Laws of Agency Questions and Answers
2023
a deposit will be accepted and retained by the broker from the offeror but only as agent for
the offeror
When a salesperson takes a listing which does not authorize the listing broker to accept a deposit
from an offeror toward purchase of the property, the broker should advise his salesperson that:
the buyer for that one act
if the broker is not authorized by the seller to accept a deposit, he is the agent of
buyer
offeror
an agreement to pay consideration
is not essential to create an agency relationship
Voluntary offer by the agent
agency relationship cannot be created through a
revoke the agency created by the listing contract but may be liable for damages
If a principal no longer desires the broker to act for him during the period of an exclusive right to
sell listing, he may:
a seller can, but may be liable for damages to the broker
Can a seller terminate a broker before the expiration of the listing?
misrepresentation
type of fraud that occurs when there is obvious knowledge of a certain fact which caused a buyer
to enter into a contract. I.E. claiming that there is no expense on income property.
when the offer is patently frivolous or the broker is acting on written instructions of the
principal
When is a broker relieved of the obligation to present an offer to purchase real property to the
principal:
present all written offers immediately.
a licensee must
, the licensee's honest and fairness in dealing with the public, clients and associates and
customers
Ethical practices of a real estate licensee most nearly means:
ethical practices
the utilization of honesty, integrity, fairness, and responsibility when working with not only
clients, but with associates, customers, and the public in general.
seller
Who does the selling agent acting as a subagent of the listing broker owe fiduciary duty to?
there is not a relationship between the parties. Broker Carr represents the seller and
broker smith represents the buyer
Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker Smith,
with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a Buyer Agent.
Broker Smith wrote a contract with a buyer for the sale of the property. What, if any, is the
relationship between the buyer's broker, the seller and the listing broker?
an employment contract
If two parties want to create an enforceable broker-principal relationship concerning a right, title
or interest in real property, the most essential element to do so would be:
the listing
is the employment contract between broker and principal
procuring cause
the act of the broker which is instrumental in effecting the meeting of minds between the seller
and the buyer as to price and terms
whatever was agreed upon
minimum time period for an exclusive right to sell listing:
a duty of fair and honest dealing
If a broker is an agent of a seller, he owes to the buyer:
actual fraud
a licensee made a promise to advertise in a magazine and then did not. He would be guilty of
communicated the acceptance to the buyer
the broker who most qualifies for a commission is the one who has
be considered the procuring cause of the sale
2023
a deposit will be accepted and retained by the broker from the offeror but only as agent for
the offeror
When a salesperson takes a listing which does not authorize the listing broker to accept a deposit
from an offeror toward purchase of the property, the broker should advise his salesperson that:
the buyer for that one act
if the broker is not authorized by the seller to accept a deposit, he is the agent of
buyer
offeror
an agreement to pay consideration
is not essential to create an agency relationship
Voluntary offer by the agent
agency relationship cannot be created through a
revoke the agency created by the listing contract but may be liable for damages
If a principal no longer desires the broker to act for him during the period of an exclusive right to
sell listing, he may:
a seller can, but may be liable for damages to the broker
Can a seller terminate a broker before the expiration of the listing?
misrepresentation
type of fraud that occurs when there is obvious knowledge of a certain fact which caused a buyer
to enter into a contract. I.E. claiming that there is no expense on income property.
when the offer is patently frivolous or the broker is acting on written instructions of the
principal
When is a broker relieved of the obligation to present an offer to purchase real property to the
principal:
present all written offers immediately.
a licensee must
, the licensee's honest and fairness in dealing with the public, clients and associates and
customers
Ethical practices of a real estate licensee most nearly means:
ethical practices
the utilization of honesty, integrity, fairness, and responsibility when working with not only
clients, but with associates, customers, and the public in general.
seller
Who does the selling agent acting as a subagent of the listing broker owe fiduciary duty to?
there is not a relationship between the parties. Broker Carr represents the seller and
broker smith represents the buyer
Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker Smith,
with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a Buyer Agent.
Broker Smith wrote a contract with a buyer for the sale of the property. What, if any, is the
relationship between the buyer's broker, the seller and the listing broker?
an employment contract
If two parties want to create an enforceable broker-principal relationship concerning a right, title
or interest in real property, the most essential element to do so would be:
the listing
is the employment contract between broker and principal
procuring cause
the act of the broker which is instrumental in effecting the meeting of minds between the seller
and the buyer as to price and terms
whatever was agreed upon
minimum time period for an exclusive right to sell listing:
a duty of fair and honest dealing
If a broker is an agent of a seller, he owes to the buyer:
actual fraud
a licensee made a promise to advertise in a magazine and then did not. He would be guilty of
communicated the acceptance to the buyer
the broker who most qualifies for a commission is the one who has
be considered the procuring cause of the sale
