CH 07 - Laws and Regulations Governing Brokerage Relationships

The real estate broker's fiduciary responsibility to keep the principal informed of all facts, including property condition and issues that affect a seller's willingness to sell and a buyer's willingness to buy, is the duty of:

• skill, care and diligence

• disclosure

• obedience

• accounting

Designated agency in North Carolina is considered:

I. A form of dual agency

II. Mandatory if you practice dual agency

• I only

• II only

• Both I and II

• Neither I nor II

Designated agency can be practiced: I. Between two firms II. Between a broker-in-charge and a provisional broker licensee in their office

• I only

• II only

• Both I and II

• Neither I nor II

Designated agency is never practiced between two firms. It occurs when the same firm represents both the buyer and the seller.

• True

• False

A broker-in-charge and a provisional broker can never be designated agents in the same transaction.

• True

• False

An agent must have the buyer sign a written agency agreement by what specific point in time?

l. At the time of first substantial contact

ll. Prior to the submission of an offer on the buyer’s behalf

lll. At the time the agent attempts to limit the buyer’s ability to work with another agent

• l only

• l and ll only

• ll and lll only

• l, ll and lll

Under the general principles of agency, when a licensee is acting on behalf of a client and acts improperly who is liable for the acts of the licensee?

• only the client

• only the licensee and the broker-in-charge

• only the client and the licensee

• the client, the licensee, the firm and or the broker-in-charge

A disclosure of agency status should be made by a buyer’s agent to the seller: l. With a written confirmation in the offer to purchase and contract ll. At the initial contact with the seller’s agent, orally or in writing

• l only

• ll only

• Both l and ll

• Neither l nor ll

The amount of compensation due to a licensee from the brokerage firm is determined by:

• state real estate regulators to ensure the public the most protection from incompetent licensees

• local real estate board's minimum wage guarantee to agents

• in-house employment contracts

• listing agreements

Which of the following would be dual agency?

• a broker-in-charge assisting a buyer client in the purchase of property that was listed by a provisional broker of another firm

• a provisional broker and a broker licensee from firms that are cooperating in a transaction

• a firm that represents buyers and sellers

• a broker having a buyer client for a property the broker personally listed