Michigan Real Estate Salesperson Exam — All Questions

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2 questions

Agency

An agent owes the client the duties often summarized as OLD CAR: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care. These are known as:

  • a.Ministerial duties
  • b.Fiduciary duties
  • c.Statutory nuisance duties
  • d.Puffing duties

An agency relationship imposes fiduciary duties: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care/diligence. Ministerial acts are routine tasks that do not rise to representation.

Agency

A broker represents both the buyer and the seller in the same transaction. This is called:

  • a.Single agency
  • b.Subagency
  • c.Dual agency
  • d.Designated buyer agency

Dual agency occurs when one broker represents both parties in a single transaction. It creates a conflict of interest and generally requires informed written consent from both parties; it is prohibited in some states.

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