Colibri Real Estate Chapter 2 Quiz Questions with 100% Correct Answers

Colibri Real Estate Chapter 2 Quiz Questions with 100% Correct Answers An agency relationship may be involuntarily terminated by which of the following? - Answer- By destruction of the property through fire, vandalism, or natural disaster When a seller authorizes a unilateral offer of subagency to all MLS members, any agent who shows the listed property automatically becomes - Answer- A subagent An agency relationship may be involuntarily terminated by which of the following? - Answer- Condemnation of the property Sally is a subagent working for Seller Pat. What does Sally owe to Buyer Brad? - Answer- Honesty and fair dealing Which of the following terminations of an agency relationship could result in legal or financial ramifications? - Answer- Renunciation by the client When the agency relationship has been terminated, the licensee is no longer considered the principal's agent but still owes which of the following duties to the principal? - Answer- Accounting With which of the following can a broker NOT enter into a single agency agreement? - Answer- Seller and buyer A person who is empowered to act on behalf of another is called? - Answer- An agent When the agency relationship has been terminated, the licensee is no longer considered the principal's agent but still owes which of the following duties to the principal? - Answer- Confidentiality When a seller gives permission to a broker to submit the property to the MLS, the seller is authorizing the broker to make a blanket unilateral offer of what to all the other members of that MLS? - Answer- Subagency What is the term given to an agent who is acting as a buyer's and seller's agent in the same transaction? - Answer- Dual agent A subagent owes customer level services to the buyer which include which of these? - Answer- Honesty, fair dealing and the proper disclosure of pertinent facts that affect the value of the property Which of the following may not involuntarily terminate an agency relationship? - Answer- Expiration of the agreement term Revocation of a broker's license results in - Answer- Termination of the relationship "As is" sales are tempered by which of the agent's duties? - Answer- Disclosure What kind of defects are hidden from normal vies but still must be disclosed? - Answer- Latent Latent defects are those - Answer- Hidden from normal view and, therefore, must be revealed An agent must inform client and customer that the agent represents the client and does not represent the customer, unless - Answer- there is a dual agency The agent who has the job of obtaining the best possible transaction for the seller is - Answer- the designated agent A licensee for a seller has a duty to disclose such things except - Answer- ability of the purchaser to offer a higher price even if the purchaser is also the licensee's client Since many of an agent's fiduciary duties can only be rendered to one party, an agent would have a difficult in not impossible time performing his/her duties in which type of agency? - Answer- Dual agency Properties that have an undesirable reputation due to an associated unpleasant occurrence, such as murder or gang violence, are known as - Answer- stigmatized properties Since the listing agreement is a contract that established an agency relationship, which law(s) is the relationship subject to? - Answer- All of the above Most real estate listing contracts are which kind of agency? - Answer- Special agency If a client refuses to disclose material defects to a buyer, what should the agent do? - Answer- Decline or sever the agency agreement A licensee must provide____ of any existing agency relationships to all parties for whom he or she provides real estate brokerage services - Answer- A written disclosure In Indiana, contractual relationships are always formed at what level? - Answer- Managing broker The licensee may disclose to the seller the financial status of the potential buyer customer. Is this statement true or false and why? - Answer- True if the agent has knowledge of the buyer's financial status Representing both principal parties to a real estate transacti