Chapter 2 Quiz

A property was sold for $325,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. What is the amount of commission paid to the buyer's broker...? 15750 19500 9750 12750

($325,000*0.06)/2= 9750

A property was sold for $555,000. The total commission for the transaction was 5%. The listing broker and buyer's broker agreed to split the commission 50/50. What is the amount of commission paid to the buyer's broker...? 13875 15875 6750 27750

($555,000*0.05)/2= 13875

Doug's house was listed for $635,000. The property eventually sold for $615,000. The agreed upon commission was 5%. How much did Doug pay in commissions at the closing of the property...? 38100 30750 36930 31750

($615,000*0.05)= 30750

A property was sold for $650,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. What is the amount of commission paid to the buyer's broker...? 39000 15500 19500 13500

($650,000*0.06)/2= 19500

A property was sold for $525,600. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. If the buyer's broker's real estate agent was responsible for the sale of the property and receives a 65/35 split with his broker, how much commission is paid to the real estate agent...? 15768 12250.2 15249.2 10249.2

(($525,600*0.06)/2)(65/100)= 10249.2

As a general rule of thumb, compensation in New York State is set at what percentage of the sales price...? 6 (Percent %) 5 (Percent %) 3 (Percent %) 4 (Percent %)

6 (Percent %)

John is interested in purchasing a two bedroom house and enters into an agency relationship with Chris, a real estate broker, to help him find a house. According to the fiduciary duties Chris owes to John, which of the following is true...? According to the duty of Obedience, Chris should not show John one bedroom houses According to the duty of Obedience, Chris should only show John three bedroom houses According to the duty of Confidentiality, Chris should reveal John's maximum offer to the owner According to the duty of Loyalty, Chris should allow John to buy a house which he knows to be defective

According to the duty of Obedience, Chris should not show John one bedroom houses

If there is any doubt as to the distribution of proceeds at the closing table, it must be resolved in favor of the client, as per which fiduciary duty...? Obedience Reasonable Care Loyalty Accountability

Accountability

Which of the following is NOT considered a principal in an agency relationship...? Landlord Agent Tenant Owner

Agent

John is a real estate salesperson for City Realty, a local brokerage company. John has been hired by Josh, a homeowner seeking to sell his house. As a sub-agent to the transaction, which of the following fiduciary duties applies to John...? Loyalty Reasonable Care All of the above Obedience

All of the above

Which of the following is NOT considered a principal in an agency relationship...? Landlord Owner Tenant Broker

Broker

An agent that cooperates or is engaged by a listing agent or a buyer's agent to assist in locating a property to sell or buy is known as a...? Buyer's Agent Landlord's Agent Exclusive Agent Broker's Agent

Broker's Agent

An agent has become aware of information that may affect the value of his client's property. If the agent reveals this information to a prospective buyer, he will be in breach of which fiduciary duty...? Obedience Confidentiality Accountability Reasonable Care

Confidentiality

The 'C' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...? Confidentiality Competent Client Classified

Confidentiality

Appointing one or more individual agents in a firm to represent only the interests of the seller, and one or more different individual agents in the firm to represent only the interests of the buyer, when a firm has an "in-house" dual agency situation, is known as...? Cooperating Agent General Agent Specific Agent Designated Sales Agent

Designated Sales Agent

According to an agent's fiduciary duties, the agent must present all offers to his/her client. Which of the following fiduciary duties best reflects this...? Obedience Loyalty Confidentiality Disclosure

Disclosure

According to this fiduciary duty, an agent must present all offers to the client...? Obedience Accountability Loyalty Disclosure

Disclosure

The 'D' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...? Determined Disclosure Dual Agent Director

Disclosure

Which of the following fiduciary duties is conversely related to the duty of Confidentiality...? Disclosure Reasonable Care Loyalty Obedience

Disclosure

Which of the following is NOT considered one of the six fiduciary duties an agent owes to his/her client...? Obedience Employee Reasonable Care Loyalty

Employee

An actual agency created by written or oral agreement between the principal and the broker is known as...? Dual Agency Expressed Agency Implied Agency General Agency

Expressed Agency

Mark, a property owner, signed an agency agreement with Andrew, a real estate broker, to sell his house. What type of agency was created between Mark and Andrew...? Implied Agency Expressed Agency Inherit Agency Written Agency

Expressed Agency

The legal duty of a fiduciary to act in the best interests of the beneficiary is known as...? Fiduciary Duty Loyalty Obedience Confidentiality

Fiduciary Duty

An agent with the full authority over one property of the principal, such as a property manager, is considered a...? Buyer's Agent General Agent Specific Agent Seller's Agent

General Agent

As an agent to a cooperative board, Mark has the authority to enter into contracts with 3rd party vendors to help service the building. This level of authority suggests that Mark is what type of agent...? Universal Agent Specific Agent Unlimited Agent General Agent

General Agent

If two brokerage firms create an alliance in an attempt to prevent another brokerage firm from competing in the marketplace, what may the two firms be liable of...? Self Dealing Vicarious Liability Group Boycotting Price Fixing

Group Boycotting

If two or more brokerage firms conspire to not do business with another brokerage firm, what may they be liable of...? Self Dealing Group Boycotting Vicarious Liability Price Fixing

Group Boycotting

Town Realty and City Realty created an alliance in an attempt to prevent another brokerage firm from competing in the marketplace. What may Town Realty and City Realty be guilty of...? Vicarious Liability Self Dealing Group Boycotting Price Fixing

Group Boycotting

This is a form of agency that occurs when the words and actions of the parties indicate that there is an agency relationship...? Implied Agency Actual Agency General Agent Expressed Agency

Implied Agency

It is strongly recommended that informed consent from a client be obtained in what manner...? Oral Through the client's attorney None of the above In-writing

In-writing

An agreement to do something or to allow something to happen only after all the relevant facts are disclosed is known as...? Exclusive Right to Sell Estoppel Informed Consent Confidentiality

Informed Consent

Justin, a real estate salesperson with City Brokerage, received a referral fee after referring a client to Mark, another real estate salesperson with City Brokerage. Who ultimately pays Justin his referral fee...? Justin's sponsoring Broker Mark himself None of the above The client

Justin's sponsoring Broker

Which of the following is considered a principal in an agency relationship...? Agent Broker Landlord Associate Broker

Landlord

A person who has oral or written authority, either express or implied, to act for or on behalf of a landlord is known as...? Landlord's Agent Tenant's Agent Buyer's Agent Seller's Agent

Landlord's Agent

Lisa is a real estate broker who has entered into an agency relationship with Robert, a landlord looking to lease one of his apartments. Lisa brings Andrew, a prospective tenant, to Robert with an offer to rent Robert's apartment. Which of the following statements is correct...? Lisa is the Principal, Robert is the Customer, and Andrew is the Client Lisa is the Agent, Robert is the Principal, and Andrew is the Customer Lisa is the Principal, Robert is the Client, and Andrew is the Customer Lisa is the Agent, Robert is the Customer, and Andrew is the Client

Lisa is the Agent, Robert is the Principal, and Andrew is the Customer

According to an agent's fiduciary duties, the agent must work in the best interests of his/her client. Which of the following fiduciary duties best reflects this...? Loyalty Obedience Accountability Reasonable Care

Loyalty

According to which fiduciary duty is an agent prohibited from forcing on his or her client a sale, lease or opportunity to buy...? Accountability Loyalty Reasonable Care Disclosure

Loyalty

Although an agent or principal is not obligated to disclose all information in a transaction, it is recommended that what information be revealed, in order to help the customer make an informed decision...? Material information The outstanding mortgage amount on the property The seller's lowest acceptance price Who else has made an offer on the property

Material information

Making an intentionally false statement to induce someone to contract is known as...? Price Fixing Self Dealing Tie-in Arrangement Misrepresentation

Misrepresentation

The fiduciary relationship obligates the agent to act in good faith at all times, obeying the client's instructions in accordance with the contract is known as...? Reasonable Care Obedience Loyalty Confidentiality

Obedience

Which of the following is considered a principal in an agency relationship...? Broker Agent Associate Broker Owner

Owner

Conspiring to establish fixed fees or prices for services or products is known as...? Misrepresentation Group Boycott Tie-in Arrangement Price Fixing

Price Fixing

The broker's client is also referred to as the...? Principal Customer Sub-agent Buyer

Principal

The one by whom a broker is employed is known as a...? Agent Attorney Customer Principal

Principal

In a typical agency structure, who is the primary agent to the client...? Associate Broker Real Estate Salesperson Real Estate Broker Principal

Real Estate Broker

According to an agent's fiduciary duties, the agent must be competent and not act in a negligent manner. Which of the following fiduciary duties best reflects this...? Accountability Loyalty Obedience Reasonable Care

Reasonable Care

Andrew is a real estate agent specializing in condo sales. However, he tries to facilitate the sale of a commercial office building, only to find that he is not familiar with commercial leases. Under which fiduciary duty can he be sued for negligence, if a party in the transaction loses money...? Accountability Loyalty Obedience Reasonable Care

Reasonable Care

Which section of the New York State Real Property Law states that the broker may be liable for the salesperson's actions...? Section 442-C Section 11-C Section 443 Section 12-A

Section 442-C

An agent who represents the seller of real property is referred to as the...? General Agent Seller's Agent Principal's Agent Buyer's Agent

Seller's Agent

A general agent is typically granted more power than what other type of agent...? Universal Agent Special Agent Trust Agent Legal Agent

Special Agent

Which of the following is considered a principal in an agency relationship...? Broker Associate Broker Tenant Agent

Tenant

Abby, a real estate broker, has entered into an agreement to sell John's house. Who will be the customer in the transaction...? The Sub-agent John The Buyer Abby

The Buyer

If a principal or agent provides a customer with a material fact, which of the following must apply...? The fact must be true and accurate The agent should not disclose material facts The fact does not have to be accurate The fact must at least state a version of the truth

The fact must be true and accurate

Many brokerages allow in-house referral fees when an agent refers a client to another agent. Who ultimately distributes the referral fee to a referring agent...? The agent who received the referral The sponsoring broker The client in the transaction None of the above

The sponsoring broker

A situation in which one party is held partly responsible for the unlawful actions of a third party is known as...? Undivided Loyalty Principal Arrangement Vicarious Liability Dual Agency

Vicarious Liability