Ch. 8 Quiz Flashcards

Ch. 8 Quiz Flashcards What do we call an agent who represents only one party in a real estate transaction?Exclusive agent--Single agentSubagentBroker agent Seller Jim provides a buyer with a forged home warranty.This is a form of --Active fraudPassive fraudActive negligentPassive misrepresentation What is the standard for agency representation in Illinois?Basic agencyDisclosed agencyContractual agency--Designated agency Who should receive an agency disclosure? Only sellersOnly buyersOnly licensees--All clients and customers A property seller signs a listing agreement with a licensee.What is this an example of?General agencyUniversal agencyNo agency--Express agency Is it permissible, as a buyer representative, to dispense advice to your purchaser client?No. A buyer representative should only dispense assistance, not advice.Yes. A buyer representative should be able to dispense advice on all areas, including inspections, technical issues, etc.--Yes. A buyer representative should advise the client on matters of which he/she has knowledge. It is important to advise the client to obtain expert advice on areas in which the licensee is not an expert.No. A buyer representative should remain neutral and simply aid in the transaction.Which laws holds harmless a licensee to discover latent defects?Still v. Minor 1987State of Illinois v. Paragon, et alStubby v.Flag, 2000--Munjal v. Baird & Warner, Inc. et al.The situation that allows the broker to appoint more than

one agent for the client within the same firm, is called:

--Designated agencyDual agentSponsoring licenseeSponsoring broker Which of the following can a dual agent disclose? The lowest price the seller will accept.The motivating factors for any person buying, selling or leasing the property.---Material or latent defects.The terms of any prior offers or counter offers made by any party.

Agency most nearly means:One who is the source of another's authority--One who

represents and acts for anotherOne who has conferred authority to anotherOne who has been paid a commission by another Broker Jim signs a listing agreement with seller, Grace, and a buyer agency agreement with buyer, Pat. Broker Jim shows buyer Pat the property owned by seller Grace. Both Grace and Pat signed written disclosure statements agreeing to this arrangement. What is this relationship called?Subagency--Dual agencyExclusive agencySingle agency Broker Dan is representing Mandy as a buyer's agent. He wants to show Mandy one of his listed properties. Which statement is true?There is no reason why Dan should not show Mandy the property.Dan must disclose to the seller that he is also representing the buyer.-Dan needs to get the informed, written consent of both Mandy and the seller to act as a

dual agent.Dan must notify the Department of State that he wants to represent both parties in the transaction.

When does the first substantive contact take place?A buyer contacts a broker through the Internet.A seller calls a broker to schedule a listing appointment.A potential buyer shows up at an open house.--A potential buyer or seller begins to discuss his or her needs.Licensee Paul is bound to inform his client of all facts that might affect the client's interests -- both what Paul knows and what he "should have known." Which of these situations would not be something Paul "should know?" There is a crack in the basement wall.The air conditioner does not work.--The owner of the property is HIV positive.The casement windows have broken seals.Colleen plans to be a dual agent in a real estate transaction. At what point, if any, should she receive her clients' permission to act as a dual agent.--Colleen must disclose her intention to be a dual agent, and have written permission of both clients before acting as a dual agent.Colleen must disclose her agency status at the time any written agreement and/or written authorization is obtained.Colleen does not have to disclose her agency status.When Colleen's broker directs the disclosure.When should a seller agency disclosure take place?--At the time of the first substantive dialogueUpon first face to face meetingBefore writing up an offerAfter the offer is written but before closing What is the best course of action in dealing with questions regarding the level of crime in a neighborhood?Respond in vague terms.Dismiss any questions.--Refer your client to public records.Explain that no information exist in this area.Which of the following statements would be defined as "puffing?" The taxes are stated at $1,678 per year.--The property has the best view in the subdivision.The lot is 220' x 340'.The house has 4 baths.All of the following is considered confidential information

EXCEPT:

The sellers are selling because they are getting a divorce.The buyer will pay more than what's being offered.The seller will take less than the current offer.--The buyer has four children.Which of the following types of agency is not allowed in Illinois?Dual agencyBuyer's agencyDesignated agency--Undisclosed dual agency