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Questions and Answers
The agency relationship is defined by?
Which of the following is true of the connection between compensation and the agency relationship?
The defining feature of a special agency is that the agent has authority to perform?
The agent and principal may terminate the agency relationship by mutual consent?
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If an agency relationship terminates because one of the parties defaulted, which of the following is true?
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Among the fiduciary duties imposed on a real estate agent is the requirement to?
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One of the agent's fiduciary duties that continues even after a listing agreement expires is?
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The level of competence that a principal has the right to expect from an agent is generally that which is?
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If a potential buyer discloses financial qualifications to a seller's agent, the agent is required to?
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A buyer's broker owes the full set of fiduciary duties to?
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A subagent is technically the agent of?
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Which of the following is a dual agency situation?
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Which of the following situations has the potential for creating an implied dual agency?
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Among the duties of a broker who is acting as a transaction broker, or facilitator, is?
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Study Notes
Agency Relationship
- Defined by the agreement between a principal and an agent.
- Can be influenced by laws of agency and real estate contracts.
Compensation and Agency
- An agency relationship does not solely depend on a compensation agreement.
- If an agency relationship exists, agents may expect compensation, but it's not guaranteed without an agreement.
Special Agency
- Special agency allows agents to perform specific activities outlined in the agency agreement.
- Authority is limited to completing defined transactions on behalf of the principal.
Termination of Agency
- Agency relationship can be terminated by mutual consent at any time.
- If a party defaults, the defaulting party may incur financial liability, but obligations may not be extinguished.
Fiduciary Duties of Real Estate Agents
- Agents are required to present all offers to the principal.
- Confidentiality of client information extends beyond the listing agreement expiration.
Competence Expectations
- A principal should expect the agent's level of competence to align with local practitioners' standards.
Disclosure Requirements
- Seller's agents must handle financial qualifications disclosed by potential buyers with care, prioritizing confidentiality.
Buyer’s Broker Responsibilities
- A buyer's broker owes full fiduciary duties to the buyer, regardless of who pays the commission.
Subagency Definition
- A subagent is considered the agent of the broker with a direct agency relationship with a client.
Dual Agency
- Occurs when one agent represents both buyer and seller in a transaction.
- Shared representation by two agents for the same client constitutes dual agency.
Implied Dual Agency Risks
- Potential implied dual agency may arise if a listing agent's subagent handles buyer information not disclosed to the listing agent.
Transaction Broker Responsibilities
- Transaction brokers must maintain confidentiality and help parties achieve their transactional objectives without representing either party as a fiduciary.
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Description
This quiz covers key concepts about agency relationships within the real estate sector, including definitions, compensation structures, special agency roles, and fiduciary duties of agents. Understand how these aspects apply to real estate transactions and the responsibilities agents have towards their clients.
