Legal Aspects Questions #2 UPDATED
ACTUAL Exam Questions and CORRECT
Answers
A legal agency requires that.. - CORRECT ANSWER - The parties consent to the agency
An agency relationship cannot be created by.. - CORRECT ANSWER - Court Order
(Must be Consensual)
The relationship that exists between a broker and an owner under a listing is most likely a(n).. -
CORRECT ANSWER - Special Agency
(To procure buyer or property)
An agency created by a principal who intentionally, or by want of ordinary care, causes a third
person to believe another to be his or her agent who is not really employed by him or her would
be a(n).. - CORRECT ANSWER - Ostensible Agency
You made a statement that induced a person to act in reliance on that statement. The legal
principle that now prevents you from asserting facts that are contrary to your previous
declaration is known as.. - CORRECT ANSWER - Estoppel
Broker Thomas, who was not your agent, told prospective tenants that he was your agent to lease
your property. Thomas leased your property, and you accepted the rent from the tenant. You
CANNOT now deny the agency because of.. - CORRECT ANSWER - Ratification
(You accepted benefits)
An undisclosed agent breached a contract with a third party. Which of the following is a true
statement as to liability for the breach?
A. The agent could be held personally liable
, B. The principal could be held liable
C. The agent and principal would be jointly liable
D. Both A & B - CORRECT ANSWER - D. Both A & B
(But only one of them)
A selling agent can represent.. - CORRECT ANSWER - A buyer, seller, or both.
A real estate agency disclosure form is NOT required to be given to the buyer and seller of a(n)..
- CORRECT ANSWER - Office building
An agent failed to give an owner a copy of the agency disclosure form at the time the residential
listing was taken. The most likely consequences for the agent will be.. - CORRECT
ANSWER - Inability to collect a commission should a sale be made
________ Is not a requirement of an agency relationship. - CORRECT ANSWER -
Compensation to the agent
The equal dignities rule concerns.. - CORRECT ANSWER - The requirement that certain
agency agreements be in writing
Which statement is correct as to agencies?
A. To be valid, an agency requires consideration
B. An agent who exceeds his or her authority will always be personally liable
C. All agency duties must be expressly agreed to
ACTUAL Exam Questions and CORRECT
Answers
A legal agency requires that.. - CORRECT ANSWER - The parties consent to the agency
An agency relationship cannot be created by.. - CORRECT ANSWER - Court Order
(Must be Consensual)
The relationship that exists between a broker and an owner under a listing is most likely a(n).. -
CORRECT ANSWER - Special Agency
(To procure buyer or property)
An agency created by a principal who intentionally, or by want of ordinary care, causes a third
person to believe another to be his or her agent who is not really employed by him or her would
be a(n).. - CORRECT ANSWER - Ostensible Agency
You made a statement that induced a person to act in reliance on that statement. The legal
principle that now prevents you from asserting facts that are contrary to your previous
declaration is known as.. - CORRECT ANSWER - Estoppel
Broker Thomas, who was not your agent, told prospective tenants that he was your agent to lease
your property. Thomas leased your property, and you accepted the rent from the tenant. You
CANNOT now deny the agency because of.. - CORRECT ANSWER - Ratification
(You accepted benefits)
An undisclosed agent breached a contract with a third party. Which of the following is a true
statement as to liability for the breach?
A. The agent could be held personally liable
, B. The principal could be held liable
C. The agent and principal would be jointly liable
D. Both A & B - CORRECT ANSWER - D. Both A & B
(But only one of them)
A selling agent can represent.. - CORRECT ANSWER - A buyer, seller, or both.
A real estate agency disclosure form is NOT required to be given to the buyer and seller of a(n)..
- CORRECT ANSWER - Office building
An agent failed to give an owner a copy of the agency disclosure form at the time the residential
listing was taken. The most likely consequences for the agent will be.. - CORRECT
ANSWER - Inability to collect a commission should a sale be made
________ Is not a requirement of an agency relationship. - CORRECT ANSWER -
Compensation to the agent
The equal dignities rule concerns.. - CORRECT ANSWER - The requirement that certain
agency agreements be in writing
Which statement is correct as to agencies?
A. To be valid, an agency requires consideration
B. An agent who exceeds his or her authority will always be personally liable
C. All agency duties must be expressly agreed to
