Real Estate Practice - Chapter 16 - The Law Of Agency

16 Questions | Total Attempts: 401

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Law Quizzes & Trivia

Questions and Answers
  • 1. 
    The law that governs how one person can represent another person in a business or legal transaction is called the Law of Agency.
    • A. 

      True

    • B. 

      False

  • 2. 
    The two parties involved in such a transaction would include the party wanting representation, known as the agent, and the party giving the representation, known as the principal.
    • A. 

      True

    • B. 

      False

  • 3. 
    When the seller is represented as the principal, the agent is the associate broker.
    • A. 

      True

    • B. 

      False

  • 4. 
    When the owner informs all the brokers that a commission will be paid ONLY to the one broker who finds a buyer, this is known as an Open Listing.
    • A. 

      True

    • B. 

      False

  • 5. 
    When a seller principal is represented exclusively by only one real estate listing broker or office it is known as an exclusive listing.
    • A. 

      True

    • B. 

      False

  • 6. 
    The most commonly used type of listing in the residential real estate business is the Net Listing.
    • A. 

      True

    • B. 

      False

  • 7. 
    When an owner is guaranteed to receive a definite amount of money for the sale of his real property or the listing broker is not paid a commmission, it is known as an Open Listing.
    • A. 

      True

    • B. 

      False

  • 8. 
    A broker who works for another broker is known as a Buying and Selling Broker.
    • A. 

      True

    • B. 

      False

  • 9. 
    The common name for a system where a group of brokers agree to work together and cooperate to sell each other's listings is known asa the Multiple Listing Service.
    • A. 

      True

    • B. 

      False

  • 10. 
    Perhaps the largest database of residential homes in the world is www.homefinder.com.
    • A. 

      True

    • B. 

      False

  • 11. 
    According to the law of agency when two or more competing parties are represented by at the same time by the same agent in a business or legal transaction, it is known as dual agency.
    • A. 

      True

    • B. 

      False

  • 12. 
    The most recent major disclosure law that protects consumers was put into effect in the year 2000 and is called the Real Estate Seller's Disclosure Act.
    • A. 

      True

    • B. 

      False

  • 13. 
    The Real Estate Seller's Disclosure Act, passed in 1996, requires all sellers to inform a prospective buyer of all known material defects in a home for sale.
    • A. 

      True

    • B. 

      False

  • 14. 
    When real estate agents give a personal opinion to buyers about a seller's real estate, even to the point of exaggeration, is known in the real estate business as "broker bragging". 
    • A. 

      True

    • B. 

      False

  • 15. 
    A form of liability protection insurance known in the real estate business is known as "broker and salesperson comprehensive umbrella coverage".
    • A. 

      True

    • B. 

      False

  • 16. 
    A document that reads in part "This analysis has not been performed in accordance with the Uniform Standards of Professional Appraisal Practice..." is NOT to be construed as an appraisal and may not be used as such for any purpose" is known as a Comparative Market Analysis.
    • A. 

      True

    • B. 

      False