Laws of Agency Flashcards
(25 cards)
The term “Caveat Emptor” literally translates as:
Let the buyer beware
A seller’s agent may do all of the following except:
- take photos of the property
- informing buyers that you can get the price they need
- following up with potental buyers
2.
The disclosure of the relationship in which one party (i.e. agent) acts for or represents another (i.e. principal) under the authority of the latter is known as:
Agency disclosure
A person authorized to act on behalf of another is called a/an:
Agent
A sales agent is about to take a listing. The sellers indicate that they do not wish to have the property shown to anyone of a certain racial background. The real estate agent complies with the sellers’ request.
The broker is liable for the sales agent’s misconduct, even though the broker did not know of the discriminatory acts
When is a broker/agent entitled to commission?
When a ready, willing, and able buyer is found on terms acceptable to the seller
How do brokers and clients enter into agency relationships?
Express contract
The most common way to create an agency relationship is:
Agency by agreement
A sales agent has a duty to treat all parties to a transaction honestly and fairly:
In all transactions
Honey Comb, an actress from Hollywood, hires a real estate agent to list the property that was the subject of the estate of Hanna Has Been. When Ms. Comb signed the listing agreement she did so as the administratrix. How did she get that title?
She was appointed by the court
Which of the following is not an element in an action for fraud?
The defrauded and defrauding parties must have relied on a confidential relationship
A broker is considered which of the following to the principal?
Special agent
A person designated in a written power-of-attorney, to legally act for another in their stead is typically called a(n):
attorney-in-fact.
An agency relationship can be terminated by:
Mutual agreement of the parties
Under a listing agreement, the seller is establishing what kind of relationship?
Special agency
An agency relationship can be terminated in all of the following ways except:
Estoppel
In real estate transactions, an agent has fiduciary duties to:
The client
If an agent provides the buyer with the Real Estate Transfer Disclosure Statement after the offer is presented, how long does the buyer have to rescind the agreement?
3 days
A licensee has secured their first listing contract. The licensee most likely would be considered:
A special agent
A broker who is employed by the seller is liable to the buyer if:
he acts in excess of the terms of his contract.
Goldberg lists his home with PDQ Realty, allowing them to put a sign in the yard, put it in MLS, and advertise it in the local newspaper. During the listing period, Goldberg sells the home to his brother, and is not obligated to pay PDQ any commission. What type of listing did Goldberg have with PDQ?
An exclusive agency listing
When all of the terms of the agreement have been satisfied the agency ends by:
Full performance
Which of the following fiduciary duties never terminates?
Confidentiality
A principal or agent always has the power to cancel a listing. When this happens it is called termination by:
Acts of the parties
