NC Test Prep Unit IV

Front

The agency relationship is defined by

Back

the laws of agency, or in some states, by statute.

Front

Which of the following is true of the connection between compensation and the agency relationship? Options: An agreement to give and receive compensation creates an agency relationship. If an agency relationship exists, the principal must provide valuable consideration to the agent. The relationship is independent of any compensation arrangement. If an agency relationship exists, the agent is entitled to compensation.

Back

The relationship is independent of any compensation arrangement.

Front

One of the parties to an agency relationship defaults, and the agreement terminates. Which of the following is true?

Back

The defaulting party may have a financial consequence.

Front

Among the fiduciary duties imposed on a real estate agent is the requirement to: present all offers to the principal regardless of their amount.

Back

present all offers to the principal regardless of their amount.

Front

One of the agent's fiduciary duties that continues even after a listing agreement expires is

Back

confidentiality.

Front

What is necessary to earn the promised compensation?

Back

comparable to that of other practitioners in the area.

Front

Agent Michael is showing his new listing to a buyer who informs him that he has just inherited five million dollars. Michael is now bound by fiduciary duty to

Back

disclose the information to the seller.

Front

Gerry owes the full set of fiduciary duties to

Back

the Andersons.

Front

A subagent is the agent of

Back

a broker who has an agency relationship with a client.

Front

Which of the following is a dual agency situation? Options: Two agents share the exclusive right to represent the same client on all transactions., One agent represents both sides in a transaction., A selling agent from one brokerage works with a listing agent from another brokerage to complete a transaction., One agent represents two sellers at the same time.

Back

One agent represents both sides in a transaction.