Real Estate Quiz Review
"I get why YOU want a buyer representation agreement," your buyer tells you. "But what's in it for me?" You answer ____________. a) "It is required by law." b) "Without it, I owe you no duties." c) "Without it, I won't work very hard for you." d) "Without it, you are unrepresented."
"I get why YOU want a buyer representation agreement," your buyer tells you. "But what's in it for me?" You answer ____________. d) "Without it, you are unrepresented."
A client has asked her agent for a 24-hour notice on showings. The agent knows this will have a negative impact on the number of showings. Which duty is in conflict with reasonable skill and care? a) Accounting b) Confidentiality c) Disclosure d) Obedience
A client has asked her agent for a 24-hour notice on showings. The agent knows this will have a negative impact on the number of showings. Which duty is in conflict with reasonable skill and care? d) Obedience
A couple years after Meredith closed on her first sale—a condo that her buyer client, Derek, bought after a messy divorce that left him virtually penniless—another licensee, Alex, called her up asking about Derek, who'd just hired Alex to help him buy a mansion worth $4.2 million. "Can he really afford it? He's not being forthcoming about his financial history, and I don't want to waste my time." What should Meredith tell him? a) "I can only tell you what his financial situation was at the time that I represented him." b) "That seems odd, Alex. I don't know how he'd come up with so much money in such a short amount of time." c) "Why don't you have your lender friend pull his credit report?" d) "You know you shouldn't be asking me about this, Alex. I can't break my client's confidentiality."
A couple years after Meredith closed on her first sale—a condo that her buyer client, Derek, bought after a messy divorce that left him virtually penniless—another licensee, Alex, called her up asking about Derek, who'd just hired Alex to help him buy a mansion worth $4.2 million. "Can he really afford it? He's not being forthcoming about his financial history, and I don't want to waste my time." What should Meredith tell him? d) "You know you shouldn't be asking me about this, Alex. I can't break my client's confidentiality."
A situation where a brokers serves as broker for more than one firm is ________? a) illegal b) legal c) legal so long as the dual association is temporary and lasts no more than six months d) legal so long as the firms are in different countries
A situation where a brokers serves as broker for more than one firm is ________? b) legal
Alex would like to earn a broker license. To do so, he must be at least _____ years old. a) 16 b) 18 c) 20 d) 25
Alex would like to earn a broker license. To do so, he must be at least _____ years old. c) 20
Andrew just received a compensation check from his brokerage firm. Since Andrew is an independent contractor, what determines how he's paid? a) Andrew's date of hire b) Andrew's sales c) The number of hours that Andrew worked d) The number of sales agents at the brokerage
Andrew just received a compensation check from his brokerage firm. Since Andrew is an independent contractor, what determines how he's paid? b) Andrew's sales
Bailey, a salesperson, renewed his real estate license right on time 18 months ago. He will need to renew his license again ____________. a) immediately b) in 24 months c) in one month d) in 6 months
Bailey, a salesperson, renewed his real estate license right on time 18 months ago. He will need to renew his license again ____________. d) in 6 months
Bart just toured his fourth patio home of the day. To help him remember what he saw in each one, he's making notes about décor, updates, and inclusions that will stay with the property. Which of the following items is NOT considered personal property and would therefore stay with a home? a) The area rug in the dining room b) The banker's lamps in the den c) The chandelier in the foyer d) The chimenea on the back patio
Bart just toured his fourth patio home of the day. To help him remember what he saw in each one, he's making notes about décor, updates, and inclusions that will stay with the property. Which of the following items is NOT considered personal property and would therefore stay with a home? c) The chandelier in the foyer
Camille has a listing for a townhome, and appoints Ivy as her sub-agent. Ivy brings a buyer customer to the transaction, and the buyer purchases Camille's listing. What's true about the agency relationships in this situation? a) Camille owes her loyalty to Ivy. b) Ivy is Camille's sub-agent and owes loyalty to the seller. c) Ivy owes her loyalty to the buyer. d) The buyer is the sub-agent to the seller.
Camille has a listing for a townhome, and appoints Ivy as her sub-agent. Ivy brings a buyer customer to the transaction, and the buyer purchases Camille's listing. What's true about the agency relationships in this situation? b) Ivy is Camille's sub-agent and owes loyalty to the seller.
Carrying out a client's instructions describes the duty of ______. a) Accounting b) Loyalty c) Obedience d) Reasonable skill and care
Carrying out a client's instructions describes the duty of ______. c) Obedience
Christy found a property that was For Sale by Owner and made an offer. The seller accepted Christy's offer, but neither of them knew how to proceed. Licensee Zelda helped Christy complete the necessary purchase documents and walked her through the process. What kind of agency exists? a) Confirmed agency b) Express agency c) Implied agency d) Verbal agency
Christy found a property that was For Sale by Owner and made an offer. The seller accepted Christy's offer, but neither of them knew how to proceed. Licensee Zelda helped Christy complete the necessary purchase documents and walked her through the process. What kind of agency exists? c) Implied agency
Danielle's friend, Joanna, is an agent. Danielle is considering listing her property and shares the details with Joanna. Joanna creates an MLS listing and places a sign in Danielle's yard. Danielle knows that Joanna will do a good job, so even though she hadn't actually agreed to let Joanna list the property, she permits her to start scheduling showings. Which of these is an example of ratification? a)Danielle knows Joanna will do a good job, so she permits Joanna to start scheduling showings. b) Danielle sues Joanna because Joanna didn't have Danielle's permission to list the property. c) Joanna presents several offers to Danielle. d) Joanna schedules an open house at Danielle's property.
Danielle's friend, Joanna, is an agent. Danielle is considering listing her property and shares the details with Joanna. Joanna creates an MLS listing and places a sign in Danielle's yard. Danielle knows that Joanna will do a good job, so even though she hadn't actually agreed to let Joanna list the property, she permits her to start scheduling showings. Which of these is an example of ratification? a)Danielle knows Joanna will do a good job, so she permits Joanna
Display shelves installed by a business owner in a rented building are a good example of ______. a) Leased premises b) Real estate c) Real property d) Trade fixtures
Display shelves installed by a business owner in a rented building are a good example of ______. d) Trade fixtures
Doreen owns an office building and receives income from six stable tenants. What category of real estate does Doreen own? a) Agricultural b) Commercial c) Industrial d) Residential
Doreen owns an office building and receives income from six stable tenants. What category of real estate does Doreen own? b) Commercial
Frank is representing Jonathan in the sale of his home. A buyer approaches Frank at Jonathan's open house, and Frank agrees to represent her in purchasing Jonathan's house. What must Frank do to avoid an illegal dual agency situation? a) Inform the buyer that he represents the seller. b) Obtain dual agency consent from all parties. c) Obtain dual agency consent from the buyer. d) Obtain dual agency consent from the seller.
Frank is representing Jonathan in the sale of his home. A buyer approaches Frank at Jonathan's open house, and Frank agrees to represent her in purchasing Jonathan's house. What must Frank do to avoid an illegal dual agency situation? b) Obtain dual agency consent from all parties.
Gillian is a real estate licensee who attends a party at the home of a mortgage broker, Tim, with whom she has worked in the past. At the party, Tim offers her tickets to a concert, saying that he can't use them. She accepts gladly, and laughs when Tim says as he hands the tickets over, "And all I ask in return is that you send a customer or two my way!" Is Gillian guilty of a violation? a) No, but Tim is. b) No, there is no violation. c) Not unless she neglects to disclose the exchange and the value of the tickets to her broker within three days. d) Yes, Gillian is guilty of violating RESPA by accepting what amounts to a referral fee from a mortgage broker.
Gillian is a real estate licensee who attends a party at the home of a mortgage broker, Tim, with whom she has worked in the past. At the party, Tim offers her tickets to a concert, saying that he can't use them. She accepts gladly, and laughs when Tim says as he hands the tickets over, "And all I ask in return is that you send a customer or two my way!" Is Gillian guilty of a violation? d) Yes, Gillian is guilty of violating RESPA by accepting what amounts to a referral fee from a mortgage broker.
Ginnie's Aunt Becca listed the old family mansion with Ginnie. Ginnie put it on the marker for Becca, but then she and her cousins talked with Becca and decided they wanted to keep the property in the family. What's the best way to terminate the agreement? a) Becca should revoke the listing b) Ginnie and Becca can mutually agree to terminate the agreement. c) Ginnie should renounce the listing. d) They should wait for the listing to expire.
Ginnie's Aunt Becca listed the old family mansion with Ginnie. Ginnie put it on the marker for Becca, but then she and her cousins talked with Becca and decided they wanted to keep the property in the family. What's the best way to terminate the agreement? b) Ginnie and Becca can mutually agree to terminate the agreement.
Harriet, an out-of-state licensee, is friends with Tonya, a licensee with Perfectly at Home. Harriet referred one of her buyer friends to Tonya, so Tonya plans to pay Harriet a referral fee. Which statement about this fee is true? a) It's illegal for Tonya to pay an out-of-state licensee a referral fee. b) Referral fees have no disclosure requirements. c) Tonya must pay the fee directly to Harriet since Harriet is an out-of-state licensee. d) Tonya must pay the referral fee through her brokerage firm to Harriet's brokerage firm.
Harriet, an out-of-state licensee, is friends with Tonya, a licensee with Perfectly at Home. Harriet referred one of her buyer friends to Tonya, so Tonya plans to pay Harriet a referral fee. Which statement about this fee is true? d) Tonya must pay the referral fee through her brokerage firm to Harriet's brokerage firm.
If a licensee has been misclassified as an independent contractor, which of the following is a consequence for the licensee? a) The licensee can no longer file Schedule C to deduct business expenses. b) The licensee is liable for tax fraud. c) The licensee's license is revoked. d) The license is liable for workers' compensation and disability insurance coverage
If a licensee has been misclassified as an independent contractor, which of the following is a consequence for the licensee? a) The licensee can no longer file Schedule C to deduct business expenses.
If you represent the buyer and seller in the same transaction, what type of agency relationship do you have with your clients? a) Buyer agency b) Dual-license dual agency c) Seller agency d) Single-license dual agency
If you represent the buyer and seller in the same transaction, what type of agency relationship do you have with your clients? d) Single-license dual agency
If you're negotiating, and a conflict arises, which approach will open up the most possibilities for a resolution? a) Assigning blame b) Determining how conflict happened c) Determining why conflict happened d) Taking a what's next approach
If you're negotiating, and a conflict arises, which approach will open up the most possibilities for a resolution? d) Taking a what's next approach
In a real estate transaction in which you represent the seller, your duty to other parties is to ______. a) Be honest in all matters that do not affect your client's interests b) Be polite and courteous c) Maintain the confidentiality of all matters that other parties disclose to you d) Treat them honestly and fairly
In a real estate transaction in which you represent the seller, your duty to other parties is to ______. d) Treat them honestly and fairly
In which of these situations has the licensee compromised the duties of loyalty and disclosure? a) Diana failed to present the most recent offer to the seller because it was under list price. b) Hillary, in working with the seller, told the buyer about a material defect the seller hadn't disclosed. c) Josie, in listing Rob's property, failed to disclose to Rob that he represents the seller. d) Nate didn't tell his client about a conflict of interest related to the sale of the client's property.
In which of these situations has the licensee compromised the duties of loyalty and disclosure? d) Nate didn't tell his client about a conflict of interest related to the sale of the client's property.
In which of these situations is Ronna's fiduciary duty of reasonable skill and care at odds with her duty of obedience? a) Jefferson insists that Ronna interpret the implications of him breaching his contract with a buyer b) Ronna's buyer client asker her to keep his financial situation confidential c) Ted, Ronna's broker, insisted that she teach a contracts class, even though she's a new agent d) though her customer was adamant, Ronna turned down a commercial listing because it was outside her area of expertise
In which of these situations is Ronna's fiduciary duty of reasonable skill and care at odds with her duty of obedience? a) Jefferson insists that Ronna interpret the implications of him breaching his contract with a buyer
In which of these situations would a listing be most likely to terminate due to listing agreement expiration? a) A market with high inventory and low demand b) A market with low inventory and high demand c) A moderately-priced home in a neighborhood slated for renewal d) A moderately priced home sold as-is in a market full of investors
In which of these situations would a listing be most likely to terminate due to listing agreement expiration? a) A market with high inventory and low demand
Informing parties of material facts related to a transaction describes the duty of ______. a) Accounting b) Disclosure c) Loyalty d) Reasonable skill and care
Informing parties of material facts related to a transaction describes the duty of ______. b) Disclosure
Jason is the seller's agent. His seller has a leaky roof he'd rather keep secret from buyers. What should Jason do? a) Fulfill his duty of loyalty. Revealing the roof leak may not be in his client's best interest. b) Fulfill his duty of obedience by keeping the roof secret, as his client instructed. c) Inform the seller that the roof leak is a material fact that he is obligated to disclose to buyers. d) Quit representing the seller.
Jason is the seller's agent. His seller has a leaky roof he'd rather keep secret from buyers. What should Jason do? c) Inform the seller that the roof leak is a material fact that he is obligated to disclose to buyers.
Javier represents Marcus, who's selling his rental property to Ben. Ben is represented by another real estate licensee, Francis. What is Ben's relationship to Javier? a) client and fiduciary b) customer c) customer and client d) fiduciary
Javier represents Marcus, who's selling his rental property to Ben. Ben is represented by another real estate licensee, Francis. What is Ben's relationship to Javier? b) customer
Jerry is a licensee employed by Sal, a real estate broker. Jerry just heard that the brokerage is representing a well-known professional athlete looking for a new property. He tells a couple of his friends, who happen to be avid fans. Which duty did Jerry break? a) Accounting b) Confidentiality c) Disclosure d) Reasonable skill and care
Jerry is a licensee employed by Sal, a real estate broker. Jerry just heard that the brokerage is representing a well-known professional athlete looking for a new property. He tells a couple of his friends, who happen to be avid fans. Which duty did Jerry break? b) Confidentiality
Jerry is a licensee employed by Sal, a real estate broker. Jerry must adhere to the policies, procedures and lawful instruction of Sal. What duty is this an example of? a) Accountability b) Disclosure c) Obedience d) Reasonable skill and care
Jerry is a licensee employed by Sal, a real estate broker. Jerry must adhere to the policies, procedures and lawful instruction of Sal. What duty is this an example of? c) Obedience
Jill is selling her property and hired David as her agent. David brings another client, Kirk, to see the property, which Kirk is interested in purchasing. Who is David in this scenario? a) a buyer's agent b) a dual agent c) a seller's agent d) a sub-agent
Jill is selling her property and hired David as her agent. David brings another client, Kirk, to see the property, which Kirk is interested in purchasing. Who is David in this scenario? b) a dual agent
Jim would like to sell his own home. What is the minimum real estate license he must possess? a) associate broker b) broker c) none d) salesperson
Jim would like to sell his own home. What is the minimum real estate license he must possess? c) none
Karla works for a single-agency firm. Which of these actions is she NOT allowed to take? a) Giving her client the duty of obedience b) Helping another broker in her firm with some transactional work c) Representing both the buyer and the seller in the same transaction d) Representing the seller in multiple transactions
Karla works for a single-agency firm. Which of these actions is she NOT allowed to take? c) Representing both the buyer and the seller in the same transaction
Kevin listed his house with you but isn't offering a cooperating agent's commission. Ji-eun represents the buyer, Marta, and Marta's parents, Jean and Tom, are paying Ji-eun's commission. On which of these factors is your agency relationship based? a) Kevin is paying your commission. b) Kevin owns the property you've listed. c) Kevin signed a listing agreement with you. d) Marta's parents are paying the buyer's agent commission.
Kevin listed his house with you but isn't offering a cooperating agent's commission. Ji-eun represents the buyer, Marta, and Marta's parents, Jean and Tom, are paying Ji-eun's commission. On which of these factors is your agency relationship based? c) Kevin signed a listing agreement with you.
Kim is a sub-agent in a transaction involving a buyer customer, a seller, and a listing agent. Who is Kim a sub-agent for? a) Both buyer and seller b) The buyer c) The listing agent d) The listing agent and seller
Kim is a sub-agent in a transaction involving a buyer customer, a seller, and a listing agent. Who is Kim a sub-agent for? d) The listing agent and seller
Licensee Arlene is helping a client purchase a property that's suitable for use as a private school, meaning it needs to have classrooms, assembly rooms, and sports fields. She locates two properties in the area that have the required attributes. What category of property is this considered? a) Commercial b) Industrial c) Residential d) Special purpose
Licensee Arlene is helping a client purchase a property that's suitable for use as a private school, meaning it needs to have classrooms, assembly rooms, and sports fields. She locates two properties in the area that have the required attributes. What category of property is this considered? d) Special purpose
Licensee Dionne pointed out to her buyer client the items in the house she was showing that would be considered real property. One of the key determinants, she explained, was whether the item were _______. a) Internal or external to the house b) Made of the same material as an interior or exterior wall c) Over or under a certain value d) Permanently affixed to the property
Licensee Dionne pointed out to her buyer client the items in the house she was showing that would be considered real property. One of the key determinants, she explained, was whether the item were _______. d) Permanently affixed to the property
Licensees and brokers must abide by specific guidelines for the licensee to maintain independent contractor status. These guidelines require that ______. a) All the money the licensee receives must be based on services rendered for sales or other output and not on the number of hours the licensee works b) The broker must offer the licensee no more than 15 annual paid vacation days c) The broker must treat the licensee as an employee for federal tax purposes d) There must be a verbal agreement between the broker and the licensee
Licensees and brokers must abide by specific guidelines for the licensee to maintain independent contractor status. These guidelines require that ______. a) All the money the licensee receives must be based on services rendered for sales or other output and not on the number of hours the licensee works
Marcy listed her property with Jennings Homes in March. The market was slow, and Marcy's property isn't in great condition—though she's sure she can get top dollar for it because of its location. Her agent encouraged her to either reduce the price or fix the property up, but she refused. Both Marcy and her agent are frustrated. What's the best option for both of them? a)Bring in another agent to help price the property. b) Let the listing expire. c) One party or the other should terminate the listing. d) They can mutually agree to terminate the listing.
Marcy listed her property with Jennings Homes in March. The market was slow, and Marcy's property isn't in great condition—though she's sure she can get top dollar for it because of its location. Her agent encouraged her to either reduce the price or fix the property up, but she refused. Both Marcy and her agent are frustrated. What's the best option for both of them? d) They can mutually agree to terminate the listing.
Maurice is a cooperating broker. What does this mean? a) he doesn't mind floor time b) he doesn't mind working with other brokers c) he pays a referral fee d) he's from another brokerage and brings the party to the transaction
Maurice is a cooperating broker. What does this mean? d) he's from another brokerage and brings the party to the transaction
Mindy is a high school junior and would like to practice real estate. At what age will she be old enough to apply for a real estate salesperson license? a) 17 years old, provided she has graduated b) 18 years old c) 18 years old, or 17 if she has graduated high school d) 20 years old
Mindy is a high school junior and would like to practice real estate. At what age will she be old enough to apply for a real estate salesperson license? b) 18 years old
Ned represents Sofia in the sale of her townhome. Luciana represents Sofia's buyer, Arturo. What is Sofia's relationship to Luciana? a) Luciana is Sofia's customer. b) Luciana is Sofia's fiduciary. c) Sofia is Luciana's client. d) Sofia is Luciana's customer.
Ned represents Sofia in the sale of her townhome. Luciana represents Sofia's buyer, Arturo. What is Sofia's relationship to Luciana? d) Sofia is Luciana's customer.
Per DOS 175.123, brokers must maintain records showing the amount of ______ received for each transaction. a) Benefits b) Commission c) Travel expenses d) Vacation time
Per DOS 175.123, brokers must maintain records showing the amount of ______ received for each transaction. b) Commission
Prior to offering services to a potential buyer, why would an agent want to ask questions to pre-qualify a buyer? a) To add the buyer to a contact database b) To find out if the buyer is worth the agent's time c) To steer the buyer toward a specific lender d) To take the buyer away from a competing agent
Prior to offering services to a potential buyer, why would an agent want to ask questions to pre-qualify a buyer? b) To find out if the buyer is worth the agent's time
Property owners who live on or next to water have certain rights. An example of one of these rights includes ______. a) Contamination b) Hazardous waste c) Littoral d) Reversionary
Property owners who live on or next to water have certain rights. An example of one of these rights includes ______. c) Littoral
Rhonda is an unrepresented buyer and is purchasing Tony's town home. Gary represents Tony in the sale of his property. What's Rhonda's relationship to Gary? a) a client and fiduciary b) a customer c) a customer and client d) a fiduciary
Rhonda is an unrepresented buyer and is purchasing Tony's town home. Gary represents Tony in the sale of his property. What's Rhonda's relationship to Gary? b) a customer
Rose, a new licensee, is thrilled that a potential buyer client has agreed to have a sit-down meeting with her. Where should this meeting take place? a) Anywhere, as long as it's a public place b)At a coffee shop c) At Rose's office d) At the buyer's home
Rose, a new licensee, is thrilled that a potential buyer client has agreed to have a sit-down meeting with her. Where should this meeting take place? c) At Rose's office
Sean represented Jamie as a buyer's agent. Jamie purchased a property that allowed cooperating agents to receive compensation of 2.5% of the sales price upon closing of the transaction. Sean hasn't been paid and the transaction closed six months ago. What can Sean do? a) Sean can ask the buyer to write a check for his commission. b) Sean can ask the seller to write a check for his commission. c) Sean can bring action against the broker who did not pay his commission. d) Sean can't do anything. The statute of limitations has passed.
Sean represented Jamie as a buyer's agent. Jamie purchased a property that allowed cooperating agents to receive compensation of 2.5% of the sales price upon closing of the transaction. Sean hasn't been paid and the transaction closed six months ago. What can Sean do? c) Sean can bring action against the broker who did not pay his commission.
Specifically, what does the fiduciary duty of disclosure relate to? a) Adverse material facts and publicly recorded facts only b) Conflicts of interest and confidential information only c) Conflicts of interest, material facts, and adverse material facts d) Material facts and adverse material facts only
Specifically, what does the fiduciary duty of disclosure relate to? c) Conflicts of interest, material facts, and adverse material facts
Sponsoring brokers are required to hold on to the licenses of ___________? a) neither sponsored salespersons nor sponsored associate brokers b) sponsored associate brokers only c) sponsored salespersons and sponsored associate brokers d) sponsored salespersons only
Sponsoring brokers are required to hold on to the licenses of ___________? c) sponsored salespersons and sponsored associate brokers
The owners of Brick and Brack, a development company, have purchased several acres of vacant land for their latest development. They plan to build a community of affordable single-family homes. What category of real estate will these be in after construction? a) Agricultural b) Commercial c) Industrial d) Residential
The owners of Brick and Brack, a development company, have purchased several acres of vacant land for their latest development. They plan to build a community of affordable single-family homes. What category of real estate will these be in after construction? d) Residential
The right to access ponds, lakes, and other stationary bodies of water is ______. a) Littoral b) Mineral c) Riparian d) Water
The right to access ponds, lakes, and other stationary bodies of water is ______. a) Littoral
The right to access rivers, streams, and other flowing bodies of water adjacent to a property is called ______. a) Land b) Littoral c) Mineral d) Riparian
The right to access rivers, streams, and other flowing bodies of water adjacent to a property is called ______. d) Riparian
To whom do sub-agents working with buyer customers owe their duties? a) No one b) The buyers c) The buyers and sellers equally d) The sellers and the seller's agents
To whom do sub-agents working with buyer customers owe their duties? d) The sellers and the seller's agents
Trina's property is listed with Avalon Homes. The market is a little slow, and Trina's listing is a high-end home, where sales are even slower. She's had several showings, but no offers. The term of the listing agreement is nearly over. What happens when the termination date is reached? a) The listing expires and is automatically terminated. b) Trina can't extend the listing agreement, so she'll have to list with another brokerage firm. c) Trina owes Avalon whatever compensation was noted in the listing agreement. d) Trina's agent may still try to sell the property
Trina's property is listed with Avalon Homes. The market is a little slow, and Trina's listing is a high-end home, where sales are even slower. She's had several showings, but no offers. The term of the listing agreement is nearly over. What happens when the termination date is reached? a) The listing expires and is automatically terminated.
What do Internal Revenue Code Section 3508 (a) (b) and 1986 New York Independent Contractor Law specify with regard to a broker's treatment of a licensee? a) The broker is not allowed to socialize with the licensee. b) The broker is not allowed to supervise the licensee. c) The broker must not treat the licensee as an employee for federal tax purposes. d) The broker must treat the licensee like every other licensee in the firm.
What do Internal Revenue Code Section 3508 (a) (b) and 1986 New York Independent Contractor Law specify with regard to a broker's treatment of a licensee? c) The broker must not treat the licensee as an employee for federal tax purposes.
What effect does a pre-approval letter have on an offer? a) It assures the seller that the buyer's financial information has been verified. b) It has no effect. c) It kills it. d) It provides some assurance to the seller, but not as much as a pre-qualification letter would.
What effect does a pre-approval letter have on an offer? a) It assures the seller that the buyer's financial information has been verified.
What is the schedule of exceptions? a) A list of items title insurance won't cover b) An appraiser's list of unrelated properties c) An inspection repair list d) An underwriting issue
What is the schedule of exceptions? a) A list of items title insurance won't cover
What strategy can a licensee use when a seller client is presented with reasonable offers, but refuses to budge on price or terms? a) Advise prospective buyers that their offers won't be considered unless they meet the seller's stiff requirements. b) Help the seller remember the goal of a closed transaction. c) Stop presenting offers received until the seller agrees to consider negotiating. d) Threaten to cancel the listing agreement.
What strategy can a licensee use when a seller client is presented with reasonable offers, but refuses to budge on price or terms? b) Help the seller remember the goal of a closed transaction.
What type of agent is an escrow officer? a) general agent b) limited agent c) single agent d) universal agent
What type of agent is an escrow officer? b) limited agent
What type of agreement accounts for commission to be paid and includes the seller's permission for marketing the property? a) The buyer's agency agreement b) The listing agreement c) The sales agreement d) The seller's agency agreement
What type of agreement accounts for commission to be paid and includes the seller's permission for marketing the property? b) The listing agreement
What type of worker, defined under tax law as an independent contractor and not an employee, includes direct sellers and licensed real estate agents? a) common law employee b) employee c) statutory employee d) statutory non employee
What type of worker, defined under tax law as an independent contractor and not an employee, includes direct sellers and licensed real estate agents? d) statutory non employee
When Henry first began his real estate career, he focused on residential properties. As he gained more experience, he found that he really enjoyed helping business owners find warehouses for their products, or properties where they could conduct manufacturing activities. Of the primary categories of real estate, what types of properties does Henry handle? a) Industrial b) Leisure c) Residential d) Retail
When Henry first began his real estate career, he focused on residential properties. As he gained more experience, he found that he really enjoyed helping business owners find warehouses for their products, or properties where they could conduct manufacturing activities. Of the primary categories of real estate, what types of properties does Henry handle? a) Industrial
When is a real estate license required? a) when performing maintenance work for one property owner b) when performing real estate activities for others, for compensation of any kind c) when performing real estate activities for others without compensation d) when performing real estate activities for yourself
When is a real estate license required? b) when performing real estate activities for others, for compensation of any kind
When representing the seller, what duty do you owe a buyer? a) Advise the buyer on negotiating a better price. b) Pre-qualify the buyer before presenting their offer to your seller. c) Present offers from the buyer to your seller. d) Recommend the buyer obtain a property inspection.
When representing the seller, what duty do you owe a buyer? c) Present offers from the buyer to your seller.
When working with your clients, your role in negotiation is ______. a) Communicating to reach a joint decision that's agreeable to both sides b) Negotiating a joint decision that favors the buyer, since they're putting up the money c) Negotiating so the seller wins and the buyer agrees to the seller's terms d) Working to structure the outcomes so they best suit the brokerage first
When working with your clients, your role in negotiation is ______. a) Communicating to reach a joint decision that's agreeable to both sides
Which category of worker is classified by the common understanding of the profession? A food server is an example. a) Common law employee b)Independent contractor c) Statutory employee d) Statutory non-employ
Which category of worker is classified by the common understanding of the profession? A food server is an example. a) Common law employee
Which law or regulation requires supervision by the broker to include regular, frequent and consistent guidance, instruction, and oversight? a) 1986 New York Independent Contractor Law b) DOS Regulation 175.21 c) Internal Revenue Code Section 3508 (a) (b) d) Sarbanes-Oxley Act
Which law or regulation requires supervision by the broker to include regular, frequent and consistent guidance, instruction, and oversight? b) DOS Regulation 175.21
Which list of items will you find on a licensee's New York pocket card? a) the licensee's business address, home address, and sponsoring broker's name b) the licensee's business name and home address c) the licensee's name, business address, and sponsoring broker's name d) the licenses license number, business name, home address, and name of sponsoring broker
Which list of items will you find on a licensee's New York pocket card? c) the licensee's name, business address, and sponsoring broker's name
Which of the following can hold a broker's license? a) a broker company only b) a person only c) a person or an entity d) a salesperson with over five years' experience
Which of the following can hold a broker's license? c) a person or an entity
Which of the following describes a listing agreement termination by completion/performance? a) Dean lists his property on August 1. After just a few showings, he accepts an offer on August 12. The closing takes place on September 22. b) Margaret listed her property on April 1. She receives and accepts an offer on April 3. On closing day, the buyers back out. c) On December 15, Kevin lists his property for three months. On March 16, he declines to extend the listing agreement. d) Wendall lists his property on January 1. His agent fails to show or market the property, and Wendall revokes the listing agreement on March 1.
Which of the following describes a listing agreement termination by completion/performance? a) Dean lists his property on August 1. After just a few showings, he accepts an offer on August 12. The closing takes place on September 22.
Which of the following duties are owed to customers and other parties to a real estate transaction? a) Fairness and loyalty b) Honesty and fairness c) Honesty and obedience d) Obedience and loyalty
Which of the following duties are owed to customers and other parties to a real estate transaction? b) Honesty and fairness
Which of the following factors helps the IRS determine whether a licensee is classified as an employee or an independent contractor? a) Whether another broker supervises the licensee b) Whether the brokerage offers regular guidance and instruction to the licensee c) Whether the firm provides the licensee with a copy of the brokerage's policies and procedures manual d) Whether the licensee receives benefits from the brokerage firm
Which of the following factors helps the IRS determine whether a licensee is classified as an employee or an independent contractor? d) Whether the licensee receives benefits from the brokerage firm
Which of the following is a guideline under the 1986 New York Independent Contractor Law? a) independent contractors are entitled to a minimum of 12 paid vacation days annually b) independent contractors are not responsible for paying their own expenses c) independent contractors may not contract for outside work d) independent contractors may work any hours and in any location
Which of the following is a guideline under the 1986 New York Independent Contractor Law? d) independent contractors may work any hours and in any location
Which of the following is a reason that the federal and state government classify workers into taxing categories? a) To determine whether the worker is exempt or non-exempt for purposes of the Fair Labor Standards Act b) To ensure brokers withhold income taxes from their independent contractors c) To ensure brokers withhold taxes for independent contractors d) To ensure that both employees and independent contractors receive health insurance benefits
Which of the following is a reason that the federal and state government classify workers into taxing categories? a) To determine whether the worker is exempt or non-exempt for purposes of the Fair Labor Standards Act
Which of the following is an example of a universal agent? a) buyer's agent b) conservator c) escrow officer d) listing agent
Which of the following is an example of a universal agent? b) conservator
Which of the following is an example of an agent exercising the duties owed to customers and other parties? a) Ari didn't present the buyer's offer to the seller, since it was a lowball offer. b) Francine disclosed information about the flooding basement to the buyer and buyer's agent. c) Mark complied with the buyer's agent's instructions to change the available times for showings so the potential buyer could see the property. d) With her client's permission, Missy shared the entire inspection report with the seller's agent.
Which of the following is an example of an agent exercising the duties owed to customers and other parties? b) Francine disclosed information about the flooding basement to the buyer and buyer's agent.
Which of the following license types involves charging a fee to provide information to consumers regarding the location and availability of residential real property for rent? a) apartment information vendor b) appraiser c) home inspector d) mortgage broker
Which of the following license types involves charging a fee to provide information to consumers regarding the location and availability of residential real property for rent? a) apartment information vendor
Which of the following pieces of information may you share with the buyer if you are the seller's agent? a) None of these facts may be shared with the buyer if you are the seller's agent. b) The roof leaks when it rains. c) The seller is in a hurry to move because his wife is seven months pregnant. d) The seller is willing to take less than the asking price.
Which of the following pieces of information may you share with the buyer if you are the seller's agent? b) The roof leaks when it rains.
Which of the following statements about the fiduciary duty of confidentiality is true? a) It doesn't extend to material facts relating to the property. b) It encompasses any and all information the client tells the agent, not just confidential information. c) It ends with the termination of the agency agreement. d) It never conflicts with the duty of disclosure.
Which of the following statements about the fiduciary duty of confidentiality is true? a) It doesn't extend to material facts relating to the property.
Which of the following statements about the fiduciary duty of disclosure is true? a) It only applies to the seller's agent. b) It requires licensees to disclose everything to all parties. c) It's owed to other parties, not just to the licensee's clients. d) It's owed to the licensee's clients only.
Which of the following statements about the fiduciary duty of disclosure is true? d) It's owed to the licensee's clients only.
Which of the following statements applies to independent contractors? a) Their broker sets their work hours. b) Their broker supervises them. c) Their work must be done in a specific location. d) They're paid by the hour, not by the job.
Which of the following statements applies to independent contractors? b) Their broker supervises them.
Which of the following statements is true of independent contractor licensees? a) their brokerage firm pays certain expenses, such as gas and travel time b) they receive benefits, such as sick pay, from their brokerage firms c) they're paid by the job d) they're required to do work in a certain order
Which of the following statements is true of independent contractor licensees? c) they're paid by the job
Which one of the following tasks must a licensee perform for seller clients? a) Assist the seller in finding someone who can effectively market the property. b) Inform sellers of their responsibility to make all required property condition disclosures. c) Set the listing price of the property based on comparables. d) Tell the sellers how to deposit the buyer's earnest money into their personal checking account.
Which one of the following tasks must a licensee perform for seller clients? b) Inform sellers of their responsibility to make all required property condition disclosures.
Which term would you most likely see associated with a lake? a) Fracking b) Littoral c) Percolating d) Riparian
Which term would you most likely see associated with a lake? b) Littoral
Which type of worker, though an independent contractor, is defined as an employee by statute for certain employment tax purposes? A food delivery driver who is paid on commission is an example. a) Common law employee b) Independent contractor c) Statutory employee d) Statutory non-employee
Which type of worker, though an independent contractor, is defined as an employee by statute for certain employment tax purposes? A food delivery driver who is paid on commission is an example. c) Statutory employee
Who my offer "brokerage services"? a) agents only b) anyone c) brokers only d) licensees only
Who my offer "brokerage services"? d) licensees only
You have a seller who is refusing a very good offer on a property that's been on the market for a while. How can you help your client? a) Give up and move on to the next client. Sometimes clients are impossible to work with. b) Tell the client it's his house and his choice, but you think he should accept. c) Try and help the seller see the big picture and the value of an offer on the table. d) Try to work with the buyer to get a much higher offer, since this might make the client happier.
You have a seller who is refusing a very good offer on a property that's been on the market for a while. How can you help your client? c) Try and help the seller see the big picture and the value of an offer on the table.
You might tell a new client, "This means that I, as the agent, have to keep certain private information you tell me, or that I find out otherwise in our relationship, to myself," when describing your duty of______ to the client. a) Confidentiality b) Loyalty c) Obedience d) Reasonable skill and care.
You might tell a new client, "This means that I, as the agent, have to keep certain private information you tell me, or that I find out otherwise in our relationship, to myself," when describing your duty of______ to the client. a) Confidentiality
You represent Ember as her listing agent. Ashley is the buyer, and Trinity represents her. What duties do you owe Trinity? a) Honesty and fairness b) The duty of confidentiality c) The duty of loyalty d) The same duties you owe Ember
You represent Ember as her listing agent. Ashley is the buyer, and Trinity represents her. What duties do you owe Trinity? a) Honesty and fairness
You represent the buyer, and another licensee from your brokerage represents the seller in the same transaction. What type of agency relationship do you and the other licensee have with your clients? a) Buyer agency b) Dual-license dual agency c) Seller agency d) Single-license dual agency
You represent the buyer, and another licensee from your brokerage represents the seller in the same transaction. What type of agency relationship do you and the other licensee have with your clients? b) Dual-license dual agency
You work for XYZ Realty under the supervision of broker Luke. Your buddy in the next county gave you a referral fee. The check came to your office in your name. You deposit it. Is this okay? a) No, because agents can only be paid directly if they're paid in cash. b) No, because all compensation must come through your broker. c) Yes, if the check is endorsed by your broker, as well. d) Yes, provided your broker knows about the check.
You work for XYZ Realty under the supervision of broker Luke. Your buddy in the next county gave you a referral fee. The check came to your office in your name. You deposit it. Is this okay? b) No, because all compensation must come through your broker.
You're meeting the seller's agent at a listing. As you exit the car, it begins to rain and by the time you reach the door, you're both drenched. The seller's agent seems unfazed. He says "The rain feels wonderful, doesn't it? Reminds me of being a kid, stomping around in mud puddles on a rainy day." This is an example of which kind of anchor? a) Auditory b) Kinesthetic c) Olfactory d) Visual
You're meeting the seller's agent at a listing. As you exit the car, it begins to rain and by the time you reach the door, you're both drenched. The seller's agent seems unfazed. He says "The rain feels wonderful, doesn't it? Reminds me of being a kid, stomping around in mud puddles on a rainy day." This is an example of which kind of anchor? b) Kinesthetic
Your brother, Paul, just got his real estate license. He tells you he's not sure if he should work for an agency or a brokerage. You should tell him which of the following? a) "choose an agency to start, then transfer to a brokerage after a few years' experience" b) "select a brokerage; they are much more professional" c) "they are the same thing" d) "you probably won't be allowed to join a brokerage until you are a broker"
Your brother, Paul, just got his real estate license. He tells you he's not sure if he should work for an agency or a brokerage. You should tell him which of the following? c) "they are the same thing"
Your buyer client, Percy, wants to start searching for his dream house and knows he needs to obtain financing to accomplish that. What's his first step? a) Complete a loan application. b) Obtain a pre-qualification letter. c) Sign a purchase agreement. d) Write an offer.
Your buyer client, Percy, wants to start searching for his dream house and knows he needs to obtain financing to accomplish that. What's his first step? b) Obtain a pre-qualification letter.
Your clients, the Manfreds, are first-time homebuyers. They barely scraped together their down payment and really want to minimize their cash outlay. They would prefer to avoid the home inspection and just have their parents look over the property, saving the $500 for other purposes. What should you tell them? a) "Great idea!" b) "I have to obey you; it is my fiduciary duty." c) "In that case, let's remove the home inspection as a contingency." d) "I would not recommend that."
Your clients, the Manfreds, are first-time homebuyers. They barely scraped together their down payment and really want to minimize their cash outlay. They would prefer to avoid the home inspection and just have their parents look over the property, saving the $500 for other purposes. What should you tell them? d) "I would not recommend that."
Your seller client asks you not to mention to buyers that the basement leaked last year. Should you obey? a) No, because obedience is not a required duty. b) No, because the leak occurred last year. c) No, because this is a material fact related to the property. d) Yes, because obedience is a fiduciary duty.
Your seller client asks you not to mention to buyers that the basement leaked last year. Should you obey? c) No, because this is a material fact related to the property.
Your seller client needs to sell as soon as possible. How should you respond if a prospective buyer asks you whether your seller is firm on price? a) "I don't know." b) "The seller believes the home is priced fairly. I suggest you write your highest and best offer." c) "The seller is highly motivated." d) "The seller would probably be willing to entertain any offer."
Your seller client needs to sell as soon as possible. How should you respond if a prospective buyer asks you whether your seller is firm on price? b) "The seller believes the home is priced fairly. I suggest you write your highest and best offer."
Your seller clients, the Jones family, complain that the buyer's financing fell through. "The buyer was pre-qualified! How can this happen?" they ask. You answer, "______." a) Pre-qualification does not equal pre-approval. b) The lender must have used the wrong formula. c) We can sue. d) You win some, you lose some.
Your seller clients, the Jones family, complain that the buyer's financing fell through. "The buyer was pre-qualified! How can this happen?" they ask. You answer, "______." a) Pre-qualification does not equal pre-approval.
Zack represents a seller and receives an offer through another agent. The offer is higher than the listing price. The property is already listed at a very high price, and no other offers have been received. Is Zack obligated by his duties to the other party to disclose that the offer is too high? a) No, but Zack should honor his duty to all parties by asking his client to decline the offer. b) No, his fiduciary duty is to his own client. The buyer's agent must be responsible for advising on a fair price for the property. c) Yes, Zack must be honest and fair with all parties in the transaction. d) Zack can request that both parties consent to dual agency so that he can negotiate an honest price that will be fair to all.
Zack represents a seller and receives an offer through another agent. The offer is higher than the listing price. The property is already listed at a very high price, and no other offers have been received. Is Zack obligated by his duties to the other party to disclose that the offer is too high? b) No, his fiduciary duty is to his own client. The buyer's agent must be responsible for advising on a fair price for the property.
