REE4433 CH 12 QUIZ

A broker usually works as an independent contractor in that he or she A. controls the manner in which the job is done. B. is paid a commission. C. is licensed by the state. D. represents the seller, not the buyer.

A

A buyer's broker A. owes fiduciary duties to the buyer. B. is legally entitled to compensation from both buyer and seller. C. is a subagent of the listing broker. D. is usually a dual agent.

A

A real estate sales associate A. is an employee, as he or she is required by law to be associated with a broker. B. must have experience selling real estate before taking the licensing exam. C. can be either an employee or an independent contractor. D. is an independent contractor until passing the licensing exam.

A

Which of the following actions is NOT required for brokers to meet the good faith and loyalty duties to the seller? A. Perform all tasks related to the transaction and property alone. B. Fully disclose to the principle all matters relating to the agency. C. Obey the principal's lawful instructions. D. Account to the principal for any proceeds of the agency coming in to his or her hands.

A

Which of the following activities demonstrates a broker's responsibility for being the procuring cause of a sale? A. Introducing the buyer and seller B. Researching the title C. Researching the sales price of comparable properties D. Recommending upgrades to the property

A

In the term ready, willing, and able, ready means that the buyer A. intended to buy at the time the parties were scheduled to perform. B. intended to buy at the time the contract was made. C. had financial resources sufficient to complete the transaction. D. had examined the title and was ready to proceed.

B

It is illegal for brokers to A. knowingly charge a fee similar to a competitor's. B. informally agree to charge the same commission. C. charge separate fees for different services such as appraising and conducting negotiations. D. charge a flat fee instead of a percentage of the selling price.

B

Which of the following statements best describes a broker's implied authority? A. The broker is authorized to make any and all decisions regarding transactions. B. The broker is bound as an agent to obey the directions of the principal. C. The broker may delegate any authorities in order to accomplish the terms of the agency. D. The broker is responsible for entering contracts on behalf of the principal.

B

Foster is the agent for the seller of a large home that has been in one family for 50 years. Foster noticed that the roof of the sun porch leaked during an unusually heavy storm. The owners reacted with surprise, noting that it had never happened before. What is TRUE about Foster's liability in this situation? A. Foster could be liable for fraud if the leak is concealed. B. Foster would only be liable to a buyer if he were a dual agent. C. Foster is responsible for having the leak repaired. D. As an agent for the seller, Foster is responsible only to the seller.

C

Multiple listing services are A. branches of a state real estate commission. B. established to limit a broker's commission. C. based upon agreements among brokers. D. exceptions to federal antitrust laws.

C

The agency relationship between the seller and the broker is created with the A. covenant. B. multiple-listing service. C. listing. D. license.

C

A designated agency A. requires that the same agent within the brokerage house represent the seller and the buyer B. does not require supervision by the broker C. presents the same problems as a dual agency D. requires the utmost sensitivity and confidentiality within the brokerage firm in order to maintain independent agent representation

D

The exclusive right to sell differs from the exclusive agency in that the exclusive right to sell A. allows the agent to withhold the listing from any multiple listing. B. is usually granted for an unlimited amount of time. C. allows the seller to list the property with any number of brokers. D. entitles the broker to a commission even if the seller procures the buyer.

D

Which of the following does not accurately describe real estate brokers? A. They serve as fiduciary B. They ordinarily represent the seller C. They must be licensed D. They often sue to collect commissions

D