Real Estate 3.2

which of the following choices would be the most accurate definition of the term agency relationship in real estate practice

a contract whereby a client hires an agent to represent the client in a real estate transaction of some kind

how can an agency relationship be created

any of these choices (written document, action or word of the parties)

broker jane is acting as a dual agent in a real estate transaction and decides to appoint salesperson sara to represent the seller and salesperson ben to represent the buyer. ben and sara both work in janes firm.

ben and sara are designated representatives

a person that authorizes another to act for him or her is known as the

client

in agency representation, the employer is called the

client

broker bob has opened an escrow account and has deposited a buyers emd in that account. broker bob later learns that a different customer is about to file a lawsuit against him so he deposits 100,000 of his own money in that account. this action constitutes

commingling

money or trust instruments received, accepted or held pending consumation or termination of a real estate transaction are

escrow funds

a salesperson can set up escrow accounts for each of his clients, in the name of the client and the salesperson

false

an escrow account is maintained by a broker for the purpose of

impartial protection of both parties

a client is obligated to her agent for

indemnification against loss not caused by the agent

a real estate broker wishes to deposit an emd check in his business operating account until settlement, so the purchaser can earn a high rate of interest on his funds. can he legally do this

no, these funds must be placed in a seperate escrow account

licensee larry has held a real estate license for many years and has completed many residential transactions but never and commercial transactions. his neighbor owns a small strip mall and asks licensee larry to sell the property. licensee larry should be especially careful to consider which of the following duties to the client

reasonable care and due dilligence

sara seller hired larry licensee to sell her home under specified terms. larry would most likely be a

special agent

broker johnson has listed the property of cheever and sells it to brevard for 175,000. before closing, johnson finds that the property has a serious structural defect. what should johnson do

tell both cheever and brevard

a broker has listed a vacant lot zoned for residential use. later, an adjacent lot was rezoned causing an increase in value. what should the broker do?

tell the seller of the zoning change and advise the seller to consider application for rezoning the property.

barry, a sales agent with xyz realty, lists a property. helen, also a sales agent with xyz, presents an offer from one of her clients and the offer is accepted. which of the following best describes the position of the broker and xyz in this situation

the broker is a dual agent

an agent has the responsibility of care, obedience, accountability, loyalty, and disclosure to which of the following

the client

a broker is representing a buyer. when the broker is showing property, he may not disclose to his buyer

the current owner is infected with the hiv virus

a listing agreement may be terminated by

the seller

licensee laurie makes a listing presentation to seller steve. steve agrees to give laurie a listing and agrees to apy her a commission upon sale, but refuses to sign any written contract. how was this agency relationship created

this is an expressed agency

when a broker accepts a listing he or she has created an agency relationship. which of the following is not an agency responsibility

to obey all the instructions of the seller

a general agency empowers the agent to

transact the clients affairs in a certain business

the client may be obligated to compensate the salesperson for financial losses incurred as a result of actions by the clients

true

a broker has the buyers emd deposited into an escrow account. the amount of the deposit exceeds the amount of the brokers commission for the sale. the broker may remove his commission on this sale only

when the closing is completed

when does a broker earn his commission

when the offer to purchase has been signed and accepted by the seller