Exam 2 - Pt. 1
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...?
10249.2
A property was sold for $605,500. 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 listing broker...?
18165
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...?
19500
David's house was listed at $465,000. The property eventually sold for $485,000. The agreed upon commission was 6%. How much did David pay as a commission at the closing of the property...?
29100
Cindy's house was listed at $732,100. The property eventually sold for $736,250. The agreed upon commission was 6%. How much did Cindy pay in commissions at the closing of the property...?
44175
A property was sold for $220,000. 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 listing broker...?
5500
A property was sold for $750,000. 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 40/60 with his broker, how much commission is paid to the real estate agent...?
9000
According to an agent's fiduciary duties, the agent must not reveal information detrimental to his/her client without written permission. Which of the following fiduciary duties best reflects this...?
Confidentiality
The party the agent brings to the principal as seller or buyer of the property is known as the...?
Customer
Which of the following may be considered a 3rd party to a transaction...?
Customer
There are generally two ways an agent is compensated for a transaction. One is a percentage of the sales price, while the other is...?
Flat fee
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...?
Group Boycotting
If two or more brokerage firms conspire to not do business with another brokerage firm, what may they be liable of...?
Group Boycotting
John is a real estate broker and wants to enter into an agency relationship with Steve, a property owner. What document must John and Steve execute in order to enter into an agency relationship...?
Listing Agreement
John, a real estate broker, and Chris, a property owner, have entered into an agency relationship. The scope of their agency relationship is defined in what document...?
Listing Agreement
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
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
Both the principal and the agent cannot do what to the customer...?
Misrepresent facts
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...?
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
The conduct of a trustee, an attorney, a corporate officer, or other fiduciary that consists of taking advantage of his position in a transaction and acting for his own interests rather than for the interests of his clients is known as...?
Self Dealing
A real estate salesperson is typically what type of agent...?
Special Agent
An agent with limited authority to act on behalf of the principal, such as created by a listing agreement, is known as a...?
Special Agent
Abby, a real estate broker, has entered into an agreement to sell John's house. Who will be the customer in the transaction...?
The Buyer
According to Section 442-C of the NYS Real Property Law, who may be held liable for a salesperson's actions...?
The broker
Philip is a real estate salesperson who represents a seller in a transaction. However, Philip violated several of his fiduciary duties to the client. According to the concept of vicarious liability, who can be held liable for Philip's actions...?
The broker
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 sponsoring broker
John is a real estate broker who has entered into an agency relationship with Kevin, a property owner looking to sell his house. John brings Steve, a prospective buyer, to Kevin with an offer to purchase Kevin's house. Which of the following statements is correct...?
John is the Agent, Kevin is the Client, and Steve is the Customer
Justin, a real estate salesperson, would like to offer his colleague a referral fee for referring him a new client. Before offering the referral fee, however, Justin obtained informed consent from the client. Why must Justin obtain consent from the client...?
Justin has a fiduciary duty to the client
Justin, a real estate salesperson with City Brokerage, recently met a client who is looking to purchase a condo in Manhattan. Since Justin specializes in Brooklyn rentals, he decides to refer the client to a colleague of his at City Brokerage and instead receive a referral fee. If Justin's client closes a deal with the other salesperson, who ultimately pays Justin his referral fee...?
Justin's sponsoring broker
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
According to the duties a principal owes to the agent, the principal commits to doing which of the following...?
Compensate the agent for a successful transaction
John, a real estate salesperson, was referred a client from another agent. After successfully closing on the deal, John would like to offer a referral fee to the agent who referred the client. What must John obtain first before offering a referral fee...?
Informed consent of the client
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
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...?
All of the above
What is a common breach of the fiduciary duty of accountability...?
Being negligent with the client's money
In a typical agency structure, a real estate salesperson is a sub-agent to whom...?
Broker
The 'D' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...?
Disclosure
The release of relevant information about a property that may influence the final sale, especially if it represents defects or problems is known as...?
Disclosure
Which of the following fiduciary duties is conversely related to the duty of Confidentiality...?
Disclosure
Representing both principals (seller and buyer) in a transaction is known as...?
Dual Agency
Which of the following is NOT considered one of the six fiduciary duties an agent owes to his/her client...?
Employee
Michael, a property owner, allowed Andrew, a real estate broker, to show his house to prospective buyers. However, Michael and Andrew do not have a signed agency agreement and instead operated under an implied agency. According to this doctrine, Michael cannot claim that an agency relationship did not exist...?
Estoppel
The principle which precludes a person from asserting something contrary to what is implied by a previous action or statement of that person, or by a previous pertinent judicial determination, is known as...?
Estoppel
The legal duty of a fiduciary to act in the best interests of the beneficiary is known as...?
Fiduciary Duty
If a property owner seeking to sell his house knows that an agent is showing his house to prospective buyers, but does not have an agency agreement with the agent, what type of agency relationship may arise...?
Implied Agency
According to an agent's fiduciary duties, the agent must act in accordance to his/her client's demands and instructions. Which of the following fiduciary duties best reflects this...?
Obedience
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...?
Obedience
Which of the following is an example of obedience, one of the six fiduciary duties an agent owes his/her client...?
Only showing the type/size of house the client is looking for
Which of the following is NOT an example of an agency relationship...?
Owner - Tenant
There are generally two ways a broker is compensated for a transaction. One is a flat fee, while the other is...?
Percentage of the sale price
If a union of brokers in New York State bound together and agreed to only accept commissions of 9% or higher, far more than the typical 6% in a transaction, what may they be held liable for...?
Price fixing
The employer of an agent or broker is known as a...?
Principal
A situation in which one party is held partly responsible for the unlawful actions of a third party is known as...?
Vicarious Liability
In order to disclose confidential information, the agent must first obtain what from the client...?
Written consent