Overall

Question 0

What three types may an agent be classified as?

Answer 0

Universal agent
General agent
Special agent

Question 1

An agent is a relationship between a licensee and?

Answer 1

A seller
A buyer
A landlord
A tenant

Question 2

Under what type of agency agreement, the principal delegates authority to conduct a specific activity, after which the agency relationship terminates. In most cases, this agent may not bind the principal to a contract.

Answer 2

Special agent

Question 3

In a _ agency relationship, the principal empowers the agent to perform any and all actions that may be legally delegated to an agency representative. The instrument of authorization is the power of attorney.

Answer 3

Universal agent

Question 4

In a _ agency, the principal delegates to the agent ongoing tasks and duties within a particular business or enterprise. Such delegation may include the authority to enter into contracts.

Answer 4

General agent

Question 5

In most instances, real estate brokerage is based on what type of agency?

Answer 5

Special agency

Question 6

An agency relationship in which the agent has an interest in the property that is being sold.

Answer 6

An agency coupled with an interest.

Question 7

A _ is a person who is empowered by contract to represent the interests of a client, also known as a principal.

Answer 7

Agent

Question 8

What kind of relationship is one of utmost trust?

Answer 8

Fiduciary

Question 9

The duties that the agent owes his or her principal are:

Answer 9

(COALD or COALN)

Care / Obedience / Accountability / Loyalty / Disclosure or Notice

Question 10

The law expects an agent to do his or her job with a reasonable degree of what?

Answer 10

Care, skill and diligence

Question 11

If the agent represents the seller, exercising care and skill include:

Answer 11

Helping the seller set a realistic asking price.
Discovering and disclosing facts that affect the seller.
Presenting contracts properly.
Marketing the property effectively.
Helping the seller evaluate purchase offers.

Question 12

If the agent represents the buyer, exercising care and skill includes:

Answer 12

Helping the buyer locate appropriate housing.
Evaluating property values and property conditions.
Determining financing alternatives.
Presenting offers and counteroffers with the buyers interests in mind.

Question 13

What requires an agent act in good faith and obey the principals directions as outlined in the contract, as long as they are legal.

Answer 13

Obedience

Question 14

If a directive is illegal and the agent cannot get the client to remove it from the contract, what should the agent do?

Answer 14

Withdraw from the relationship.

Question 15

An important duty owed to clients is?

Answer 15

Accountability

Question 16

Brokers must retain documents from clients for at least how many years?

Answer 16

3

Question 17

What duty requires the agent to place the clients interests above those of all others, including his or her own?

Answer 17

Loyalty

Question 18

If the agent represents the seller, he or she may not disclose without the sellers express permission such things as:

Answer 18

Clients willingness to accept an offer lower than asking price.
Clients anxiousness to sell.
(However, the agent must disclose material facts about the property)

Question 19

If the agent represents the buyer, he or she may not disclose without the buyers express permission such things as:

Answer 19

Clients willingness to pay more than asking price.

Clients need or desire to move quickly.

Question 20

What fiduciary duty is it when an agent is bound to inform the client of all facts that might affect the clients interests in the transaction? (Facts that the agent knows and should have known)

Answer 20

Disclosure

Question 21

An agent for a seller has a duty to disclose such things as:

Answer 21

Purchase offers.
Who the prospective purchasers are and if the agent has a relationship with them in any way.
Ability of the purchaser to complete the transaction.
Ability of the purchaser to offer a higher price.
Purchasers intention to resell the property for a profit.

Question 22

An agent for the buyer has a duty to disclose such things as:

Answer 22

Deficiencies in the property.
Any contract provision of financing terms that don’t suit the buyers interests.
How long the property has been listed.
Why the seller is selling.

Question 23

What exception exists to the duty of obedience when working with a client?

Answer 23

An agent is not bound by the duty of if the principals directions are not legal.

Question 24

An agents fiduciary responsibilities to a client usually end when the transaction closes. This is not true of which duty?

Answer 24

Confidentiality. This duty extends beyond the termination of the relationship. No personal info gained during the term of the agreement can ever be disclosed to another party.

Question 25

A broker is authorized by the client to find a ready, willing and able, buyer, but this authorization usually does not include authority to perform such actions as:

Answer 25

Signing contracts for the seller. Initialing changes to an offer. Permitting early occupancy.

Question 26

The authority granted to the broker is outlined in the listing agreement, which typically authorizes the broker to perform these actions:

Answer 26

``` Place a sign on the property. Advertise the property. Show the property. Cooperate with other brokers. Use a multiple listing service (MLS) Accept earnest money deposits. ```

Question 27

Agents owe what duties to a customer?

Answer 27

Honesty and fair dealing. Reasonable care and skill. Proper disclosure.

Question 28

The principal has what obligations to an agent in an agency relationship?

Answer 28

Availability, information, and compensation.

Question 29

What are several principals that govern an agency relationship?

Answer 29

Both parties must consent to the relationship. Both parties must agree to form the relationship. The relationship is fiduciary