Chapter 8
When does the first substantive contact take place?
A potential buyer or seller begins to discuss his or her needs.
Which of the following types of agency is not allowed in Illinois?
Undisclosed dual agency
Is it permissible, as a buyer representative, to dispense advice to your purchaser client?
Yes. A buyer representative should advise the client on matters of which he/she has knowledge. It is important to advise the client to obtain expert advice on areas in which the licensee is not an expert.
Which of the following can a dual agent disclose?
Material or latent defects.
Which laws holds harmless a licensee to discover latent defects?
Munjal v. Baird & Warner, Inc. et al.
Agency most nearly means:
One who represents and acts for another
What is the best course of action in dealing with questions regarding the level of crime in a neighborhood?
Refer your client to public records.
What do we call an agent who represents only one party in a real estate transaction?
Single agent
All of the following is considered confidential information EXCEPT:
The buyer has four children.
Licensee Paul is bound to inform his client of all facts that might affect the client's interests -- both what Paul knows and what he "should have known." Which of these situations would not be something Paul "should know?"
The owner of the property is HIV positive.
Which of the following statements would be defined as "puffing?"
The property has the best view in the subdivision.
Seller Jim provides a buyer with a forged home warranty. This is a form of
Active fraud
Who should receive an agency disclosure?
All clients and customers
When should a seller agency disclosure take place?
At the time of the first substantive dialogue
Colleen plans to be a dual agent in a real estate transaction. At what point, if any, should she receive her clients' permission to act as a dual agent.
Colleen must disclose her intention to be a dual agent, and have written permission of both clients before acting as a dual agent.
Broker Dan is representing Mandy as a buyer's agent. He wants to show Mandy one of his listed properties. Which statement is true?
Dan needs to get the informed, written consent of both Mandy and the seller to act as a dual agent.
The situation that allows the broker to appoint more than one agent for the client within the same firm, is called:
Designated agency
What is the standard for agency representation in Illinois?
Designated agency
Broker Jim signs a listing agreement with seller, Grace, and a buyer agency agreement with buyer, Pat. Broker Jim shows buyer Pat the property owned by seller Grace. Both Grace and Pat signed written disclosure statements agreeing to this arrangement. What is this relationship called?
Dual agency
A property seller signs a listing agreement with a licensee. What is this an example of?
Express agency