Chapter Fifteen

He must disclose the fact that he is licensed

If a licensee purchases real estate in his own name:

With the knowledge and written consent of the owner

Listing agreements should be specific about their exact terms. Under what conditions may the listing be altered?

Nothing

Louise was licensed, but let her license expire. She decides to sell her own home. What must Louise do?

Is required to disclose her license status

When a licensee is selling or leasing personally owned property, she:

The price agreed upon, by the owner, as the offering price

When talking to a prospective buyer, the broker may NOT quote any price other than:

The broker has violated his fiduciary responsibility

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?

The broker may show this property, provided he discloses his dual agency relationship to all parties

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?

In writing when the broker has substantive discussion about the property with a prospective buyer

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:

In writing when the broker has substantive discussions 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:

Before the owner agrees to list the property

A licensee contacts a homeowner and tries to obtain a listing for the property. When must agency disclosure be provided to the homeowner?

Present both offers

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:

Advise the buyer to put his offer in writing

A prospective buyer asks the listing broker if the seller will accept 10% less than the listed price. How should the broker respond?

When the buyer expresses an interest in a particular piece of property

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?

Before the FSBO agrees to list his house with the agent

A salesperson contacts a neighborhood FSBO about listing the house with her firm. When is agency disclosure required?

Abide by all fair housing laws, Disclose in all forms of advertising that she is a licensee, Disclose to all buyers her license status

A salesperson is employed by Broker Able, but she works alone to market and sell her own home. She must:

With the permission 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:

This is proper, provided the salesperson reveals his license status and relationship with the broker

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?

False

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.

Advise the seller of her relationship with the offeror

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?

Tell the seller that the prospective buyer is a relative

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:

Must be disclosed to any prospective purchaser

Agnes prepares 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:

only subject to duties the licensee and client agree upon

An independent contractor is:

When the licensee has substantive discussions about a specific property

Board regulations require that licensees disclose agency relationships to the principals in a real estate transaction. When is such disclosure required?

Wallack has insufficient funds to cover the check, The check is postdated, Huber has agreed to hold the check for a few days before turning it over to his broker for deposit

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)?

Advise the seller in the written offer that she is licensed

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?

This is a violation of the License Law

If a broker purchases property through a "straw man" and does not disclose that information, which of the following statements is true?

Joe must disclose his license status and affiliation with the owners

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?

Has failed to properly disclose her agency relationship

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:

Search the public records for information about the subject property

Once a sales contract has been ratified, what can a licensee legally do without permission from the principals to the contract?

Requires that all parties to the transaction have agreed to the relationship, in writing, prior to the signing of any contract

The Virginia License Law does not describe a dual agency relationship as illegal. However, if such a relationship should exist, it:

designated agency

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?

That the current owner of the property has AIDS

When a broker is acting as a buyer's agent, he may disclose all of the following items to the buyer, EXCEPT:

To treat the seller fairly

When acting as a buyer's agent, what responsibilities should the broker have towards the seller of the property?

Is legal because proper disclosure has been made

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: