COMPREHENSIVE QUESTIONS AND CORRECT DETAILED
ANSWERS (RATIONALES) VERIFIED 100% ALREADY
GRADED A+
Agent Bob, who works for Broker Bill, obtains an owner listing to lease a
building. Bill's other agent, Sue, locates a tenant for Bob's listing. Broker
Bill in this instance is
a. an implied agent.
b. a dual agent.
c. a single agent.
d. a subagent.
(b) a dual agent.
Dual agency occurs whenever a single broker represents both principal
parties to a transaction. Here, since Bob and Sue work for Bill, Bill is the
dual agent.
A transaction broker should disclose his or her agency relationship to
prospective buyers and sellers
a. upon first substantive communication.
b. upon completion of the listing agreement.
c. immediately following completion of any offer.
d. immediately prior to closing.
(a) upon first substantive communication.
The agent must provide written notice to all parties or their agents as
soon as substantive communication occurs, which can include initial
face-to-face contact.
,A transaction facilitator in a residential transaction represents
a. the seller.
b. the buyer.
c. both seller and buyer.
d. neither seller nor buyer.
(d) neither seller nor buyer.
In recent years, the brokerage industry has striven to clear up the
question of who works for whom, and who owes fiduciary duties to
whom. One solution allows a broker to represent no one in a
transaction.
That is, the broker acts as a transaction broker, or facilitator, and has no
allegiance to buyer or seller.
,A principal instructs an agent to inform minority buyers that the property
for lease was just leased an
hour ago and is no longer available. The agent refuses to comply. In this
case,
a. the agent should exercise caution until the listing expires, then decline
to renew it.
b. the principal has proposed an illegal act, which should not be
obeyed.
c. the agent is liable for breaching the listing terms.
d. the agent may sue the principal for discrimination and
misrepresentation.
(b) the principal has proposed an illegal act, which should not be
obeyed.
An agent must comply with the client's directions and instructions,
provided they are legal. If the directive is illegal, the agent must also
immediately withdraw.
, The amount of a real estate broker's commission is established by
a. agreement among competing brokers.
b. negotiation with clients.
c. the local Board of Realtors®.
d. state real estate license law.
(b) negotiated with clients.
The amount of a broker's commission is whatever amount the client and
broker have agreed to.