PSI PSI Real Estate Agency and Property Management 1

Question 1

Which type of agency relationship is created when a seller hires a broker to sell their property?

Accepted Answer

Listing agency

Answer

Dual agency

Answer

Buyer agency

Answer

Sub-agency

Question 2

What fiduciary duty requires an agent to place the client's interests above all others, including the agent's own?

Accepted Answer

Loyalty

Answer

Disclosure

Answer

Confidentiality

Answer

Reasonable care

Question 3

A broker who represents both the buyer and the seller in the same transaction with informed consent is acting as a:

Accepted Answer

Dual agent

Answer

Sub-agent

Answer

Universal agent

Answer

Transaction broker

Question 4

An agent's authority that is expressly granted in writing through a listing agreement is called:

Accepted Answer

Express authority

Answer

Implied authority

Answer

Apparent authority

Answer

Ratified authority

Question 5

Which listing agreement gives the broker the exclusive right to a commission regardless of who sells the property?

Accepted Answer

Exclusive right-to-sell listing

Answer

Open listing

Answer

Net listing

Answer

Exclusive agency listing

Question 6

Under agency law, the term 'procuring cause' is most associated with which scenario?

Accepted Answer

Determining which agent is entitled to a commission

Answer

Establishing the legal cause of a contract breach

Answer

Identifying why a property failed to sell

Answer

Calculating the net proceeds to the seller