Section3 Chapters 6-10
the statute of limitations for a negligent visual inspection is
2 years
the statute of limitations for a breach of fiduciary duties is
3 years
An addendum may be used for which of the following
All of the above Clarifying what inspections the seller will pay for a change in the escrow date a change in the the occupancy date
which of the following forms of ADR are closest to litigation
Arbitration
the acronym BATNA stands for
Best alternative to a negotiated agreement
a violation of the terms or conditions of a contract without legal excuse is referred as a
Breach of contract
an agency relationship should be disclosed in which order
Disclose, elect, confirm
an agency relationship in which the agent acts concurrently for both of the principals in a transaction is referred to as
Dual agency
which of the following court cases determined that an agent is only responsible for performing a diligent visual inspection
Easton Vs. Strassburger
which of the following is an example of a listing contract
Exclusive right to sell agreement
a contract in which both parties have completely performed their contractual obligations is known as a
Executed contract
T/F a counter offer is not voidable
False
T/F a decision made by a mediator is final and binding
False
T/F an agent is allowed to provide legal advice to their clients
False
T/F the listing agent can never be the selling agent in a transaction
False
T/F the sellers property questionnaire is required by law
False
that duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure, is referred to as a
Fiduciary duty
The intentional and successful employment of any cunning, deception, collusion, or artifice, used to circumvent, cheat or deceive another person whereby that person acts upon it to the loss of property and to legal injury, is known as
Fraud
a writ order issued under the seal of a court to restrain one or more parties to a suit or proceeding from doing an act which is deemed to be inequitable or unjust in regard to the rights of some other party or parties in the suit or proceeding is known as
INJUNCTION
a person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another is referred to as a
Independent contractor
The individual who enters into a listing contract with a principal is referred to as the
Listing agent
an agents duty to place the clients interest above those of all others, including the agents own self interest is known as
Loyalty
any fact that would influence the decision of a reasonably prudent person is known as a
Material fact
A form of alternative dispute resolution in which the parties to a lawsuit meet with a neutral third party in a effort to settle the case is known as
Mediation
which of the following helps facilitate a voluntary agreement between two disputing parties
Mediator
which of the following is the least expensive form of ADR
Negotiation
the substitution or exchange or new obligation or contract for an old one by the mutual agreement of the parties is known as
Novation
This refers to a right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right
Option
what is the standard commission split between a broker and their salesperson
There is no standard commission split
T/F a broker is entitled to a commission if they find a ready willing and able buyer
True
T/F a licensee may have their license suspended for the unauthorized practice of law
True
T/F money is commonly used as consideration in a real estate transaction
True
T/F the buyer is entitled to their earnest money if they back out of the purchase contract during the inspection period
True
T/F the commission split between a broker and agent can change over time
True
when one party promises to do something if the other party performs a certain act, but the other party doesn't promise to perform it, it is referred to as an
Unilateral contract
A contract that complies with all if the essential elements of a contact, and is enforceable and binding on all parties, is known as a
Valid contract
a contract which has no force or effect is considered
Void
which of the following is an example of a material fact
a leaking roof
if the seller wants to change the terms of the contract, they can use either a counter offer or an
addendum
these are additional pages of a material that are added to and become part of a contract
addendum
which of the following is a disclosure that may be included in the sale of a residential property
all of the above Mold disclosure natural hazards disclosure lead based paint hazard disclosure
which of the following is an example of a fiduciary duty owed by a broker to the principal
all of the above confidentiality loyalty reasonable skill and care
which of the following is an example of an essential element of a valid contract
all of the above consideration mutual consent capacity to contract
which of the following is an example of a bilateral contract
all of the above exclusive right to sell agreement exclusive agency agreement purchase contract
Which of the following is an example of an express contract
all of the above listing contract purchase contract independent contractor agreement
The resolution of disputes by various means including but not limited to negotiation, mediation, and arbitration is referred to as
alternative dispute resolution
A contract in which each party promises to do something is known as a
bilateral contract
a listing agreement is signed between a seller and a
broker
a purchase contract is signed between a seller and
buyer
anything given or promised by a party to induce another to enter into a contract is known as
consideration
an agreement to do or not to do a certain thing is known as a
contract
a response to an offer to enter into a contract, changing some of the terms of the original offer, is referred to as a
counter offer
a response to an offer to enter into a contract, changing some of the terms of the original offer, is referred to as a
counter-offer
which of the following fiduciary duties demands that an agent work to the best of their abilities to achieve the goals of the principal
diligence
The ability to sue for the enforcement of the contract is referred to as
enforceability
a listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract is referred to as an
exclusive right to sell agreement
which of the following listing contracts offers the most protection to the broker
exclusive right to sell agreement
a contract that has been put into words, either spoken or written, is referred to as a
express contract
Liquidated damages generally do not exceed 3% of the purchase price
false
T/F a broker may require their agents to spend at least 40 hours per week in the brokers office
false
T/F according to the IRS, a real estate salesperson is an employee of their sponsoring broker
false
T/F all lease contracts must be in writing
false
T/F dual agency is illegal in California
false
a person in a position and trust and confidence, as between principal and broker, serves as an
fiduciary
an agreement that has not been put into words, but is implied by the actions of the parties, is referred to as a
implied contract
the ..................... serves as an employment contract between a sponsoring broker and agent?
independent contractor agreement
which of the following types of negotiation aims for a win/win outcome
integrative negotiation
A sum agreed upon by the parties to be full damages if a certain event occurs is known as
liquidated damages
a contract in which a propert owner employs a real estate broker to market the property described in the contract is known as a
listing contract
False statements made negligently or innocently is referred to as
misrepresentation
the broker is responsible for paying which of the following expenses of their agents
none of the above
which of the following is an example of a unilateral contract
open listing
damages simply for the purpose of punishment are known as
punitive damages
a right of preemption is also known as
right of first refusal
the extended clause is also known as the
safter clause
Any profit that the agent obtains without principals authorization is known as a
secret profit
if a sellers agent is related to the buyer but does not disclose this fact to the seller, they may be guilty of
self dealing
the individual who finds the buyer (or seller) for the property is referred to as the
selling agent
an action to compel performance of an agreement is known as
specific performance
A state law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as
statute of frauds
a statute prescribing a period of limitation for the bringing of certain kinds of legal action is known as the
statute of limitations
who serves as the cooperating broker to a sellers broker
the buyers broker
which of the following typically serves as the escrow instructions for a transaction
the purchase contract
who is responsible for completing the transfer disclosure statement form
the seller only
a condition of a contract expressing the essential nature of performance of the contract by a party in a specified period of time is referred to as
time is the essence
T/F A sellers agent owes the duties of honesty and fairness to all third parties in a transaction
true
T/F Commission are always negotiable
true
T/F a Judge in califonia may require two parties to go to mediation or arbirtation prior to going to court
true
T/F a TDS form is not required when property is transferred between husband and wife
true
T/F a counter offer is not a form of acceptance
true
T/F a distributive negotiation typically leads to a win/lose outcome for the parties involved
true
T/F a mediator must serve as a neutral party during mediation
true
T/F a sponsoring broker holds workers compensation insurance for their agents
true
T/F all real estate sales contracts must be in writing
true
T/F an agent is required to disclose all known material facts to the customer
true
T/F as an independent contractor, an agent is required to pay their own taxes
true
T/F contact contingencies create a voidable contract
true
T/F dual agency must be disclosed to all parties
true
T/F the agent owes fiduciary duties to the principal
true
That is which is capable of being adjudged void, but is not void unless action is taken to make it so, is referred to as
voidable