Unit 3 - Agency Flashcards
(30 cards)
1) A person who is given authority to perform a specific legal duty by another is:
a) a power of attorney.
b) an attorney in fact.
c) an attorney at law.
d) an executor.
b) an attorney in fact.
2) A salesperson engaged by a real estate broker to show and sell properties.
a) is an agent for the broker, who is an agent for the principal.
b) is himself the primary agent for the principal.
c) is a principal party to the transaction.
d) is a general agent.
a) is an agent for the broker, who is an agent for the principal.
3) All BUT which of the following are fiduciaries?
a) Principal
b) Tristee.
c) Guardian.
d) Receiver.
a) Principal
A fiduciary is the person entrusted with the care of another’s assets or interests, such as a trustee, guardian, or receiver, who must act in the best interest of the principal.
4) The best description of a special agent would be a person who.
a) is an attorney.
b) is a broker.
c) has limited authority.
d) has contractual authority.
c) has limited authority.
It would NOT be the responsibility of the broker to inform the purchaser of which of the following?
a) The basement floods.
b) The property, according to a map 100 years old, is located in a flood area.
c) The price paid by the seller.
d) The house is infested with termites.
c) The price paid by the seller.
In a typical real estate listing contract, the broker would best be described as:
a) a general agent.
b) a special agent.
c) the principal for the agent.
d) The principal for the sub-agent.
b) a special agent.
A Power of Attorney is NOT necessarily revoked if:
a) the principal dies.
b) the attorney in fact fails to use it for 90 days.
c) the principal records a declaration revoking it.
d) the attorney in fact dies.
b) the attorney in fact fails to use it for 90 days.
A declaration made by a person to an official that he freely and voluntarily executed a deed is
a) acknowledgement.
b) authorization.
c) authentication.
d) exemption.
a) acknowledgement.
Death of either the principal or agent terminates the:
a) listing contract.
b) contract for sale.
c) deed.
d) mortgage.
a) listing contract.
An agency agreement will be terminated by:
a) the death of the agent.
b) the bankruptcy of the principal.
c) the death of the principal.
d) all of the above.
d) all of the above.
Which of the following will NOT terminate an agency relationship?
a) Revocation by the principal.
b) Mutual consent.
c) Reciprocity.
d) Renunciation by the agent.
c) Reciprocity.
Responsibilities of an agent in an agency relationship include all of the following EXCEPT:
a) exercise of due care.
b) accountability.
c) obedience.
d) patience.
d) patience.
To enforce his right to a commission a broker must:
a) act under written authorization.
b) have an exclusive listing.
c) belong to the MLS.
d) be a Realtor@.
a) act under written authorization.
Apollo Creed lists his house with the XYZ Realty Corp., for which Justin Case is the authorized broker. Which of the following statements is true?
a) Mr. Creed’s death will terminate the listing agreement.
b) Mr. Cases’s death will terminate the listing agreement.
c) The XYZ Realty Corp. is a general agent.
d) The listing is automatically renewable if it is an exclusive.
a) Mr. Creed’s death will terminate the listing agreement.
Which of the following is/are required to create an agency relationship?
a) Written agreement.
b) Compensation by principal.
c) Consent of principal and agent.
d) All of the above.
c) Consent of principal and agent.
A customer may best be described as:
a) always the buyer.
b) someone you work “with.”
c) someone you work “for.”
d) the person to whom a fiduciary duty is owed.
b) someone you work “with.”
You work “FOR” the principal - all others “with”
If a broker acts as a dueal agent without disclosure, which of the following may occur?
a) Loss of license.
b) Rescission of contract.
c) Forfeiture of commission.
d) All of the above.
d) All of the above.
All but one of the following owes a fiduciary obligation:
a) executor.
b) guardian.
c) attorney.
d) mortgagor.
d) mortgagor.
One who has the right to sign the name of his principal to a contract of sale is:
a) a real estate broker.
b) a special agent.
c) an attorney in fact.
d) an attorney at law.
c) an attorney in fact.
A real estate salesperson might lawfully accept an extra commission in a difficult sale from:
a) an appreciative seller.
b) a thankful buyer.
c) a broker-employer.
d) the mortgage lender.
c) a broker-employer.
Any person, partnership, association or corporation who authorizes or employs another, called the agent, to perform certain acts on his behalf is the:
a) agent.
b) broker.
c) principal.
d) assignor.
c) principal.
An agent is considered to have earned his commission:
a) only if title is transferred.
b) if he secures an offer from a prospective buyer.
c) if he produces a ready, willing and able buyer on the principal’s terms.
d) when the principal signs a contract of sale.
c) if he produces a ready, willing and able buyer on the principal’s terms.
A broker is:
a) a principal to the salesperson.
b) the agent of a seller under a listing contract.
c) the agent of a buyer in a buyer-agency agreement.
d) All of the above.
d) All of the above.
Salespersons may accept compensation of their predetermined share:
a) as indicated and given by the mutiple listing service…
b) from the owner of the property.
c) from their employing broker.
d) from the cooperating broker.
c) from their employing broker.
