Section 7 Unit 3 Exam
A licensee must perform which of the following tasks for a buyer client? A) Ensure the buyer understands the importance of due diligence, including a professional inspection of the property. B) Review the seller's property disclosures and show the buyer the ones that you believe are important. C) Show the buyer properties that you are listing for other sellers. D) Tell the buyer how much earnest money she should put down to ensure the deal goes through.
A
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)? A) Kristin B) Kristin and Dalton C) Kristin and the seller D) The seller
A
Monica's business is booming. She's representing an owner who's selling a $500,000 home on one side of town, and a buyer who's purchasing a $300,000 property on the other side of town. As it happens, the seller and buyer both know each other from church and have been talking to others about Monica's talents, which has brought in several new leads for her to pursue. What type of agency relationship does Monica have with the seller and buyer? A) She is each party's single agent. B) She's a dual agent, since the seller and buyer know each other. C) She's the buyer's agent and the seller's subagent. D) She's the seller's agent and the buyer's subagent.
A
Which of the following questions can an agent in a dual agency transaction answer without breaching her duties to either client? A) Are you aware of any structural issues with the property? B) How much should my counter-offer to the buyer be? C) What repairs or concessions should I ask for from the home inspection? D) What should I agree to fix from this list the buyer sent?
A
Which of these statements about duties is true if a South Carolina licensee is acting as a dual agent? A) Agency duties may be limited. B) Clients receive the same duties whether the licensee is acting as a single agent or dual agent or not. C) Licensees are unable to maintain confidentiality. D) Licensees can disclose one client's willingness to pay or accept a price other than list price to the other party.
A
You represent Ember as her listing agent. Ashley is the buyer, and Trinity represents her. What duties do you owe Trinity? A) Honesty and fairness B) The duty of confidentiality C) The duty of loyalty D) The same duties you owe Ember
A
Assume that a statutory duty in South Carolina conflicts with a common law fiduciary duty. Which prevails? A) Common law B) Statutory duty C) The broker in charge decides D) The courts decide
B
In a buyer agency relationship, what relationship does the seller have to the licensee? A) The seller is the licensee's client. B) The seller is the licensee's customer. C) The seller is the licensee's fiduciary. D) The seller is the licensee's nemesis.
B
In a buyer agency relationship, whom does the licensee represent? A) Both the seller and the buyer B) The buyer C) The listing firm and the buyer D) The seller
B
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? A) Alda tells Marge she wants to make an offer on Steven's property and asks Marge what she should offer, since Marge knows Steven's rock-bottom price. B) Alda tells Marge that she's hired an inspector to perform a property inspection. C) During the home inspection, Marge hears the buyer tell the inspector several times, "That's no big deal. I can fix that." The buyer lists those as repairs she wants the seller to make. D) Steven tells Marge he can reduce his price, and Alda tells Marge she can increase her offer.
B
Which one of the following provides the best example of single agency? A) A broker acts as a dual agent to one party only. B) An agent from one firm acts as the agent for the buyer. C) Two agents from different firms each act as a subagent for the other. D) Two agents from one firm act, separately, as the agent for the buyer the agent for the seller.
B
Jason is the seller's agent. His seller has a leaky roof he'd rather keep secret from buyers. What should Jason do? A) Fulfill his duty of loyalty. Revealing the roof leak may not be in his client's best interest. B) Fulfill his duty of obedience by keeping the roof secret, as his client instructed. C) Inform the seller that the roof leak is a material fact that he is obligated to disclose to buyers. D) Quit representing the seller.
C
Orla represents the seller, and Pardeep, an agent from a different firm, represents the buyer in the same transaction. What type of agency relationship does Orla have with her client? A) Buyer agency B) Dual-licensee dual agency C) Seller agency D) Single-licensee dual agency
C
Which of these duties is owed by all parties to a transaction? A) Acting deceitfully B) Adequate supervision C) Adherence to contractual terms D) Non-disclosure of material facts
C
In a seller agency relationship, to which party does the licensee owe undivided loyalty? A) Both the seller and the buyer B) The broker C) The buyer D) The seller
D
What responsibility does the seller's agent have to the seller? A) Advocate for and ensure the sale is profitable for the seller. B) Advocate for the seller and help present the property in the best light, even if it means covering up material defects. C) Ensure the sale is profitable for the seller. D) Seek a sale at the best price at terms acceptable to the seller.
D
