TFM-08 Test Questions & Answers

The term Fiduciary means there is a(n) - Answer Legal relationship between parties that creates a position of trust and confidence. A listing agent lost the seller's house keys. The agent has breached his fiduciary duty of? - Answer Accountability The BEST description of the type of Agency that is created by the actions or conduct of the parties is a(n)? - Answer Implied Agency When a Brokerage represents both parties in the Real Estate transaction as customers, the brokerage is acting as a(n)? - Answer Transaction Broker When showing property, an Agent exaggerates a property's benefit? This action is - Answer Puffing (legal as long as there is no misrepresentation. The type of listing agreement that allows the seller to have contracts with more than one brokerage, as well as the right to sell the property herself is a(n)? - Answer Open Listing An amendment to a contract is created by? - Answer Adding provisions to an accepted contract. A buyer signed an agreement to pay the agent when she purchased a property described in the contract. The buyer signed a (n)? - Answer Exclusive Buyer Agency Agreement After the buyer's offer was accepted, he applied for a loan. He could not secure a loan to purchase the property. Which contract clause would allow the seller to receive the earnest money deposit? - Answer Forfeiture Clause A promise, or something of value, made by one party to induce another party to enter into a contract is? - Answer Legal Consideration The status of a contract that meets all of the essential elements and is enforceable is called a(n)? - Answer Valid Contract A contract entered into without duress, menace, misrepresentation, or fraud means that it meets the legal requirement of the - Answer Reality of Consent A Contract that has no legal force or effect is? - Answer Void When neither party can sue the other to force performance, the contract is said to be? - Answer Unenforceable The transfer of rights and/or duties from one contract to another contract, or from one person to another person, is - Answer Assignment One contract was substituted for another contract and there was a release of liability from the original contract. The term that defines that release is - Answer Novation A sales contract, land contract or trust deed would give the buyer a(n)? - Answer Equitable Title