COLIBRI REAL ESTATE CHAPTER 2 EXAM 2025
An agency relationship may be involuntarily terminated by which of the following? - ✅✅✅CORRECT
-By destruction of the property through fire, vandalism, or natural disaster
When a seller authorizes a unilateral offer of subagency to all MLS members, any agent who shows the
listed property automatically becomes - ✅✅✅CORRECT -A subagent
An agency relationship may be involuntarily terminated by which of the following? - ✅✅✅CORRECT
-Condemnation of the property
Sally is a subagent working for Seller Pat. What does Sally owe to Buyer Brad? - ✅✅✅CORRECT -
Honesty and fair dealing
Which of the following terminations of an agency relationship could result in legal or financial
ramifications? - ✅✅✅CORRECT -Renunciation by the client
When the agency relationship has been terminated, the licensee is no longer considered the principal's
agent but still owes which of the following duties to the principal? - ✅✅✅CORRECT -Accounting
With which of the following can a broker NOT enter into a single agency agreement? - ✅✅✅CORRECT
-Seller and buyer
A person who is empowered to act on behalf of another is called? - ✅✅✅CORRECT -An agent
When the agency relationship has been terminated, the licensee is no longer considered the principal's
agent but still owes which of the following duties to the principal? - ✅✅✅CORRECT -Confidentiality
When a seller gives permission to a broker to submit the property to the MLS, the seller is authorizing
the broker to make a blanket unilateral offer of what to all the other members of that MLS? -
✅✅✅CORRECT -Subagency
,What is the term given to an agent who is acting as a buyer's and seller's agent in the same transaction?
- ✅✅✅CORRECT -Dual agent
A subagent owes customer level services to the buyer which include which of these? - ✅✅✅CORRECT
-Honesty, fair dealing and the proper disclosure of pertinent facts that affect the value of the property
Which of the following may not involuntarily terminate an agency relationship? - ✅✅✅CORRECT -
Expiration of the agreement term
Revocation of a broker's license results in - ✅✅✅CORRECT -Termination of the relationship
"As is" sales are tempered by which of the agent's duties? - ✅✅✅CORRECT -Disclosure
What kind of defects are hidden from normal vies but still must be disclosed? - ✅✅✅CORRECT -
Latent
Latent defects are those - ✅✅✅CORRECT -Hidden from normal view and, therefore, must be
revealed
An agent must inform client and customer that the agent represents the client and does not represent
the customer, unless - ✅✅✅CORRECT -there is a dual agency
The agent who has the job of obtaining the best possible transaction for the seller is - ✅✅✅CORRECT
-the designated agent
A licensee for a seller has a duty to disclose such things except - ✅✅✅CORRECT -ability of the
purchaser to offer a higher price even if the purchaser is also the licensee's client
Since many of an agent's fiduciary duties can only be rendered to one party, an agent would have a
difficult in not impossible time performing his/her duties in which type of agency? - ✅✅✅CORRECT -
Dual agency
,Properties that have an undesirable reputation due to an associated unpleasant occurrence, such as
murder or gang violence, are known as - ✅✅✅CORRECT -stigmatized properties
Since the listing agreement is a contract that established an agency relationship, which law(s) is the
relationship subject to? - ✅✅✅CORRECT -All of the above
Most real estate listing contracts are which kind of agency? - ✅✅✅CORRECT -Special agency
If a client refuses to disclose material defects to a buyer, what should the agent do? - ✅✅✅CORRECT
-Decline or sever the agency agreement
A licensee must provide____ of any existing agency relationships to all parties for whom he or she
provides real estate brokerage services - ✅✅✅CORRECT -A written disclosure
In Indiana, contractual relationships are always formed at what level? - ✅✅✅CORRECT -Managing
broker
The licensee may disclose to the seller the financial status of the potential buyer customer. Is this
statement true or false and why? - ✅✅✅CORRECT -True if the agent has knowledge of the buyer's
financial status
Representing both principal parties to a real estate transaction is - ✅✅✅CORRECT -A dual agency
A legal doctrine by which a person is prevented from asserting rights or facts that are inconsistent with a
previous position or representation made by act, conduct, or silence is - ✅✅✅CORRECT -An
estoppel
If an agency relationship has not been established by a written agreement, does the relationship exist,
and if so, what kind of relationship is it? - ✅✅✅CORRECT -Yes, it is an implied agency
Before a licensee sign a listing agreement with a seller, he/she mist - ✅✅✅CORRECT -Give the seller
an agency disclosure
, A licensee for the buyer has a duty to disclose such things except - ✅✅✅CORRECT -why the seller is
selling if the licensee knows this from a previous relationship with the seller
The licensee could be known as a transaction broker, facilitator, or coordinator in which type of agency? -
✅✅✅CORRECT -Non-agency
To make it easier to describe elevations, surveyors refer to standard elevation points called -
✅✅✅CORRECT -Benchmarks
What is a "block" in the lot and block system of description? - ✅✅✅CORRECT -A group of lots in a
subdivision
Which of the following lines in the Rectangular Survey System run north and south? - ✅✅✅CORRECT
-Range lines
What method of legal description was the first one used in America? - ✅✅✅CORRECT -Metes and
bounds system
Benchmarks are used to - ✅✅✅CORRECT -Provide reference elevations for nearby properties
A legal description of a property is one which - ✅✅✅CORRECT -Accurately located and identifies the
boundaries of the property and distinguished it from all other properties
The essential criterion for an acceptable legal description is that it - ✅✅✅CORRECT -Accurately
located the parcel so that a surveyor can find it
Standard elevation reference points established throughout the country are called - ✅✅✅CORRECT -
Datums
The fundamental components of the metes and bounds system are - ✅✅✅CORRECT -Reference
points, angles, and distances
An agency relationship may be involuntarily terminated by which of the following? - ✅✅✅CORRECT
-By destruction of the property through fire, vandalism, or natural disaster
When a seller authorizes a unilateral offer of subagency to all MLS members, any agent who shows the
listed property automatically becomes - ✅✅✅CORRECT -A subagent
An agency relationship may be involuntarily terminated by which of the following? - ✅✅✅CORRECT
-Condemnation of the property
Sally is a subagent working for Seller Pat. What does Sally owe to Buyer Brad? - ✅✅✅CORRECT -
Honesty and fair dealing
Which of the following terminations of an agency relationship could result in legal or financial
ramifications? - ✅✅✅CORRECT -Renunciation by the client
When the agency relationship has been terminated, the licensee is no longer considered the principal's
agent but still owes which of the following duties to the principal? - ✅✅✅CORRECT -Accounting
With which of the following can a broker NOT enter into a single agency agreement? - ✅✅✅CORRECT
-Seller and buyer
A person who is empowered to act on behalf of another is called? - ✅✅✅CORRECT -An agent
When the agency relationship has been terminated, the licensee is no longer considered the principal's
agent but still owes which of the following duties to the principal? - ✅✅✅CORRECT -Confidentiality
When a seller gives permission to a broker to submit the property to the MLS, the seller is authorizing
the broker to make a blanket unilateral offer of what to all the other members of that MLS? -
✅✅✅CORRECT -Subagency
,What is the term given to an agent who is acting as a buyer's and seller's agent in the same transaction?
- ✅✅✅CORRECT -Dual agent
A subagent owes customer level services to the buyer which include which of these? - ✅✅✅CORRECT
-Honesty, fair dealing and the proper disclosure of pertinent facts that affect the value of the property
Which of the following may not involuntarily terminate an agency relationship? - ✅✅✅CORRECT -
Expiration of the agreement term
Revocation of a broker's license results in - ✅✅✅CORRECT -Termination of the relationship
"As is" sales are tempered by which of the agent's duties? - ✅✅✅CORRECT -Disclosure
What kind of defects are hidden from normal vies but still must be disclosed? - ✅✅✅CORRECT -
Latent
Latent defects are those - ✅✅✅CORRECT -Hidden from normal view and, therefore, must be
revealed
An agent must inform client and customer that the agent represents the client and does not represent
the customer, unless - ✅✅✅CORRECT -there is a dual agency
The agent who has the job of obtaining the best possible transaction for the seller is - ✅✅✅CORRECT
-the designated agent
A licensee for a seller has a duty to disclose such things except - ✅✅✅CORRECT -ability of the
purchaser to offer a higher price even if the purchaser is also the licensee's client
Since many of an agent's fiduciary duties can only be rendered to one party, an agent would have a
difficult in not impossible time performing his/her duties in which type of agency? - ✅✅✅CORRECT -
Dual agency
,Properties that have an undesirable reputation due to an associated unpleasant occurrence, such as
murder or gang violence, are known as - ✅✅✅CORRECT -stigmatized properties
Since the listing agreement is a contract that established an agency relationship, which law(s) is the
relationship subject to? - ✅✅✅CORRECT -All of the above
Most real estate listing contracts are which kind of agency? - ✅✅✅CORRECT -Special agency
If a client refuses to disclose material defects to a buyer, what should the agent do? - ✅✅✅CORRECT
-Decline or sever the agency agreement
A licensee must provide____ of any existing agency relationships to all parties for whom he or she
provides real estate brokerage services - ✅✅✅CORRECT -A written disclosure
In Indiana, contractual relationships are always formed at what level? - ✅✅✅CORRECT -Managing
broker
The licensee may disclose to the seller the financial status of the potential buyer customer. Is this
statement true or false and why? - ✅✅✅CORRECT -True if the agent has knowledge of the buyer's
financial status
Representing both principal parties to a real estate transaction is - ✅✅✅CORRECT -A dual agency
A legal doctrine by which a person is prevented from asserting rights or facts that are inconsistent with a
previous position or representation made by act, conduct, or silence is - ✅✅✅CORRECT -An
estoppel
If an agency relationship has not been established by a written agreement, does the relationship exist,
and if so, what kind of relationship is it? - ✅✅✅CORRECT -Yes, it is an implied agency
Before a licensee sign a listing agreement with a seller, he/she mist - ✅✅✅CORRECT -Give the seller
an agency disclosure
, A licensee for the buyer has a duty to disclose such things except - ✅✅✅CORRECT -why the seller is
selling if the licensee knows this from a previous relationship with the seller
The licensee could be known as a transaction broker, facilitator, or coordinator in which type of agency? -
✅✅✅CORRECT -Non-agency
To make it easier to describe elevations, surveyors refer to standard elevation points called -
✅✅✅CORRECT -Benchmarks
What is a "block" in the lot and block system of description? - ✅✅✅CORRECT -A group of lots in a
subdivision
Which of the following lines in the Rectangular Survey System run north and south? - ✅✅✅CORRECT
-Range lines
What method of legal description was the first one used in America? - ✅✅✅CORRECT -Metes and
bounds system
Benchmarks are used to - ✅✅✅CORRECT -Provide reference elevations for nearby properties
A legal description of a property is one which - ✅✅✅CORRECT -Accurately located and identifies the
boundaries of the property and distinguished it from all other properties
The essential criterion for an acceptable legal description is that it - ✅✅✅CORRECT -Accurately
located the parcel so that a surveyor can find it
Standard elevation reference points established throughout the country are called - ✅✅✅CORRECT -
Datums
The fundamental components of the metes and bounds system are - ✅✅✅CORRECT -Reference
points, angles, and distances
