Section 18 Unit 2 Exam Practice

Disclose his agency relationship with the seller to the prospective buyer.

Daniel has several properties listed around town. He receives a call from a prospective buyer who is very interested in one of the properties and wants to schedule a showing. What should Daniel do?

Use standard, approved language in contingencies, addenda, and additional provision areas.

Darcy and her buyer client Josh are reviewing Josh's offer before they submit it to the seller. Which of these actions may Darcy take without potentially crossing into the unauthorized practice of law?

Consult an attorney.

Real estate licensee William is preparing a sale agreement that will include an unusual circumstance. What's his best course of action?

Yes, licensees can use standard forms provided by the brokerage or approved by an attorney.

Roberto, a licensee, filled in the blanks on a standard form used in his brokerage firm. Is this okay?

She is related to the seller (her mother).

Susan is a real estate licensee. Her mother is moving to a facility for active seniors and has asked Susan to sell her home. What information does Susan need to disclose to prospective buyers?

Make sure all parties have copies of the paperwork and that it's retained for the statutory period.

What is a licensee's responsibility related to the paperwork in a real estate transaction?

Learn and understand tenants' legal rights.

Which of the following actions concerning tenant rights should real estate licensees take?

Interpreting the legal consequences of a client's actions

Which of the following is considered unauthorized practice of law?

"Most couples take ownership of property as joint tenants, so that's what I'd advise."

Which one of Gerry's statements to a client crosses the line into unauthorized practice of law?

Instruct the client to hire an attorney to draft the clause.

Nicholas is working with a buyer client who wants a special clause added to his purchase contract. How should Nicholas handle this?

Writing contract addenda or additional provisions that cover unfamiliar circumstances.

Unauthorized practice of law and acting outside the scope of one's expertise are similar issues. Which of the following circumstances specifically relates to the unauthorized practice of law?

Inquire about the homeowner's claim to ensure the property really is on public sewer.

You're walking through a property with a new seller client. The seller tells you that the property is serviced by the public sewer system, but when walking up the drive you noticed the access hatch for a septic system. What should you do?