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Unit 9 Flashcards Statutory LawThe laws enacted by a legislature make upA)judicial law.B)statutory law.C)common law.D)administrative law.The broker has violated the agency relationship with the seller.A seller, anxious to sell, listed a home for $190,000 and signed an agency agreement with a broker who then told a buyer to submit a low offer. The buyer offered $175,000 and the seller accepted. Which of the following statements is TRUE?A)Any broker is authorized to encourage such bids for the property.B)The broker has violated the agency relationship with the seller.C)The broker acted properly to obtain a quick offer on the property.D)The broker was unethical, but the seller did get to sell the property.being primarily responsible to the customer A real estate professional's duties to a customer do NOT includeA)disclosure of all facts that the real estate professional knows or should reasonably be expected to know that materially affect the value or desirability of the property.B)care and skill in performance.C)being primarily responsible to the customer.D)honest and fair dealing.Statements of opinion are permissibleA)never.B)even if they are considered a "harmless white lie."C)if there is no intention to deceive.D)if they are only part of puffing.Commingling and Conversion specialThe relationship between real estate broker and seller is generally what type of agency?A)GeneralB)ImpliedC)UniversalD)Special the seller and the broker must both disclose this material fact The listing broker and the seller find a small roof leak in the attic. Because the property is being sold "as is,"A)if the buyer's inspector finds a problem, the seller does not have to disclose.B)the seller and the listing broker do not have to disclose anything.C)the seller must disclose, but the broker has no obligation to disclose.D)the seller and the broker must both disclose this material fact.avoid conflicts of interestA key element of an agent's fiduciary responsibility of loyalty is toA)reveal relevant information or material facts.B)obey the principal's instructions in accordance with the contract.C)avoid conflicts of interest.D)report the status of all funds received from or on behalf of the principal.Disclosure of material facts that the agents knowsThe fiduciary responsibilities of an agent to the principal under the common law of agency includeA)disclosure of material facts that the agent knows.B)care and skill in representing the principal equivalent to that of the average person.C)obedience to all instructions of the principal.D)loyalty to the principal's interests unless they
conflict with the agent's interests.Whoever hired the agentWho is the agent's principal?A)Person who pays the commissionB)BuyerC)SellerD)Whoever hired the agent Disclosure was improper and possibly illegal, regardless of the agent's motive.A seller tells his agent in confidence that he must sell fast and may accept less than the list price. The agent tells a buyer the seller will accept up to $5,000 less than the list
price. Which is TRUE?A)Disclosure was improper and possibly illegal, regardless of the agent's motive.B)The relationship between the agent and the seller ends automatically if the purchaser submits an offer.C)The agent should have disclosed this information, regardless of its accuracy.D)The agent has not violated any agency responsibilities to the seller.
specialIn MOST situations, the relationship between real estate broker and seller is what type of agency?A)UniversalB)GeneralC)ImpliedD)Special Exaggerated statements about the property Which of the following is considered lawful practice in real estate brokerage?A)Exaggerated statements about the propertyB)Deceitful or dishonest practicesC)Misstatements about the propertyD)Omitted statements of material facts must promote and safeguard the seller's best interestsA real estate broker acting as the agent of the sellerA)can disclose the seller's minimum price.B)can accept an offer on behalf of the seller.C)must promote and safeguard the seller's best interests.D)should present to the seller only the highest offer for the property.An agency relationship between a seller and a broker is usually created by a written employment contract called aA)listing agreement.B)implied agreement.C)disclosure agreement.D)buyer representation agreement.The broker is obligated to render loyalty to the seller latent defectsA house built years ago over a ditch covered with decaying timber or a house with ceilings that were improperly attached to the support beams are examples ofA)conditions that need not be disclosed.B)environmental hazards.C)latent defects.D)stigmatized properties.if there is no intention to deceiveStatements of opinion are permissibleA)if there is no intention to deceive.B)even if they are considered a "harmless white lie."C)if they are only part of puffing.D)never.The owner declares personal bankruptcy.Which event will terminate an agency in a broker-seller relationship?A)The broker discovers that the market value of the property is such that an adequate commission will not be earned.B)The owner abandons the property.C)The owner declares personal bankruptcy.D)The broker appoints other brokers to help sell the property.A real estate professional's acting for both the buyer and the seller in the same transaction Which of the following is considered dual agency?A)A real estate professional's listing and then selling the same propertyB)A real estate professional's representing more than one principalC)Two brokerage companies cooperating with each otherD)A real estate professional's acting for both the buyer and the seller in the same transaction Common law, statutory law, and administrative law Real estate agency relationships are governed by which kinds of law?A)Common law and representative lawB)Administrative law and canonical lawC)Contract law, common law, and business lawD)Common law, statutory law, and administrative law A real estate professional's duties to a customer do NOT includeA)care and skill in performance.B)honest and fair dealing.C)being primarily responsible to the
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