RE Ch4 Quiz

Who owes fiduciary duties in a single agency relationship? (a) The broker only
(b) The principal only
(c) Both parties
(d) Neither party

(a) The broker only

All of the following activities are exempt from the requirement to provide disclosures under the Brokerage Relationship Disclosure Act, EXCEPT:
(a) Sales staff at a new development center
(b) Showing property to a party that is not being represented
(c) A

(b) Showing property to a party that is not being represented

3. As an agent, a broker is employed by and acts on behalf of whom?
(a) A buyer
(b) A seller
(c) A customer
(d) A principal

(d) A principal

4. In which of the following situations does a general agency relationship exist?
(a) When a broker is employed to market a property
(b) When a sales associate is working with a customer
(c) When a sales associate is employed by a broker
(d) When a broker

(c) When a sales associate is employed by a broker

5. Broker Joan just received an oral offer to purchase a listed property. No earnest money accompanied the oral offer. Which of the following statements is correct?
(a) Joan must present the offer.
(b) Joan should not present the offer since no earnest mo

(a) Joan must present the offer.

Which of the following statements best describes a transaction broker?
(a) A transaction broker is an agent of both parties.
(b) A transaction broker has fiduciary duties to the seller.
(c) A transaction broker has fiduciary duties to the buyer.
(d) A tra

(d) A transaction broker provides limited representation to both parties.

An agent failed to advise a principal regarding the value of the owner's property prior to accepting a listing. Which fiduciary duty did the agent breach?
(a) Loyalty
(b) Disclosure
(c) Accounting
(d) Obedience

(b) Disclosure

Broker Tom sold a property which was listed with broker Alice. Tom was unable to attend the closing, so Alice collected the entire commission. Alice refused to pay Tom his share of the commission. What could Alice be charged with?
(a) Failure to account
(

(a) Failure to account

Mary, an Ohio broker, accompanied a customer to Florida and met with broker Stan in his office in Miami. While Stan showed the customer property and obtained a binding contract for the purchase of a condominium, Mary took some time off and went to the bea

(a) Stan may share the commission with Mary.

What is an agent required to do in an agency relationship?
(a) Obtain the highest price possible.
(b) Attempt to obtain the most favorable price and terms on behalf of the principal.
(c) Obtain the lowest price possible.
(d) Negotiate the transaction to r

(b) Attempt to obtain the most favorable price and terms on behalf of the principal.

When can an agent disclose confidential or harmful information about a principal?
(a) At any time
(b) During the fiduciary relationship period only
(c) After the transaction is completed and the fiduciary relationship is over
(d) Never

(d) Never

Each of the following is contained in the definition of a residential transaction, EXCEPT:
(a) Unimproved property intended for four units or fewer
(b) Agricultural properties of ten acres or less
(c) Leases with options to purchase all or a portion of im

(d) Dispositions of business interests involving property of five or more residential units

When can both parties in a transaction pay a broker a commission?
(a) When the broker has performed
(b) When both parties are aware of the dual commission
(c) When both parties are being represented by the broker
(d) When both parties agree to the dual co

(d) When both parties agree to the dual commission

All of the following provide control of agency relationships in real estate, EXCEPT:
(a) F.S. 475
(b) Common law
(c) The Brokerage Relationship Disclosure Act
(d) The Department of Financial Services

(d) The Department of Financial Services

Which of the following statements best describes policy and procedure manuals?
(a) Policy and procedure manuals are maintained by all real estate offices.
(b) Policy and procedure manuals are required by law.
(c) Policy and procedure manuals are a major c

(d) Policy and procedure manuals are useful in maintaining good relations within a brokerage office.

A broker has appointed two sales associates to act as agents in a nonresidential transaction, one for the seller and one for the buyer. Which statement is correct?
(a) This is an illegal dual agency.
(b) The sales associates are referred to as designated

(b) The sales associates are referred to as designated sales associates.

Each of the following relationships is adversarial, EXCEPT:
(a) Arm's length
(b) Buyer beware
(c) Caveat emptor
(d) Fiduciary

(d) Fiduciary

Fairness and honesty are required of all licensees in which brokerage relationship?
(a) Single agency only
(b) Transaction brokerage only
(c) Nonrepresentation only
(d) Any real estate transaction

(d) Any real estate transaction

According to the Brokerage Relationship Disclosure Act, which is the only brokerage relationship form that must be signed or initialed?
(a) Single Agency Disclosure
(b) Transaction Broker Disclosure
(c) Consent to Transition to Transaction Broker
(d) Impo

(c) Consent to Transition to Transaction Broker

Which of the following statements is correct regarding a broker's authority to act on behalf of the principal?
(a) A broker can refuse offers on behalf of the principal.
(b) A broker can buy the listed property without consent of the principal.
(c) A brok

(c) A broker must follow all legal instructions of the principal or withdraw.

In many brokerage relationship situations, the broker gives permission for the sales associate to work directly with a principal. Which of the following is true in this situation?
(a) The broker gives up the fiduciary relationship with the principal.
(b)

(d) The sales associate has a fiduciary relationship with both the broker and the principal.

In regards to agency relationships, which statement is most correct?
(a) A special agent is only authorized to perform a single act on behalf of the principal.
(b) A dual agency is the preferred relationship in Florida.
(c) A sales associate is a general

(a) A special agent is only authorized to perform a single act on behalf of the principal.

Sal, a properly licensed Arizona broker, forms a relationship with Betty, a properly licensed Florida broker. Sal agrees to refer potential buyers to Betty, and in return, Betty agrees to pay Sal 25% of her commission as a referral fee. Jorge, a competito

(a) The Florida real estate license law was not violated.

Which of the following best describes the practice of dual agency in Florida?
(a) Dual agency is legal, provided it is disclosed to both parties. (b) Dual agency is another name for Transaction Brokerage.
(c) Dual agency is a violation of Florida Statute

(c) Dual agency is a violation of Florida Statute 475.

A prospective purchaser made a written offer to purchase a home listed by broker Ben. Before Ben presented the offer to the seller, a second prospective purchaser made a verbal offer of $180,000, but did not put the offer in writing, and did not provide a

?

A real estate licensee who is working with a seller receives a call from another broker stating that, "I am representing a buyer as the buyer's broker. I'm standing in front of one of your listed properties with my buyer." What can the licensee infer from

(b) The agent who is calling is in a single agency relationship

A home was listed and sold within 24 hours. The buyer felt that the broker did not earn the full commission called for in the contract and requested that the broker rebate $3,000 at closing. The broker agreed. Which of the following statements is correct?

(c) This is legal, provided that all parties are informed and agree.

A seller with nonrepresentation (no brokerage relationship) informed an agent that he is selling his home due to a divorce, and for that reason would take $20,000 below market value. The agent told a potential buyer "If I were you, I would offer $20,000 l

(c) The agent may disclose the above information in a No Brokerage Relationship.

Regarding single agency, which of the following statements is most correct?
(a) The licensee would be a designated agent, which is acceptable in residential transactions.
(b) A licensee may represent the buyer and seller as a single agent in the same tran

(d) A licensee is prohibited from representing the buyer and seller as a single agent in the same transaction.

Which brokerage relationship status includes a full fiduciary relationship?
(a) Single Agency
(b) Transaction Broker
(c) Dual Agency
(d) Nonrepresentation (no brokerage relationship)

(a) Single Agency

Anxious to close a deal, a sales associate agreed to kick back part of her commission to the buyer. Which of the following best describes this situation?
(a) This is a violation of F.S. 475 and the licensee would be subject to discipline.
(b) This arrange

(b) This arrangement is acceptable provided all parties are notified and agree.