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?
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?
