301 Post Licensing Questions and Verified Correct Answers | Grade A+

What are the basic duties that an agent owes a principal under Agency Law? Ans: OLDCAR or LOADS - loyalty/confidentiality, obedience, accounting, disclosure, skill, care and diligence. What is the definition of a fiduciary relationship? Ans: A person who acts for another in a relationship of trust and who is obligated to act in the other's best interests, placing the other's interests before any self-interest. Does violating Agency Law also violate Real Estate License Law? Ans: Yes What are some possible consequences of violating Agency Law? Ans: revocation or suspension of real estate license, civil liability, loss of commission Can the Real Estate Commission fine a broker for violating Real Estate License Law? Ans: No What are the four categories of material facts? Ans: o Facts about the property itself (HVAC system does not work) o Facts that relate directly to the property (state approved plans for a four-lane bypass near the property) o Facts directly affecting the principal's ability to compete the transaction (seller is unable to convey clear title) o Facts that are known to be of special importance to a party (current zoning will not permit a buyer's intended use) Material fact? Death or murder of a previous tenant on the property? o A convicted sex offender lives in a neighboring property? o A gravesite is located on a property? o Property is believed to be haunted? o Property is located in an airport approach flight path? o Seller is behind on their mortgage payments? Ans: No, No, Yes, No, Yes, N