BROKERAGE RELATIONSHIPS & DISCLOSURE - 2021 PSI GUIDE Flashcards
Which of the following statement completions is FALSE?
A broker who provides brokerage services to a buyer is a buyer’s agent unless the broker is
a. appointed by the firm to represent the seller.
b. a subagent of the seller’s agent’s firm.
c. appointed by the DOL to be a dual agent.
d. appointed by the firm to be a dual agent.
c. appointed by the DOL to be a dual agent.
A broker who has been properly appointed by a firm to represent the buyer and the seller in a
transaction is called a
a. dual agent.
b. buyer’s agent.
c. seller’s agent.
d. non-agent.
a. dual agent.
If different brokers in the same firm represent different parties to the same transaction,
a. both brokers are necessarily dual agents.
b. the designated broker is a dual agent.
c. any managing broker responsible for the supervision of both brokers, is a dual agent.
d. the designated broker and any managing broker responsible for the supervision of both brokers are the dual agents.
d. the designated broker and any managing broker responsible for the supervision of both brokers are the dual agents.
“Principal”, according to Washington’s agency relationship law, means
a. a chief executive officer of a school.
b. a buyer or seller who has entered an agency relationship.
c. something of primary importance.
d. a licensee representing the client in a transaction.
b. a buyer or seller who has entered an agency relationship.
An “agency relationship” arises when
a. a broker helps a buyer write an offer.
b. there is a written brokerage services agreement between a broker and a buyer or seller.
c. a broker helps a seller respond to an offer.
d. a broker markets a seller’s property for sale.
b. there is a written brokerage services agreement between a broker and a buyer or seller.
A “material fact” is
a. information that adversely affects the value of property.
b. information that favorably affects the value of property.
c. information regarding products used in building construction.
d. important information.
a. information that adversely affects the value of property.
A “material fact”, by law, does not include that the
a. property’s air conditioning is defective.
b. property’s foundation has substantial cracks.
c. property was the site of a death.
d. basement floods.
c. property was the site of a death.
A prospective “transaction” does not exist until
a. the buyer has signed a brokerage services contract.
b. both parties have signed a brokerage services contract.
c. one of the parties has signed an offer.
d. both parties have signed a contract.
c. one of the parties has signed an offer.
Which of the following is NOT a general duty of a real estate broker?
a. To exercise reasonable skill and care.
b. To explain the legal consequences of the transaction.
c. To deal honestly and in good faith.
d. To present all offers.
b. To explain the legal consequences of the transaction.
Unless otherwise agreed a real estate broker does NOT have a duty to
a. provide a pamphlet on agency relationships.
b. make a written agency disclosure.
c. exercise reasonable skill and care.
d. conduct an independent inspection of the property.
d. conduct an independent inspection of the property.
When does the duty of confidentiality expire?
a. It does not expire.
b. One year after termination of the agency relationship
c. Immediately after termination of the agency relationship
d. When it is waived by the client
a. It does not expire.
Unless otherwise agreed, a real estate broker does NOT have a duty to
a. provide a pamphlet on agency relationships.
b. conduct an independent investigation of either party’s financial condition.
c. exercise reasonable skill and care.
d. deal fairly and honestly.
b. conduct an independent investigation of either party’s financial condition.
Which of the following is NOT a duty of a seller’s agent?
a. Loyalty.
b. Timely disclosure of any conflicts of interest.
c. Non-disclosure of confidential information.
d. Advising the seller on legal and tax matters.
d. Advising the seller on legal and tax matters.
When must the agency disclosure pamphlet be provided to a party?
a. Immediately after an offer has been signed
b. Immediately after a party consents to dual agency
c. Before the party signs an agency agreement
d. Before a transaction closes
c. Before the party signs an agency agreement
Which of the following terminates an agency relationship but does not affect contractual obligations?
a. Unilateral notice by either party
b. Expiration of the term of the agency relationship
c. Mutual agreement
d. Completion of performance by the broker
a. Unilateral notice by either party
