MD Real Estate Practice & Law Unit 5 & 6

What is the seller's minimum disclosure responsibility when completing the Residential Property Disclosure and Disclaimer Statement?

Known latent defects

. Mike is the intracompany agent for his buyer; Mary is not a single-agency broker; and Angela is the intracompany agent for her seller.

Mike has been selected by his broker, Mary, to represent a buyer for the purchase of a property listed by Angela. Both Mike and Angela are high performing salespeople with Mary's firm. In this situation, which of the following is true? 1. Mike is the buyer's intracompany agent; May is a single-agency broker; and Angela is the seller's intracompany agent. 2. Mike is the ICA for the seller; Mary is a disclosed dual agent; and Angela is the ICA of the purchaser. 3. Mike, Mary and Angela all represent the seller. 4.Mike is the intracompany agent for his buyer; Mary is not a single-agency broker; and Angela is the intracompany agent for her seller.

Confidential information must remain confidential until

it becomes public information

Which type of residential listing agreement is illegal for a broker to use in MD?

Net

When must a licensee give a copy of the signed listing agreement to the sellers?

Before the firm advertises the property or offers it for sale.

2. clients

Broker's principals are called 1. managers 2. clients 3. prospects 4. customers

What is the consequence when purchasers receive no Residential Property Disclosure and Disclaimer Statement before, at, or after entering into a purchase agreement?

The purchasers may rescind the contract before they apply for a mortgage loan.

What is the effect on purchasers who have received the Residential Property Disclosure and Disclaimer Statement before signing their contract offer?

They may not rescind the contract based on any facts the statement discloses.

What is required of a MD licensee who wish to show a property located in VA that is multiple listed by a MD firm?

They must hold a VA real estate license.

3. They may designation two intracompany agents if proper consent has been given

What is true when brokers handle the purchase and sale of the same residential property? 1. They are agents of the owner of the property being sold. 2. They may not act as the agent of the buyer. 3. They may designation two intracompany agents if proper consent has been given. 4. They may personally represent both buyer and seller if both parties gave needed consent.

3. At the first face to face, if the other party does not have representation

When must a licensee present the UWREAR agency disclosure form? 1. At first contact, then the buyer inquires by email about the property. 2. When buyer has selected a home, and it will also be submitted with the offer 3. At the first face to face, if the other party does not have representation. 4. At the meeting when helping a tenant secure a three-month beach rental.

Terry is with a high performing team in Annapolis and is listing a waterfront property. When should his seller complete the Residential Property Disclosure and Disclaimer Statement?

When the property is being listed

3. Obey lawful instructions

Which of the following does a licensee not owe to a customer? 1. Provide due care 2. Disclose material facts 3. Obey lawful instructions 4. Offer honesty and fairness

It must be stated in the listing agreement.

Which of the following is correct about the amount or rate of commission on a rea1 estate sale? 1. It must be stated in the listing agreement. 2. It is established by the commission. 3. It is established by the local real estate board. 4. It is established by law.

4. Telling a buyer client that a family member of the seller has AIDS.

Which of the following is not a duty agents owe to their principles? 1. Disclosure of all material facts 2. Loyalty to the client 3. Timely presentation of all written offers and complete counteroffers. 4. Telling a buyer client that a family member of the seller has AIDS.

3. Failure to properly present the form constitutes a violation of the Broker's Act by the licensee

Which of the following is true about the UWREAR form? 1. It constitutes a contract for buyer representation when completed and signed by the buyer. 2. It creates presumed buyer representation, if signed. 3. Failure to properly present the form constitutes a violation of the Broker's Act by the licensee. 4. The prospect is required by law to acknowledge receipt of the form by signing it.

It must be in writing

Which of the following is true of a MD buyer representation agreement? 1. It does not make the buyer the broker's client. 2. It may be oral. 3. It must be in writing. 4.It does not need a definite termination date.

Which of the following is true of a listing on MD residential property?

Which of the following is true of a listing on MD residential property? 1. It may contain an automatic renewal provision. 2. It requires the sellers and salesperson's signatures 3. It must be in writing and signed by all parties. 4. It may leave the commission fee to be negotiated at the time an offer is made.

2. They must disclose their brokerage relationship to unrepresented sellers.

Which of the following is true of brokers when they represent buyers of real estate? 1. They are regarded as dual agents in such transaction. 2. They must disclose their brokerage relationship to unrepresented sellers. 3. They are in violation of the Brokers Act. 4. They will not be compensated by the seller.

2. Dual agency is permitted only in brokerage firms consisting of three or more licensees.

Which of the following statements about brokerage relationships is true in Maryland? 1. MD does not allow a brokerage firm to represent both buyer and seller in the same transaction. 2. Dual agency is permitted only in brokerage firms consisting of three or more licensees. 3. A licensee providing a ministerial service for a customer is being disloyal to the client. 4. The broker of a firm may act as one of the two intracompany agents required to dual agency.

1. Subagents can represent the buyer

Which statement about subagents (as shown on the Understanding Whom Real Estate Agents Represent Form) is false? 1. Subagents can represent the buyer 2. Subagents are not licensed with the listing broker. 3.Subagents bring a customer to buy a property from a different company. 4. A subagent who brings in a buyer has fiduciary duties to the seller-owner.

4. A branch manager, who is designated to be the dual agent, will select ICA's for each client.

Which statement concerning representation is true? 1. A broker would be considered the fiduciary of the party who paid the brokerage fee. 2. A broker is allowed to be a dual agent in a transaction if no harm is done. 3. A salesperson may personally perform dual agency if both buyer and seller agree in writing. 4. A branch manager, who is designated to be the dual agent, will select ICA's for each client.