Real Estate Course 3 Quiz 5-8

A broker must maintain records of any transaction for at least ........after closing?

3 years

Express agency is created through which of the following...?

A listing contract

An agency relationship may be terminated by which of the following means...?

Accomplishment of purpose Expiration of the agency agreement Mutual agreement D) Any of the above

One who acts for and with authority from another called the principal is known as a/an...?

Agent

A licensed real estate broker who chooses to work under the name and supervision of another licensed broker is referred to as a/an...?

Associate broker

A contract in which each party promises to do something is known as a/an...?

Bilateral contract

A violation of the terms or conditions of a contract without a legal excuse is referred to as a...?

Breach of contract

An agent's compensation for performing the duties of the agency is known as a...?

Commission

Which of the following is an example of a fiduciary duty owed by a broker to the principal...?

Confidentiality Loyalty Reasonable skill and care D) All of the above

Which of the following is an example of an essential element of a valid contract...?

Consideration Mutual consent Capacity to contract D) All of the above

An agreement to do or not to do a certain thing is known as a...?

Contract

An agency relationship should be disclosed in which order...

Disclose, elect, confirm

An agency relationship in which the agent acts concurrently for both of the principals in a transaction is referred to as...?

Dual agency

Which of the following court cases determined that an agent is only responsible for performing a diligent visual inspection...?

Easton vs. Strassburger

The ability to sue for the enforcement of the contract is referred to as...?

Enforceability

Which of the following is an example of a listing contract...?

Exclusive right to sell agreement

Which of the following listing contracts offers the most protection to the broker...?

Exclusive right to sell agreement

Which of the following offers the most amount of protection to the broker...?

Exclusive right to sell agreement

An open listing is an example of an exclusive listing contract...?

F (False)

Agency that exists as a result of actions of the parties is known as...?

Implied agency

An agreement that has not been put into words, but is implied by the actions of the parties, is referred to as a/an...?

Implied contract

The ....................serves as an employment contract between a sponsoring broker and an agent?

Independent Contractor Agreement

The individual who enters into a listing contract with a principal is referred to as the...?

Listing agent

Which of the following is an example of an express contract...?

Listing contract Purchase contract Independent contractor agreement D) All of the above

An agent's duty to place the client's interest above those of all others, including the agent's own self-interest is known as...?

Loyalty

The substitution or exchange or a new obligation or contract for an old one by the mutual agreement of the parties is known as...?

Novation

Which of the following offers the least amount of protection to the broker...?

Open listing

Damages simply for the purpose of punishment are known as...?

Punitive damages

This refers to a person or an organization acting as the agent for others in negotiating the purchase and sale of real property or other commodities for a fee...?

Real estate broker

Any profit that the agent obtains without the principal's authorization is known as a...?

Secret profit

The individual who finds the buyer (or seller) for the property is referred to as the...?

Selling agent

An action to compel performance of an agreement is known as...?

Specific performance

A licensee may have their license suspended for the unauthorized practice of law...?

TRUE

A property manager is an example of a general agent...?

TRUE

A real estate broker cannot collect a commission unless he/she has an express contract with the seller...?

TRUE

A real estate salesperson must work under a sponsoring broker...?

TRUE

A seller's agent owes the duties of honesty and fairness to all third parties in a transaction...?

TRUE

When one party promises to do something if the other party performs a certain act, but the other party does not promise to perform it, it is referred to as a/an...?

Unilateral contract

A contract that complies with all of the essential elements of a contact, and is enforceable and binding on all parties, is known as a/an...?

Valid contract

That which is capable of being adjudged void, but is not void unless action is taken to make it so, is referred to as...?

Voidable

This refers to the relationship between principal and the principal's agent which arises out of a contract, wherein the agent is employed by the principal to do certain acts dealing with a third party...?

agency

An agency relationship is created between a seller and a/an...?

broker

Anything given or promised by a party to induce another to enter into a contract is known as...?

consideration

Which of the following fiduciary duties demands that an agent work to the best of their abilities to achieve the goals of the principal...?

Diligence

Dual agency is illegal in California...?

FALSE

The intentional and successful employment of any cunning, deception, collusion, or artifice, used to circumvent, cheat or deceive another person whereby that person acts upon it to the loss of property and to legal injury, is known as...?

Fraud

An agent with full authority over one property of the principal is known as a...?

General agent

A person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another is referred to as a/an...?

Independent contractor

A sum agreed upon by the parties to be full damages if a certain event occurs is known as...?

Liquidated damages

Which of the following is an example of a unilateral contract...?

Open Listing

This refers to the adoption or approval of an act performed on behalf of a person without previous authorization, after the acts have been performed...?

Ratification

A listing contract between a seller and broker creates what type of agency...?

Special agent

A real estate agent typically serves as a/an...?

Special agent

An agent with limited authority to act on behalf of the principal is known as a...?

Special agent

A TDS form is not required when property is transferred between husband and wife...?

TRUE

Dual agency must be disclosed to all parties...?

TRUE

The agent owes fiduciary duties to the principal...?

TRUE

The commission split between a broker and agent can change over time...?

TRUE

Who serves as the cooperating broker to a seller's broker...?

The buyer's broker

Who is responsible for completing the Transfer Disclosure Statement form...?

The seller only

This refers to a listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract...?

Exclusive right to sell agreement

A contract in which both parties have completely performed their contractual obligations is known as a/an...?

Executed contract

A person in a position of trust and confidence, as between principal and broker, serves as a/a

Fiduciary

That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure, is referred to as a...?

Fiduciary duty

A writ or order issued under the seal of a court to restrain one or more parties to a suit or proceeding from doing an act which is deemed to be inequitable or unjust in regard to the rights of some other party or parties in the suit or proceeding is known as...?

Injuction

Which of the following is a disclosure that may be included in the sale of a residential property...?

Mold disclosure Natural hazards disclosure Lead-based paint hazard disclosure D) All of the above

Contract contingencies create a voidable contract...?

True

The statute of limitations for a negligent visual inspection is...?

2 years

A contract in which one or both parties have not yet completed performance of their obligations is known as a/an...?

Executory contract

A contract that has been put into words, either spoken or written, is referred to as a/an...?

Express contract

A contract in which a property owner employs a real estate broker to market the property described in the contract is known as a...?

Listing contract

A statute prescribing a period of limitation for the bringing of certain kinds of legal action is know as the...?

Statute of limitations

A broker is entitled to a commission if they find a ready, willing, and able buyer for the seller...?

TRUE

A sponsoring broker holds workers compensation insurance for their agents...?

TRUE

All real estate sales contracts must be in writing...?

TRUE

An agent is required to disclosure all known material facts to the customer...?

TRUE

A condition of a contract expressing the essential nature of performance of the contract by a party in a specified period of time is referred to as...?

Time is of the essence

A contract which has no force or effect is considered...?

Void

If a seller's agent is related to the buyer, but does not disclose this fact to the seller, they may be guilty of...?

Self Dealing

A state law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as...?

Statute of frauds

The statute of limitations for a breach of fiduciary duties is...?

3 years

A response to an offer to enter into a contract, changing some of the terms of the original offer, is referred to as a/an...?

Counter offer

An agency relationship created by oral or written agreement between a principal and the agent is known as...?

Express agency

According to the IRS, a real estate salesperson is an employee of their sponsoring broker...?

FALSE

All lease contracts must be in writing...?

FALSE

An agent is allowed to provide legal advice to their clients...?

FALSE

The listing agent can never be the selling agent in a transaction...?

False

A person performing any of the acts included in the definition of real estate broker but while associated with and supervised by a broker, is referred to as a...?

Real estate salesperson

Which of the following is an example of a bilateral contract...?

Exclusive agency agreement Exclusive right to sell agreement Purchase contract D) All of the above

Which of the following is an example of a material fact...?

A leaking roof

Money is commonly used as consideration in a real estate transaction...?

TRUE

Ostensible agency is typically created by estoppel...?

TRUE

If a broker represents a seller in a transaction, who operates as a third party to the agency relationship...?

A prospective buyer

The broker is responsible for paying which of the following expenses of their agents...?

Advertising Travel Taxes D) None of the above

The Seller's Property Questionnaire is required by law...?

FALSE

This refers to a person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another...?

Independent contractor

Any fact that would influence the decision of a reasonably prudent person is known as a...?

Material fact

False statements made negligently or innocently is referred to as...?

Misrepresentation

What is the standard commission split between a broker and their salesperson...?

There is no standard commission split