In the common law of agency, the relationship of broker to client is that of quizlet

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2. Law
3. Civil Law

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Terms in this set (50)

disclosure

The real estate broker's responsibility to keep the principal informed of all of the
facts that could affect a transaction is the duty of

The sponsored licensee acting for both the buyer and the seller in the same transaction

Which of the following would be considered dual agency?

a fiduciary

The relationship of a broker to the broker's client is that of

The broker is obligated to render faithful service to the principal

Which statement is TRUE regarding the duties of a real estate broker who is
acting as the agent of the seller?

both parties have been informed in writing and have agreed to the dual representation

A licensee is permitted to represent both the seller and the buyer in the same
transaction when

solicit an offer to purchase the property from a prospective buyer

As an agent for the seller, a real estate broker can

the broker has violated his agency relationship with the seller

A seller has listed her home with a broker for $290,000, and the broker tells a
prospective buyer to submit a low offer because the seller is desperate to sell. The
buyer offers $285,000 and the seller accepts it. In this situation,

must obey the lawful instructions of his principal

A listing broker was told by his principal not to advertise her property in a
newspaper that was out of the area, The broker complied because he

agent has fiduciary obligations to the principal.

It is the duty of an agent to disclose to the principal every step taken in the
transaction of the principal's business. This is because the

inform any prospective buyers of the defect.

Upon discovering a latent defect in the property, the licensee should discuss the
problem with the seller and then

The rules of law that define the responsibilities of an agent to the principal

Which phrase best defines the traditional (Common) "law of agency?"

the buyer.

In Illinois, a licensee working with a buyer sells a property listed by another
brokerage firm in the MLS. The licensee has been working with the buyer for
many months but does not have a written agency contract with the buyer. This
licensee has created an implied agency with

client

A buyer who is shown properties listed for rent by a co-op broker is the broker's

a general agent.

A property manager is hired to manage a property while the owner is overseas for
two years. The property manager is

ministerial.

Acts a licensee may perform for a consumer that are informative only are referred
to under Illinois law as

24

Illinois law required brokers to deliver true copies of all documents to the parties
within how many hours of their signing?

Submit both offers at the same time

A broker who represents a seller under an exclusive listing agreement receives
two offers for the property at the same time, one from an agent in his office, and
one from an agent with a cooperating broker. What should the broker do?

negotiations with the sponsoring broker

The amount of commission due to a sponsored licensee is determined by

procuring cause.

A real estate broker was responsible for a chain of events that resulted in the sale
of one client's properties. This is referred to as a

uses the employing broker's name in the advertisement.

A sponsored license may advertise a property for sale only if the licensee

negotiated commissions on transactions.

A real estate licensee who is an independent contractor receives

mutual agreement.

In a typical agency relationship between the broker and the client, the broker's
commission is determined by

$5,362.50

A licensee working for a sponsoring broker sells a $150,000 home listed by the
broker's office. The listed commission is 6.5 percent of the seling price. The
licensee and sponsoring broker agreed that that licensee would receive 55
percent of any commission that the licensee generated for the office. The licensee
is entitled to receive

sue the seller based on an open listing

A landowner subdivides his acerage and offers the lots for sale. A broker tells the
landowner that she can sell the lots for a fee and the seller tells her to go ahead.
After the broker sells some of the lots, the landowner refuses to pay her a
commission. The broker can

acts on behalf of the sponsoring broker

A sponsored licensee lists a unit for sale in a condominium building. The
sponsored licensee in this transaction

Firm A provides excellent services to market their sellers' properties

There is a spectacular house that a broker from Firm A has been trying for
several weeks to list for sale. The owners have been interviewing agents from
different firms. They tell Firm A's broker that Firm B will charge 2 percent less
commission for selling the house. What should Firm A's broker say to the owner to
get the listing?

the sale of goods or services by phone

The Do-Not-Call rules apply to

the Federal Trade Commission.

The CAN-SPAM Act of 2003 is enforced by

Illinois Department of Financial & Professional Regulation

The Illinois Real Estate Lincense Act is administered by the

Sherman Antitrust Act

Two real estate companies agreed to boycott the services of the MNM Title
Company so that the new TSK Title Company can take over MNM's market share.
What is the act that the two real estate companies are violating?

an multiple listing clause.

The provision in a listing agreement that gives the broker authority to distribute the
listing information to other brokers is

exclusive-right-to-sell listing

The type of listing agreement that provides for the payment of a commission to the
listing broker even though the owner makes the sale without the aid of the broker
is called an

net listing

A property owner lists his property for sale with a broker. During the negotiations,
the owner told the broker that the owner wanted $238,000 for the property, and
anything above that amount the broker could keep as his commission. The listing
with this type of provisions is known as a

Open and exclusive-agency listing

Under which of the following listing agreements can the owner of listed property
sell the property on his or her own without having to pay the listing broker a
commission.

terminated automatically upon the death of the principal

A property owner signed a 90-day listing agreement with a broker. The owner was
killed in an accident before the listing expired. Now the listing is

an open listing

A listing agreement in which the broker's commission is contingent on the broker
being able to produce a buyer before the property is sold by the owner or another
broker is called

Seller disclosure of property conditions is required by Illinois statute

In Illinois, if a broker is taking a listing and asks the seller to complete a disclosure
of property conditions, which of the following statements is TRUE?

because the seller can't find another house to buy

A listing agreement may be terminated by all of the following EXCEPT

A comparative market analysis contains a compilation of other similar properties that have
sold.

An owner who is interested in selling his house is usually concerned about how
much money he can get when it sells. A comparative market analysis may help
the seller determine a realistic listing price. Which of the following is TRUE?

was the procuring cause of the sale.

Two differnet brokerage companies claimed they were entitled to a commission
from the sale of a property that was listed by one of the firms under an open listing
agreement. The broker who is entitled to the commission is the one who

The non-resident owner only

A house has a non-resident owner who rents the house to a married couple. If the
non-resident owner wants to sell the property, who is required by law to sign the
listing agreement?

Illinois licensees are prohibited by law from making an addition to, deletion from or other
alterations of a written listing agreement without the written consent of the principal.

An Illinois real estate broker is the listing agent for a home. After one month of the
three-month listing has gone by without any offers on the property, the broker
becomes concerned. At the time the listing agreement was signed, the broker and
the sellers orally agreed that if no offers were received after one month, the price
of the property would be reduced by ten percent. Because the sellers are out of
town, the broker crosses out the old listing price, writes in a new one, and then
updates the information on the MLS. Three days later, a prospective buyer comes
into the broker's office to make an offer on the property. Based on these facts,
which of the following statements is TRUE?

All exclusive listing agreements must be in writing to be enforceable

Which of the following is TRUE of listing agreements in Illinois?

Failure to specify a termination date in a listing agreement

Which of the following constitutes grounds for the suspension or revocation of a
real estate license?

both parties have been informed in writing and have agreed to the dual representation.

A licensee is permitted to represent both the seller and the buyer in the same
transaction when

Advise the buyer if the listing price of the seller's house is unrealistic

A broker who is the agent of the buyer should do which of the following?

the transaction is closed

Unless some other written agreement has been made, the broker will usually
receive the sales commission from the seller when

void

A broker took a listing on a property and shortly thereafter discovered that the
seller/client has been previously declared incompetent by the court. The listing
agreement now is

Exaggerated statements about the property

Which action would be considered lawful practice in real estate brokerage?

It has been abrogated by statutory rules

Which of the following best describes the status of the common law of agency in
Illinois as it relates to broker/client relationships?

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