Real Estate Brokerage CE Test #5

Jennifer is selling her property and hired Larry as her agent. Jane brings her prospective buyer client, Andrew, to see Jennifer's property. What is Larry's role in this scenario? A buyer's agent A dual agent A seller's agent A sub-agent

A seller's agent

John, a personal assistant, advised Shelly, who is a client of John's supervisor, Bill, about a negotiation strategy. John is ______. Acting illegally; personal assistants are not allowed to negotiate Acting legally, provided he has a real estate license Acting within the job duties for any personal assistant Just being helpful

Acting legally, provided he has a real estate license

What does the Federal Trade Commission consider to be an unfair ad? Any ad or business practice that causes or is likely to cause injury Any ad that is likely to mislead consumers acting reasonably under the circumstances Any ad that makes a health claim Any ad with a claim that's difficult to evaluate

Any ad or business practice that causes or is likely to cause injury

When is an agency disclosure form required? Any time real estate matters are discussed between an agent and a consumer As a matter of practice when obligating a consumer to a contract Prior to entering an agency agreement Whenever there is a material defect with the property

Any time real estate matters are discussed between an agent and a consumer

Under ______, landowners can be held responsible for the cleanup costs of hazardous waste, even if they did not cause the waste. CERCLA DECLRA SARA SEQRA

CERCLA

Which of the following describes the process of making a copy of a website for the purpose of obtaining money or data from unsuspecting users? Backing up files to an external hard drive Cloning Encrypting your email Storing logins and passwords

Cloning

Miranda, owner of Sunshine Brokerage, has a shared-office space arrangement with Jose, owner of Home Is Where Your Junk Is. What does this mean to consumers? Consumers appreciate the desire to work directly with those who own and operate their own business. Consumers have more listings to choose from. Consumers may not understand that the businesses are separate. Consumers will need to sign the Affiliated Business Arrangement Disclosure.

Consumers may not understand that the businesses are separate.

Jensen is a broker who takes pride in having a top-notch sales team. One of his key strategies that keeps the team performing effectively is his recognition program, which ______. Clarifies organizational goals Creates worker motivation Develops associate knowledge and skills Models clear communication

Creates worker motivation

Broker-owner Mei is evaluating three companies to acquire as a strategic move to expand her brokerage. In addition to asking questions to determine each company's value, market presence, and motivation to be acquired, what else should Mei explore? Cultural fit Employee demographics Office decor Physical equipment

Cultural fit

Inaccurate buyer qualification processes may contribute to rocky conditions on the way to closing. Which of the following is another external factor that may delay or endanger the closing? Cumbersome closing regulations or settlement procedures. Failure to prepare clients for the closing process Unmet contract contingencies or contract defects Unrealistic expectations around the home inspection

Cumbersome closing regulations or settlement procedures.

Which of the following is a characteristic of a poorly written job description? Defines reporting structure Describes primary job responsibilities Describes tasks without accountability standards Provides a basis for performance assessment

Describes tasks without accountability standards

When Andrew schedules a sales meeting at his brokerage, he prepares well in advance by ______. Developing an agenda, talking points, visuals, and handouts Getting his sales meeting suit dry cleaned and his hair cut Practicing his stand-up routine Searching for real estate-related YouTube videos to share

Developing an agenda, talking points, visuals, and handouts

In which of the following scenarios is impossibility of contract performance occurring? Both parties fully meet the terms of the contract. Due to circumstances beyond their control, the parties can't legally or practically do what they've agreed to do. One or both parties have completed only a portion of the terms agreed to in the contract. One party didn't meet the terms of the contract in the specified timeframe and is being required to do exactly what was agreed to in the contract.

Due to circumstances beyond their control, the parties can't legally or practically do what they've agreed to do.

A ______ plan for a merger should include financial guidelines for how each firm will share profits in the future. Acquisition ROI Transaction Transition

Transition

Workplace fraud includes which of the following? Colluding with an appraiser to inflate a home's value Encouraging a client to embellish employment details in order to qualify for a loan Making a false promise to induce someone to sign a real estate contract Working with a vendor to falsely increase invoice costs, and splitting the difference

Working with a vendor to falsely increase invoice costs, and splitting the difference

Which one of these professional development opportunities is designed to give a licensee expertise in a particular area and to recognize the licensee's commitment to professional education? Professional designation or certification Real estate conference Real estate seminar Required continuing education

Professional designation or certification

Samuel doesn't mind risk if he can get a clear picture of the potential for success. Which option is the best for Samuel? Purchase and close down a competing business. Purchase an existing business. Start up his own brokerage. Start up his own franchise.

Purchase an existing business.

Broker Darnel is shopping for office space primarily for his staff of sales professionals to meet with clients. Which of the following is the highest priority? Filing Kitchen Reception Storage

Reception

The Occupational Safety and Health Act primarily addresses the rights of which classification of employees? All employees and unlicensed individuals Employees Employees and independent contractors Independent contractors

Employees

Which of the following has the legal effect of preventing a person from making a claim based on her prior behavior or statements? Estoppel In rem proceeding Ratification Reaffirmation

Estoppel

Which one of the following contracts has terms yet to be completed? Bilateral Executed Executory Unilateral

Executory

A position in which an employee is paid by salary is most likely classified as ______. Exempt Independent contractor Non-exempt Production-based

Exempt

Which of the following is a characteristic of a formal organization? Based on relationships Cohesive through trust Collectively formed Follows the rules

Follows the rules

Which of the following is true about your firm's name? It should be vague to encompass any future expansions or growth plans of the firm. It should closely resemble the name of your closest competitor. Longevity, ease of use, and business continuity must be considered. Your state regulatory agency will require that the broker's name appear in the firm's name.

Longevity, ease of use, and business continuity must be considered.

Larry's income statement for the month shows a dramatic loss. What should he do? Apply for a line of credit. Hire more sales staff to bring in additional revenue. Implement major cost-cutting strategies. Look at his budget, previous income statements, and forecast.

Look at his budget, previous income statements, and forecast.

Broker Olivia is working on writing some SMART goals for her new brokerage. What does the "M" in SMART mean? Malleable Maximum Measurable Most

Measurable

Your newest licensee, Emily, has made a few careless errors in the past two months. You've already identified and analyzed the problem, brainstormed and selected a solution, and documented everything. What's the next and final step to the problem-solving process? Analyze why Emily is such a careless person. Fire Emily. Monitor the situation. Start the process all over again, finding a new solution.

Monitor the situation.

Bryan and Nancy are selling a home. They were excited when they discovered that the appraiser assigned to appraise their home is an old friend. Carly, the buyer's agent, is surprised when the appraised value comes in considerably higher than the competitive market analysis she prepared. Carly is concerned that this might be an example of ______. Mortgage fraud Securities fraud Willful representation Workplace fraud

Mortgage fraud

The ______ should introduce workers to the brokerage culture, mission, and values, and give them a good first impression of the firm. Brokerage policy manual Job interview New worker orientation Professional development plan

New worker orientation

Five competing brokerage firms in the same area agreed to cooperate in setting a standard commission rate for the area. This makes them guilty of a per se antitrust violation. What is a per se antitrust violation? Boycotting Collusion among the parties No intent needs to be proven Price fixing

No intent needs to be proven

Which market indicator can tell you the number of houses sold over a period of time? Inventory rates New building permits Price levels Sales volume

Sales volume

Which of the following is one of the IRS requirements for a real estate brokerage worker to be classified as a statutory non-employee? The individual and the employing broker have a written contract. The individual is paid by the hour, not by services provided. The individual is supervised by a broker. The individual works fewer than 30 hours per week.

The individual and the employing broker have a written contract.

What type of agreement accounts for commission to be paid and includes the seller's permission for marketing the property? The buyer's agency agreement The listing agreement The sales agreement The seller's agency agreement

The listing agreement

What is the relationship between the marketing department's efforts and those of other departments in the firm? Marketing department activities impact other departments, but other department's activities don't impact the marketing department. The marketing department functions mostly on its own with no relationship to other departments. The marketing department is an integral component of the firm's activities. The marketing department's activities increase the required budget for other departments.

The marketing department is an integral component of the firm's activities.

How might you indirectly convey a brand statement to your market? Through consistency between branding and identity Through signage and marketing materials Through use of your logo Through word of mouth

Through word of mouth

What's the purpose of a sales contract? To document the agreement between a buyer and seller in a real estate sales transaction To notify the public that an offer has been made on a specific property To serve as an agreement between the seller and the licensee that the seller intends to sell the house To verify that the seller has the legal right to sell the property

To document the agreement between a buyer and seller in a real estate sales transaction

You have two licensees who are overly competitive with each other, to the point that it's making everyone in your office tense. You've talked to them individually. What should you ask them to do to resolve the situation? Ask them about the objective they're trying to achieve with their behavior, and help them find a more constructive way to get it done. Give them a deadline by which they must resolve the problem between themselves, or you'll have to let them both go. Require that they both apologize to the others in the brokerage at a meeting you'll call for this purpose. Write up a description of the behaviors you'd prefer that they stop doing and what you'd like them to do instead, and have each of the involved licensees sign to acknowledge the document.

Ask them about the objective they're trying to achieve with their behavior, and help them find a more constructive way to get it done.

Fliss likes to give her associates good value in exchange for the time they take to come to her sales meetings. That's why she often ___________ at the meetings. Asks different associates to share a best practice tip Pays associates an hourly rate for the time spent Provides coffee and doughnuts Shows inspirational videos

Asks different associates to share a best practice tip

What is a potential challenge to a company undergoing a merger or an acquisition? Access to new markets Access to office space and equipment Assumption of debt Name recognition

Assumption of debt

Edgar and his management staff identified their work with real estate contracts as a potential risk to the firm. Which of the risk-handling strategies is NOT an option for Edgar and his staff? Acceptance Avoidance Mitigation Transfer

Avoidance

One of the actions that landed the Consolidated Multiple Listing service of South Carolina in court was that it gave Columbia brokers the ability to exclude rivals from outside of Columbia. What type of antitrust violation does this exemplify? Group boycotting Market allocation Price fixing Tie-in arrangement

Group boycotting

Broker Hal has conducted eight exit interviews in the last three years, and now he's sitting down to review those interview notes. Which of the following is true of this situation? He should look for common threads or themes in those notes that could provide valuable information about the brokerage as a workplace. He should only consider the comments from licensees, rather than from any regular staff members, because licensees are the only ones who matter at the brokerage. He should only consider the comments from the people who resigned, because those who were terminated will be too bitter to provide valuable information. He should only consider the "constructive criticism" form of interview feedback, because the positive comments—while nice to hear—aren't helpful for the brokerage.

He should look for common threads or themes in those notes that could provide valuable information about the brokerage as a workplace.

Which of the following is the final step in the performance review process? Assign a numeric rating to the employee's performance Develop job descriptions and standards for performance Evaluate the employee's performance against a job description and standards for performance Hold a meeting between manager and employee to review the performance evaluation

Hold a meeting between manager and employee to review the performance evaluation

Which of the following is prohibited under federal fair housing laws? Noting that a property has an in-law apartment Offering different terms, conditions, or privileges based on protected class status Requiring income verification before offering financing Using the phrase "first-time homebuyer" in an advertisement

Offering different terms, conditions, or privileges based on protected class status

When analyzing the competition you should evaluate affiliations, _______, marketing strategies, services, and employee benefits. Cameras Furniture Office location Transportation

Office location

Which of the following is a good example of implementing safety and security measures for visitors of a brokerage office? Allow only one visitor at a time in the brokerage. Hire a safety and security officer. Keep first aid kits and fire extinguishers under lock and key. Organize and run disaster emergency drills with the office staff.

Organize and run disaster emergency drills with the office staff.

All of the following are components of a compensation plan except for which one? Payroll taxes Perks Salary Wages

Payroll taxes

If one or more licensees in a firm have unusually high DOM, terminated listings, delayed closings, and marked disparities between listing and selling price, what steps can the firm take to correct these issues? Create an office policy stating that the firm won't agree to terminate listing agreements. Discourage licensees from accepting listings that may be difficult to sell. None. The firm has no control over external market conditions. Perform a review of training and operations processes.

Perform a review of training and operations processes.

In the hiring process, which step narrows the field by identifying those applicants who don't meet the requirements of the position? Interviewing Prescreening Recruiting Selection

Prescreening

In the 1950 case involving the District of Columbia's Washington Board of REALTORS® in which the National Association of REALTORS® became involved, the board required that brokers should maintain the standard rates of commission adopted by the board, and no business should be solicited at lower rates. No member may charge less than this rate when involved in the sale, exchange, lease, or management of real property in the District of Columbia. What were the parties guilty of? Fair housing law Group boycotting License law Price fixing

Price fixing

Yvette decided to put her brokerage's training room right by the reception area and conference room. She wanted to be sure her visitors saw her brokerage's commitment to training. What should Yvette keep in mind if she opts for this configuration? Document flow File storage Soundproofing measures Technology

Soundproofing measures

Why might a brokerage opt to use a conference room for its training room? Lighting Privacy Space considerations Visibility

Space considerations

Which of the following dictates the most important requirements for transaction record retention? State laws and regulations The local association of REALTORS® recordkeeping policy manual The National Association of REALTORS® policy on record retention Whatever the broker decides

State laws and regulations

Which of the following is a true statement about a brokerage's building safety? A broker should not get involved in security measures, to minimize litigation potential. Occupant health is less of a consideration than security. Tall hedges near the entrance pose a problem. Thick doors are a fire hazard

Tall hedges near the entrance pose a problem.

General brokerage and listing-specific advertising and signage must contain which of these? The brokerage firm's physical address The brokerage name The listing licensee's license number The supervising broker's name

The brokerage name

Sherman is a listing agent. At what point is he no longer obligated to present offers to his seller client? He has a signed contract. He has received his commission. His client asks him to stop. The sale has closed.

The sale has closed.

A market analysis can help you decide which office and business systems you need. Which of the following can be determined from your market analysis? The services your customers want The systems your competitors use What technology is popular What your budget should be

The services your customers want

Training for licensees will be most effective when ______. The class is held in-person rather than online The instructor gives out prizes to associates who answer quiz questions correctly The training has a required "seat time" The training topic and benefit to the associates is clearly defined and relevant to them

The training topic and benefit to the associates is clearly defined and relevant to them

Imagine that you're an active real estate licensee as well as an architect, and you'd like to partner with a builder who's just beginning a development. Which of these creates agency coupled with interest? You agree to design the houses for this builder in return for getting the listings when the properties are finished. You agree to list the properties for a reduced commission once they're built. You have the builder and developer sign listing agreements now that will be effective when the properties are complete. You tell the builder that he has to hire you to design the houses if the builder wants you to list them when they're finished.

You agree to design the houses for this builder in return for getting the listings when the properties are finished.

What's an advantage of purchasing an existing brokerage or franchise? The cost to purchase is low compared to starting up a new brokerage. The IRS will allow you defer business taxes for one year. You're buying an existing client base, so you can usually make money right away. You set up the processes and procedures.

You're buying an existing client base, so you can usually make money right away.