Real Estate Law Of Agency Chapter 3

9 Questions | Total Attempts: 1294

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Real Estate Law Of Agency Chapter 3 - Quiz

The law of agency is an area of commercial law that deals with a set of contractual, quasi-contractual and non-contractual fiduciary relationships involving an agent. What role does it play in real estate? Let’s find out!


Questions and Answers
  • 1. 
    In the real estate profession when a broker is authorized to purchase a particular house for this principal the broker is designated as:
    • A. 

      General agent of the principal

    • B. 

      Special agent of the principal

    • C. 

      Ostensible agent of the principal

    • D. 

      Realtor

  • 2. 
    The position of trust assumed by the broker as an agent for a principal is described most accurately as:
    • A. 

      A trustee

    • B. 

      A trustor relationship

    • C. 

      A fiduciary relationship

    • D. 

      An employment reationship

  • 3. 
    Anthony gives Benson, a broker, an exclusive contract to sell his property at $4,000.  Benson procures Clark as a purchaser upon Anthony's terms.  Clark signs an agreement but Anthony, the owner, refuses to sign:
    • A. 

      The buyer can force the sales

    • B. 

      Buyer can sue seller for specific performance

    • C. 

      Seller must pay broker's commission

    • D. 

      Anthony is liable to clark

  • 4. 
    The law of agency:
    • A. 

      Establishers the broker-principal relationship

    • B. 

      Licenses real estate brojkers

    • C. 

      Requires all real estate contracts to be in writing

    • D. 

      Requires all listings to have an expiration date

  • 5. 
     real estate broker is:
    • A. 

      A fiduciary to the owner of property which he lists

    • B. 

      Appointed by the owner to negotiate for him

    • C. 

      Both "A" and "B"

    • D. 

      Neither "A" nor "B"

  • 6. 
    Green lists his house for sale with Brown, a real estate salesperson employed by the PDQ Realty CO:
    • A. 

      The agency exists between Brown and Green

    • B. 

      The agency exists between Green and PDQ CO.

    • C. 

      Both "A" and "B"

    • D. 

      Neither "A" nor "B"

  • 7. 
    A  real estate roker could be held liable to a buyer if the broker:
    • A. 

      Unkowingly makes a misrepresentation to the buyer on false information given to him by the seller

    • B. 

      Executes an agreement with the buyer on behalf of the seller under a Power-of-attorney

    • C. 

      Acts in excess of the authority given to him by the seller under a listing agreement

    • D. 

      Retains the buyer's check at the seller's request after an offer has been accepted by the seller and acceptance has been communicated to the buyer

  • 8. 
    Under certain circumstances, a real estate broker acts for more than on party in a transaction.  A broker would most likely act as an agent for borth parties when:
    • A. 

      Negotiating the sale of investment property

    • B. 

      Holding an option to purchase, together with a listing on the same property

    • C. 

      Negotiating an exchange of real property

    • D. 

      Selling real property securities to the public

  • 9. 
    A broker finds a purchaser acceptable to the seller.  After the agreements are signed, the buyer and seller agree not to consummmate the transaction.  The broker:
    • A. 

      Loses his commission

    • B. 

      Is only entitled to the earnest money

    • C. 

      Can collect full commission from the seller

    • D. 

      May collect from the buyer

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