front 1 What mistakes did Erik appear to make when the property was purchased? | back 1 Assuming he could use the property however he saw fit Not knowing enough about the property before purchasing Not using a real estate agent |
front 2 If Erik had hired his own agent and the agent assured him that the property was suitable for his plans, would Erik have a cause for action against his agent? | back 2 The answer is yes. If Erik's agent assured him that the property was suitable for his plans, Erik could in turn take action against the agent. If the seller had used the services of a real estate agent, and the agent had learned of the Erik's plans, there is a possibility that Erik could sue the seller's real estate agent for failing to disclose the limitations on the property's use as well. |
front 3 Agent | back 3 individual who is authorized and consents to represent the interest of another person |
front 4 Agency | back 4 Fiduciary relationship between the principle and the agent |
front 5 customer | back 5 third party or non represented consumer |
front 6 principal | back 6 individual who hires someone and delegates to that person the responsibility of representing his or her interests |
front 7 The fundamentals of general agency law have changed dramatically over the past two hundred years. | back 7 False |
front 8 In traditional common law, the relationship in which the agent is held in a position of special trust and confidence by the principal is one of a fiduciary. | back 8 true |
front 9 Express Agency | back 9 Buyer signs representation agreement |
front 10 Implied Agency | back 10 Broker shows homes and makes offer for buyer |
front 11 Express Agency | back 11 Seller signs listing agreement |
front 12 Implied Agency | back 12 Buyer asks to see other homes at open house |
front 13 Accounting | back 13 Following state law regarding the receipt of funds from the clients and customers |
front 14 loyalty | back 14 refusing to withhold an offer from a seller until a second offer is received |
front 15 obedience | back 15 following a buyers instructions |
front 16 confidentiality | back 16 keeping the principals personal information private as to the type of property that is sought |
front 17 care | back 17 using a reasonable degree of skill and expertise in acting on a principal's behalf |
front 18 disclosure | back 18 revealing to a prospective buyer that the agent is related to the property seller |
front 19 An express agreement occurs when the actions of the parties indicate that they have mutually consented to an agency. | back 19 false |
front 20 An express agreement, in which the parties formally express their intention to establish an agency and state its terms and conditions, may be either oral or written. | back 20 true |
front 21 Designated Agent | back 21 A sales associate designated by the broker to act as the agent of a specific principle |
front 22 special agent | back 22 represents the principal in one specific act or transaction only. A real estate professional usually falls within this category |
front 23 universal agent | back 23 a person empowered to do anything the principal could do personally |
front 24 general agent | back 24 represents the principal in a broad range of matters related to a particular business or activity |
front 25 The universal agent's authority to act on behalf of the principal is significantly limited. | back 25 false |
front 26 A universal agent is a person empowered to do anything the principal could do personally. | back 26 true |
front 27 Even though an agent’s primary responsibility is to the principal, the agent also has a duty to treat customers with honesty. For each statement, determine if it would be interpreted as fraud or just puffing. | back 27 Puffing- A real estate professional states that a property is finished as beautifully as a magazine layout. Puffing-A real estate professional states that a small house is quite desirable because it is cozy. Puffing-A real estate professional states that the floor plan of a house is desirable because the master bedroom is adjacent to the kitchen. Fraud-Real estate professional states that a home is structurally sound even though he is aware that the foundation walls are significantly damaged. Fraud-Real estate professional makes a false statement about a property. Fraud-Real estate professional states that the furnace is only two years old when in fact it is ten years old. |
front 28 Exaggeration of a property's benefits is called puffing and is illegal. | back 28 False |
front 29 The real estate professional's duty to a third party (customer) includes disclosure of all facts that the real estate professional knows or should reasonably be expected to know that materially affect the value or desirability of the property. | back 29 true |
front 30 Evidence of an agency relationship can be found in | back 30 the conduct of the parties. |
front 31 When considering whether or not to reveal information regarding a stigmatized property, a real estate professional should be aware of | back 31 any relevant state laws |
front 32 A real estate broker is employed by a buyer, as an agent. When the broker finds a property the buyer might be interested in buying, the broker is careful to find out as much as possible about the property's owners and why the property is on the market. The broker's efforts to keep the buyer informed of all facts that could affect a transaction is the duty of | back 32 disclosure. |
front 33 A real estate agent's duty of confidentiality usually extends for how long? | back 33 The period of time specified in state law |
front 34 In a dual agency situation, if it is permitted by state law, a broker may represent both the seller and the buyer in the same transaction provided | back 34 both parties consent in writing to the dual agency. |
front 35 Which of the following is considered lawful practice in real estate brokerage? | back 35 Exaggerated statements about the property |
front 36 A real estate broker acting as the agent of the seller | back 36 must promote and safeguard the seller's best interests. |
front 37 A buyer's agent, upon learning that the home being purchased is to house a dog-grooming business, didn't check zoning. What fiduciary duty did the buyer's agent violate? | back 37 Care |
front 38 Buyers hire an agent to help them purchase a home and want seller financing because they filed for bankruptcy two years ago. The agent is | back 38 required to disclose the information because it is a material fact important to the seller. |
front 39 The functions of a facilitator or intermediary are those of | back 39 a nonagent. |
front 40 Which event will terminate an agency in a broker-seller relationship? | back 40 The owner declares personal bankruptcy. |
front 41 The laws enacted by a legislature make up | back 41 statutory law. |
front 42 Which of the following is NOT a valid reason to terminate an agency relationship? | back 42 The buyer wanted to work with a new agent, but the terms of agency had not yet expired and the current agent did not agree to terminate. |
front 43 Which statement is TRUE of a real estate broker acting as the agent of the seller? | back 43 The broker is obligated to render loyalty to the seller. |
front 44 The relationship of broker to client in an agency relationship is that of | back 44 a fiduciary. |
front 45 Upon discovering a latent defect in a property, the real estate professional should discuss the problem with the seller and then | back 45 inform any prospective buyers of the defect. |
front 46 Agency relationships in real estate are regulated by which kind of law? | back 46 Administrative law Common law Statutory law |
front 47 Some states allow two sales associates in the same brokerage to represent opposing sides to a transaction without creating a dual agency by using | back 47 a designated agency. |
front 48 The agent is held in a position of special trust and confidence by the principal when the agent is considered | back 48 a fiduciary. |
front 49 The federal legislation known as Megan's Law has promoted the establishment of | back 49 state registries of residential information on sex offenders. |
front 50 When the broker should have known that a statement about a material fact was false, it is considered | back 50 negligent misrepresentation. |
front 51 Designated agency is MOST likely to occur when | back 51 the buyer and the seller are represented by the same company. |
front 52 In MOST situations, the relationship between real estate broker and seller is what type of agency? | back 52 Special |