Responsibilities of Agents Exam
Marge is a licensee in a dual agency transaction with seller Steven and buyer Alda. In which of the following situations can Marge share what she knows with all parties without compromising her duty of loyalty?
Alda tells Marge that she's hired an inspector to perform a property inspection.
Assuming that dual agency is legal where these scenarios occur, and the licensees' brokerages permit it, which of these situations demonstrates illegal dual agency?
At an open house Tom is holding for his client, Rod, a buyer says she wants to make an offer. She details her situation; Tom waits until she finishes and then suggests that she offer a non-refundable earnest money deposit to strengthen her offer.
In a real estate transaction, which two parties are owed the same duties?
Customers and other parties
A licensee must perform which of the following tasks for a buyer client?
Ensure the buyer understands the importance of due diligence to include a professional inspection of the property.
Erik is acting in a single-agency capacity in a transaction. What does this mean?
He's representing (and owes undivided loyalty to) either the buyer or the seller.
Which of the following duties are owed to customers and other parties to a real estate transaction?
Honesty and fairness
Which of these is an example of a sub-agency relationship?
Morris, who's licensed independently, finds a buyer customer for Greg's listing with Marvel Homes and is obligated to act in the best interest of Marvel Homes' client.
In which of these situations has the licensee compromised the duties of loyalty and disclosure?
Nate didn't tell his client about a conflict of interest related to the sale of the client's property.
Zack represents a seller and receives an offer through another agent. The offer is higher than the listing price. The property is already listed at a very high price, and no other offers have been received. Is Zack obligated by his duties to the other party to disclose that the offer is too high?
No, his fiduciary duty is to his own client. The buyer's agent must be responsible for advising on a fair price for the property.
If you represent the buyer and seller in the same transaction, what type of agency relationship do you have with your clients?
Single-license dual agency
Ned represents Sofia in the sale of her townhome. Luciana represents Sofia's buyer, Arturo. What is Sofia's relationship to Luciana?
Sofia is Luciana's customer.
When a licensee represents a seller, which one of the following statements is true about the licensee's ability to list other properties that are for sale?
The licensee is permitted to list other properties for sale, even if they're competing properties.
In a seller agency relationship, whom does the licensee represent?
The seller
Randy, a licensee, is in a seller agency relationship with Brent, a seller. The buyer is Tim. Who's Randy's client?
The seller (Brent)
