal so long as their own interests are also met. C) The agent owes equal loyalty to the principal and the third party. D) The agent must carefully balance loyalty between all parties.
A) The agent owes the most loyalty to the principal.
Which of the following is NOT one of the six duties required by an agent in a fiduciary relationship? A) The duty of ownership. B) The duty of loyalty. C) The duty of disclosure. D) The duty of confidentiality.
A) The duty of ownership.
Which of the following is NOT a duty specific to a seller's agent in Washington? A) The duty to provide the Law of Agency Pamphlet. B) The duty of loyalty. C) The duty of disclosing any conflicts of interest. D) The duty to guide a client to an expert on matters outside their expertise.
A) The duty to provide the Law of Agency Pamphlet.
In a transaction that utilizes the services of a facilitator, what role does that licensee play? A) The facilitator works to bring the transaction to closing in an efficient and timely way. B) The facilitator is paid by the title company. C) A facilitator is another name for Buyer's Agent. D) Facilitators are illegal.
A) The facilitator works to bring the transaction to closing in an efficient and timely way.
In a property listing agreement, the seller must agree to...? A) The percentage amount of commission to be paid, and any details of a commission split offer to a cooperating broker. B) Only the dollar amount of the commission. C) Only the asking price of the property. D) An increase in the commission amount if another agent brings a qualified buyer.
A) The percentage amount of commission to be paid, and any details of a commission split offer to a cooperating broker.
The Multiple Listing Service requires that commissions be split in a fair and equitable manner in order for a property to be listed by the service. A) The requirement is that any commission split offered to a cooperating agent be specified. B) False (F) C) True (T) D) The split must be stated initially, but it can be changed.
A) The requirement is that any commission split offered to a cooperating agent be specified.
Full performance occurs when which of the following takes place? A) The sale of the property successfully closes. B) The property is destroyed. C) The listing contract expires. D) The parties mutually agree to terminate the contract.
A) The sale of the property successfully closes.
Which of the following statements is NOT a duty of a Transaction Broker? A) To act as a limited agent of both the seller and buyer or the landlord and tenant, with fiduciary responsibility to both. B) To accept and deliver to the customer or client all offers and counteroffers to buy, sell, or lease property. C) To assist the client or customer to develop, communicate, negotiate, and present offers, counteroffers, and notices that relate to those offers or counteroffers until a lease or purchase agreement is signed and all contingencies are satisfied or waived. D) To answer the client's or customer's questions relating to offers, counteroffers, and contingencies.
A) To act as a limited agent of both the seller and buyer or the landlord and tenant, with fiduciary responsibility to both.
Which of the following is an example of express agency? A) Tory is a real estate broker who has just signed an exclusive listing agreement with Jon to sell his house. B) Barb is a real estate broker who has been helping Liam to look at houses. Barb has been so helpful that Liam assumes that she has his best interests in his search to find a house. C) James is a real estate broker who is helping his friend market a property. D) All of the answer choices provided are correct.
A) Tory is a real estate broker who has just signed an exclusive listing agreement with Jon to sell his house.
Which statement is true about a general agent? A) A property manager is a type of general agent. B) It is an extremely rare type of agency within the real estate industry. C) It allows an agent to oversee all of the principal's business transactions. D) A mortgage appraiser is a type of general agent.
A) A property manager is a type of general agent.
In the acronym HARD, the "D" stands for: A) Disclosure. b) Details. C) Dedication. D) Dispute Resolution.
A) Disclosure.
What does the acronym OLDCAR stand for? A) Obedience, Loyalty, Disclosure, Confidentiality, Accounting and Reasonable Care B) Obedience, Loyalty, Discourse, Confidentiality, Appraisal and Reasonable Care C) Old vehicles, Loyalty, Disclosure, Controller, Accounting and Realtor D) Obstruction, Loyalty, Disclosure, Closing, Accounting and Realtor
A) Obedience, Loyalty, Disclosure, Confidentiality, Accounting and Reasonable Care
What is a Cooperating Licensee? A) Typically, the broker or agent who locates a buyer or tenant, and who participates in the negotiations that lead to a binding contract. B) An agent or associate who works with the listing agent. C) A real estate broker who agrees to a commission split. D) A classification that encourages questions about the real estate business.
A) Typically, the broker or agent who locates a buyer or tenant, and who participates in the negotiations that lead to a binding contract.
The NAR Code of Ethics states that Realtors "shall cooperate" with other brokers except when...? A) "cooperation is not in the client's best interest." B) "there is no need to share the commission." C) "a fee must be paid to another broker." D) an offer of compensation is not included in a listing agreement."
A) "cooperation is not in the client's best interest."
With regard to the required Law of Agency Pamphlet in Washington, all of the following can be considered a primary residence except: A) A six-family residence. B) A single-family residence. C) A cooperative residence. D) A condominium residence.
A) A six-family residence.
Which of the following is not a legal or valid agency relationship for real estate brokers in Washington? A) A transactional agency is not valid. B) Buyer agency is not valid. C) Seller agency is not valid. D) Dual agency is not valid.
A) A transactional agency is not valid.
Selena is a licensed real estate broker. Her mother is moving into a nursing home. Her mother asks Selena to deal with the house she owns. The mother doesn't want to have to make any decisions regarding the house. She wants Selena to decide whether it makes more sense to sell or rent the home, to hire movers, sell or dispose of any left furniture and choose how best to invest any profits from a sale or rental. What type of agent is Selena when she is representing her mother in carrying out these duties? A) A universal agent. B) A general agent . C) A special agent. D) She is not acting as an agent, she is just being a good daughter.
A) A universal agent.
What is one thing a Transaction Broker is cautioned against? A) To conduct an independent inspection of property to determine material facts. B) To disclose any material property facts of which the licensee has actual knowledge. C) To account for all money and property received. D) To recommend that each party to a transaction seek expert advice.
A) To conduct an independent inspection of property to determine material facts.
Which of the following best describes an agency relationship? A) An agent represents the principal to a third party. B) A principal and an agent work together to do business with a third-party. C) A subagent represents a principal to a third-party. D) A principal and an agent work together to do business with a subagent and third-party who are working together.
A) An agent represents the principal to a third party.
In real estate, which type of contract is the most common way to establish agency relationships? A) Listing Contract B) Dual Agency Disclosure C) Verbal Agreement D) Independent Contractor Agreement
A) Listing Contract
When does a licensed real estate broker in Washington state NOT have a legal obligation to determine the accuracy from an independent source? A) When the broker believes the information is reasonably reliable. B) When the seller waives this duty. C) When acting as a dual agent. D) A broker always has the legal obligation to determine the accuracy of information.
A) When the broker believes the information is reasonably reliable.
When should a real estate commission be shared? A) When the details of such commission split are made a part of the property listing agreement and acknowledged by a cooperating licensee. B) Never. C) Only when the seller insists. D) Sharing a commission is always at the discretion of a listing broker.
A) When the details of such commission split are made a part of the property listing agreement and acknowledged by a cooperating licensee.
Which is true of a single agent? A) When they represent a principal, they do not represent any other principals who have competing interests. B) They always work alone. C) They represent both sides in the transaction. D) The single agent puts their own interests first, and weighs the interests of the principal and third party equally.
A) When they represent a principal, they do not represent any other principals who have competing interests.
In practical terms, should a licensee show property to a prospective buyer with the hope of earning a fee, even when no commission split has been specified? A) Yes. B) No, not if there's a question about commission payment. C) Not until the commission split is guaranteed. D) Only if directed to do so by the agent's qualifying broker.
A) Yes.
A Transaction Broker works as: A) a facilitator, to move a transaction to successful conclusion. B) a mortgage broker. C) a dual agent in a real estate transaction. D) a universal agent.
A) a facilitator, to move a transaction to successful conclusion.
A transaction broker is obligated to protect the confidences of...? A) both parties to any transaction. B) the designated broker. C) the buyer. D) only the landlord in a rental contract.
A) both parties to any transaction.
