Section #3: Brokerage Relationships in SC

Question 1

South Carolina license law is often referred to as:

a. devisable law.
b. statutory law.
c. BRETTA.
d. defined law.

Answer 1

b. statutory law.

Question 2

In a real estate transaction:

a. the brokerage must always have a customer involved.
b. the brokerage must always have a client involved.

c. the brokerage needs neither customer or client to
enter a transaction as a transaction
broker.

d. the broker must have two clients involved and no customers.

Answer 2

c. the brokerage needs neither customer or client to
enter a transaction as a transaction
broker.

Question 3

Brokerage relationships allowable under SC agency law are:

a. single, dual, designated and transaction broker.
b. single, dual agency, and facilitation.
c. single agency, dual agency, and designated agency.
d. single agency and dual agency, only.

Answer 3

a. single, dual, designated and transaction broker.

Question 4

If the brokerage has only one client in the real estate transaction:

a. the other party to the transaction is automatically the buyer.
b. the other party to the transaction must be a client also.
c. the other party to the transaction must be a customer to the brokerage.
d. the other party to the transaction is called a “designated” consumer.

Answer 4

c. the other party to the transaction must be a customer to the brokerage.

Question 5

An agreement to represent a buyer:

a. must state that the seller will pay the buyer agent’s fees.
b. must be in writing and gained with informed consent.
c. must allow for representation of sellers as well as buyers in a single transaction.
d. must state that the buyer is free to use other agents.

Answer 5

b. must be in writing and gained with informed consent.

Question 6

An implied agency relationship:

a. is generally created by actions.
b. is outside license law and regulations.
c. creates a high degree of liability.
d. all of the above.

Answer 6

d. all of the above.

Question 7

A real estate licensee has the power of a:

a. general agent because the agreement is in writing.
b. general agent because the powers are universal.
c. special agent with universal authority.
d. special agent with limited authority.

Answer 7

d. special agent with limited authority.

Question 8

Agent Ann has no personal listing inventory, and she is showing the property of sellers who are listed with another brokerage in her area to some customers. She is not representing the seller when working with the potential purchasers. Ann is practicing:

a. buyer representation.
b. seller subagency.
c. buyer subagency.
d. transaction brokerage.

Answer 8

d. transaction brokerage.

Question 9

A dual agent:

a. has only one client in the brokerage. The other party is a customer.
b. gives full services to both clients without limitation.
c. represents both parties at the same time.
d. does not need a written agreement, as the consumers are unrepresented.

Answer 9

c. represents both parties at the same time.

Question 10

Ann wants to enter into an agreement with the seller ensuring that she will get paid in every situation unless the seller sells on his own. Her agreement is called:

a. exclusive-buyer representation.
b. exclusive-seller representation.
c. exclusive-agency agreement.
d. open-agency agreement.

Answer 10

c. exclusive-agency agreement.

Question 11

Ann is showing her seller client’s property to a buyer customer. She must disclose this to the potential purchaser:

a. prior to showing the property.
b. prior to gaining substantive information from the buyer.
c. prior to prequalifying the buyer.
d. all of the above.

Answer 11

d. all of the above.

Question 12

If a potential purchaser will not sign a representation agreement, she must be treated as a:

a. client.
b. customer.
c. transaction broker.
d. designated agent.

Answer 12

b. customer.

Question 13

A listing or buyer-agency agreement must contain all of the following EXCEPT:

a. ength of agreement.
b. duties of the agent.
c. when fees are earned and paid.
d. the agent’s split with the brokerage.

Answer 13

d. the agent’s split with the brokerage.

Question 14

In addition, a listing agreement must contain all of the following EXCEPT:

a. purchase price of the property.
b. terms of the agreement between seller and brokerage.
c. a definite termination date.
d. an automatic extension.

Answer 14

d. an automatic extension.

Question 15

The main difference between customer- and client-level service is:

a. amount of the fee charged.
b. disclosure of material facts about the property.
c. advice, counsel and advocacy.
d. none of the above, as both must be treated the same under license law.

Answer 15

c. advice, counsel and advocacy.

Question 16

A buyer client of the agent is interested in a particular property. The agent also has other buyer clients who have expressed interest in the same property. In this situation:

a. all clients may continue to be represented by a single brokerage with a written disclosure and informed consent.
b. all clients must be reverted to customer status.
c. all clients must be informed in writing prior to writing an offer on the property.
d. the clients must be referred outside the brokerage for representation.

Answer 16

a. all clients may continue to be represented by a single brokerage with a written disclosure and informed consent.

Question 17

In a dual-agency situation:

a. both the buyer client and seller client receive the full range of services.
b. duty of confidentiality is limited.
c. duty of disclosure is limited.
d. buyer client and seller client may verbally agree and no documentation is required.

Answer 17

c. duty of disclosure is limited.

Question 18

In a dual-agency situation, informed consent to act as a dual agent is gained:

a. at the listing or buyer-agency presentation.
b. when the buyer and seller agree in writing.
c. when the contract is ratified.
d. prior to closing.

Answer 18

b. when the buyer and seller agree in writing.

Question 19

Designated agency means that:

a. the brokerage has two customers in a single transaction.
b. the brokerage has two clients in a transaction who were brought in by one agent.
c. the brokerage has two clients in a transaction who were brought in by different agents.
d. the BIC does not represent either client in the transaction.

Answer 19

c. the brokerage has two clients in a transaction who were brought in by different agents.

Question 20

The seller received an offer on a retail complex but thought the offer was too low and decided not to respond. In this case, the agent who presented the offer to the seller must complete:

a. a dual-agency consent agreement.
b. a multiple-buyer client form.
c. a rejection-of-offer form.
d. a counteroffer.

Answer 20

c. a rejection-of-offer form.

Question 21

The builder does not want to offer client service to buyers who come to the site to look at properties. He only wants to give them customer service. In this case, the builder’s office policy should state that the brokerage:

a. only practices single agency seller agency.
b. only practices single agency buyer agency.
c. only practices transaction brokerage.
d. is always in dual agency.

Answer 21

a. only practices single agency seller agency.

Question 22

Transaction brokerage is the default position of the licensee in the law. This means:

a. that the licensee always practices single agency.
b. that the consumer receives customer service until a client agreement is signed.
c. that the licensee cannot practice dual agency.
d. that the consumer cannot become a client.

Answer 22

b. that the consumer receives customer service until a client agreement is signed.

Question 23

A licensee has agreed to assist the owner of the property with cleanup in order to get the listing agreement. In this case, the licensee is hoping for:

a. an agency coupled with an interest.
b. a transaction-brokerage agreement.
c. a dual-agency consent agreement.
d. a designated-agency consent agreement.

Answer 23

a. an agency coupled with an interest.

Question 24

When a request for agency is put into words and then into a written agreement, it is called a (an):

a. implied agency.
b. expressed agency.
c. general agency.
d. special agency coupled with interest.

Answer 24

b. expressed agency.

Question 25

Transaction brokerage provides:

a. customer service with limited confidentiality.
b. customer service with limited disclosure.
c. client service with limited confidentiality.
d. client service with limited disclosure.

Answer 25

a. customer service with limited confidentiality.

Question 26

In a dual-agency situation, both clients receive:

a. full service with no interference by the BIC.
b. limited service with informed consent.
c. full service with informed consent.
d. full service with BIC oversight.

Answer 26

b. limited service with informed consent.

Question 27

The brokerage has an office policy of transaction brokerage only. This means:

a. all consumers are clients.
b. all consumers are customers.
c. customers receive client services.
d. clients only receive customer services.

Answer 27

b. all consumers are customers.

Question 28

The Disclosure of Brokerage Relationships Form is no longer called the Agency Disclosure Brochure. The reason for this is:

a. that agency is no longer practiced in South Carolina.
b. that transaction brokerage is a type of non-agency.
c. that all relationships must be created in writing.
d. that the form must be signed by the licensee.

Answer 28

b. that transaction brokerage is a type of non-agency.

Question 29

Jan is practicing transaction brokerage with a potential buyer of a retail space. The seller of the property has his own listing agent. This means that:

a. the seller of the property has client service along with the buyer.
b. the buyer of the property has client service along with the seller.
c. the seller has client service while the buyer is treated as a customer.
d. both consumers are unrepresented.

Answer 29

c. the seller has client service while the buyer is treated as a customer.

Question 30

Disclosure of brokerage relationship requirements do not apply if:

a. the licensee is on a listing appointment.
b. the licensee is involved as a buyer representative.
c. the licensee is involved in the rental of property.
d. the licensee is making a buyer-agency presentation.

Answer 30

c. the licensee is involved in the rental of property.