AGENCY: SHIELD OF ARMOR: Comprehensive Final Exam Study Guide To find the applicable content within the course: Click the "TABLE OF CONTENTS" button in the upper right corner. Then click on the applicable chapter (at the top center of the screen). Then click on the applicable TOPIC. 1. Express Agency can be either written or. a. implied b. oral c. super-fast d. unintentional The content that provides the information for the above question is found in Chapter 1, "Express or Implied Agency". 2. An agency relationship between a seller and a real estate broker is most commonly created by a written employment contract called a. a. listing agreement b. referral c. multiple listing service agreement d. purchase contract The content that provides the information for the above question is found in Chapter 1, "Listings and Buyer Agency Agreements".
3. An agency relationship created by actions of the parties is called. a. an expressed agency b. an implied agency c. a gratuitous agency d. a sub agency The content that provides the information for the above question is found in Chapter 1, "Express or Implied Agency". 4. An implied agency with the buyer can result if the words and conduct of the license do not clearly. a. notify the seller b. dispel the assumption c. notify the broker d. compensate for the misunderstanding The content that provides the information for the above question is found in Chapter 1, "Listings and Buyer Agency Agreements". 5. An agency relationship is never determined by. a. actions of the licensee b. who pays the compensation c. actions of the buyer d. actions of the seller The content that provides the information for the above question is found in Chapter 1, "Introduction". 6. An agent owes fiduciary duties to. a. all parties to the transaction b. the customer only c. the client only d. both the client and the customer The content that provides the information for the above question is found in Chapter 2, "The Five Common Law Duties of Agency". 7. An agent who does not make a reasonable effort to properly represent the interests of the client could be found by a court to have been. a. unethical b. negligent c. puffing d. really stupid The content that provides the information for the above question is found in Chapter 5, "Misrepresentation and Fraud".
8. An agent's fiduciary duties to a client obligate the agent to act in good faith at all times. This includes obeying the client's instructions in accordance with the employment contract so long as the client's instructions allow the agent to remain. a. a REALTOR b. rich c. legal and ethical d. civil The content that provides the information for the above question is found in Chapter 3, "Fairness and Honesty". 9. Under Commissioner's Rule R4-28-1101.B, a licensee participating in a real estate transaction must disclose in writing to all parties any information which the licensee possesses that materially and adversely effects. a. the agreed upon commission rate b. the conditions of the soil on the property c. the consideration to be paid by any party to the transaction d. the homeowner's insurance The content that provides the information for the above question is found in Chapter 3, "Disclosure". 10. Any non-material fact that an agent learns about his/her client must remain confidential. a. forever b. until the close of escrow c. until the termination of the agency d. until title actually passes from seller to buyer The content that provides the information for the above question is found in Chapter 3, "Disclosure". 11. In dual agency, the agent represents both buyer and seller in. a. absentia b. court c. the same transaction d. in separate transactions The content that provides the information for the above question is found in Chapter 1, "Dual Agency Defined".
12. While single agency disclosure is not required by statute in Arizona, as a practical matter it must be done because. a. the Commissioner's rules require it b. silence may allow an implied agency to be created which could lead to undisclosed dual agency c. lenders require it d. federal law requires it The content that provides the information for the above question is found in Chapter 1, "Buyer Broker Agency". 13. The parties to a listing agreement are. a. the buyer and seller b. the seller and the broker c. the salesperson and the broker d. the seller and the salesperson The content that provides the information for the above question is found in Chapter 1, "Listings and Buyer Agency". 14. A listing agreement taken by a salesperson belongs to. a. the salesperson b. the seller c. the broker d. the offeror The content that provides the information for the above question is found in Chapter 1, "Listings and Buyer Agency". 15. A broker must have the written consent of the seller before submitting the listing to the. a. office staff b. multiple listing service (MLS) c. escrow company d. title Company 16. Before the broker asks the seller to sign a listing contract, the broker should be satisfied that the seller will be giving his/her. a. grateful thanks b. informed consent c. advise and consent d. capitulation The content that provides the information for the above question is found in Chapter 1, "Listings and Buyer Agency". 17. You are the listing agent on a $500,000 home. The property is in escrow. You discover that the there has been a fire in the home some years back. After the fire, the homeowner's insurance covered the
necessary repairs, and the property was made good-as-new both structurally and aesthetically. There is no readily apparent visible evidence of a fire. Which of the following statements is true? a. If the property has been repaired structurally and aesthetically, and home is good as new, the history of the fire is not a material fact. b. The Seller's agent owes it to the buyer to disclose the history of the fire. c. Sellers are required to disclose property history only if it will affect the appraised value of the property. d. If the property has been repaired structurally and aesthetically, and home is good as new, the history of the fire IS a material fact, but only if the buyer's agent asks. The content that provides the information for the above question is found in Chapter 3, "Disclosure". 18. For purposes of real estate law, "knowingly" or "with knowledge" includes engaging in any prohibited conduct if the subject person actually knew or should have known. a. the falsity of any statement or representation b. of the validity of the deed to be transferred c. the buyer when representing the seller d. the broker under whom the licensee is employed The content that provides the information for the above question is found in Chapter 2, "Known or "Should Have" Known ". 19. Joe Smith has a valid exclusive right to sell listing on Mary and John Clark's home.joe enters the listing into the local multiple listing service (MLS). This results in three valid offers to purchase. Joe is legally obligated to. a. submit the highest offer promptly b. submit all offers promptly c. submit only the highest offer but tell his clients that there were two other offers to pay less money d. submit all offers within three business days The content that provides the information for the above question is found in Chapter 3 "No Delay in Performance". 20. A licensee owes a fiduciary duty to the client which includes protecting and promoting the client's interests. If the client is the buyer and may be unable to obtain a loan to purchase a property (perform), the licensee. a. must keep this fact a secret in order to protect the client's interests b. must disclose this information either orally or in writing c. must disclose this information in writing to all other parties to the transaction d. must ask the client if he/she would object to disclosing this information to the buyer but cannot disclose this information without written permission from the client The content that provides the information for the above question is found in Chapter 2, "Disclosure".
21. All advertising shall include either the name in which the employing broker's license is held or the fictitious name contained on the license certificate. a. in a clear and conspicuous manner b. in bold type c. in 8 point type or larger d. at the very beginning of the advertisement The content that provides the information for the above question is found in Chapter 4, "Statutory Considerations". 22. Broker Joe Smith feels that Broker Mary Jones stole a client from him in a transaction that took place nearly two years ago. Today Mary has a listing which she has placed in the MLS and Joe refuses to show her listing to any of his clients until Mary gives him a formal, written apology for stealing his client. a. Joe has violated a Commissioner's Rule. b. As long as Joe eventually shows Mary's listing, he can punish Mary by showing it last. c. Joe is within his rights to show only the properties he chooses to show. d. Joe can satisfy the law by simply including Mary's listing on a drive-by list of properties to show his clients. The content that provides the information for the above question is found in Chapter 3, "Controversies among Agents". 23. You could lose your license for. a. selling or leasing a property to a buyer or lessee that was not the property represented to the buyer or lessee b. paying or receiving any rebate, profit, compensation or commission in violation of real estate law c. placing a sign on any property offering it for sale or rent without the written authority of the owner or owner's authorized agent d. any of the above The content that provides the information for the above question is found in Chapter 3, "Professional Conduct".
24. Your client, who is listing a vacant piece of property with you, asks you to find out what value the County Assessor has placed on the subject property.you investigate and find that the Assessor has grossly undervalued the property.you tell your client only the Full Cash Value on record at the Assessor's Office.Your client agrees to list the property for what the County Assessor says it is worth.you tell your client that you will buy the property TODAY, for CASH.Because your client (the seller) knows you and trusts you, he accepts your offer.you hold the property for two years and sell it at 4 times the price you paid for it. Have you broken a Commissioner's Rule or a law? a. No, you have not.you did not make an immediate profit from reselling the property and the land may very well have appreciated in value during the two years you held it. b. No, because, by law, in the State of Arizona, FULL CASH VALUE and MARKET VALUE are synonomous. c. Yes, you shirked your fiduciary duty to your client by not getting a certified appraisal on the land. d. Yes, you pursued a course of misrepresentation by not revealing to your client the fact that the property was worth much more than the Assessor's records stated. The content that provides the information for the above question is found in Chapter 5, "Negligent Misrepresentation". 25. What can you do as a sales associate who wants go to work for another broker but your present broker will not allow you to go? a. You can't do anything because you need the severing broker's signature on a change form. b. You can negotiate directly with your clients, thus eliminating the broker from your transactions. c. Because Arizona is a right-to-work state, you can go to the ADRE website and sever yourself from the broker. d. You can request an Administrative Severance from the Arizona Attorney General. The content that provides the information for the above question is found in Chapter 4, "Statutory Considerations".