Law of Agency study guide Exam 1
Questions With Correct Answers
What are the duties of an agent - CORRECT ANSWER✔✔-Fiduciary Duties (OLD
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CAR) |
- Obedience
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- Loyalty
| |
- Disclosure
| |
- Confidentiality
| |
- Accounting
| |
- Reasonable care
| |
Types of Agents - CORRECT ANSWER✔✔-- Universal Agency; power to act for the
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principal in all transactions.
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- General Agency; represents principal in a particular type of transaction
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(property manager or broker and real estate agent
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- Special Agency; most limited, agent performs limited duties for the principal.
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IRS Independent Contractor Status rules : - CORRECT ANSWER✔✔-- Commission
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must compensate sales agents.
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,- Sales agent shall pay own business expenses
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- Sales agent cannot be made to attend sales meetings.
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- Sales agent cannot be made to attend sales seminars.
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- Sales agent cannot be made to work set hours.
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- Sales agent should not be offered participation in broker's insurance or
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retirement program. |
How is agency terminated - CORRECT ANSWER✔✔-- When the purpose of the
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agency is completed; property is sold
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- Expiration of the period stated in the listing contract.
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- Anytime by mutual agreement
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- Death or incapacity of either party
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- Condemnation or destruction of the property
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- Bankruptcy
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- Operation of law
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- Revocation of broker's license
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- Abandonment by the agent
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- Revocation of the agreement at any time by principal
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- Termination of agreement at any time by broker.
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Sherman Anti-Trust Act and commission rates - CORRECT ANSWER✔✔-
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Commission rates must be a matter of negotiation between broker and client. A
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"standard" or "goin rate" could be evidence of violation
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, Details in a valid listing - CORRECT ANSWER✔✔--Paragraph 1. Parties
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- Paragraph 2. Property
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-Paragraph 3. Listing Price
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- Paragraph 4. Term
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- Paragraph 5. Broker's Compensation
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- Paragraph 6. Listing Services
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- Paragraph 7. Access to The Property
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- Paragraph 8. Cooperation with other Brokers
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- Paragraph 9. Intermediary
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- Paragraph 10. Confidential Information
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- Paragraph 11. Broker's Authority
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- Paragraph 12. Seller's Representations
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- Paragraph 13. Seller's Additional Promises
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- 14. Limitation of Liability
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- 15. Special Provisions
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- 16. Default
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- 17. Mediation
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- 18. Attorney's Fees
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- 19. Addenda and other Documents
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- 20. Agreement of Parties
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- 21. Additional Notices
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Questions With Correct Answers
What are the duties of an agent - CORRECT ANSWER✔✔-Fiduciary Duties (OLD
| | | | | | | | | | | |
CAR) |
- Obedience
| |
- Loyalty
| |
- Disclosure
| |
- Confidentiality
| |
- Accounting
| |
- Reasonable care
| |
Types of Agents - CORRECT ANSWER✔✔-- Universal Agency; power to act for the
| | | | | | | | | | | | |
principal in all transactions.
| | | |
- General Agency; represents principal in a particular type of transaction
| | | | | | | | | | |
(property manager or broker and real estate agent
| | | | | | | |
- Special Agency; most limited, agent performs limited duties for the principal.
| | | | | | | | | | |
IRS Independent Contractor Status rules : - CORRECT ANSWER✔✔-- Commission
| | | | | | | | | |
must compensate sales agents.
| | | |
,- Sales agent shall pay own business expenses
| | | | | | | |
- Sales agent cannot be made to attend sales meetings.
| | | | | | | | | |
- Sales agent cannot be made to attend sales seminars.
| | | | | | | | | |
- Sales agent cannot be made to work set hours.
| | | | | | | | | |
- Sales agent should not be offered participation in broker's insurance or
| | | | | | | | | | | |
retirement program. |
How is agency terminated - CORRECT ANSWER✔✔-- When the purpose of the
| | | | | | | | | | | |
agency is completed; property is sold
| | | | | |
- Expiration of the period stated in the listing contract.
| | | | | | | | | |
- Anytime by mutual agreement
| | | | |
- Death or incapacity of either party
| | | | | | |
- Condemnation or destruction of the property
| | | | | | |
- Bankruptcy
| |
- Operation of law
| | | |
- Revocation of broker's license
| | | | |
- Abandonment by the agent
| | | | |
- Revocation of the agreement at any time by principal
| | | | | | | | | |
- Termination of agreement at any time by broker.
| | | | | | | |
Sherman Anti-Trust Act and commission rates - CORRECT ANSWER✔✔-
| | | | | | | |
Commission rates must be a matter of negotiation between broker and client. A
| | | | | | | | | | | |
"standard" or "goin rate" could be evidence of violation
| | | | | | | | |
, Details in a valid listing - CORRECT ANSWER✔✔--Paragraph 1. Parties
| | | | | | | | | |
- Paragraph 2. Property
| | | |
-Paragraph 3. Listing Price
| | | |
- Paragraph 4. Term
| | | |
- Paragraph 5. Broker's Compensation
| | | | |
- Paragraph 6. Listing Services
| | | | |
- Paragraph 7. Access to The Property
| | | | | | |
- Paragraph 8. Cooperation with other Brokers
| | | | | | |
- Paragraph 9. Intermediary
| | | |
- Paragraph 10. Confidential Information
| | | | |
- Paragraph 11. Broker's Authority
| | | | |
- Paragraph 12. Seller's Representations
| | | | |
- Paragraph 13. Seller's Additional Promises
| | | | | |
- 14. Limitation of Liability
| | | | |
- 15. Special Provisions
| | | |
- 16. Default
| | |
- 17. Mediation
| | |
- 18. Attorney's Fees
| | | |
- 19. Addenda and other Documents
| | | | | |
- 20. Agreement of Parties
| | | | |
- 21. Additional Notices
| | | |
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