CONTRACTS/AGENCY

An agent received a $500 bonus check from a seller. What should she do with the check?

• The check is considered commission, and it should be written to and given to her principal broker

• Tell the seller she can accept only cash and the broker cannot know about the bonus

• Tell the seller that her broker does. not allow any of the agents to accept bonus checks

• Cash the check and say nothing to her broker

On a listing appointment, the seller told the agent hat he was learning disabled and illiterate. He asked the agent to read the listing agreement to him. After a lengthy discussion answering all of the seller's questions, the seller said he understood the terms and placed an X where the agent indicated. Is this a valid listing contract?

• Yes, because the seller is illiterate, not incompetent

• Yes, but only if the seller has an attorney verify what the agent said

• No, because an illiterate person can never enter into a valid contract

• No, because an illiterate person must have a guardian explain all documents to him

When the buyer made an offer on a property, he gave the agent $500 in cash for the earnest money. After the offer was accepted, the agent deposited the cash into his personal account, and a week later, wrote the broker a check for the $500 deposit. Is this action legal?

• Yes, if the broker told him to follow that procedure

• No, because it is a commingling of funds

• Yes, if the buyer gave permission for the agent to follow that procedure

• No, because it is embezzlement

Which of the following documents would NOT create an agency relationship?

• Property management agreement

• Sales contract

• Listing contract

• Buyer agency contract

To insert additional terms into the contract, the agent would use

• An addendum

• An adaptation clause

• A contingency clause

• A new contract

For their down payment, the buyers brought $20,000 cash to the closing table. Which form must be filed with the Internal Revenue Service to report this transaction?

• 1099

• 1003

• 8300

• 8303

An agent for ABC Realty has 15 listings. Another agent for ABC Realty has a buyer under contract that is interested in one of the company's listings. The broker appointed Agent A as the exclusive agent of the seller, and agent B is the exclusive agent for the buyer. This arrangement is an example of

• Express agency

• Implied agency

• Designated agency

• Undisclosed agency

The principal to whom an agent gives professional opinions and counsel is a

• Subagent

• Customer

• Client

• Fiduciary

A seller agreed to list his house. for $190,000, but he was not informed that the actual value of the property was $200,000. The agent purchased the property the next day. This is an example of a violation of which of the agent's responsibilities?

• Obedience

• Accountability

• Loyalty

• Discovery

Which of the following is NOT TRUE regarding an exclusive agency agreement?

• It may contain a broker protection clause

• It excludes the seller from selling the property

• It excludes other brokers from listing the property

• It may contain a clause prohibiting a FOR SALE sign from being placed in the yard