3.2 Real Estate Brokerage Relationships

If one agent is exclusively representing the seller and a buyer's broker brings the buyer and seller together, it would be a(an):

• single agency

• dual agency

• universal agency

• ratified agency

Answer explanation

a single agency is one where only the buyer or the seller in a single transaction is represented, never both.

K is B's listing agent. Her buyer client, J, is interested in B's house. Both agree to allow K to represent them. K must:

• advocate equally for both clients in negotiations

• bring in another broker from her brokerage to assist

• disclose material facts about the transaction to both clients

• share confidential information if it helps to move the transaction along

If an agent who represents a buyer lists a property that is "for sale by owner" what would be created?

• single agency

• dual agency

• unrepresented seller compensation agreement

• power of attorney

Answer explanation

in a FSBO transaction, the seller is not represented, only the buyer, potentially. But if a buyer's agent convinces the seller to sign a listing agreement, it would create dual agency,

The agency of a real estate broker with a client is established by:

• implied contract

• estoppel

• expressed contract

• ratification

When working an open house as a seller's agent, a prospective buyer tells licensee S that she would like S to represent her. S must get written consent from both buyer and seller before she can act as a:

• buyer's agent

• dual agent

• implied agent

• subagent

What is a dual agent NOT allowed to share with his clients in a real estate transaction?

• closing costs that each should expect to pay

• real estate terms

• recommended offer price

• sales price of comparable properties

When should a real estate agent who works for the seller provide an agency disclosure form to a prospective buyer?

• after first receiving confidential information

• after the first property showing

• at the first substantive contact

• at the time the buyer wishes to make an offer on the property

J represents both the buyer and the seller in a real estate transaction. What do his clients give up when he represents them both as a dual agent?

• accountability

• confidentiality

• reasonable care

• undivided loyalty

Which of the following would require a dual agency disclosure?

• the licensee is the buyer's cousin

• the seller and buyer are represented by two different brokerage firms affiliated with the same national franchise company

• a salesperson in a branch office of a company that represents the buyer, and an associate broker in the main office of the same company that represents the seller

• a licensee is purchasing a property from a seller who is represented by another brokerage firm

In the sale of new homes in a subdivision, the on-site real estate licensee typically represents all of the following persons EXCEPT the:

• buyer

• builder

• seller

• seller's broker