Section 4: Unit 1 Practice Exam

Which of the following provides an example of a universal agent? A buyer's agent A court-appointed guardian A listing agent A property manager

A court-appointed guardian

Jill is selling her property and hired David as her agent. David brings another client, Kirk, to see the property, which Kirk is interested in purchasing. What kind of agent is David acting as in this scenario? A buyer's agent A dual agent A seller's agent A sub-agent

A dual agent

As a licensee, you'll have several tasks you must perform for your buyer client. One of these tasks is to ______. - Coach the buyer on how to negotiate the terms of the sales contract to be completely in the buyer's favor - Explain to the buyer why it's unnecessary to have a professional inspection done on a new home - Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license - Show properties the buyer might qualify for if he would put down more earnest money

Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license

When working with a client on a real estate sale, a real estate licensee is usually acting as which type of agent? Designated General Special Universal

Special (Real estate licensees most often serve as special or specific agents. They have a limited scope of authority when compared to a general agent.)

In a buyer agency relationship, whom does the licensee represent? Both the seller and the buyer The buyer The listing firm and the buyer The seller

The buyer

In a seller agency relationship, to which party does the licensee owe undivided loyalty? Both the seller and the buyer The broker The buyer The seller

The seller

Licensee Randy has a written listing agreement with Brent, a seller. The buyer is Tim. Who is Randy's client? Both the seller (Brent) and the buyer (Tim) Randy's broker The buyer (Tim) The seller (Brent)

The seller (Brent)

In a buyer agency relationship, what relationship does the seller have to the licensee? The seller is the licensee's client. The seller is the licensee's customer. The seller is the licensee's fiduciary. The seller is the licensee's nemesis.

The seller is the licensee's customer.

Chip represents Ginger, the buyer. Raphael represents Tom, the seller. If Chip and Raphael are from the same brokerage, what is their agency relationship with their clients? - They're designated agents; their broker is a dual agent. - They're designated agents; their broker is also a designated agent. - They're dual agents; their broker is also a designated agent. - They're dual agents; their broker is also a dual agent.

They're designated agents; their broker is a dual agent.

A Michigan licensee who facilitates a transaction but doesn't actually represent either party to the transaction may be a ______. Designated agent Dual agent Sub-agent Transaction coordinator

Transaction coordinator

As a court-appointed guardian, Marion serves as which type of agent? Appointed General Special Universal

Universal

Beverly doesn't represent either party to this Michigan real estate transaction. She's just here to handle the paperwork once the two parties finish negotiations. What role is Beverly taking in this transaction? A designated agent A dual agent A sub-agent A transaction coordinator

A transaction coordinator

Buyer April is interested in Wayne's condo. Steve represents April, and Wanda represents Wayne. Who are the principal(s) in this sales transaction? April and Wayne April, Wayne, Steve, and Wanda Steve and Wanda Wanda

April and Wayne

Imagine you're a Michigan licensee in a dual agency situation. Which of these questions can you answer without breaching your duties to either client? - Are you aware of any structural issues with the property? - How much should my counter-offer to the buyer be? - What repairs or concessions should I ask for from the home inspection? - What should I agree to fix from this list the buyer sent?

Are you aware of any structural issues with the property? (The agent can (and is required to) answer questions from both clients regarding material or adverse material facts. Responding to any of the other three questions may present a conflict of interest, as it may give one party or the other additional bargaining power.)

What's the term for someone who has agency representation with the licensee? Client Consumer Customer Fiduciary

Client

You have a listing agreement with Sam. Because of this, what is Sam's relationship to you? Client Confidante Customer Friend

Client

A licensee has several tasks to perform for seller clients. What's one of those tasks? - Advise sellers on the property conditions they shouldn't disclose to the buyer. - Communicate all offers and counter-offers to the sellers. - Disclose to the sellers that if the property doesn't sell within 60 days, the asking price must be lowered. - Ensure an implied agency agreement is in place.

Communicate all offers and counter-offers to the sellers.

An unrepresented ______ who's a party to a transaction is known as a principal. Agent Broker Client Customer

Customer

Jerry is holding an open house for a property he has listed. He speaks to several visitors, but none of them discuss making an offer. What are these visitors called? Clients Customers Neighbors Principals

Customers

You're holding an open house for Brenda. Walt and Mary walk in and ask you for a flyer that gives details about the property. At this point, what's your relationship with Walt and Mary? Clients Confidantes Customers Friends

Customers

A Michigan real estate licensee is acting as what type of agent when assigned by the broker to represent one party in an in-house transaction? Assigned Designated Dual Transaction

Designated

A real estate licensee is acting as what type of agent when assigned by the broker to represent one party in an in-house transaction? Designated General Special Universal

Designated

Ned represents Sofia in the sale of her townhome. Luciana represents Sofia's buyer, Arturo. What is Luciana's responsibility to Sofia? - Assist Sofia in the performance of tasks that Sofia needs to accomplish in order to get to a successful closing. - Contact the tax assessor's office for an estimate of the real property taxes. - Disclose that the buyer is a registered sex offender. - Disclose that the buyer will not have the funds for the down payment unless he sells his current home.

Disclose that the buyer will not have the funds for the down payment unless he sells his current home. (Luciana will not provide direct services for Sofia but must make required disclosures, including material adverse facts and conflicts of interest.)

Which of the following situations is an example of a non-agency relationship? - Dutton was previously a licensee. He's selling his home, and he wants Wanda, who's currently licensed, to assist him with the paperwork. - Kendra represents Steven in the sale of his home by helping him complete the necessary paperwork to make his offer. - Licensee Alexa works closely with her buyer clients' lender to be sure the lender has all information needed to approve the loan. - Licensee Ingrid helps her neighbor Jeremy spruce up his house before Jeremy's agent holds an open house.

Dutton was previously a licensee. He's selling his home, and he wants Wanda, who's currently licensed, to assist him with the paperwork. (A non-agent, also referred to as a transaction broker, may assist a customer with ministerial tasks.)

A licensee must perform which of the following tasks for a buyer client? - Ensure the buyer understands the importance of due diligence, including a professional inspection of the property. - Review the seller's property disclosures and show the buyer the ones that you believe are important. - Show the buyer properties that you are listing for other sellers. - Tell the buyer how much earnest money she should put down to ensure the deal goes through.

Ensure the buyer understands the importance of due diligence, including a professional inspection of the property.

Paulo is a property manager for several large properties. Which type of agent is he in relation to the landlord/client? Dual General Limited/special Unlicensed

General (A general agent handles all of the details of a specific transaction. A special or limited agent has limited scope of authority. Most real estate licensees serve as special agents; property managers, however, often serve as general agents.)

Estelle is representing seller Margaret. Which of the following tasks is one that Estelle is required to perform as Margaret's agent? - Determine the property's listing price based on comparables. - Give the buyer's earnest money to Margaret to deposit into her personal checking account. - Hire someone to market the property. - Inform Margaret about required property condition disclosures.

Inform Margaret about required property condition disclosures

Buyer Kristin has a buyer agency agreement with Carlotta, a licensee. Kristin's brother, Dalton, is going to showings with Kristin and helping her decide which house is the best fit. Who is/are Carlotta's client(s)? Kristin Kristin and Dalton Kristin and the seller The seller

Kristen

Mavis is a buyer's agent working with Blaine, an unrepresented seller. Mavis's buyer, Cintra, makes an offer on Blaine's property. Mavis assists Blaine with the paperwork. What's Mavis's relationship to the parties? - She's a buyer's agent to Cintra and an undisclosed dual agent with the seller. - She's a dual agent to the buyer and seller. - She's an agent to Cintra, and the seller is her customer. - The seller and buyer are her customers.

She's an agent to Cintra, and the seller is her customer.

Stacey, a buyer, is working with Rebecca, a licensee, in a state that doesn't recognize or permit implied agency. Rebecca doesn't represent Stacey, however, and is performing only ministerial tasks for her. Which of the following statements about this situation is correct? - Rebecca can't work with Stacey without an agency agreement. - Rebecca is acting in an agency capacity for Stacey. - Stacey is Rebecca's client. - Stacey is Rebecca's customer.

Stacey is Rebecca's customer.

After a few meetings, the Stinsons sign a listing agreement with broker Vera so she can sell their house. The house has already generated interest from a potential buyer named Sergei, who has spoken with Vera about the house's price and square footage. Which of the following is true about this situation? - Because Vera now has a sub-agency relationship with the Stinsons, she shouldn't talk to Sergei until the house is officially on the market. - The Stinsons and Vera have brokerage relationship agreement. - Vera has an agency agreement with Sergei. - Vera should disclose the dual agency that has been created by her direct assistance to the buyer

The Stinsons and Vera have brokerage relationship agreement (The Stinsons and Vera now have an express brokerage relationship agreement since they signed a listing agreement. Vera has only provided basic information to Sergei, so her actions have not crossed the line into agency-level assistance.)

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 isn't permitted to list other properties for sale. - The licensee is permitted to list other properties for sale as long as they're not competing properties. - The licensee is permitted to list other properties for sale, even if they're competing properties. - The licensee must list the seller's property only for the first 90 days, after which the licensee may list other properties.

The licensee is permitted to list other properties for sale, even if they're competing properties.