Duties of a Seller's Agent Quiz
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Questions and Answers

What is one of the primary duties of a seller's agent towards their principal?

  • To share all personal interests with the principal
  • To maintain a friendly relationship with all parties involved
  • To market the property to as many buyers as possible
  • To act solely in the best interests of the principal (correct)

    • Which of the following actions is prohibited by the duty of loyalty?

  • Disclosing offers made to a seller discreetly
  • Advocating for the seller in negotiations
  • Revealing a seller's confidential price to prospective buyers
  • Accepting employment from a competing buyer (correct)

    • What must a seller's agent keep confidential according to their fiduciary duties?

  • The selling strategy of the buyer
  • Market trends affecting the property
  • Personal information about the seller
  • The seller’s willingness to accept a lower price (correct)

    • What is included in the duty of disclosure for a seller's agent?

    <p>Notifying the seller of all offers to purchase their property</p> Signup and view all the answers

    What does the duty of obedience require from a seller's agent?

    <p>To promptly and efficiently obey lawful instructions of the principal</p> Signup and view all the answers

    Under what circumstance can a seller's agent refuse to obey a principal's instruction?

    <p>If the instruction is unlawful</p> Signup and view all the answers

    What could potentially compromise a seller's agent's duty of loyalty?

    <p>Accepting a commission from both the seller and the buyer</p> Signup and view all the answers

    What type of information can a seller's agent disclose to potential buyers?

    <p>Offers made by other buyers for negotiation purposes</p> Signup and view all the answers

    What constitutes a breach of an agent's duty of loyalty?

    <p>Compliance with instructions known to be unlawful.</p> Signup and view all the answers

    Which duty must a real estate broker fulfill regarding their principal's financial matters?

    <p>Account for all money or property belonging to the principal.</p> Signup and view all the answers

    What is a crucial step a seller's agent must take regarding potential buyers?

    <p>Verify the buyer's pre-approval status.</p> Signup and view all the answers

    How does a competent real estate broker's standard of care compare to that of the average person?

    <p>It is superior due to required skills and expertise.</p> Signup and view all the answers

    What aspect is NOT a duty of a seller's agent?

    <p>Commit their clients' resources to personal investments.</p> Signup and view all the answers

    What is the difference between pre-approval and pre-qualification for home buyers?

    <p>Pre-approval means the lender has verified the buyer's financials, while pre-qualification only indicates potential ability to borrow.</p> Signup and view all the answers

    Which method is encouraged for effectively marketing a property?

    <p>Using professional photographers and multiple online platforms.</p> Signup and view all the answers

    Which practice promotes effective communication between the agent and client?

    <p>Keeping the client informed with regular updates.</p> Signup and view all the answers

    What should a seller's agent do during home inspections?

    <p>Attend to hear feedback firsthand and prevent misunderstandings.</p> Signup and view all the answers

    What does the duty of loyalty prohibit a seller's agent from doing?

    <p>Accepting clients whose interests conflict with the seller’s</p> Signup and view all the answers

    Which of the following is NOT a duty included under the obligation of confidentiality?

    <p>Sharing the seller's financial details with interested buyers</p> Signup and view all the answers

    Which of these actions is a seller's agent required to disclose to their principal?

    <p>Any offers to purchase the seller’s property</p> Signup and view all the answers

    What could a seller's agent face if they fail to comply with the duty of obedience?

    <p>Potential legal action for breach of contract</p> Signup and view all the answers

    In what situation is a seller's agent allowed to disregard instructions from their principal?

    <p>When the instructions are unlawful and unethical</p> Signup and view all the answers

    A seller's agent must avoid which of the following to maintain their duty of loyalty?

    <p>Negotiating higher prices for other clients</p> Signup and view all the answers

    Which kind of information must NOT be disclosed by a seller’s agent according to fiduciary duties?

    <p>The seller’s personal financial situations</p> Signup and view all the answers

    Which aspect does the duty of disclosure specifically cover for a seller’s agent?

    <p>Offers from buyers that are lower than the asking price</p> Signup and view all the answers

    What is a primary obligation of an agent when handling their principal’s affairs?

    <p>Use reasonable care and diligence</p> Signup and view all the answers

    What does the duty to account require from an agent?

    <p>To safeguard all money and property entrusted to them</p> Signup and view all the answers

    Why is pricing a home correctly crucial?

    <p>It maximizes the return for the client</p> Signup and view all the answers

    What is one of the key distinctions between a pre-approval and pre-qualification?

    <p>Pre-approval means verification of the buyer's financial situation</p> Signup and view all the answers

    What action is crucial for effective property marketing?

    <p>Employing social media and high-resolution images</p> Signup and view all the answers

    What should an agent prioritize when negotiating terms for a sales agreement?

    <p>The best possible price and terms for their client</p> Signup and view all the answers

    What is the role of communication in a seller's agent's duties?

    <p>To keep the client informed regularly about the sale process</p> Signup and view all the answers

    How should a real estate broker fulfill their duty of diligence?

    <p>By actively pursuing relevant facts regarding the client’s affairs</p> Signup and view all the answers

    Attending home inspections allows an agent to:

    <p>Gather first-hand feedback and prevent misunderstandings</p> Signup and view all the answers

    What can be construed as a breach of an agent’s duty of loyalty?

    <p>Engaging in unlawful actions as instructed by the principal</p> Signup and view all the answers

    Study Notes

    Duties of a Seller's Agent

    • L.C.D.O.R.A. is an acronym for the five primary duties of an agent to their principal: Loyalty, Confidentiality, Disclosure, Obedience, Reasonable Care & Diligence, and Accounting.
    • Loyalty: The agent must act in the best interests of their client, avoiding any conflicts of interest.
    • Confidentiality: The agent must protect their client's confidential information, precluding the disclosure of sensitive details.
    • Disclosure: The agent must reveal all relevant information to their client, including offers, buyer identity, property value influences, and any knowledge that affects a successful sale.
    • Obedience: The agent must follow all lawful instructions from their client, but is not obligated to obey unlawful commands.
    • Reasonable Care & Diligence: The agent must demonstrate the competency of a licensed real estate professional, using skill and expertise in the process.
    • Accounting: The agent must account for all property or funds entrusted to them by the client.

    Seller's Agent Responsibilities

    • Price the home correctly: This ensures a quick sale without sacrificing optimal profit.
    • Communicate effectively: Maintain consistent communication with the client to keep them informed about the selling process.
    • Pre-approval for buyers: Validate that buyers have secured pre-approval, not just pre-qualification, for financing.
    • Market the property effectively: Utilize high-quality photos, social media platforms, and prominent online real estate sites.
    • Negotiate favorable terms: Advocate for the client's best interests in price and terms, even if personal gains are minimized.
    • Represent the client at inspections: Attend inspections firsthand to gather information and prevent misunderstandings.

    Duties of a Seller's Agent

    • A seller's agent must act in the best interest of their client and avoid any conflicts of interest.
    • Confidentiality is key, an agent cannot disclose information that could weaken the seller's bargaining position.
    • An agent is obligated to disclose all relevant information to the seller, including offers, potential buyers, facts affecting value, and any information that could impact the sale.
    • An agent must obey the seller's lawful instructions but not any that are illegal.
    • A seller's agent must act with reasonable care and diligence, using their expertise and knowledge.
    • An agent is accountable for all money or property entrusted to them by the seller.

    Things a Seller's Agent Should Do

    • Price the home correctly: Pricing too high could lead to slow sales, while pricing too low can result in the seller getting less money.
    • Communicate properly: Maintain consistent and regular contact with the seller, keeping them updated on the home sale progress.
    • Ensure buyer pre-approval: Sellers should work with pre-approved buyers, as pre-qualification doesn't guarantee financing.
    • Market the property effectively: High-quality photos, social media marketing, and online platforms are crucial for maximizing exposure.
    • Negotiate the best terms: Advocate for favorable terms for the seller, even if it means a lower commission for the agent.
    • Represent the client at home inspections: Attending inspections allows the agent to hear feedback firsthand and prevent misunderstandings.

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    Description

    Test your knowledge on the primary duties of a seller's agent with this quiz! Explore the essential responsibilities such as loyalty, confidentiality, and obedience that agents must uphold to represent their clients effectively. Assess your understanding of these crucial concepts in real estate.

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