Unit 3 Law of Agency: Fiduciary Duties

Which of the following statements is true?

• A power of attorney gives limited power to act on behalf of another

• an agent is a person who has the legal authority to act on behalf of a person or entity

• Both power of attorney and agency give the same level of authority to act

• Neither power of attorney or agency give someone the ability to act on another's behalf

What is the acronym to remember when considering an agent's responsibilities?

• NEWFENCE

• OLDHOUSE

• NEWTRAIN

• OLDCAR

What is the exception to obeying your clients wishes?

• The request violates your idea of right and wrong

• The request will cost you money

• The request violates Fair Housing laws

• The request doesn't make any sense

When does the agent's duty of confidentiality end?

• The agent can reveal any information necessary to close the deal

• One year after the property sale

• Once the deal is closed

• Never, unless ordered by the courts

As the agent, you are qualified to conduct inspections, write appraisals, advise on contracts and qualify your clients for the mortgage loan. Is this true or false?

• True, you are expected to be the professional in all matters of the real estate transaction

• True, these matters are part of your fiduciary duties

• False, you should be a referral source and allow the experts to handle those responsibilities

• False, you are only responsible for the appraisal and mortgage qualification