Lesson 11 Quiz – National Agency

The most primary of relationships in real estate brokerage is that between broker and client, the relationship known in law as the

universal agency

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agency relationship

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general agency

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implied agency

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The parties to the agency relationship are identified as the

client, broker and third party

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lessor and lessee

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broker and attorney

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loan officer and lender

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The “third party” in an agency relationship is known as the

principal

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client

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customer

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agent

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The essence of the agency relationship is

trust, confidence, and mutual good faith

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skill, knowledge, and financially beneficial

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representation, compensation, and profit

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universal, general, and special

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The party who hires the agent is known as which of the following?

The customer

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The broker

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The principal

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The prospect

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Which of the following statements describes a universal agency relationship?

The principal delegates to the agent ongoing tasks and duties within a particular business or enterprise

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The principal delegates authority to conduct a specific activity, after which the agency relationship terminates

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The principal hires a licensed broker to procure a ready, willing, and able buyer or seller

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The principal empowers the agent to perform any and all actions that may be legally delegated to an agency representative

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In most instances, real estate brokerage is based on which of the following types of agency?

Universal agency

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General agency

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Special agency

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Implied agency

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An agency relationship can arise by implication, intentionally or unintentionally. Which of the following illustrates implied agency?

An agent promises a buyer to do everything possible to find a property without entering into a specific agreement

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An agent signs a listing agreement with a seller promising to do everything possible to find a buyer

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An agent provides the buyer with a written disclosure statement indicating that the buyer should seek representation

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An agent responds to an email answering general questions about the advertised property

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An agency relationship may terminate for all the following reasons EXCEPT

the death of either party

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the destruction of the property

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the revocation of the agent’s license

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undisclosed property defects

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Which of the following is an example of an agent’s fiduciary duty of care?

An agent who offers advice outside of his or her field of expertise

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An agent who does not offer advice outside of his or her field of expertise

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An agent who withholds unrealistically low-priced offers from the seller

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An agent who recommends the buyer make a 95% offer

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Which fiduciary duty requires the agent to place the interest of the client above those of all others?

The duty of loyalty

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The duty of obedience

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The duty of confidentiality

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The duty of accounting

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Which fiduciary duty extends beyond the termination of the listing?

The duty of loyalty

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The duty of obedience

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The duty of confidentiality

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The duty of accounting

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Critical areas of disclosure to prospective buyers in a transaction are

a neighborhood’s race, religion, and principal ethnicities

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agency, property condition, and environmental hazards

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the seller’s original purchase price

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the seller’s motivations to sell

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An agent who intentionally fails to reveal a material fact about a property is

protecting the seller and fulfilling his or her fiduciary duty of confidentiality

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defrauding a buyer and could be held liable for intentional misrepresentation

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liable for negligent misrepresentation

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liable for misrepresentation of expertise

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Which of the following statements is true regarding the obligations of a principal in an agency relationship?

The principal must be available for showings

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The principal must be available for decision-making

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The principal must allow the agent to advertise the property

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The principal must always pay compensation

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A breach of duty by a real estate licensee may result in all the following EXCEPT

rescission of the listing agreement

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forfeiture of any earned compensation

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disciplinary action by the state license law authorities

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rescission of the sales contract between the seller and buyer

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In a _____________________ role, the agent represents one party in the transaction

single agency

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subagency

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duel agency

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facilitator

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In a subagency relationship, a broker or licensed salesperson works as

the agent of a seller who is also cooperating with other agents

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the agent of a broker who is the agent of a client

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the agent of a broker who is the agent of a customer

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the transactional broker who is not representing either party

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Which of the following is an example of dual agency?

An agent who represents two brokerage firms

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An agent who represents buyers and tenants

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An agent who represents sellers and landlords

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An agent who represents both tenant and owner

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The primary forms of an agency relationship between brokers and principals are all the following EXCEPT

single agency

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dual agency

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subagency

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transaction agency

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A broker who represents no one in a transaction is acting as a/an

transaction broker

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single agent

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general agent

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implied agent

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