What duty is an agent of the buyer breaching when she appears to be advocating for the seller customer?
A. disclosure
B. loyalty
C. obedience
D.
... [Show More] reasonable care
The answer is B.
Agents must be loyal to clients, not customers.
What does a real estate licensee owe to a client that he does NOT owe to a customer?
A. disclosure
B. honesty
C. integrity
D. obedience
The answer is D.
Obedience is a fiduciary duty owed only to clients.
Which type of agent has the greatest authority?
A. general agent
B. special agent
C. universal agent
D. All have equal authority.
The answer is C.
A universal agent has the authority to do everything that a principal could do by himself. Real estate licensees are rarely universal agents.
Ollie shows a property to his buyer client. Jan, the listing broker, calls Ollie to ask for feedback. She asks, "Is the buyer interested in making an offer?" Ollie tells Jan his client is still in the process of looking at other properties. Jan replies, "I can tell you, my seller is really desperate for an agreement:' At this point, Jan is violating the duty of
A. confidentiality.
B. disclosure.
C. accounting.
D. obedience.
The answer is A.
With this breach of confidentiality owed to her client, the seller, Jan is acting in the buyer's best interest at this point by divulging this information about her seller client. She is also breaching the duty of loyalty.
Define:
Accomplishment of Purpose
The listing broker sells the house
Define:
Operation of Law
The broker declares bankruptcy
Define:
Renunciation
The listing broker abandons the seller before the listing period ends
Define:
Revocation
A seller fires his broker before the listing eriod ends
A broker has a duty to treat all parties to a transaction honestly and fairly
A. in all transactions.
B. only if acting as the agent for both buyer and seller in the transaction.
C. only when representing a buyer in the transaction.
D. only when representing a seller in the transaction.
The answer is A.
Even with a customer, a licensee has to be fair and honest. With a client, the licensee has even more duties.
What acronym can be helpful for remembering the basic fiduciary obligations?
A. BAD CAT
B. NEWCAB
C. OLDCAR
D. RED DOG
The answer is C.
Basic fiduciary obligations include: obedience, loyalty, disclosure, confidentiality, accountability, and reasonable care: OLD CAR.
How long must a licensee keep confidential information obtained from the client?
A. Licensees have no duty to keep information confidential.
B. Licensees must maintain confidentiality for three years after the transaction closes.
C. Licensees must maintain confidentiality only until the relationship ends.
D. This dut never ends, even when the relationshi does.
The answer is D.
Even when the relationship ends, the duty to keep information confidential does not end.
Licensee Jake was hosting an open house for a seller client of his brokerage. Lucy went to the open house, but declined to enter into an agency relationship. What duty does Jake owe to buyer customer Lucy?
A. honest
B. loyalty
C. obedience
D. none, she is not his client
The answer is A.
Even though Jake is not Lucy's agent, he still owes her honesty as a customer.
Louise, a potential home buyer, is chatting with a broker. Of the information Louise shares with the broker, which is LEAST LIKELY to be considered confidential information?
A. her current address
B. her reason for house hunting
C. the price range she's looking at
D. the terms of her divorce
The answer is A.
Louise's current address is likely to be a matter of public record. All of the other choices could be considered confidential information, since they could at the very least hint at Louise's financial situation and motivation.
Which of these situations would LEAST LIKELY trigger the need to discuss agency relationships?
A. a home show when someone stops by the booth and picks up marketing materials
B. an initial listing appointment where you inspect the property and start to learn about the seller
C. an open house when a prospective buyer begins to express serious interest in the property
D. in your office when a man comes in off the street and wants to look at one of your listings
The answer is A.
Of these options, the home show is least likely to be considered substantive contact where confidential information is likely to be shared.
A licensee MOST LIKELY performs ministerial acts for his or her
A. client.
B. customer
C. employing broker.
D. fellow licensee.
The answer is B.
Ministerial acts are those things that a licensee does for a customer that do not rise to the level of agency representation
Licensee Katrina of City Realty is monitoring an open house for her colleague Larry, who is on vacation. Prospective buyer Josh comes to the open house. If Katrina welcomes Josh to the house and answers his questions about the property, Josh is most likely
A. Katrina's client.
B. cannot show him the property since she is not the listing agent.
C. represents the seller as his designated agent.
D. will be acting in the capacity of a dual agent.
The answer is A.
Jim has been designated by his employing broker as the seller's agent. His colleague Mary can become the designated agent of the buyer without any potential for dual agency.
The signing of what document creates an agency relationship with a potential seller?
A. agency disclosure form
B. buyer agency agreement
C. listing agreement
D. seller disclosure form
The answer is C.
An agency relationship is created when the seller and the broker execute a listing agreement.
Broker Ben's listing for a property at 3521 Oak Street expires. A week later, Ben's buyer client, Harriet, wants to see the 3521 Oak Street property. Do you think there could be a conflict of interest here?
Yes or No
The answer is Yes. [Show Less]