Alabama Real Estate Exam Self-Study Questions and Answers

A ___________ agency is created when a broker designates another real estate agent in the same office to represent either a buyer or a seller because they cannot fully represent both parties being a dual agency. designated agency A _________ agency gives the agent authority to do one specific thing on the principal's behalf. special or specific A _________ agency gives the agent the authority to do several activities on the principal's behalf. general A brokerage which facilitates the transaction by showing properties and assisting with paperwork and the real estate process but does not have an agency relationship with the buyer and seller is called a ___, ____, or ____. nonagency, transaction or facilitative brokerage Resignation of an agent is called _________. renunciation Principal's firing of an agent is called __________. revocation Six fiduciary responsibilities of an agent: 1. loyalty 4. confidentiality 2. obedience 5. reasonable care & diligence 3. disclosure 6. accountability Exaggerating the benefits of a property is known as ____. puffing Is it illegal to exaggerate the benefits of a property? no, but it's not a good idea because you could be sued for false representation or negligent misrepresentation ______ occurs when an agent intentionally tells a lie. Fraud If a buyer was turned down for a mortgage on a prior property, should it be told to the seller? Yes - If an agent knows of a financial problem of the potential buyer, the agent has a duty to tell the seller in the current transaction. Under a MLS, the property owner pays _______. the listing broker (and the listing broker pays the selling broker's commission) What are the six ways a listing agreement can end? 1. Termination by performance