Deck 9: Real Estate Agency and Brokerage

Question 1

Listing agreements may be for an indefinite period of time.

Answer 1

False

Question 2

All states require that real estate agents be licensed.

Answer 2

True

Question 3

The agency relationship that is created when a principal authorizes the agent to assist with a specific business transaction or perform a certain duty is called:

A) implied agency
B) agency by estoppel.
C) special agency.
D) dual agency.

Answer 3

special agency.

Question 4

A real estate agent should provide which of the following services?

A) Offering marketing advice
B) Helping set a listing price
C) Helping with negotiations
D) all of the above

Question 5

Real estate agents have which duty to third parties that they do not represent?

A) The duty to be honest in his dealings
B) The duty to help negotiate the sales price
C) The duty to relay information about the seller
D) The duty to honor the legal instructions of third parties

Question 6

Real estate commissions are:

A) set by the local board of realtors.
B) set by the local MLS.
C) negotiated between the parties.
D) always 8%.

Question 7

An advertisement that does not name the agent or agency that placed the ad is called:

A) a blockbuster.
B) a steering ad.
C) a blind ad.
D) puffing.

Question 8

An agency in which the agent represents more than one principal in a transaction is called:

A) special agency.
B) general agency.
C) dual agency.
D) duet agency.

Question 9

In an exclusive agency listing, when the property is sold:

A) the listing agent gets a commission regardless of who brings the buyer.
B) the listing agent gets a commission unless the seller finds the buyer.
C) the listing agent gets a commission only if he or she brings the buyer.
D) the listing agent always gets an 8% commission.

Question 10

A listing ends when:

A) the person making the listing dies or declares bankruptcy.
B) the property is sold.
C) the term of the listing expires.
D) all of the above.

Question 11

A device put on the front door that contains a key to the property is traditionally called:

A) an entry system.
B) a security system.
C) a lock box.
D) a steering system.

Question 12

MLS, which is the database of broker-listed properties in an area, stands for:

A) multiple listing service.
B) metropolitan listing service.
C) mixed-use legal sales.
D) midtown local sales.

Question 13

Agency is best defined as:

A) the relationship between an agent and a customer.
B) the relationship between an agent and a principal (client).
C) the relationship between a buyer and a seller.
D) the relationship between a dealer and a broker.

Question 14

An agency relationship:

A) must be in writing to be valid.
B) must list a particular piece of property to be valid.
C) may be oral, in writing, or implied.
D) is always created by a court of law.

Question 15

The agency called undisclosed divided agency:

A) is a great way to collect the entire commission instead of dividing it with other brokers.
B) will probably cause the forfeiture of the entire commission.
C) is the same as special agency.
D) is the same as general agency.

Question 16

Define blockbusting and steering.

Question 17

Describe a transactional broker.

Question 18

When describing the duties of an agent to the principal, what does "proper accounting" refer to?

Question 19

When describing the duties of an agent to the principal, what does honesty refer to?

Question 20

What is meant by the phrase "successful agents sell more than real estate"?

Question 21

Discuss the impact of the Internet on the real estate business.

Question 22

List and describe the four types of listing agreements.