Real Estate - Agency quiz Flashcards

Real Estate - Agency quiz Flashcards Which of the following are fiduciaries in a real estate transaction?I. Escrow agentII. BrokerIII. BuyerIV. SellerI and III and IIIIII and IVI, II and IV I and IIThe buyer and seller are principals, not agents (fiduciaries). The escrow agent and the broker are fiduciaries (agents).A licensee acting on behalf of a property owner is best described asan implied agent.a dual agent.ratified.a fiduciary.a fiduciary.A real estate property manager can be guilty of misrepresentation byI. direct acts or statements.II. acts of omission, such as failure to disclose vital information.Neither I nor III onlyII onlyI and II I and IIAn agent can misrepresent facts by making false statements or by failing to make statements which need to be made in order to prevent false beliefs.A real estate agent representing the seller should inform his client about the potential for financial damages from taking a largeI. purchase money note.II. earnest money deposit.I and IINeither I nor III onlyII only I only Jack Williams, a broker, was $1,000 short of the money he needed to pay office rent. He wrote a check to himself from his clients' trust account with the intention of replacing the money from his next transaction. Williams' action is known asI. "conversion."II. "commingling."I onlyII onlyI and IINeither I nor II I only When a broker or property manager signs a contract to manage an owner's property he becomes alessor.trustee.receiver.fiduciary.fiduciary Which of the following are necessary to prove that a misrepresentation constituted a fraud?I. That the person making the misrepresentation knew that the statement was false and made the statement with the intent to deceive the other party.II. That the statement was regarding a material fact.III. That the party to whom the misrepresentation was made acted upon it to his detriment.IV. That the statement was in writing.I, III and IVI, II and IVII, III and IVI, II and III I, II and III Which of the following types of transactions, among others, are included under Oregon's agency disclosure statutes?I.Exchanges of real propertyII. Options to purchase real propertyI onlyII onlyBoth I and IINeither I nor II Both I and IIOregon's agency disclosure statutes apply to sales, exchanges, options and lease options to purchase real property.The maximum amount of commission on a real estate transaction isdetermined by the National Association of Realtors.determined by the broker's contract with the seller.determined by the Federal Truth-in-Lending Law.8% of the selling price.determined by the broker's contract with the seller.

A real estate brokeris a fiduciary and has the duty to remain neutral.may act for both parties with the knowledge and written consent of both.must only act for one party in a transaction.may act for both parties if licensed for a minimum of one year.may act for both parties with the knowledge and written consent of both.Which of the following is true about real estate agents?A seller's agent is the same as a selling agentA selling agent is always a buyer's agentAll real estate licensees are Realtors®A selling agent may be a buyer's agent, a seller's agent or a disclosed limited agent A selling agent may be a buyer's agent, a seller's agent or a disclosed limited agent After Broker X lists Seller Y's property, Broker X mayshow a property owned by Seller C to a prospective buyer he met at an open house he held for Seller Y's property.list competing properties owned by Seller D and Seller E for sale.both show a property owned by Seller C, and list competing properties owned by Seller D and Seller E for sale.neither show a property owned by Seller C nor list competing properties owned by Seller D and Seller E for sale.both show a property owned by Seller C, and list competing properties owned by Seller D and Seller E for sale.Mr. Orland Brown was the owner of a single-family residence. He engaged his son-in-law, who was not licensed as an electrician, to do electrical work in preparing the home for sale. Mr. Brown did not disclose this to Broker Baker at the time of signing the listing. After the sale was completed, the new owner suffered financial losses due to the faulty electrical wiring done by Orland Brown's son-in-law. Broker Bakercould be severely reprimanded for not warning the purchaser prior to executing the earnest money offer.was in violation of the Real Estate Act.is innocent of any wrongful act.could be held liable for the monetary damages suffered by the owner.is innocent of any wrongful act.If a broker deposits his own funds into his trust account a situation is created which is calledcommingling.escheat.prepayment.advance commission.commingling.A buyer and seller enter into a purchase and sale agreement through the efforts of a broker. The broker has liability to the buyer, and the buyer may have recourse against the broker, if the brokerI. gave the money to the seller, and the seller backed out of the transaction.II. acted outside the limits of the authority as granted by the seller.III. misrepresented facts to the buyer.I onlyI and III, II and IIIII and III I, II and III A broker had an exclusive listing on a house. The listing price was $73,250; the commission was 8% of the selling

price. The broker received an offer from a buyer for $71,500 along with a $7,000 deposit. The offer included a termite and dry rot inspection as a contingency. The seller accepted the offer and instructed the broker to deposit the $7,000 into escrow. The broker should deposit$1,280 into escrow and retain $5,720 for his commission.the $7,000 into his personal account until the contingency has been met and then transfer the $7,000 into an escrow account.the $7,000 with an escrow company to which the parties have agreed.the $7,000 into a federally-insured savings account under the broker's name until the transaction is ready to close the $7,000 with an escrow company to which the parties have agreed.

When a real estate broker represents more than one party in a transaction and this representation of more than one party is with knowledge and written consent of all parties,his action is called a "dual agency."he could have his license revoked.his action is called "dual agency" and he could have his license revoked.his action is not a dual agency and his license is not in danger of revocation.his action is called a "dual agency." With respect to the material facts concerning a property, the licensee in a real estate transaction may be guilty of misrepresentation throughI. commission.II. omission.II onlyNeither I nor III and III only I and II A real estate broker may lose the right to a commission in a real estate transaction ifI. guilty of a misstatement of known material facts.II. not licensed when hired as an agent.II onlyI onlyI and IINeither I nor II I and II The broker owes his client the duty of following his instructions. In the event that the client would require that the broker commit an unlawful act, what could the broker do?Withdraw as the broker.Report the seller to the Real Estate Commissioner.File a civil suit against the seller.Charge the seller with fraud.Withdraw as the broker.An Oregon real estate licensee who agrees to act as the seller's agent is responsible toI. explain to the seller the seller's obligations under the property condition disclosure law.II. provide a copy of the Initial Agency Disclosure Pamphlet to the seller prior to entering into a listing agreement.I onlyII onlyBoth I and IINeither I nor II Both I and II Which of the following are fiduciaries in a real estate transaction?I. Escrow agentII. BrokerIII. BuyerIV. SellerIII and IVI, II and IVI and IIII and II I and II Which of the following statements about the Oregon property condition disclosure law and the agency disclosure law is TRUE?I. The property disclosure law applies to all property within the State of Oregon.II. The agency disclosure law is limited to the sale of residential property.I onlyII onlyBoth I and IINeither I nor II Neither I nor IIThese statements should be reversed. The property disclosure law is limited to the sale of residential property within the State of Oregon. The agency disclosure law applies to all property within the State of Oregon.When an Oregon licensee represents a buyer as the buyer's agentI. only the buyer may pay the licensee's commission.II. the licensee has an obligation to the seller of honest dealing and disclosure of material facts.I onlyII onlyBoth I and IINeither I nor II II only Once an Oregon licensee has established a single agency relationship with the seller or the buyerI. the relationship may not be changed to disclosed limited agency representation.II. the broker's commission may only be