Chapter 8 - Real Estate Agency Law Flashcards Preview

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Flashcards in Chapter 8 - Real Estate Agency Law Deck (21)
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1

In California, a verbal agency disclosure is legally adequate when

a verbal agency disclosure is never acceptable

2

an individual given the authority to act for another in all matters, personal or business, is known as

general agent

3

The party granting authority to another to act in the party's behalf is known as the ____

principal

4

The highest level of fiduciary duties owed by a real estate agent are owed to

the principal

5

agency relationships can be created by all of the following ways, EXCEPT:

  • -actions implying an agency relationship exists
  • - written agreement
  • - verification
  • - verbal agreement

EXCEPT: verification

6

an agency relationship that is created when a party gives approval to unauthorized actions after the fact is known as an

agency by ratification

7

a listing agent becomes a dual agent if the listing agent:

  • - presents an offer from a buyer who is represented by another licensee to the seller
  • -offers part of the commission agreed to in the listing agreement to the buyer's agent
  • -advises the buyer of a serious defect in the seller's property
  • - none of the above

- none of the above

8

a real estate salesperson owes legal duties to:

  • -the principal
  • -third parties
  • -their broker
  • -all of the above

All of the above

9

an agency relationship can be terminated by:

  • - the death of either party
  • - either the principal or agent without agreement of the other
  • -performance
  • -all of the above

all of the above

10

a principal can be held liable for the actions of their agent while acting within the scope of authority given in the agency agreement under the principle of

vicarious liability

11

the parties to an agency relationship are the

principal and agent

12

the duty of loyalty means that the agent must not: (check all that apply)

  • -place the agent's interests above those of the principal
  • -reveal any information about the seller's property that is not visible and may affect the ability to sell the property at the highest possible price
  • -make any secret profits from the agency relationship

  • -place the agent's interests above those of the principal
  • -make any secret profits from the agency relationship

13

a real estate salesperson acting as a buyer's agent

is an agent of their broker and a sub-agent to the buyer

14

a listing agreement must

be in writing

15

a person holding a position of trust is . known . as a . _____

fiduciary

16

a person representing another's interest with no expectation of compensation is known as a

gratuitous agent

17

a dual agent must

disclose the dual agency in writing and obtain the written consent of all parties to the transaction

18

the relationship of a broker to their salesperson is

a principal/agent relationship

19

a person authorized to act for another under a properly executed power of attorney is known as

an attorney in fact

20

the fiduciary duties of good faith and obedience are owed to

the principal

21

John and Mary have accepted an offer to purchase their house. John will be in Asia at the time of closing and wants to authorize mary to sign the closing papers for him. john will need to execute ____ authorizing Mary to sign his name to all closing documentation in his absence

a special power of attorney