Chapter 16 Quiz

  1. The following is an example of dual agency
    The broker acting for both the buyer and the seller in the same transaction
  2. The relationship of a broker and a client is that of
    A fiduciary
  3. A real estate broker acting as the agent for the seller
    Is obligated to render faithful services to the principal
  4. Statements by a real estate licensee exaggerating the benefits of a property is called
  5. A broker is permitted to represent both the seller and the buyer in the same transaction when
    BOth parties have been informed and agree to dual representation
  6. Unless some other written agreement has been made, the broker will ususally receive the sales comission for from the seller when
    The transaction is closed
  7. All of the following are considered fraudulent
    • Deceitful or dishonest  practices
    • Omitted statements of materian fact
    • Misstatements about the property
  8. As an agent for the seller, a real estate broker can
    Solicit an offer to purchase to purchase the property from a prospective buyer
  9. A seller has listed her home with a broker for $190,000 and the broker tella a prospective buyer to submit a low offer becasue the seller is desperate to sell.  The buyer offers $180,000 and the seller accepts it.  In this situation , the broker
    Has violated his agency relationship with the seller
  10. When a listing broker was told by his proncipal not to advertise the listing in a particular newspaper, which was out of the area, the boker compiled becasue the broker
    Must obey the lawful instructions of his principal.
  11. In a typical agency relationship between the broker and the client, ther broker's comisison is determined by
    Mutual Agreement
  12. An agent who has duty to disclose to the principal every step taken in the transaction of the principal's business.  This is becasue the
    Agent has fiduciary obligations to the principal.
  13. A salesperson employed by a broker told a prospective buyer that the house she was looking at is "the best house in the area".  Because of this statement, the
    Salesperson would be viewed a puffing.
  14. The following best defines the law of agency
    The rules of the law that apply to the responsibilities of a person who acts for another
  15. A broker who is the agent of the buyer should do the following
    Advise the buyer whether the listing price of the seller's house is unrealistic
  16. A salesperson from a brokerage firm sells a buyer a property listed by another brokerage firm that practices designatd agency.  The salesperson does not have a contract with the buyer.  Under PA law, the salesperson may be presumed to represent
    No one.
  17. A broker's salesperson lists a unit for a sale in a cono building.  The salesperson in this transaction
    Acts on behalf of the broker
  18. When should a PA licensee present a consumer notice to a prospective buyer?
    At the initial interview
  19. A salesperson who represents the seller is showing a house to a prospective buyer.  The salesperson know that the house has a wet payment.
    Witholding the information prevents the buyer from making an informed decision.
  20. The real estate broker's responsibility to keep the principal informed of all the facts that might affect a transaction is the duty of the
Card Set
Chapter 16 Quiz
Chapter 16 QUiz