Exam 20: The Principal-Broker Relationship: Agency

The least appropriate person to choose which title and escrow company to use in closing a real estate sale would be

The relationship of a real estate broker to the owner of property listed for sale with the broker is a

Agents who are authorized to bind their employer in a trade or business are

Shortly after a salesperson listed a property, there was an immediate offer through another broker. Before the salesperson could present this offer to the seller, he himself had a customer make an offer on the same property. The salesperson can properly present both offers.

Once a broker has taken a listing, he can do all of the following EXCEPT

The broker and the seller know of major plumbing repairs needed on the seller's property. They, therefore, sell the house to a buyer "as is" but do not disclose plumbing problems. The buyer discovers the defects after closing and decides to sue the broker and seller. What is the most likely outcome of this decision?

When an agent's authority arises from custom in the industry, it is identified as

Agents who fail to investigate the cause of an apparent underlying defect in a property they are selling may be found liable for ____________________ damages.

If a broker is a little short of funds and "borrows" some money from his escrow account to pay monthly bills, this activity is called

In most states, the maximum amount a broker may charge a seller is

Kitty, a broker, has an option to purchase a residence which the owner has also employed Kitty to sell for a commission. Before Kitty can exercise the option, she must give notice to the seller that she will collect two commissions.

Choose the one most appropriate answer for each. -one broker representing two or more parties in a transaction

Choose the one most appropriate answer for each. -agency authority arising from custom, common usage, and conduct of the parties involved

Making statements a reasonable person would recognize as non-factual or extravagant is known as ____________________.

A broker was part owner of an apartment building along with two co-owners. When they decided to sell the broker was named as the listing agent. The broker thus held an agency by ratification.

Dual agency results when

A real estate licensee may not work as the agent for both parties in a transaction unless the licensee has the written consent of both the buyer and the seller to this dual agency.

Two sellers lead a buyer to believe that broker Charlotte is their agent without notifying Charlotte of the fact. This is an example of express agency.

A listing agent is bound by his fiduciary relationship to be loyal to the seller. With regards to working with a buyer, the listing salesperson must disclose hidden defects to the buyer.

Price fixing and monopolies are prohibited by federal fair housing laws.