agency definitions & relationships
Carla the Salesperson places her license on inactive status in July. In October, Carla purchases a house from a FSBO. What, if anything, is Carla required to tell the seller of the property? 1. nothing, because carla is an inactive licensee 2. nothing, because the property is not listed with a broker 3. advise the seller that she was once an active real estate agent 4. advise the seller in the written offer that she is licensed
advise the seller in the written offer that she is licensed
A woman offers to buy property listed by her sister, who has a broker license. However, the woman does not want the seller to know that she is buying the property. What should her sister (the broker) do when presenting the offer? 1. advise the seller of her relationship with the offeror 2. find another party to submit the offer and later transfer it to her sister 3. remain silent on the matter 4. give the listing to another broker to make the sale
advise the seller of her relationship with the offeror
Buyer Wallack gives a $3,000 check to Salesperson Huber as a deposit on the sale of a property owned by Mr. Browning. It would be IMPROPER for Huber to withhold what information from Mr. Browning (his client)? 1. wallack has insufficient funds to cover the check 2. the check is postdated 3. huber has agreed to hold the check for a few days before turning it over to his broker for deposit 4. all of the above
all of the above
a salesperson is employed by broker able, but she works alone to market and sell her own home. she must: 1. abide by all fair housing laws 2. disclose in all forms of advertising that she is a licensee 3. disclose to all buyers her license status 4. all of the above
all of the above
"For rent by owner. Share townhouse, 3 bdrm. 2 ba. conv. to shops and trans. Call 123-4567 for details. No agents or _________________." All of the following descriptions can legally complete the advertisement, EXCEPT: 1. asian americans 2. females 3. handicapped persons 4. families with teenagers
asian americans
a salesperson contacts a neighborhood FSBO about listing the house with her firm. when is agency disclosure required? 1. at the first meeting between the FSBO and the agent 2. before the FSBO agrees to list his house with the agent 3. when the agent presents the first offer from a prospective buyer 4. never since disclosure is only required to buyers, not sellers
before the FSBO agrees to list his house with the agent
a licensee contacts a homeowner and tries to obtain a listing for the property. when must agency disclosure be provided to the homeowner? 1. before the owner agrees to list the property 2. at the first meeting 3. when the licensee presents the first offer to purchase 4. agency disclosure is only required for buyers, not sellers
before the owner agrees to list the property
Broker Adam is encouraging you to sell since your new neighbors will be Catholics. He says that once they move in, crime will increase and property values will tumble. Your broker is guilty of: 1. redlining 2. steering 3. blockbusting 4. puffery
blockbusting
What is the best description for when one broker-owner or firm represents both parties in the same transaction, but a separate licensee from that firm is assigned to represent each party in the transaction? 1. dual agency 2. standard agency 3. limited service agency 4. designated agency
designated agency
The Virginia Fair Housing Act extends protection beyond the list of federally protected classes. Which group is protected under Virginia law, but NOT under federal law? 1. sexual orientation 2. marital status 3. elderliness 4. source of income
elderliness
the intent of the VA fair housing law is to: 1. eliminate housing discrimination by virtue of the states police powers 2. prevent federal involvement in matters occurring within the state 3. allow for the development of minority specific housing 4. increase revenue by imposing a mandatory penalty on people who violate the law
eliminate housing discrimination by virtue of the states police power
broker sarah takes a listing from a seller, who later tells her that the house should not be shown to any minorities. the broker should: 1. note this on the MLS form 2. make written acknowledgement of the instructions 3. explain that she cannot comply because this violates federal law 4. avoid discussion of the request
explain that she cannot comply because this violates federal law
A standard agent engaged by a buyer would breach her fiduciary duties by showing properties that the buyer is interested in to other prospective buyers. 1. true 2. false
false
the VA fair housing act prohibits discrimination on the basis of: 1. marital status 2. sexual preference 3. source of income 4. familial status
familial status
Julia the Salesperson obtains a listing. Several days later, Julia meets prospective buyers at the property and remarks that since she is the listing agent, she is very familiar with the property. Under the circumstances described, Julia: 1. has failed to property disclose her agency relationship 2. has disclosed her agency relationship with the seller 3. is in violation of board regulations because she cannot sell her own listing 4. has created a dual agency, which is a violation of board regulations
has failed to properly disclose her agency relationship
if a licensee purchases real estate in his own name: 1. he must assure the seller that the appraisal is valid 2. his broker must forfeit the commission 3. he must reveal the purpose for which the property is being purchased 4. he must disclose the fact that he is licensed
he must disclose the fact that he is licensed
A broker is holding an open house at one of her listings. According to Virginia License Law, the broker must provide agency disclosure. In the situation described, this disclosure must be made: 1. verbally to every person at the property 2. in writing to every person looking at the property 3. verbally when the broker has substantive discussion about the property with a prospective buyer 4. in writing when the broker has substantive discussion about the property with a prospective buyer
in writing when the broker has substantive discussion about the property with a prospective buyer
A broker is holding an open house for one of her listings. According to Virginia License Law, the broker must provide agency disclosure. In the situation described, this disclosure must be made: 1. verbally to every person looking at the property 2. in writing to every person looking at the property 3. verbally when the broker has general discussions about the property with a prospective buyer 4. in writing when the broker has substantive discussions about the property with a prospective buyer
in writing when the broker has substantive discussions about the property with a prospective buyer
With the permission of his broker, a salesperson is representing a buyer. The salesperson goes to a showing for a listed property and properly advises the listing broker that he is representing the buyer. This situation: 1. would create a dual agency, which is illegal 2. is legal because proper disclosure has been made 3. allows the salesperson to collect full commissions from both buyer and seller 4. is legal, but violates the realtor code of ethics
is legal because proper disclosure has been made
Joe is a real estate agent with XYZ Corp. Joe is working with a customer who's interested in property owned by XYZ. Is Joe required to disclose his license status to his customer? 1. joe only needs to disclose his license status if he has an ownership interest in the property 2. XYZ is responsible for the disclosure 3. joe must disclose his license status and affiliation with the owners 4. no disclosure is required if XYZ is a licensed business entity
joe must disclose his license status and affiliation with the owners
Salesperson Lisa is selling her townhouse to move into a luxury condominium. She advertised her property in the newspaper as follows: "Beautiful, 3 bedroom townhouse. Excellent assumption. Single females only. Call 123-4567 for details. Owner is licensed." Which of the following statements is true? 1. lisa has not violated board regulations since she disclosed her license status 2. lisa has not violated the VA fair housing act since it does not protect marital status 3. lisa has not violated board regulations since she is not subject to the license laws 4. lisa is subject to board censure for violation of fair housing laws
lisa is subject to board censure for violation of fair housing laws
Lisa is a licensed salesperson that is selling her own townhouse. She advertises her townhouse as a FSBO as follows: "Beautiful 3 bedroom townhouse. Excellent assumption. Single females only. Call 123-4567 for details. Owner is licensed." Which of the following statements is not true? 1. lisa, acting as the owner of the property, is exempt from the VA fair housing laws 2. lisa has disclosed her license status as required by board regulations 3. fair housing laws do not apply to marital status 4. this ad violates fair housing laws on basis of sexual discrimination
lisa, acting as the owner of the property, is exempt from the VA fair housing laws
agnes prepare a will where she names mary, a licensee, as the devisee. later, agnes asks mary to sell the property. the fact that mary is licensed: 1. is not important 2. must be disclosed to any prospective purchaser 3. will allow more favorable terms for the buyer since mary would forfeit any commission 4. means that the selling price of the property cannot be negotiated
must be disclosed to any prospective purchaser
what is the illegal act where an insurance policy is denied based on the property location instead of the economic qualifications of the borrower? 1. redlining 2. steering 3. blockbusting 4. puffery
redlining
the VA license law does not describe a dual agency relationship illegal. however, if such a relationship would exist, it: 1. must be disclosed, in writing, to all parties at the time of closing 2. must be disclosed, in writing, to the seller 3. must be disclosed, in writing, to the buyer 4. requires that all parties to the transaction have agreed to the relationship, in writing, prior to the signing of any contract
requires that all parties to the transaction have agreed to the relationship, in writing, prior to the singing of any contract
once a sales contract has been ratified, what can a licensee legally do without permission from the principals to the contract? 1. change the closing date or location 2. make minor changes to the contingencies 3. correct grammatical or spelling errors in the contract 4. search the public records for info about the subject property
search the public records for info about the subject property
A salesperson takes a listing from an owner, which excludes his neighbor. Later, the salesperson learns that the reason for the exclusion is because the owner doesn't want to sell his property to a minority. In this instance, the salesperson, through his broker: 1. should cancel the listing 2. may advertise the listing, noting the exception 3. may keep the listing in house and not advertise the MLS 4. should check to determine if there are other minorities living in the area
should cancel the listing
A broker has been approached by a minority buyer, who requests to see properties in a specific section of a city. The broker refuses to show these properties. Instead, the broker indicates that the he would be better off in a location with a greater concentration of his particular minority group. The broker's illegal conduct is known as: 1. steering 2. blockbusting 3. redlining 4. panic selling
steering
which of the following actions would violate the VA fair housing law? 1. refusing to list a commercial property owned by a particular minority 2. hiring office personnel on the basis of sex, regardless of qualifications 3. placing ads printed in a foreign language 4. taking a listing with intent to change the racial make up of the neighborhood
taking a listing with intent to change the racial make up of the neighborhood
A woman tells her brother (a broker) that she would like to buy a piece of property that he has listed. However, she does not want the seller to know of their relationship. The brother should: 1. tell the seller that the perspective buyer is a relative 2. let another person buy the property and turn the deed over to the sister 3. sell the property without disclosing their relationship 4. find another listing agent to avoid a conflict of interest
tell the seller that the prospective buyer is a relative
when a broker is acting as a buyers agent, he may disclose all of the following items to the buyer, EXCEPT: 1. that the current owner of the property has AIDS 2. info that the broker knows about the financial circumstances of the seller 3. deed restrictions that might affect the buyers intended use of the property 4. none of the above
that the current owner of the property has AIDS
A broker accepts a listing from a seller. In the agreement, the seller stipulates that the broker shall list the property on two different MLS directories. The broker only lists the property on one, but receives three offers within the first week. Under these circumstances, which of the following statements is correct? 1. the broker has violated his fiduciary responsibility 2. the broker is committed to finding a ready, willing, and able buyer and has complied with the agency agreement 3. the broker has exercised appropriate disrection 4. the broker, by agreement with the MLS, may not advertise listings in more than one MLS directory
the broker has violated the fiduciary responsibility
what info can a broker disclose without violating the VA license law? 1. with the right terms, that the seller will accept a price below the listed price 2. that the buyer is catholic 3. the number of points that will be paid by the seller 4. that only people from jupiter can live in the neighborhood
the number of points that will be paid by the seller
when talking to a prospective buyer, the broker may NOT quote any price other than: 1. the price established as the fair market value 2. the price recommended by the listing broker 3. the price agreed upon, by the owner, as the offering price 4. the value established by the appraisal
the price agreed upon, by the owner, as the offering price
if a broker purchases property through a straw man and does not disclose that info, which of the following is true? 1. this not a violation of the license law 2. this is a violation of the license law 3. this is permitted if the straw man is also a broker 4. this is permitted as long as the seller does not find out
this is a violation of the license law
A salesperson works for a broker that has listed a really nice property. He purchases the subject property one day after the exclusive right-to-sell agreement expires. Which of the following statements is true? 1. this is proper, provided the salesperson reveals his license status and relationship with the broker 2. this is proper, provided the seller does not find out about the salespersons license status 3. this is improper unless the salesperson obtains his brokers approval 4. this is improper because it is prohibited by law
this is proper, provided the salesperson reveals his license status and relationship with the broker
A prospective buyer enters a broker's office and is escorted into the conference room. After the broker has financially qualified the buyer, they begin to review available properties that meet the buyer's wants, needs, and financial limitations. When is the broker required to disclose the agency relationship? 1. when determining the financial qualifications of the buyer 2. when the buyer expresses an interest in a particular piece of property 3. when the buyer has identified a property that is acceptable 4. before the broker and buyer begin to discuss any specific property
when the buyer expresses an interest in a particular piece of property
listing agreements should be specific about their exam terms. under what conditions may the listing be altered? 1. to encourage a prospective buyer to make an offer 2. with written permission from the listing broker 3. if the changes are reasonable 4. with the knowledge and written consent of the owner
with the knowledge and written consent of the owner
A salesperson obtained a listing. The listing clearly stated the price of the property and other terms under which the owner would sell. The salesperson may change the listing agreement: 1. if he thinks that a buyer would find the terms unreasonable 2. at the direction of the broker 3. with the permission of the owner 4. all of the above
with the permission of the owner
a person feels that his rights have been violated according to the VA fair housing law. if he wants to file a formal complaint, it must be filed: 1. within 90 days of the alleged act 2. within 2 years of the alleged ct 3. only against a licensed salesperson or broker 4. only with the department of housing and urban development
within 2 years of the alleged act
the VA fair housing law is more restrictive than the federal law, in that it provides protection for the elderly. in VA, elderly is defined as: 1. 65 years or older 2. 62 years or older 3. 55 years or older 4. 50 years or older
55 years or older
a prospective buyer asks the listing broker if the seller will accept 10% less than the listed price. how should the broker respond? 1. tell the buyer that the seller is firm and will not negotiate the price 2. advise the buyer to put his offer in writing 3. refer the buyer to a cooperating broker in order to avoid a dual agency situation 4. advise the buyer that a 90% offer is not acceptable, but he should instead offer 95%
advise the buyer to put his offer in writing
louise was licensed, but let her license expire. she decides to sell her own home. what must louise do? 1. disclose her status to all prospective buyers 2. notify the board 3. nothing 4. apply to have her license reinstated
nothing
VA fair housing laws apply to: 1. residential sales only 2. residential sales and rentals 3. all real estate transactions 4. all real estate transactions with the exception of industrial sales
residential sales and rentals
a broker would violate the VA fair housing act by doing which of the following? 1. refusing to list commercial property that is owned by a minority 2. advertising in a publication whose subscribers are all members of a minority group 3. refusing to show expensive property to persons that are not financially qualified 4. taking a listing with intent to change the racial make up of the neighborhood
taking a listing with intent to change the racial make up of the neighborhood
A broker has entered into a buyer/broker agreement with a prospective buyer. The broker shows the buyer client a property listed for sale with his own firm. Which of the following statements is true? 1. the broker cannot show his own listing 2. such action constitutes dual agency, which is illegal 3. the broker may show this property, provided he discloses his dual agency relationship to all parties 4. before the broker may show this property he must obtain a release from the real estate board
the broker may show this property, provided he discloses his dual agency relationship to all parties
john is trying to find a tenant to share his home and pay part of the expenses. he advertises for males only. is there anything wrong with this? 1. john has violated 1968 fair housing law for sexual discrimination 2. there is nothing wrong with an ad of this type 3. ads of this type violate the 1988 amended fair housing laws 4. john must be licensed by the board
there is nothing wrong with an of this type
when acting as a buyers agent, what responsibilities should the broker have towards the seller of the property? 1. to keep the seller informed 2. to exercise due care for the sellers interest 3. to maintain loyalty to the seller 4. to treat the seller fairly
to treat the seller fairly
when a licensee is selling or leasing personally owned property, she: 1. is required to disclose her license status 2. does not have to disclose pertinent info about the property 3. must list the property with her employing broker 4. is not subject to board regulations
is required to disclose her license status
an independent contractor is: 1. only subject to duties the licensee and client agree upon 2. subject to all agency duties and disclosures imposed by VA law 3. not a real estate licensee 4. the same as a limited service agent
only subject to duties the licensee and client agree upon
a listing broker receives a low offer from one of his prospects. he also receives a full price offer from a cooperating broker. he may: 1. present only his prospects offer 2. present only the full priced offer 3. present both offers 4. present his offer first, then the full price offer is not accepted
present both offers
the objective of the fair housing law is to: 1. discipline and fine anyone who violates the law 2. provide fair compensation for landlords 3. establish the guidelines in which testers operate, so as not to create an allowable defense of entrapment 4. protect and ensure the welfare of the general public
protect and ensure the welfare of the general public
board regulations require that licensees disclose agency relationships to the principals in a real estate transaction. when is such disclosure required? 1. when the licensee has substantive discussions about a specific property 2. while showing a specific property 3. at the time the closing is conducted 4. at the time of contract ratification
when the licensee has substantive discussions about a specific property
