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Real Estate COPY COPY > Chapter 4: Real Estate Agency > Flashcards

Chapter 4: Real Estate Agency Flashcards

1
Q

The person that a Licensee represents in a real property transaction

A

Client

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2
Q

A person for whom an agent provide services, which are only to be provided by a licensee, or a person who seeks such services from a licensee

A

Consumer

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3
Q

structural defects that would not normally be uncovered over the course of an ordinary inspection

A

Latent defect

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4
Q

Parties formally expressed their intention to establish an agency and state its terms and conditions

A

Express agreement

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5
Q

Authorizes the sponsoring broker to find a buyer or tenant for the owners property

A

Listing agreement

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6
Q

When the actions of the parties indicate that they have mutually consented to an agency

A

Implied agreement

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7
Q

A person empowered to do anything the principal could do personally

A

Universal agent

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8
Q

May represent the principal in a broad range of matters related to a particular business or activity

A

General agent

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9
Q

Authorized to represent the principal in one specific act or business transaction only, under detailed instructions

A

Special agent

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10
Q

A person authorized by the sponsoring broker to act as the agent for a specific principal

A

Designated agent

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11
Q

When an agent or firm represents only one party

A

Single agency

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12
Q

Agent represents two principles in the same transaction

A

Dual agency

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13
Q

What best describes an agent?

A

A person who is placed in a position of trust and confidence

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14
Q

A seller listed his property with ABC realty. The agency relationship between the seller and the sponsoring broker would be what type of agency?

A

Special agency

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15
Q

What is true of a real estate broker acting as the agent of the seller?

A

The broker is obligated to render faithful service to the seller

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16
Q

A seller list his home with a real estate broker for $289,500. Later the same day, a potential buyer comes into the brokers office and ask for general information about homes for sale in the $250,000 area to the $300,000 price range. Based on the facts what is true?

A

The seller is the brokers client; the potential buyers the customer

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17
Q

A licensee who is contracted with the condominium owner to manage a high-rise apartment is probably a?

A

General agent

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18
Q

What will terminate an agency in a broker seller relationship?

A

The owner declares personal bankruptcy

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19
Q

A brokers hired by a first time buyer to help the fire purchase a home. The buyer confides to the broker that being approved for a mortgage loan maybe complicated by the fact that the buyer filed for bankruptcy two years ago. When the buyer offers to buy a home, what is the brokers responsibility?

A

The broker should have the buyer qualified by a lender and then politely refuse to answer any questions that would violate the duty of confidentiality

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20
Q

A broker list of residents. For various reasons, the owner of the residents must sell the house quickly. To expedite the sale, the broker tells A prospective purchaser that the seller will except at least $5000 less than the asking price for the property. What is true based on the facts?

A

Disclosure was improper, regardless of the brokers motive

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21
Q

A buyer who is the client other broker wants to purchase a house that the broker has listed for sale. What is true about the statement?

A

The seller and buyer must be informed of the situation and agree to the brokers representation of both of them

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22
Q

A buyer comes into a real estate brokers office and asked the broker to represent her while searching for a home and $190,000 area to $200,000 price range. The broker recalls a house for sale by owner listed at $189,000. The broker calls the owner of the house, asking for permission for his client to see the house. What is true based on the statement?

A

The for sale by owner seller is the brokers customer; the buyers the client

23
Q

A real estate license he was representing a buyer. At their first meeting, the buyer explained that he planned to operate a dog grooming business out of any house he bought. The licensee did not check the local zoning ordinances to determine in which part of town such a business to be conducted. Which agency did the licensee violate?

A

Care

24
Q

A sponsoring broker listed and sold a home. The seller had told the sponsoring broker that the home is structurally sound. This information was passed on to a prospective buyer by one of the licensees sponsored by the broker. If the sponsoring broker has no way of knowing that this information is false, who will likely be held liable if the latent defect is later discovered?

A

The seller

25
Q

In real estate transactions, the term fiduciary typically refers to?

A

Agents relationship to the principal

26
Q

A real estate license these responsibility to keep the principal informed of all the facts that could affect the transaction is the duty of?

A

Disclosure

27
Q

What would be considered dual agency?

A

A licensee acting for both the buyer and the seller in the same transaction?

28
Q

In a dual agency situation, licensee may represent both the seller and the buyer if?

A

Both parties give their informed consent, in writing, to the dual agency

29
Q

Designated agency is most likely to occur when?

A

The buyer and the seller represented by the same company

30
Q

The relationship of the broker, managing broker, or leasing agent with the sponsoring broker is called? They represent the sponsoring broker in all daily actions.

A

General agency

31
Q

What contract must be in writing to be end oracle according to Illinois law?

A

A real estate sales contract

32
Q

A broker brought a full price cash offer to the seller with w check for $7,000 earnest money. The seller refused the offer. What is true?

A

If the seller refuses to pay commission, the broker may have to sue to get it.

33
Q

What will not terminate an offer to buy a house?

A

The buyer takes advantage of the statutory 3 day right of rescission on offers

34
Q

A broker signed a listing with a seller. One month later the broker learned that the seller had been ruled legally incompetent by a court. The listing is now?

A

Automatically terminated and of no value to the broker.

35
Q

Equitable title is transferred to a buyer through which of the following documents?

A

Sales contract

36
Q

Broker Christine arrived to present a purchase offer to Elizabeth who is an invalid, and finds Elizabeth’s son and daughter in law are also present. In the presence of broker Christine the two younger people persistently urge Elizabeth to accept the offer, even though it is much lower than the price she was asking for the home. Elizabeth, very upset, finally accepts the offer. What is true?

A

Elizabeth was under duress and undue influence and may claim the contract was void

37
Q

Mrs. Johnson and mr. Perotti entered into an agreement whereby mr. Perotti will pay mrs. Johnson $5,000 down and the remainder of the agreed upon price in monthly installments for her property. What is true?

A

Mrs. Johnson keeps legal title until Mr. Perotti pays the balance of the consideration

38
Q

The amount of earnest money, which will be held in the brokers trust or escrow account. Is determined by?

A

Agreement of the parties

39
Q

An exclusive right to sell listing can be described as?

A

Executory bilateral contract

40
Q

What contract is unenforceable in Illinois?

A

Oral real estate sales contracts

Real estate contracts which have run past the statute of limitations

Real estate contracts with contingencies that cannot be met

41
Q

Who is the purchaser in a contract?

A

The vendee

42
Q

A contract that buys time for the purchasers by taking the property off the market is called?

A

An option contract

43
Q

The sales person carelessly left the commission out of a listing contract. This listing, in its present condition, is?

A

Void

44
Q

A broker has an exclusive right to sell listing on a building. The owner is out of town when the broker gets a full price written offer form a buyer to purchase the building, providing the seller agrees to take back a purchase money mortgage. The buyer must have a commitment from the seller before the seller is scheduled to return to the city. Under these circumstances?

A

The broker must obtain the signature of the seller or there is no contract

45
Q

The sale contract stated that the buyers would bring in the earnest money within five days. It is now the sixth day and the buyers have not brought in the money. This is legally referred to as?

A

Breach

46
Q

All of the following situations make a contract voidable

A

A buyer claims he was intoxicated when he signed a contract

A 17 year old signs a contract to sell real estate

A buyer claims the seller lied to him about the property.

47
Q

A contract that allows a buyer to buy at agreed on time and an agreed on price is called

A

An option

48
Q

An option contract is?

A

Unilateral contract until it is exercised, when it becomes an Executory bilateral contract

49
Q

A broker received an offer and a check for earnest money on Tuesday. The seller accepted the offer at 11 am Wednesday. The broker must?

A

Deposit the money in her escrow account by the end of business hours on Thursday

50
Q

What would be in violation of the Quinn-Tyson decision?

A

The sales person explains to a buyer that the finance contingency in the offer means the buyer won’t have to buy if he cannot get financing

51
Q

A buyer and seller entered into a contract for the sale of a house with no appliance included. Three weeks later the sellers called the buyers and asked if they would like the old washer and dryer in the basement. The buyers were delighted. After the closing, the buyers took possession and found the washer and dryer were gone. They will not be allowed to sue for specific performance because of the?

A

Parol evidence rule

52
Q

On Saturday buyers offer $70,000 for w vacant lot. On Monday the seller counter offers with $80,000. On Tuesday the buyers counter offer with $75,000. On Friday, certain that the seller will not accept their last offer, the buyers withdraw it and say they will accept the sellers counteroffer of $80,000. Under those circumstances?

A

Their is no valid agreement because the buyers counteroffer was a rejection of the sellers counteroffer, and once rejected, it is null and void

53
Q

Commingling may be defined as the broker?

A

Depositing earnest money in his business account

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