LAW OF AGENCY EXAM QUESTIONS
AND DETAILED ANSWERS GET 100%
CORRECT ANSWERS.
⫸ Agency can exist without regard to who pays the fee. Answer: True
⫸ The real estate broker who allows his sales associates to list their own
homes through the brokerage without charging the usual listing fee has
created. Answer: gratuitous agency.
⫸ It is important to determine in every case whether an agency
relationship exists due to issues relating to. Answer: legal effects.
professional and ethical responsibility. imputed notice. all of the above.
⫸ In Texas, an individual licensed as a real estate agent and a real estate
inspector could list the property for the seller and inspect the property for
the buyer. Answer: False
⫸ The seller may be liable for the acts and representations of all of the
following except. Answer: the buyer's broker.
⫸ A court would consider notification to the agent as notification to the
agent's principal because of the rule of. Answer: imputed notice.
⫸ A third party is entitled to. Answer: accurate information.
,⫸ An agency relationship may be terminated by all of the following except.
Answer: the property is rezoned causing a drop in value such that the
broker will not make adequate commission to cover his marketing
expenses.
⫸ Although a termination date must be included in the listing contract, it is
permitted to include a rollover provision if agreed in writing between the
broker and the owner. Answer: False
⫸ Georgio listed his property for sale with Tony Principi, principal broker
for Principi Realty. Georgio decides to seek a tenant for his property rather
than sell so he asks Tony to remove the property from the market. If Tony
agrees to release Georgio from his obligations under. Answer:
⫸ the contract, agency has been terminated by. Answer: mutual rescission.
⫸ Which of the following would be an example of termination of agency by
operation of law?. Answer: Death of the owner.
⫸ The fiduciary duty which remains even after the termination of the
agency relationship is. Answer: confidentiality
⫸ Which of the following is not a way to create agency?. Answer:
expiration
⫸ Which of the following is required to create an agency relationship?.
Answer: a belief that the relationship exists
⫸ Express agency. Answer: can be oral or written
⫸ Implied authority is. Answer: not specifically given to an agent
, ⫸ Agency based n a third Party's being led to believe that a licensee was
acting as an agent for another party is. Answer: ostensible agency
⫸ To become enforceable, a contract must be fully signed and delivered to.
Answer: all principals or their agents
⫸ Robert Hays, sales associate with West Point Realty, has listed a property
for Blake Wong at $128,000. After three months, not a single offer has been
received. Robert has been asking Blake to lower the listing price to $123,000,
while reading the morning paper, Robert discovers that the local refinery will
be relocating over 700 employees to the city writhing the next 60 days. The
pay scale for these new employees puts them well within the price range for
blake's house. Robert then checks his voicemail and discovers a message from
Blake from the evening before instructing Robert to lower the listing price to
$119,000. At that price, the property is well within Roberts ability to purchase
for himself. Answer: Robert should contact Blake to inform him of the news
article, and encourage him to hold out a little longer.
⫸ The duty of disclosure is greater to a client than to a customer. Answer:
True
⫸ Confidential information obtained about a client during during a transaction
must remain confidential only until the termination of the agency relationship.
Answer: False
⫸ A salesperson licensee acts for the licensed broker with whom he or she is
associated. Answer: True
⫸ General agency commonly exists between. Answer: Salesperson and broker
AND DETAILED ANSWERS GET 100%
CORRECT ANSWERS.
⫸ Agency can exist without regard to who pays the fee. Answer: True
⫸ The real estate broker who allows his sales associates to list their own
homes through the brokerage without charging the usual listing fee has
created. Answer: gratuitous agency.
⫸ It is important to determine in every case whether an agency
relationship exists due to issues relating to. Answer: legal effects.
professional and ethical responsibility. imputed notice. all of the above.
⫸ In Texas, an individual licensed as a real estate agent and a real estate
inspector could list the property for the seller and inspect the property for
the buyer. Answer: False
⫸ The seller may be liable for the acts and representations of all of the
following except. Answer: the buyer's broker.
⫸ A court would consider notification to the agent as notification to the
agent's principal because of the rule of. Answer: imputed notice.
⫸ A third party is entitled to. Answer: accurate information.
,⫸ An agency relationship may be terminated by all of the following except.
Answer: the property is rezoned causing a drop in value such that the
broker will not make adequate commission to cover his marketing
expenses.
⫸ Although a termination date must be included in the listing contract, it is
permitted to include a rollover provision if agreed in writing between the
broker and the owner. Answer: False
⫸ Georgio listed his property for sale with Tony Principi, principal broker
for Principi Realty. Georgio decides to seek a tenant for his property rather
than sell so he asks Tony to remove the property from the market. If Tony
agrees to release Georgio from his obligations under. Answer:
⫸ the contract, agency has been terminated by. Answer: mutual rescission.
⫸ Which of the following would be an example of termination of agency by
operation of law?. Answer: Death of the owner.
⫸ The fiduciary duty which remains even after the termination of the
agency relationship is. Answer: confidentiality
⫸ Which of the following is not a way to create agency?. Answer:
expiration
⫸ Which of the following is required to create an agency relationship?.
Answer: a belief that the relationship exists
⫸ Express agency. Answer: can be oral or written
⫸ Implied authority is. Answer: not specifically given to an agent
, ⫸ Agency based n a third Party's being led to believe that a licensee was
acting as an agent for another party is. Answer: ostensible agency
⫸ To become enforceable, a contract must be fully signed and delivered to.
Answer: all principals or their agents
⫸ Robert Hays, sales associate with West Point Realty, has listed a property
for Blake Wong at $128,000. After three months, not a single offer has been
received. Robert has been asking Blake to lower the listing price to $123,000,
while reading the morning paper, Robert discovers that the local refinery will
be relocating over 700 employees to the city writhing the next 60 days. The
pay scale for these new employees puts them well within the price range for
blake's house. Robert then checks his voicemail and discovers a message from
Blake from the evening before instructing Robert to lower the listing price to
$119,000. At that price, the property is well within Roberts ability to purchase
for himself. Answer: Robert should contact Blake to inform him of the news
article, and encourage him to hold out a little longer.
⫸ The duty of disclosure is greater to a client than to a customer. Answer:
True
⫸ Confidential information obtained about a client during during a transaction
must remain confidential only until the termination of the agency relationship.
Answer: False
⫸ A salesperson licensee acts for the licensed broker with whom he or she is
associated. Answer: True
⫸ General agency commonly exists between. Answer: Salesperson and broker
