RE - Review.Fidicuary.Law

An example of a general agency relationship would be one that exists between

• the seller and the broker.
• the buyer and they broker.
• the sales associateds and the broker.
• the selling broker and the listing broker.

Special agency occurs when

• the principals give an agent a limited authority to act on their behalf.
• the principals give an agent authority to act for them in the operation of a business.
• a person operates a real estate brokerage business.
• a person operates a special real estate brokerage business.

Brokers can buy a property listed with them under which of the following conditions?

• If a family member secretly purchases the property for more than the asking price
• Under no circumstance
• Only if the prperty is listed under an open listing
• Only if full disclosure is made to the seller of the broker's involvement as a purchaser.

Which statement is TRUE of listing agents?

• They must communicate every offer, oral or written, to the owner.
• They may refuse to present an offer if it is too low.
• They must tell the buyer the seller's lowest acceptable price.
• They may tell the buyer the terms f a counteroffer the seller made yesterday.

A sales agent owes all of the following fiduciary duties EXCEPT

• to inform the broker and the seller of material facts.
• to be loyal to the best interests of the client.
• to prepare a power of atorney for the buyer.
• to obey the lawful instructions of the broker.

A listing agent tells a buyer-customer that the seller is under pressure to sell because of a recent contract to purchase another house in Idaho. Such disclosure is

• acceptable if it results in a sale.
• acceptable if no details of the move to Idaho are disclosed.
• unacceptable because of the fiduciary duty owed the owner.
• unacceptable because the listing broker is the agent of the buyer.

Sally, as agent for the seller, listed and subsequently sold George's town house. She did not tell George that a major zoning change in progress would allow business use in the area, thus increasing property values. Which statement is TRUE?

• Sally was not required to disclose the change because George never asked her.
• Sally was not required to disclose the change if George received his full asking price.
• Sally was required to disclose the change because it was a material and pertinent fact.
• Sally was required to disclose the change because the zoning laws require notice to all interested persons.

Which is NOT a fiduciary obligation owed to a client?

• Obedience
• Confidentiality
• Accounting
• Inspection

A material fact is one that

• the client considers important.
• the customer considers important.
• a reasonable person might feel is important.
• the listing broker considers important.

According to TRELA Section 1101.558, the written statement must be given at what time?

• At the first meeting with a consumer where a substantive dialog occurs.
• A meeting an open house.
• After a contract is signed.
• At the time of the first substantive dialog with a party relating to a specific real property.