Laws of Agency

ethical practices of a real estate licensee most nearly means

The license is honesty and fairness, and dealing with the public clients and associates and customers

broker car with ABC real estate company listed a property with a seller broker Smith with XYZ real estate company called broker car and disclose that he was working with a buyer broker. Smith wrote a purchase offer with his buyer for the property. What if any is a relationship between the buyers broker and the listing broker.

there is not a relationship between the brokers broker car represents the seller and broker Smith represents the buyer

The words procuring cause would have an important meaning to which of the following

A dispute over commission on an exclusive agency listing

The broker who most qualifies for a commission is the one who

Communicated the acceptance to the buyer

in some cases of brokers commission can be earned if he can prove he said in motion, a series of events which resulted in the sale of a property. If a broker producers are ready Welling enabled buyer he would most likely:

be considered the procuring cause of the sale

typically a listing broker is usually

A fiduciary of the seller

which of the following statements best shows the difference between an exclusive rate to sell and either an open or exclusive agency

An exclusive right to sell agreement guarantees the contracted broker commission, even if the seller procures a buyer while the others do not

which is an example of ostensible agency

The principal allows a licensee to act as the listing broker in front of a prospective buyer

an agent who exclusively represents the buyer

May present offers to the seller or to the sellers agent

The final decision in establishing the listing price is made by the

Owner

within the agency agreement is a statement that binds the buyer to payment of the brokers fee. If within a stated number of days, the buyer purchases a property that was shown to the buyer during the agency. This clause is called the

broker protection clause

when a written agreement spells out the responsibilities of the principal and the agent, the relationship created is called

Express agency

what happens if an agent has not located a buyer by the end of the listing period.

The agency relationship terminates

under what circumstances might a broker collected commission from both buyer and seller

If both parties give informed consent

The fiduciary duty of full disclosure requires the sellers agent to

Tell the seller anything that might be of use in negotiation

Jones agreed to represent Brown in the sale of a property. The listing contract states that Jones will receive a fee of $25,000 from Brown at closing regardless of the sales price. Is this a valid form of compensation?

yes, compensation can be determined in any number of ways as long as the seller and broker agree

The obligation of protecting any deposits trusted to an agent is an example of the fiduciary duty of

Accounting

Jones Lester his house and Tell Sylvester agent Brown I’m listing for $480,000 but I might take less Brown may properly

Keep the information to himself

The relationship of a property manager with the owner is

General agency

when an agency relationship ends, which of the following duties does not continue

loyalty

which of the following would not terminate an agency relationship?

Renewal

A real estate agent who is placed in a position of trust, loyalty and confidence is a

Fiduciary

A broker is negligent while preparing a sales contract and allows the purchaser to void the agreement. The broker has breached the duty. She owes her client of.

Due care

A seller has listed her home with a broker for $90,000 and the broker tells a prospective buyer to submit a low offer because the seller is desperate to sell. The buyer offers 85,000 and the seller excepts it. in this situation

The broker has violated his agency relationship with the seller

which of the following is a requirement for a valid agency relationship?

Mutual consent

which of the following listings is illegal in most states and opens to fraudulent dealings.

A net listing

The main obligation, the principal owes a broker is

Compensation

if a principal terminate the listing agreement during the listing. The broker may be able to do any of the following except.

Encourage the termination of any contract in process

Agency is the act of representing someone in the purchase sale or lease of a property sub agency is the active representing

A principal who is represented by an agent

The maximum commission a broker may charge for the sale of a residential property is

determined by the brokers contract with his principal

A broker has been in the business for many years. He currently has 40 exclusive listings in his office the broker dies in his daughter, who is also a broker takes over for him. What should she do about the current listings?

she should attempt to renegotiate all the listings if possible

A real estate broker should regard himself/herself as

Fiduciary

an agency relationship may be created by all of the following, except

Subordination

when is a properly licensed real estate sales person most likely to get paid their commission

When escrow closes

seller a let’s buyer B assume that broker C was his agent this type of agency relationship is an example of

ostensible authority

Johnson a real estate broker listed a property Susie is Sayles’s person working for broker. Sims received an offer. Donna a sales person working for broker Johnson got the offer accepted. Who will the commission be paid to?

Johnson

owner Joe tells his listing broker Stephen that he wants to sell his house as soon as possible and except $350,000. Stephen tells buyers fluent that Joe has financial troubles and will accept them much lower price possibly as low as 300,000 Joe ultimately accepts an offer from Suland for $300,000 broker Stephen is guilty of.

an ethical behavior and violation of the fiduciary responsibility

en listing agent becomes the agent of the seller when both the seller and agent sign a

listing agreement

typically, when leasing real property, the commission of the leasing agent is based on a percentage of

Total rinse collected during the term of the lease

all of the following are essential to the creation of an agency relationship, except

agreement to pay consideration

A safety clause is found in a

Listing agreement

if the owner enters into an exclusive agency listing in thereafter, sells the property through their own efforts

No commission is owed

Annette leasing agreement would require the lessee to pay his share of all of the following except

A leasing commission

A licensed real estate broker is successful and securing a buyer for a property who is ready willing and able to buy the offer is accepted and signed by both parties in escrow is opened during the escrow. The title company discovers that the seller is married, but under 18 years of age and notifies the broker and the escrow holder under the circumstances, the contract is.

valid

The lessee of an apartment and the owner of a condominium have many things in common, which of the following is true for both

They each hold an estate in real property

broker Williamsburg obtained an exclusive authorization and write to sell a listing from the owner of a residence during the listing. Williamsburg found a buyer who made an offer that was accepted by the owner neither the offer nor the escrow instructions made any dimension of Williamsburg being the agent or of the payment of commission under these circumstances.

Williamsburg is still legally entitled to a commission

thinking that he is acting properly regarding the safety clause in a listing a broker notifies the owner verbally of a perspective buyer with whom he negotiated the day after the listing expires. The buyer purchases the property which of the following is correct.

The broker is not entitled to any commission

do you have a valid contract? Which of these is not necessary?

A deed

broker Jack listed Jill’s home under an exclusive rate to sell listing and later received an offer from another licensee Amanda that met all of the listing terms and condition conditions after consider considering the offer just informed Jack that she no longer wished to sell and asked to be released from the listing agreement immediately. which of the following is a true statement about Jack’s position in the situation

check may succeed in collecting an earned commission from jill

which of the following list the essential elements of a valid contract

Lawful object, competency, mutual consent, consideration

The brokers promised to use diligence in finding a buyer during an exclusive rate to sell listing

Makes the listing of bilateral contract

A seller had a listing with ABC firm the listing expired after 90 days and the seller never renewed the contract six months after the listing expired. A new agent started with ABC firm and it came across the unsold listing. He wanted to call the seller but noticed the sellers number on the do not call registry. Can the agent contact the seller?

yes, because the firm has had a relationship with the seller in the last 18 months

The position of trust assumed by the broker as an agent for the client is described most accurately as a

Fiduciary relationship

The prime obligation of an agent to their client is

Loyalty

The principal to whom a real estate agent gives advice and council to is a

client

on Monday, a woman offers to sell her vacant lot to a man for $35,000 on Tuesday. The main counter offers to buy the lot for $25,500 on Friday. The man withdrawal‘s counter offer and accepts the woman’s original price of $35,000. under these circumstances.

no valid agreement exist because the counter offer voided their original offer

what is the latest time at which a broker must establish their agency relationship with a buyer or seller and execute all such agreements

No later than the time at which a purchase and a sale agreement is prepared

recurring cars would not be required for a broker to receive a commission in a

Exclusive rights to sell listing

A real estate broker was responsible for a chain of events that resulted in the sale of one of his clients properties. The broker is legally called the.

procuring cause

Vivian had listed her property an exclusive agency agreement with David but when the agreement expired, she changed to a new agency now David has a buyer who is interested in the property which of the following statements is correct

David cannot disclose any offers received on the property while he is the listing agent

Yvonne represents the sparks who are selling their property which of the following actions must Yvonne take when per perspective buyers have to see the property

Inform them that she represents the sellers interest

broker Jim with ABC Realty listed a property for a seller broker Bill with XYZ real estate company called broker Jim and disclose that he was a buyers agent broker. Bill wrote a contract with the buyer for the purchase of the property. What if any is a relationship between broker, Bill and broker Jim.

there’s no relationship broker Jim represents the seller broker bill represents the buyer separately

if the buyer defaulted sometime ago on a written contract to purchase a seller’s real estate, the seller can still sue for damages if he is not prohibited from doing so by the

Statue of limitations

which of the following would not terminate an agency relationship?

An agent submitting two offers at the same time

which of the following does not have to be included in a written listing agreement

The complete legal description of the property being sold