Ch.1 Quiz -Rockwell
At an open house the listing agent begins giving advice to a prospective buyer
regarding how much to offer for the house, without explaining that she is a
representative of the sellers. Which of the following statements is NOT true?
a. the agent is not acting in accordance with her agency status
b. the agent is acting as an undisclosed dual agent
c. the agent has breached fiduciary duties to both parties
d. the agent has not violated any duties, because she is not performing real estate
services for the buyers - CORRECT ANSWER-d. the agent has not violated any duties,
because she is not performing real estate services for the buyers
Explanation: The agent has become an undisclosed dual agent, and then breached
duties of loyalty to each party.
A dual agent owes the duty of loyalty to:
a. both parties
b. neither party
c. whichever party she began working with first
d. the seller - CORRECT ANSWER-a. both parties
Explanation: A dual agent owes the duty of loyalty to both parties. For instance, a dual
agent will not be allowed to disclose either party's confidences to the other party.
In a real estate transaction, the law requires which persons to inspect the property and
disclose any latent defects they observe?
a. buyer
b. seller
c. listing agent and selling agent
d. listing agent only - CORRECT ANSWER-c. listing agent and selling agent
, Explanation: The listing agent and any cooperating agents must conduct a visual
inspection of the property and disclose observed conditions to prospective buyers.
At which point in a transaction should you disclose your agency status?
a. at closing
b. when a party asks who you represent
c. after the parties sign the purchase agreement
d. as soon as practicable - CORRECT ANSWER-d. as soon as practicable
Explanation: You must disclose your agency status to each party as soon as
practicable. The agency relationships must also be confirmed with an agency
confirmations statement.
Services a seller's agent may lawfully provide to a buyer include all of the following
EXCEPT:
a. Providing advice regarding an amount to offer the sellers
b. Disclosing pertinent information about the property and neighborhood
c. Helping the buyer secure financing
d. Presenting the buyer's offer to the seller - CORRECT ANSWER-a. Providing advice
regarding an amount to offer the sellers
Explanation: A seller's agent may help the buyer fill out a purchase offer form and
present it to the sellers, but must always act in the seller's best interest, and so should
not give the buyers negotiating suggestions.
Which of the following would be considered a material fact that an agent would be
compelled to disclose?
a. The roof leaks during rainy weather
b. The house was the site of a suicide five years ago
c. The house was once rented by gang members
d. The house was once the headquarters for a doomsday cult - CORRECT ANSWER-a.
The roof leaks during rainy weather
At an open house the listing agent begins giving advice to a prospective buyer
regarding how much to offer for the house, without explaining that she is a
representative of the sellers. Which of the following statements is NOT true?
a. the agent is not acting in accordance with her agency status
b. the agent is acting as an undisclosed dual agent
c. the agent has breached fiduciary duties to both parties
d. the agent has not violated any duties, because she is not performing real estate
services for the buyers - CORRECT ANSWER-d. the agent has not violated any duties,
because she is not performing real estate services for the buyers
Explanation: The agent has become an undisclosed dual agent, and then breached
duties of loyalty to each party.
A dual agent owes the duty of loyalty to:
a. both parties
b. neither party
c. whichever party she began working with first
d. the seller - CORRECT ANSWER-a. both parties
Explanation: A dual agent owes the duty of loyalty to both parties. For instance, a dual
agent will not be allowed to disclose either party's confidences to the other party.
In a real estate transaction, the law requires which persons to inspect the property and
disclose any latent defects they observe?
a. buyer
b. seller
c. listing agent and selling agent
d. listing agent only - CORRECT ANSWER-c. listing agent and selling agent
, Explanation: The listing agent and any cooperating agents must conduct a visual
inspection of the property and disclose observed conditions to prospective buyers.
At which point in a transaction should you disclose your agency status?
a. at closing
b. when a party asks who you represent
c. after the parties sign the purchase agreement
d. as soon as practicable - CORRECT ANSWER-d. as soon as practicable
Explanation: You must disclose your agency status to each party as soon as
practicable. The agency relationships must also be confirmed with an agency
confirmations statement.
Services a seller's agent may lawfully provide to a buyer include all of the following
EXCEPT:
a. Providing advice regarding an amount to offer the sellers
b. Disclosing pertinent information about the property and neighborhood
c. Helping the buyer secure financing
d. Presenting the buyer's offer to the seller - CORRECT ANSWER-a. Providing advice
regarding an amount to offer the sellers
Explanation: A seller's agent may help the buyer fill out a purchase offer form and
present it to the sellers, but must always act in the seller's best interest, and so should
not give the buyers negotiating suggestions.
Which of the following would be considered a material fact that an agent would be
compelled to disclose?
a. The roof leaks during rainy weather
b. The house was the site of a suicide five years ago
c. The house was once rented by gang members
d. The house was once the headquarters for a doomsday cult - CORRECT ANSWER-a.
The roof leaks during rainy weather
