A subagent is the agent of

a broker who has an agency relationship with a client.

the client's and the customer's agents.

Which of the following is a dual agency situation?

One agent represents both sides in a transaction.

Two agents share the exclusive right to represent the same client on all transactions.

A selling agent from one brokerage works with a listing agent from another brokerage to complete a transaction.

One agent represents two sellers at the same time.

The duties of a transaction broker or facilitator include

disclosing material facts that affect the value of the property to both parties.

preserving the confidentiality of information received from either party.

helping the two parties achieve their respective objectives.

choosing to obey the instructions of one party and informing the other party of the decision.

In which of the following contact situations would a seller's agent be expected to disclose his agency relationships?

The agent is showing the client's property to a prospective buyer.

The agent tells an acquaintance at a party about the client's property.

The agent answers questions about the client's property for a telephone caller responding to a newspaper ad.

The agent is showing a potential buyer houses in a certain price range in the multiple listing book.

The essential foundation of the agency relationship consists of

good faith, trust and confidence.

mutual respect, compensation, and confidentiality.

diligence, results, and compensation.

service, marketing, and respect.

Implied agency arises when

a party creates an agency relationship outside of an express agreement.

an agent accepts an oral listing.

a principal accepts an oral listing.

a principal agrees to all terms of a written listing agreement, whether express or implied.

An agency relationship may be involuntarily terminated for which of the following reasons?

Renewal of the agent's license.

A principal discloses that she would sell a property for $500,000. During the listing period, the house is listed and marketed for $530,000. No offers come in, and the listing expires. Three weeks later, the agent confides to a customer that the seller would have sold for less than the listed price. Which of the following is true?

The agent has violated the duty of confidentiality.

The agent has fulfilled all fiduciary duties, since the listing has expired.

The agent is violating the duties owed this customer.

The agent has created a dual agency situation with the customer.

A principal instructs an agent to market a property only to families on the west side of the university campus. The agent refuses to comply. In this case,

the agent has not violated fiduciary duty.

the agent has violated fiduciary duty.

the agent is liable for breaching the listing terms.

the agent should obey the instruction to salvage the listing.

An owner's agent is showing a buyer a residential property for sale. The buyer notices water stains on the foundation walls and floor, and informs the agent. The appropriate course of action for the agent is to

immediately contract to paint the ceiling.

immediately contract to repair the roof.

suggest the buyer make a lower-price offer.

The meaning and salient characteristics of the agency relationship should be disclosed to the client

prior to completing a listing agreement.

prior to or upon completion of an offer.

upon the initial contact with the person.

When must a listing agent disclose his or her agency relationship to prospective tenants or buyers?

Whenever substantive communication is made beyond casual conversation.

Immediately prior to the initial contact.

Immediately following any offer executed by the customer.

A buyer agent or tenant representative should disclose his or her agency relationship to the owner's agent

immediately prior to the initial contact.

immediately prior to substantive contact.

immediately following any offer executed by the landlord.

An agent is operating as a disclosed dual agent on a transaction. In this case, the agent

may not represent one party's interests to the detriment of the other.

must operate without a listing agreement.

must be obedient and loyal to both parties.

must require that the principals refrain from disclosing any material facts to him.

When a broker enters into a listing agreement, the broker has agreed to accept which of the following?

Fiduciary and contractual obligations with the client.

Fiduciary relationships with client and customer.

Contractual obligations with customer.

Fiduciary obligations with cooperating brokers.

The degree of authority granted by a residential brokerage listing agreement generally allows the agent to

market, sell and show the property.

create contractual obligations for the client.

negotiate the selling price between client and customer.

hire inspectors, and other individuals to prepare the property for marketing.

A salesperson, without an oral or written listing agreement, brings potential buyers to the seller. The seller says, "You can bring me buyers if you want, but I'm not paying you a commission." The salesperson then continues to direct buyers to the property. Which of the following is true about this situation?

An implied agency may have been created, with obligations to perform for both seller and agent.

There is no agency relationship, and therefore the seller will owe no commission if one of the salesperson's buyers buys the property.

The seller and agent have an illegal, undisclosed agency relationship.

The agent has an open exclusive agency listing with no commission agreement, and therefore owes no fiduciary duties to the seller.

An agent enters into a listing agreement with a homeseller, but then becomes too busy to professionally fulfill the terms of the agreement. To solve the dilemma, the agent assigns the agreement to another licensee in the office. Which of the following is true about this situation?

The agent cannot assign the listing agreement because fiduciary duties owed to the client.

The new listing agent acquires the full set of fiduciary duties with the assigning broker.

The new broker has to split any commission that results with the seller.

The original broker has to disclose the assignment to the seller.

What is a multiple listing?

A listing that is entered in a multiple listing service to enable cooperation with member brokers.

A listing shared by a listing agent and a selling agent.

A listing that a listing agent delegates to a subagent.

A listing that authorizes a listing agent to market more than one property for a seller.

Which of the following conditions is necessary for a customer to qualify as "ready, willing, and able" in the context of a commissionable transaction?

The customer must be legally competent to undertake the transaction.

The customer's offer must be accepted.

The customer must have a commitment from a lender.

The customer must have no business relationship with the agent.

Although a listing broker may delegate listing tasks to an employed licensee, the broker may not delegate the authority to

obtain and distribute compensation.

provide cooperating brokers with information about the property.

inspect the property for hazardous substances.

Agent Peter has an open listing with Frank. Paul is Peter's broker. Agent Perry's customer buys Frank's house. Patrick has a commission agreement with Frank. Who is most likely to be compensated in this scenario?

Perry, since he found the customer.

Peter, since he has a written listing agreement.

Paul, since he is Peter's broker.

Patrick, since he has a commission agreement.

If an agent has an exclusive listing to sell a property, and the property is then taken by eminent domain, what is the status of the listing?

It may be terminated against the agent's will.

The seller's obligations under the listing are assigned to the agency that takes the property.

It becomes a voidable contract.

The commission clause of the agreement is canceled.

A broker obtains an exclusive listing to sell a house, but after two months, he abandons the listing because the seller is too demanding and hot-tempered. What can the seller do in this situation?

Sue the broker for money damages.

Have the licensee's license revoked for negligence.

Sign a listing agreement with another broker and force the first broker to pay the commission.

Force the broker to perform the contract without compensation.

An owner agrees to pay a broker for procuring a tenant unless it is the owner who finds the tenant. This is an example of a(n)

exclusive right-to-sell agreement.

A landlord promises to compensate a broker for procuring a tenant, provided the broker is the procuring cause. This is an example of a(n)

exclusive right-to rent agreement.

A property owner agrees to pay a broker an open-ended commission as the difference between the sale price and a net amount, provided the owner receives a minimum amount of proceeds from the sale at closing. This is an example of a(n)

exclusive right-to-sell agreement.

A multiple listing authorization gives a broker what authority?

To list the owner's property in a multiple listing service.

To sell several properties for the owner at once.

To represent both seller and buyer, if necessary, in selling the property.

To delegate the listing responsibilities to other agents.

Which of the following relationships characterizes a designated agency relationship?

The broker assigns who is to represent the buyer and seller.

A broker assign a preferred subagent from other firms to represent each party.

There is no such duty as maintaining confidentiality.

The broker primarily represents the seller.

Agency; Listing Agreement

Authored by Cailin Henry

Financial Education

Professional Development

Used 5+ times

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MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The agency relationship is defined by

the Realtor Code of Ethics.

the laws of real estate contracts.

the law of agency. In some states by statue

the agreement between a principal and an agent.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is true of the connection between compensation and the agency relationship?

An agreement to give and receive compensation creates an agency relationship.

If an agency relationship exists, the principal must provide valuable consideration to the agent.

The relationship is independent of any compensation arrangement.

If an agency relationship exists, the agent is entitled to compensation.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

One of the parties to an agency relationship defaults, and the agreement terminates. Which of the following is true?

All obligations are extinguished.

Both parties must continue to perform all other obligations of the agreement.

The defaulting party may have a financial consequence.

The damaged party has no claim against the defaulting party.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Among the fiduciary duties imposed on a real estate agent is the requirement to

refuse offers the agent knows will be unacceptable to the principal.

present all offers to the principal regardless of their amount.

advise the principal against accepting an offer that is below full price.

advise a prospect that the principal will not accept the prospect's offer in order to elicit a better offer.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

One of the agent's fiduciary duties that continues even after a listing agreement expires is

obedience.

diligence.

confidentiality.

disclosure.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The standard of care and competence that a principal can expect from an agent is generally that which is

specified in the agency agreement.

necessary to earn the promised compensation.

necessary to procure a customer.

comparable to that of other practitioners in the area.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Agent Michael is showing his new listing to a buyer who informs him that he has just inherited five million dollars. Michael is now bound by fiduciary duty to

keep the information in confidence.

disclose the information to the buyer's agent.

disclose the information to the seller.

verify the buyer's statements before disclosing them to the client.

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