Unit 5 Quiz
1 Which of the following is not true regarding dual agency? Points: 0

Dual agency is a violation of real estate law
Acting for more than one party in a transaction is within the law
Failure to disclose dual agency is a violation of the law
A real estate license may be revoked or suspended for failure to disclose dual agency
Hint: A broker can legally be the agent of both the seller and the buyer in transaction, but the broker must have the informed, written consent of both the seller and the buyer.
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 # 89
2 Which of the following is true of a listing agreement? Points: 0

It allows a broker to complete a specific task
It allows a broker to transfer title
It allows a broker to complete general tasks
It allows a broker to be an independent contractor
Hint: A listing agreement is a written contract by which a principal, or seller, employs a broker to sell real estate.
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 # 92
3 Every agency relationship has a principal, an agent, and a third party. In a real estate transaction the agent is the: Points: 0

buyer.
seller.
broker.
customer.
Hint: Every agency relationship has a principal, an agent, and a third party. 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 # 86
4 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
5 The term, __________, refers to a broker who produces a buyer “ready, willing, and able” to purchase the property for the sale price and on the terms specified by the seller, regardless of whether the sale is completed. Points: 0

procuring cause
producing cause
safe cause
safety cause
Hint: Procuring cause refers to a broker who produces a buyer ready, willing, and able to purchase the property for the price and on the terms specified by the seller, regardless of whether the sale is completed.
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 # 105
6 A licensed broker obtained an exclusive right-to-sell listing from an owner. During the listing period, the broker found a buyer who made an offer on the property that was accepted by the seller. Neither the offer nor the escrow instructions mentioned: (a) the broker as the agent, or (b) terms for payment of a commission. Under these circumstances the broker: Points: 0

has no legal right to a commission.
must prove that the broker was the procuring cause to be able to collect a commission.
is legally entitled to a commission.
is subject to disciplinary action by the Real Estate Commissioner for negligence.
Hint: An exclusive right-to-sell listing agreement stipulates the broker will be paid a commission regardless of who sells the property—the broker, the seller, or another cooperating broker.
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 # 98
7 An agent receives an offer. The agent gives the offer to the seller, who asks to consider it for 24 hours. At 6 p.m. the same day, the agent receives two more offers. The agent believes the seller will not accept any of the three offers. The agent should: Points: 0

not convey the two new offers.
convey the two new offers by 10 a.m. the next day.
convey the two new offers at the same time.
hold the offers for 24 hours before conveying them to the owner.
Hint: The agent must act in the best interests of the seller and must present all offers, unless patently frivolous. It is best to present them at the same time.
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 # 102
8 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
9 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
10 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
11 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
12 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
13 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
14 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
15 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

Ok

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