Real Estate Sales Agency and Fiduciary Duties Questions and Answers Flashcards

A seller's agent receives a verbal offer from a buyer but considers it too low. What should the agent do?

Answer: Present the offer to the seller promptly

Agents must present all offers to their clients promptly, regardless of the agent's personal assessment of the offer's adequacy.

Which of the following BEST describes the duty of loyalty in a real estate agency relationship?

Answer: Always putting the client's interests above the agent's own interests

The duty of loyalty requires agents to place their client's interests above their own and above the interests of all other parties.

An agency relationship can be terminated by all of the following EXCEPT:

Answer: The agent deciding unilaterally without cause to stop working

An agent cannot unilaterally abandon a client without cause; doing so would breach the agency agreement and fiduciary duties.

A real estate agent accidentally deposits a client's earnest money into the agent's personal bank account. Which fiduciary duty has been violated?

Answer: Accounting

The duty of accounting requires agents to properly handle and safeguard all funds and property entrusted to them by clients or third parties.

Under what circumstance may a real estate agent disclose confidential client information?

Answer: When required by law or court order

Confidential client information may only be disclosed when legally compelled, such as by court order or statutory requirement.

A property manager who collects rent on behalf of an owner is acting as what type of agent?

Answer: General agent

A general agent is authorized to handle a range of ongoing matters for the principal, such as a property manager conducting day-to-day operations.