3-2

A broker can do which of the following? Select one: a. Accept, as binding, a promissory note given as an earnest money deposit. b. Accept, on behalf of the seller, an offer OVER the listed price of the property. c. Buy and sell property in his own name. d. Represent both buyer and seller, with the permission of the buyer.

C

A broker has the buyer's earnest money deposit deposited in an escrow account. The amount of the deposit exceeds the amount of the broker's commission for the sale. The broker may remove his commission on this sale ONLY: Select one: a. When the buyer moves into the property. b. When the seller moves out of the property. c. When the closing is completed. d. Whenever the seller says it is ok to do so

C

An agent has the responsibility of care, obedience, accountability, loyalty and disclosure to which of the following? Select one: a. The customer. b. The buyer. c. The client. d. All of these choices.

C

Broker Bob represents both the seller and the buyer as agent in the same transaction. Which of the following statements is correct? Select one: a. This arrangement is always illegal. b. This arrangement is never illegal. c. This arrangement is only legal with the informed consent and written permission of both the buyer and the seller. d. This arrangement is legal only in a few states.

C

Broker escrow accounts must be: Select one: a. Provided by every licensed broker. b. The repository for all earnest money deposits, unless otherwise agreed upon by all parties to the contract. c. Designated and labeled as "escrow". d. Transferred to the company's operating account every five days.

C

If a deed is delivered in escrow, it is given to: Select one: a. The buyer's attorney. b. The seller's attorney. c. A neutral third party. d. The mortgagee.

C

If a listing broker tells a prospective buyer, "...go ahead and make that offer, I'm sure the seller will accept it...", the broker may have created an agency relationship which would be described as: Select one: a. General agency b. Express agency c. Implied agency d. Unilateral agency

C

If you are showing property you are listing and tell a prospective buyer that "...this property is the best for you," the relationship created could be interpreted as: Select one: a. Universal agency b. Special agency c. Implied agency d. General agency

C

All of the following will automatically terminate a listing by operation of law, EXCEPT: Select one: a. Bankruptcy of the client. b. Destruction of the property. c. Condemnation of the property. d. Client's decision.

D

An agency relationship can be terminated in which of the following ways? Select one: a. Death of the client. b. Renunciation by the agent. c. Revocation by the client. d. Any of these choices.

D

How can an agency relationship be created? Select one: a. Written document. b. Action of the parties. c. Words of the parties. d. Any of these choices.

D

Licensee Larry has held a real estate license for many years and has completed many residential transactions but never any commercial transactions. His neighbor owns a small strip mall and asks Licensee Larry to sell the property. Licensee Larry should be especially careful to consider which of the following duties to the client? Select one: a. Disclosure. b. Accounting. c. Confidentiality. d. Reasonable care and due diligence.

D

Escrow records must be kept only until the transaction closes.

False

If a broker accepts a promissory note or post-dated check as a deposit on an offer, that information must be disclosed to the seller.

TRUE

A client is obligated to her agent for... Select one: a. indemnification against loss not caused by the agent. b. reimbursement. c. performance. d. all of the above.

A

A salesperson took a listing on a property which had a crack in the foundation caused by water seepage. The owner had filled and painted over the crack and advised the sales agent that the seepage problem had been corrected, but it was obvious to the agent that the problem had not been corrected. If the salesperson shows the property without advising potential buyers of the problem, the salesperson would be guilty of: Select one: a. Fraud. b. Misrepresentation. c. Puffery. d. Nothing.

A

It would NOT be considered commingling of funds, if: Select one: a. The broker holds a deposit check at the request of the offeror until acceptance by the offeree. b. The broker holds a deposit check at the request of the offeror after acceptance by the offeree. c. The broker holds an earnest money deposit in his personal account until the offer is accepted or rejected. d. The broker holds an earnest money deposit in his brokerage operating account because the deal is going to be all cash.

A

Real estate licensees are required to disclose pertinent information relative to property they list. Which of the following are you NOT required to disclose? Select one: a. The seller is having financial problems and must sell the property to avoid bankruptcy. b. The state plans to build a new highway near the property. c. The property is subject to seasonal flooding. d. The interior of the house is badly in need of painting .

A

When a broker accepts a listing, he or she has created an agency relationship. Which of the following is not an agency responsibility? a. To obey all the instructions of the seller. b. To use care in filling out contract forms. c. To be accountable for documents and funds. d. To be loyal to the seller.

A

Which of the following would be included in the duties of an agent to a customer? Select one: a. To disclose material adverse facts about the property. b. To maintain the confidentiality of information provided to the agent. c. Both to disclose material adverse facts about the property and to maintain the confidentiality of information provided to the agent. d. Neither to disclose material adverse facts about the property nor to maintain the confidentiality of information provided to the agent.

A

Landlord Lloyd hires Property Manager Paul to manage an apartment complex owned by Lloyd. Property Manager Paul would most likely be considered a(n): Select one: a. Subagent. b. General Agent. c. Universal agent. d. Special agent.

B

Property owner Kilmer, who is living overseas, lists his property with Broker Huff. Later the land is rezoned for a higher use, increasing its value. Huff buys the property herself and sells it six months later. Which of the following is true? Select one: a. As long as Huff informs Kilmer of her intent to buy the property before she does so, her action is above reproach. b. Huff can buy the property only after informing Kilmer of the zoning change and the effect that it has on the property. c. Huff cannot legally act for someone who is overseas. d. When Huff resells the property in six months, she has a legal obligation to inform Kilmer.

B

The client may be obligated to compensate the salesperson for financial losses incurred as a result of actions by the clients.

True

Licensee Laurie makes a listing presentation to Seller Steve. Steve agrees to give Laurie a listing and agrees to pay her a commission upon sale, but refuses to sign any written contract. How was this agency relationship created?

expressed agency

Brokers must hold their client's funds in a/an...

trust/escrow account