Chapter 7 QUIZ

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

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

Iris, a subagent of the seller who is working with a buyer customer, is told by the buyer customer that he wants to offer a low price on a property. The buyer customer says to Iris, “I want to offer $85,000 initially; however, I’ll go as high as $90,000 to get the property.” Iris wrote the offer and delivered the offer to the listing agent, Lucy. Iris told Listing Agent Lucy that the buyer customer is offering $85,000 initially, but he will go as high as $90,000 to get the property. Listing Agent Lucy did not tell the seller the buyer would be willing to go for a higher price. The seller accepted the buyer's offer of $85,000. Who violated the Law of Agency? l. Lucy ll. Iris

• 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

A real estate broker was responsible for a chain of events that resulted in the sale of one of his client's properties. This is referred to as:

• chain of title

• procuring cause

• private offering

• ready, willing and able buyer