Oregon Agency Law Final Exam, Complete Verified Solution

Oregon Agency Law Final Exam, Complete Verified Solution Mastering the laws relating to _________ can reduce misunderstandings and litigation, especially in the areas of commissions through procuring cause, conflicts of interest and representation. agency A broker is a person who: a. Is employed by another person b. Has the authority to act for that person c. Has the authority to exercise some discretion while acting for another person The person who hires or appoints an agent to act on their behalf is called a: principal The relationship between the broker and their principal is referred to as: agency Licensees are ____________ for their principal broker. sub-agents John, a broker for XYZ Realty LLC, has a listing with Mr. and Mrs. Brown for their property on Lynnwood Place in Tigard, OR. Mr. and Mrs. Brown would be considered: a. the principals b. the sellers Universal brokers are granted the power to handle ________ affairs of the principal. all of the The relationship between the principal broker and their affiliated licensee is the best example of______________ broker agency. general The best example of _____________ would be a licensee who has taken a listing for a seller. specific agency This person has the authority to exercise some discretion while acting for another person. This person would be considered a ________________________. broker Which of the following would not be an example of a broker: a. A real estate broker acting for a seller to sell a home b. An investment counselor who invests other people's money c. A financial planner who advises other persons on the best investment opportunities d. A closing agent d. A closing agent A fiduciary relationship is basically defined as the duty to deal with a client in _________________. trust and confidentiality The listing broker knows that the lowest amount that the seller would be willing to accept is $319,000 for their home. During an open house, a potential buyer visits and asks the listing broker "what is the lowest price that the seller will take for this home?" How should the listing broker respond? Tell the potential buyer to make a solid good offer A broker owes a client and a customer the following duties: a. to deal honestly and fairly b. to account for all monies handled c. to disclose any material facts The type of agency should be disclosed to the principal ______________. as soon as possible When a real estate broker is employed to act in the best interests of the seller in a real estate transaction, this is referred to as ____________________. seller agency The real estate broker is employed by the buyer to act in the buyer's best interest and the agent has a fiduciary responsibility to act in the buyer's best interests and owes confidentiality, loyalty, full disclosure and dedication to purpose to the buyer. This is an example of _____________________________. buyer agency ___________________ is when a broker is representing both the seller and the buyer in the same real estate transaction. Dual agency Within a brokerage, a situation may arise where one licensee that is affiliated with a brokerage is representing a seller and another licensee that is affiliated with the brokerage is representing the buyer (in the same transaction). This situation is legal in Oregon State and the principal broker of the firm becomes a dual agent. This scenario is known as ______________. designated agency A licensee is an agent for their principal broker, and the principal broker is an agent for the principal (buyer or seller). In this situation, the licensee is a/an _________________. sub agent When a broker is working with a buyer or seller, but not representing them, this is referred to as ___________________________________. a. non agency c. facilitator agency Janet, a licensee with XYZ Realty, has a listing with the Smiths and is the seller's broker. Janet also has her own home listed for sale at the same time. Janet's home is very similar to the Smith's. In the course of performing an open house for the Smiths, Janet meets a potential buyer and suggests to the buyer that he should view her home and tells them that it is a better value and in a nicer neighborhood. Janet puts her own best interests before that of the Smiths because she wanted to sell her home first. This is an example of __________________. seller agency conflict Hong decides to be a dual agent. What steps must Hong take to do this? a. get permission in writing from both the buyer and seller prior to doing this b. deal with the buyer and seller impartially c. he must not disclose personal information about the buyer or seller unless authorized to do so in writing by the parties. A buyer's broker is representing the buyer solely and receive compensation from the seller. This situation is: a. legal is most states c. legal as long as the buyer's broker states who he represents A Multiple Listing Service (MLS) may have many rules and regulations. Generally, many of these rules deal with how brokers _____________________________. cooperate with, and compensate each other Real estate brokers compete with one another to obtain listings for sale. At the same time, they often cooperate with one another to secure buyers for those listings. This dual situation of competition and cooperation is unique to the real estate industry. It is also an area where ___________________ violations can easily occur. Anti-trust This is an agency where a prospective tenant hires a broker as their agent to procure a rental or lease of a property. tenant representation ______________________ is created by either an oral or written agreement between the principal and the broker. It indicates their express intent for this representational status. Express agency ____________ is an agency relationship created by the actions of the parties Implied Agency Agency by Estoppel is also known as __________________________. ostensible agency An agency might be terminated by the operation of law. Which of the following would be an agency terminated by the operation of law? a. Bankruptcy b. Death c. Incapacity When both parties agree to terminate the agency this is referred to as ______________. mutual agreement Anti-Trust Laws and Unfair Business Practices are designed to promote the policy and practice of ____________________________________. competition Real estate brokers compete with one another to obtain listings for sale. At the same time, they often cooperate with one another to secure buyers for those listings. This dual situation of competition and cooperation, which is unique to the real estate industry, can present many opportunities for _____________________________. Anti-Trust violations The foundation for federal Anti-Trust laws is the ___________ of 1890.