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Hawaii RE Exam State section COPY > Chap 5: Agency and Brokerage Relationships > Flashcards

Chap 5: Agency and Brokerage Relationships Flashcards

1
Q
    1. Which one is true regarding independent contractors?
      a. Income taxes are withheld by the broker on all commissions earned.
      b. Brokers are responsible for car accidents by agents while showing property
      c. Brokers must provide Worker’s Compensation Insurance
      d. Compensation is based on performance, not hours worked.
A

d. Compensation is based on performance, not hours worked.

ANSWER: D

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2
Q
    1. The duties that live forever after termination of an agency relationship are the duties of:
      a. obedience and loyalty
      b. reasonable skill, care and honesty
      c. confidentiality and accounting
      d. none of the above
A

c. confidentiality and accounting

answer: C

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3
Q
    1. A salesman who is an independent contractor should do all but which one of the following?
      a. Obtain a general excise tax license
      b. File estimated quarterly income taxes.
      c. Maintain an active license.
      d. Adhere without exception to the broker’s schedule for floor duty, prospecting and open houses.
A

d. Adhere without exception to the broker’s schedule for floor duty, prospecting and open houses.

ANSWER: D

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4
Q
    1. Kama’aina Kokua Realty has entered into signed agency agreements with both Seller A and Buyer B. Buyer B is interested in purchasing Seller A’s property. Is Kama’aina Kokua Realty allowed to facilitate this transaction?
      a. No, because this would create a dual agency situation for the brokerage.
      b. Yes, as long as both parties have written agency agreements with the brokerage.
      c. Yes, provided the Seller honors his agreement in the listing contract to pay the commission.
      d. Yes, if both Buyer and Seller give their written consent to the dual agency.
A

d. Yes, if both Buyer and Seller give their written consent to the dual agency.

ANSWER: D

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5
Q
    1. Which of the following statements is true regarding agents:
      a. A general agent has broad authority to act on behalf of his principal, while a specific agent is authorized only to perform specific tasks for his principal.
      b. Most real estate brokers are general agents.
      c. An agent is a person who employs another person to act on his behalf.
      d. A salesperson is not empowered to negotiate an offer on behalf of his principal.
A

a. A general agent has broad authority to act on behalf of his principal, while a specific agent is authorized only to perform specific tasks for his principal.

ANSWER: A

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6
Q
    1. In order to enter into a legally enforceable contract in Hawaii, a person must be at least:
      a. 16 years of age
      b. a high school graduate
      c. 18 years of age
      d. 21 years of age
A

c. 18 years of age

ANSWER: C

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7
Q
    1. Third parties in an agency relationship are referred to as:
      a. clients
      b. principals
      c. customers
      d. fiduciaries
A

c. customers

ANSWER: C

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8
Q
    1. A special relationship of trust, confidence and responsibility between an agent and his principal is known as:
      a. a contractual relationship
      b. a common law relationship
      c. a fraudulent relationship
      d. a fiduciary relationship
A

d. a fiduciary relationship

ANSWER: D

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9
Q
    1. Agent A has been working with Buyer B for three months- showing her property, arranging for her to be pre-qualified by a lender, and writing up one offer that was rejected by the Seller. Agent A and Buyer B have never addressed relationship, either orally or in writing. Which is true:
      a. No agency relationship exists between Agent A and Buyer B.
      b. Agent A has an express agency relationship with Buyer B.
      c. Agent A has an implied agency relationship with Buyer B.
      d. Agent A is breaking the law by performing these duties for Buyer B with
A

c. Agent A has an implied agency relationship with Buyer B.

Answer: C

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10
Q
    1. Which of the following would a seller’s agent be prohibited from doing?
      a. Disclosing to the buyer the seller’s confidential reason for selling.
      b. Disclosing in a timely manner any conflict of interest the agent may have in the transaction.
      c. Making a continuous and good faith effort to find a buyer for the property.
      d. Disclosing any pertinent information the agent may discover about the buyer’s motivation in making an offer.
A

a. Disclosing to the buyer the seller’s confidential reason for selling.

ANSWER: A

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11
Q
    1. Which of the following statements about buyer agency is correct?
      a. Buyer’s agency is voided when the seller pays the commission.
      b. A buyer’s agent is employed and represents only the buyer, regardless of who pays the commission.
      c. When presenting an offer to a seller, a buyer’s agent is bound to disclose to the seller the buyer’s intention to re-sell the property immediately at a profit.
      d. Fiduciary duties do not apply to buyer agency as strictly as they do to seller agency.
A

b. A buyer’s agent is employed and represents only the buyer, regardless of who pays the commission.

ANSWER:B

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12
Q
    1. A seller’s agent sitting on an open house meets a prospective buyer who decides to make an offer on the house. The buyer asks the seller’s agent to write up the offer on the spot. This could be a setup for:
      a. unintended dual agency
      b. designated agency
      c. subagency
      d. breach of agency duties
A

a. unintended dual agency

ANSWER: A

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13
Q
    1. Which of the following is true about agency?
      a. A statement in the sales contract Purchase Contract that the broker represents both the buyer and the seller is sufficient notice of dual agency.
      b. A buyer’s agent is authorized to present an offer directly to the seller without contacting the listing broker.
      c. The listing broker may present an offer from a buyer to a seller, and then after the seller understand all the terms and conditions of the offer, the listing broker must tell the seller who in the transaction the listing broker represents.
      d. Prior to presenting an offer to an unlisted seller (FSBO), the broker must disclose to the seller whether the broker represents the buyer or the seller.
A

d. Prior to presenting an offer to an unlisted seller (FSBO), the broker must disclose to the seller whether the broker represents the buyer or the seller.

ANSWER: D

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14
Q
    1. Per the Hawaii Statute of Frauds, a buyer agency agreement
      a. must always be used when representing a buyer.
      b. is unenforceable if not in writing and signed by both parties.
      c. may include agreements with customers.
      d. is not regulated under the state license laws.
A

b. is unenforceable if not in writing and signed by both parties.

ANSWER: B

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15
Q
    1. In a dual agency situation, the listing broker may collect a commission that is split between the buyer and the seller if
      a. both parties give informed, written consent to the dual compensation.
      b. both parties are represented by the same brokerage under a dual agency agreement.
      c. the buyer and the seller shake hands on the arrangement.
      d. the seller instructs escrow in writing to split the commission that is split between the himself and the buyer.
A

a. both parties give informed, written consent to the dual compensation.

ANSWER: A

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16
Q
    1. Prior to preparing an offer on behalf of the buyer, the selling sales agent must
      a. contact the seller’s agent and inform him that an offer is pending.
      b. disclose at least once to the buyer in writing which party he represents.
      c. disclose at least once to the buyer, orally or in writing, which party he represents.
      d. disqualify himself if he is acting in cooperation with the listing broker.
A

c. disclose at least once to the buyer, orally or in writing, which party he represents.

ANSWER: C

17
Q
    1. Agency disclosure is
      a. required by Hawaii law.
      b. a “best practice” to keep everything above board
      c. required only in a dual agency situation
      d. required only of listing brokers.
A

a. required by Hawaii law.

ANSWER: A

18
Q
    1. Which of the following would NOT be considered a customer?
      a. A potential tenant, when the agent is employed to lease and manage rental property.
      b. an owner of a listed property, when the agent is a buyer’s agent.
      c. a potential buyer who attend an open house, when the agent is the listing agent.
      d. a potential buyer who engages an agent on floor duty to show her a listed property.
A

d. a potential buyer who engages an agent on floor duty to show her a listed property.

ANSWER: D

Hawaii RE Exam State section COPY (14 decks)

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