Section 4 Quiz

A seller has her property listed for $85,000 but tells the broker she is desperate to sell and will take as little as $74,500. She even mentions this while the broker is showing the house to a prospective buyer. The broker A.)cannot legally mention the $74,500 price. B.)should encourage the prospective buyer to offer $74,500 so the house will sell faster. C.)should encourage the prospective buyer to offer a figure just above $74,500. D.)can legally represent the price of the property at less than $74,500.

A.)cannot legally mention the $74,500 price. Reason:Brokers are required to maintain confidentiality with their clients.Reference: 4.3

A broker listed a land for $90,000. Jim verbally offered $88,000. Another buyer who knew about Jim's offer made an offer of $93,000. The broker drew up a written contract for $93,000 but did not inform the owner about the offer for $88,000. Which is correct? A.)The broker properly submitted only the higher offer. B.)The broker should have presented both offers to owner. C.)The owner must accept any offer that meets or exceeds the listing price. D.)The broker has the right to decide which offer to present to the owner.

B.)The broker should have presented both offers to owner. Reason:The broker must present all offers and counteroffers to their clients.Reference: 4.3

A broker listed a house and is the single agent of the seller. A prospective buyer wants to view the home and wants the broker to represent him too. The broker must A.)disclose in writing to a buyer that the licensee is an agent of seller. B.)have the seller sign a Transition to Transaction Broker form before showing the house to the buyer. C.)deliver a copy of the Agency Disclosure Form to the seller. D.)get the informed, written consent of all parties prior to becoming a dual agent.

B.)have the seller sign a Transition to Transaction Reason:A single-agent relationship can be changed to a transaction broker relationship if the agent provides their principal a transition disclosure and the principal consents to the transition. Reference: 4.4

When must the No Brokerage Relationship notice be presented? A.)in writing before getting signatures on contracts B.)in writing before the showing of property C.)at any time before closing of transaction D.)at no time since, it is presumed by law

B.)in writing before the showing of property Reason:The no brokerage relationship or nonrepresentation must be presented in writing before the showing of property.Reference: 4.3

A transaction broker is best described as the concept of A.)all fiduciary duties apply. B.)one who provides limited representation in a brokerage transaction between buyer and seller. C.)trust and confidence apply. broker represents both the buyer and seller with full fiduciary duties. D.)A transaction broker provides limited representation to a buyer, a seller, or both, in a real estate

B.)one who provides limited representation in a brokerage transaction between buyer and seller. Reason:transaction, but does not represent either in a fiduciary capacity or as a single agent.Reference: 4.3

On July 1, Abrams lists his home on a 90-day exclusive contract with Broker Baker. On July 30, Abrams's Chapter 7 bankruptcy claim is approved. On August 6, the broker found a ready, willing, and able purchaser for Abrams's home. Can the broker claim a commission from Abrams? A.)Yes, even if the bankruptcy court denies it. B.)Yes, because there was executory contract. C.)No, because the executory contract was terminated before the buyer was procured. D.)No, because Broker Baker is not a preferred creditor.

C.)No, because the executory contract was terminated before the buyer was procured. Reason:Bankruptcy of the principal (Abrams) terminates the brokerage relationship.Reference: 4.3

While a buyer is a broker's principal. Legally, the sales associates who work for the broker are A.)partially assuming fiduciary duties to the buyer. B.)assuming the agency obligations to the seller. C.)also bound by the broker's agency obligations. D.)performing all fiduciary duties to both buyer and seller.

C.)also bound by the broker's agency obligations. Reason:As subagents of the broker, the sales and/or broker associates must abide by the rules pertaining to the relationship the broker legally establishes.Reference: 4.1

When a broker employs a real estate sales associate, the licensee has A.)no obligations to the broker's clients. B.)only a fiduciary duty to his broker. C.)the same obligations than his broker for their clients. D.)no fiduciary obligations.

C.)the same obligations than his broker for their clients. Reason:As a subagent of a broker, a sales associate has the same obligations to clients and customers as the broker employing them.Reference: 4.1

A broker lists a property that she knows would be perfect for cousin. The property is being sold due to the death of the owner. The succession is willing to accept a much lower offer than the property's listed price. About making an offer, the broker should tell her cousin A.)that the succession will consider a much lower offer than the listed price. B.)that the succession is very motivated to sell quickly. C.)to make an offer equal to the listed price. D.)nothing, and present to the succession any offer that her cousin wishes to make.

D.)nothing, and present to the succession any offer that her cousin wishes to make. Reason:The broker's fiduciary responsibility is to his client, which includes confidentiality.Reference: 4.1

Although the roof on a house for sale leaks, the ceilings show no water damage. A broker represents the seller as a single agent and the seller has told the broker about the leak. If a prospective buyer asks nothing about the roof, the broker's legal obligation is satisfied if she says A.)nothing about the roof's condition. B.)the roof appears to be in good condition. C.)that there is no sign of water damage. D.)that there is a leak in the roof.

D.)that there is a leak in the roof. Reason:In any brokerage relationship, the licensee must disclose all known facts that materially affect the value of residential property which are not readily observable to the buyer.Reference: 4.3