Laws of Agency Questions And Answers
An agent becomes the agent of the seller when both the seller and the agent sign: (a) The purchase agreement (b) The Transfer Disclosure Statement (c) The Agency Disclosure Statement (d) The Listing Agreement - Answer- The correct answer is d: The Listing Agreement creates the agency relationship between the seller and the listing agent In the correct order, list the chain of events necessary to comply with the agency disclosure law: (a) confirm, disclose, elect (b) investigate, disclose, confirm (c) disclose, elect, confirm (d) disclose, confirm, reconfirm - Answer- The correct answer is c: According to the agency disclosure law, the correct order is: Disclose, Elect, Confirm (Memory Aid: DEC) If you are a subagent of the listing broker, you are working for the: (a) buyer. (b) seller. (c) listing broker. (d) lender. - Answer- Your answer: (b) is correct. "Subagent" means a person to whom an agent delegates agency powers. However, "subagent" does not include an associate licensee who is acting under the supervision of an agent in a real property transaction.The marketing of real property by real estate agents is often a cooperative effort. The listing broker usually makes an offer of compensation to a cooperating broker (subagent) by placing the property on the Multiple Listing Service. Some MLS's make the offer of subagency automatic, while for others, the offer of subagency is optional and requires an affirmative act by the listing broker. If the principal (seller) specifically authorizes his/her broker to appoint a subagent and thus establishes a new contractual and fiduciary relationship, the subagent represents the principal in the same manner as the listing broke With regards to a fiduciary relationship, a Broker is to a Seller, as a: (a)
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