Law of Agency Final Exam Review
Complete Solution
Most lawsuits involve issues of who did or did not represent whom. The number
of lawsuits is:
A. Increasing
B. Decreasing
C. Stabilizing over the last several years
D. Broker lawsuits are not allowed.
A. Increasing
The correct answer is A. A broker is more likely to be sued because he failed to make it
clear to all parties who he represented as a client.
The broker working with a buyer customer and representing the seller through
the seller's
broker is a:
A. Buyer
B. Seller
C. Subagent
D. Intermediary
C. Subagent
For subagency to exist there must be two sponsoring brokers. One of the brokers has a
seller client and the other broker must have a buyer customer.
All parties to the transaction must be treated honestly and fairly, but a fiduciary
relationship is
owed to the:
A. Customer
B. Client
C. Everyone
D. No one
B. Client
A fiduciary relationship is a relationship of trust. The broker must always put the client's
interest above the broker's interest.
The TRELA does not require disclosure if a death occurred on a property:
A. By natural causes
B. By suicide
C. In an accident unrelated to the condition of the property
D. All of the above
D. All of the above
A murder on the property and an accidental death resulting from an accident related to
a condition of the property must be disclosed.
,Something that affects the property or the health of the residents of the property
is called a(n):
A. Psychological stigma
B. Exception
C. Physical stigma
D. None of the above
C. Physical stigma
A psychological stigma does not affect the physical condition of the property, but it can
affect the value of the property.
Information about Brokerage Services must be given to potential buyers, sellers,
tenants, and
landlords:
A. At the time of first meeting
B. After the listing is taken
C. At the closing
D. At the first substantive dialogue about a property
D. At the first substantive dialogue about a property
Information About Brokerage Services gives information concerning the ways a broker
can represent a person. It gives information about buyer's agency, seller's agency,
intermediary, and subagency.
How many companies are required in a subagency relationship?
A. 13
B. 9
C. 4
D. 2
D. 2
For subagency to exist there must be two sponsoring brokers (companies) and one of
those brokers must have a buyer customer.
What advice would an agent give to a seller?
A. Advice about market conditions and financing options
B. Advice about preparing the property for sale and negotiating contracts
C. Both A and B
D. None of the above
C. Both A and B
The agent is representing the seller as a client and owes advice and opinions to the
seller.
The listing broker may cooperate with the buyer's broker or a subagent. Often the
commission
for all brokers in the transaction is paid by the:
A. Subagent
B. Buyer
, C. Seller
D. Attorney
C. Seller
The amount of the commission to be paid by the seller for the sale of the property is set
in the listing agreement.
The buyer's agent will view the transaction from the buyer's point of view and will
counsel the
buyer on:
A. Financing the property
B. Contingencies
C. Negotiating strategy
D. All of the above
D. All of the above
If the seller disclosure notice is not delivered by the effective date, the buyer has
the right to
cancel the contract within _________ days after receiving the notice.
A. Ten
B. Six
C. Seven
D. Four
C. Seven
If the buyer does not have the seller's disclosure form before he signs a contract to buy,
the seller must deliver the form to the buyer after the contract is signed. The buyer has
7 days to cancel the contract after he receives the disclosure form.
A defect that is known to the seller and hidden from the buyer is a:
A. Material defect
B. Zoning defect
C. Intermediary defect
D. Latent defect
D. Latent defect
A seller is required to disclose any known defects and must not hide them from the
buyer.
When a broker is working with a buyer customer, the broker can:
A. Give advice
B. Tell the buyer the amount to offer for the property
C. Deliver the offer to the seller's broker
D. Give opinions
C. Deliver the offer to the seller's broker
A broker working with a buyer customer is not allowed to give the buyer customer
advice or opinions about the property
A listing broker is not required to:
A. Maintain a fixed office address
Complete Solution
Most lawsuits involve issues of who did or did not represent whom. The number
of lawsuits is:
A. Increasing
B. Decreasing
C. Stabilizing over the last several years
D. Broker lawsuits are not allowed.
A. Increasing
The correct answer is A. A broker is more likely to be sued because he failed to make it
clear to all parties who he represented as a client.
The broker working with a buyer customer and representing the seller through
the seller's
broker is a:
A. Buyer
B. Seller
C. Subagent
D. Intermediary
C. Subagent
For subagency to exist there must be two sponsoring brokers. One of the brokers has a
seller client and the other broker must have a buyer customer.
All parties to the transaction must be treated honestly and fairly, but a fiduciary
relationship is
owed to the:
A. Customer
B. Client
C. Everyone
D. No one
B. Client
A fiduciary relationship is a relationship of trust. The broker must always put the client's
interest above the broker's interest.
The TRELA does not require disclosure if a death occurred on a property:
A. By natural causes
B. By suicide
C. In an accident unrelated to the condition of the property
D. All of the above
D. All of the above
A murder on the property and an accidental death resulting from an accident related to
a condition of the property must be disclosed.
,Something that affects the property or the health of the residents of the property
is called a(n):
A. Psychological stigma
B. Exception
C. Physical stigma
D. None of the above
C. Physical stigma
A psychological stigma does not affect the physical condition of the property, but it can
affect the value of the property.
Information about Brokerage Services must be given to potential buyers, sellers,
tenants, and
landlords:
A. At the time of first meeting
B. After the listing is taken
C. At the closing
D. At the first substantive dialogue about a property
D. At the first substantive dialogue about a property
Information About Brokerage Services gives information concerning the ways a broker
can represent a person. It gives information about buyer's agency, seller's agency,
intermediary, and subagency.
How many companies are required in a subagency relationship?
A. 13
B. 9
C. 4
D. 2
D. 2
For subagency to exist there must be two sponsoring brokers (companies) and one of
those brokers must have a buyer customer.
What advice would an agent give to a seller?
A. Advice about market conditions and financing options
B. Advice about preparing the property for sale and negotiating contracts
C. Both A and B
D. None of the above
C. Both A and B
The agent is representing the seller as a client and owes advice and opinions to the
seller.
The listing broker may cooperate with the buyer's broker or a subagent. Often the
commission
for all brokers in the transaction is paid by the:
A. Subagent
B. Buyer
, C. Seller
D. Attorney
C. Seller
The amount of the commission to be paid by the seller for the sale of the property is set
in the listing agreement.
The buyer's agent will view the transaction from the buyer's point of view and will
counsel the
buyer on:
A. Financing the property
B. Contingencies
C. Negotiating strategy
D. All of the above
D. All of the above
If the seller disclosure notice is not delivered by the effective date, the buyer has
the right to
cancel the contract within _________ days after receiving the notice.
A. Ten
B. Six
C. Seven
D. Four
C. Seven
If the buyer does not have the seller's disclosure form before he signs a contract to buy,
the seller must deliver the form to the buyer after the contract is signed. The buyer has
7 days to cancel the contract after he receives the disclosure form.
A defect that is known to the seller and hidden from the buyer is a:
A. Material defect
B. Zoning defect
C. Intermediary defect
D. Latent defect
D. Latent defect
A seller is required to disclose any known defects and must not hide them from the
buyer.
When a broker is working with a buyer customer, the broker can:
A. Give advice
B. Tell the buyer the amount to offer for the property
C. Deliver the offer to the seller's broker
D. Give opinions
C. Deliver the offer to the seller's broker
A broker working with a buyer customer is not allowed to give the buyer customer
advice or opinions about the property
A listing broker is not required to:
A. Maintain a fixed office address
