Unit 5 Quiz
1 Which of the following is not a listing agreement typically used in California? Points: 0
Exclusive agency listing
Exclusive net agency listing
Exclusive right to sell listing
Open listing
Hint: In California, the commonly used listing agreements are exclusive right to sell listing, exclusive agency listing, and open listing.
CO4: Recognize the various agency relationships, the obligations and rights of agents and principals, and the types of listing agreements.
LO4B: classify listing and buyer representation agreements used in California.
QID:TB-RE-PRIN-16A # 96
2 Which of the following is a way to create an agency relationship? Points: 0
Eradication
Expiration
Establishment
Estoppel
Hint: An agency relationship is created between an agent and principal by agreement, ratification, or estoppel.
CO4: Recognize the various agency relationships, the obligations and rights of agents and principals, and the types of listing agreements.
LO4A: recognize the types of agency relationships and methods to create and terminate them.
QID:TB-RE-PRIN-16A # 93
3 Seller Jordan signs a memorandum for an open listing with a broker authorizing the sale of her house for $65,000. The broker expends considerable time and money advertising and showing the house and obtains several offers. However, Jordan rejects the offers and instead sells the house to a friend. The broker: Points: 0
is not entitled to a commission because of the open listing.
would be entitled to half the agreed commission.
could probably collect the full commission in a civil lawsuit.
should file for arbitration with the Real Estate Commissioner.
Hint: In an open listing, the seller may sell the property without paying the broker a commission.
CO4: Recognize the various agency relationships, the obligations and rights of agents and principals, and the types of listing agreements.
LO4B: classify listing and buyer representation agreements used in California.
QID:TB-RE-PRIN-16A # 99
4 An agent must supply a written Agency Disclosure: Points: 0
only if the principal asks for it.
to a seller before listing a property or to a buyer before writing an offer.
upon the close of escrow.
only if the broker asks for it.
Hint: As of January 1, 1988, the Agency Relationship Disclosure Act became effective in an attempt to clarify the agency relationships among sellers, agents, and buyers. It applies to every residential property transaction of one-to-four units. The law requires that an agent supply a written document, called Disclosure Regarding Real Estate Agency Relationships, explaining the nature of agency. This disclosure must be made prior to taking a listing or writing an offer.
CO4: Recognize the various agency relationships, the obligations and rights of agents and principals, and the types of listing agreements.
LO4A: recognize the types of agency relationships and methods to create and terminate them.
QID:TB-RE-PRIN-16A # 90
5 In a real estate transaction the customer is considered the: Points: 0
third party.
broker.
agent.
principal.
Hint: In a real estate transaction the principal (buyer or seller), agent (real estate broker), and third party (customer) are bound together in a legal relationship, with all the duties and rights that go with that connection.
CO4: Recognize the various agency relationships, the obligations and rights of agents and principals, and the types of listing agreements.
LO4A: recognize the types of agency relationships and methods to create and terminate them.
QID:TB-RE-PRIN-16A # 87
6 A listing broker is relieved of the obligation to present an offer to purchase real property to his or her principal when the: Points: 0
offer contains more than three contingency clauses.
offer is for the purchase of nonresidential property.
broker is acting on written instructions from the principal or the offer is patently frivolous.
broker notifies the seller in writing of his or her decision not to present the offer.
Hint: A listing agent must present all written offers to the owner before closing unless expressly instructed otherwise or unless the offer is patently frivolous (not a serious offer).
CO4: Recognize the various agency relationships, the obligations and rights of agents and principals, and the types of listing agreements.
LO4C: delineate the duties and rights of the parties in agency relationships.
QID:TB-RE-PRIN-16A # 103
7 What must occur before a broker decides to exercise an option during an option listing? Points: 0
The buyer must agree to it in writing
The seller must agree to it in writing
The local government must approve the option.
The federal government must approve the option.
Hint: An option listing gives the broker the right to purchase the property that is listed. A broker with an option is acting as a principal as well as an agent. Prior to exercising the option, the seller must be informed of the full amount of the broker’s profit and agree to it in writing.
CO4: Recognize the various agency relationships, the obligations and rights of agents and principals, and the types of listing agreements.
LO4B: classify listing and buyer representation agreements used in California.
QID:TB-RE-PRIN-16A # 100
8 A broker receives a commission in a(n) __________ listing regardless of who sells the property. Points: 0
exclusive right-to-sell
exclusive agency
open
ostensible
Hint: In the exclusive right-to-sell listing agreement, the broker is entitled to a commission regardless of who sells the property.
CO4: Recognize the various agency relationships, the obligations and rights of agents and principals, and the types of listing agreements.
LO4B: classify listing and buyer representation agreements used in California.
QID:TB-RE-PRIN-16A # 97
9 An agency relationship may be terminated by all of the following, except: Points: 0
a fire destroying the property that is the subject of the agency contract.
the principal’s refusal of an offer to purchase that was presented in the name of a third party.
mutual agreement of both the principal and the agent before the original term expires.
the renunciation of the agency by the agent.
Hint: At any time during the agency, the principal or agent may terminate the agency, except in an agency coupled with an interest. An agency is also terminated by the destruction of the property or by the parties to terminate the agency. In Choice (b) the seller’s refusal to accept an offer does not terminate the agency.
CO4: Recognize the various agency relationships, the obligations and rights of agents and principals, and the types of listing agreements.
LO4A: recognize the types of agency relationships and methods to create and terminate them.
QID:TB-RE-PRIN-16A # 95
10 An enforceable listing contract for the sale of real property must be: Points: 0
in writing.
acknowledged and recorded.
in writing and recorded.
in writing, acknowledged, and recorded.
Hint: A real estate agreement must be in writing to be enforceable in a court of law. This includes listing agreements. However, listing agreements are not recorded, and therefore not acknowledged.
CO4: Recognize the various agency relationships, the obligations and rights of agents and principals, and the types of listing agreements.
LO4A: recognize the types of agency relationships and methods to create and terminate them.
QID:TB-RE-PRIN-16A # 94
11 Which of the following is not a way to create an agency? Points: 0
Agreement
Ratification
Act of law
Estoppel
Hint: An agency relationship is created between an agent and principal, by agreement, ratification, or estoppel.
CO4: Recognize the various agency relationships, the obligations and rights of agents and principals, and the types of listing agreements.
LO4A: recognize the types of agency relationships and methods to create and terminate them.
QID:TB-RE-PRIN-16A # 91
12 In an exclusive listing, as a matter of law, a listing between the broker and seller: Points: 0
must have a definite termination date.
is three months.
is 90 days after the listing agreement is signed.
has no specified term.
Hint: Every exclusive agency agreement must have a definite termination date.
CO4: Recognize the various agency relationships, the obligations and rights of agents and principals, and the types of listing agreements.
LO4B: classify listing and buyer representation agreements used in California.
QID:TB-RE-PRIN-16A # 101
13 An agent who represents both the buyer and the seller in a transaction is known as a: Points: 0
dual agent.
special agent.
bilateral agent.
double agent.
Hint: A dual agent is a broker acting as agent for both the seller and the buyer in the same transaction.
CO4: Recognize the various agency relationships, the obligations and rights of agents and principals, and the types of listing agreements.
LO4A: recognize the types of agency relationships and methods to create and terminate them.
QID:TB-RE-PRIN-16A # 88
14 Statements not known to be false at the time they are made are called _____ misrepresentations. Points: 0
fraudulent
innocent
accidental
negligent
Hint: Innocent misrepresentations are statements not known to be untrue at the time they are made, and usually carry no criminal liability for an agent.
CO4: Recognize the various agency relationships, the obligations and rights of agents and principals, and the types of listing agreements.
LO4C: delineate the duties and rights of the parties in agency relationships.
QID:TB-RE-PRIN-16A # 104
15 A person who authorizes another to act in his or her place in regard to relations with third persons is the: Points: 0
broker.
agent.
fiduciary.
principal.
Hint: Agency is a legal relationship in which a principal authorizes an agent to act as the principal’s representative when dealing with third parties.
CO4: Recognize the various agency relationships, the obligations and rights of agents and principals, and the types of listing agreements.
LO4A: recognize the types of agency relationships and methods to create and terminate them.
QID:TB-RE-PRIN-16A # 85

 

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