Understanding Agency Relationships & Agreements in Real Estate Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following is the agent authorized to act and bind the principal in all matters within the scope of real estate practice?

Question 2 2. Which of the following best describes a special agent?

Question 3 3. What type of agency relationship is created when a principal delegates authority that the agent accepts?

Question 4 4. An _____ agreement entitles a broker to a commission when the property is sold even if the broker was not responsible for generating the sale.

Question 5 5. Which type of listing agreement allows you to sell your own house and not pay the broker a commission?

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Question 6 6. A _____ listing agreement is illegal in some states.

Question 7 7. Bob hires Charlene to be his financial broker. He asks her to invest $10,000 in a particular stock. Bob finds out that the stock isn't doing well, and that the company is about to declare bankruptcy. Charlene instead invests Bob's money in another, similar company. Bob is later surprised when he receives a stockholder letter from that company. Charlene has likely breached the duty of:

Question 8 8. Michelle hires Chris to be her financial broker. A year later, Michelle asks for a report detailing her investments. Chris tells her he doesn't have that information. Chris has likely breached the duty of:

Question 9 9. Maria hires Carl to be her financial broker. She asks Carl to invest $10,000 in a particular stock. The stock is for a startup company run by Maria's friend. After researching the company, Carl decides it's a great investment and decides to invest $10,000 of his own money, too. Carl has likely breached the duty of:

Question 10 10. What is one advantage to having the correct agency agreement?

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Question 11 11. What is an exclusive right-to-sell listing in real estate agreements?

Question 12 12. What is an exclusive agency listing in real estate agreements?

Question 13 13. Which of the following is an advantage to a real estate agent for working in a dual agency relationship?

Question 14 14. Which of the following titles describes a real estate agent who works under a dual agency agreement?

Question 15 15. Which of the following must a real estate agent do before establishing a dual agency agreement?

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Question 16 16. What must you do when you have a non-agent relationship with a seller?

Question 17 17. When must a disclosure be signed when an agent becomes a transactional agent?

Question 18 18. What is a transactional agent?

Question 19 19. Which of the following elements must a buyer representation agreement contain?

Question 20 20. When might a buyer and agent use a non-exclusive, not-for-compensation buyer representation agreement?

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Question 21 21. What is the most common type of buyer representation agreement?

Question 22 22. Which of the following is not a duty of the principal?

Question 23 23. Who holds the fiduciary duty in the principal-agent relationship?

Question 24 24. Who is the principal in the principal-agent relationship?

Question 25 25. Leigh and Jennifer are friends. Jennifer works in real estate and finds a great house for Leigh, though Leigh never hired Jennifer or asked Jennifer to work on her behalf. After Leigh sees the house, she loves it and moves forward with the negotiations Jennifer started. What is this an example of?

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Question 26 26. Leigh hires Jennifer to be her real estate representative. Jennifer will help Leigh find a house to buy and has the authority to place bids for Leigh after Leigh decides to make an offer. In this scenario, Leigh is the:

Question 27 27. Leigh hires Jennifer to be her real estate representative. Jennifer will help Leigh find a house to buy and has the authority to place bids for Leigh after Leigh decides to make an offer. Leigh and Jennifer have a written contract. What is this an example of?

Question 28 28. Paul hires Andy to be his sports agent. Paul hires Andy specifically to negotiate his NFL contract for the upcoming football season. Andy tries, but there aren't any NFL teams currently interested in Andy and recruiting season is now over. What is the state of this agency relationship?

Question 29 29. Paul hires Andy to be his sports agent. Paul hires Andy specifically to negotiate his NFL contract for the upcoming football season. Shortly afterward, Paul and Andy have a disagreement. Paul tells some of his friends that he no longer wants to work with Andy. What is the state of this agency relationship?

Question 30 30. Paul hires Andy to be his sports agent. Paul hires Andy specifically to negotiate his NFL contract for the upcoming football season. Shortly afterward, Paul breaks his back and is paralyzed. He can't play football ever again. What is the state of this agency relationship?

Understanding Agency Relationships & Agreements in Real Estate Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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