Chapter 2 Questions - part 2
Which of the following is considered a broker's obligation to his/her client, according to the Buyer's Agency Agreement...? A. Provide the buyer with information describing and identifying properties that match the buyer's criteria B. Inspect potential properties for structural defects on behalf of the buyer C. Provide legal advice to the buyer D. Conduct a survey of potential properties that match the buyer's criteria
A
Which of the following is considered an anti-trust violation...? A. Market Allocation B. Divided Loyalty C. Dual Agency D. Estoppel
A
Which of the following orders from a seller must a seller's agent NOT follow...? A. The agent cannot sell to a minority B. The agent cannot disclose the reasons why the seller is selling C. The agent cannot disclose minor structural damage to the basement slab D. The agent cannot disclosure a leak in the roof
A
Which party is capable of terminating an independent contractor relationship...? A. Either party B. The broker C. The agent D. Neither party
A
Who is required to sign the NYS Agency Disclosure Form...? A. The buyer or seller B. The salesperson C. The broker D. The owner's attorney
A
ccording to the Buyer's Agency Agreement, which of the following in an obligation owed by the broker to the buyer...? A. Present all offers to the seller or seller's agent as the buyer directs B. Provide legal advice to the buyer C. Provide a survey of potential properties for the buyer D. Inspect potential properties for structural defects
A
According to an Exclusive Right to Sell agreement, what price is listed in the agreement...? A. The Listing Price B. The Sale Price C. The Fair Market Value Price D. The price as determined by an appraisal
A
According to the Buyer's Agency Agreement, which of the following is NOT considered a buyer's obligation to the broker...? A. Pay the broker a bonus for negotiating a lower purchase price B. Compensate the broker for services rendered C. Work exclusively with the broker during the term of the agreement D. Cooperate with the broker to complete a contract
A
According to the Buyer's Agency Agreement, which of the following is considered a buyer's obligation to the broker...? A. Conduct all negotiations through the broker B. Provide the broker with a down payment to make on behalf of the buyer C. Rely on the broker for all legal advice D. Pay the broker a bonus for negotiating a lower purchase price
A
According to the Exclusive Right to Sell Agreement, who is liable for any damage, theft or loss attributed to a lockbox...? A. The seller B. The Listing Agent C. The potential buyer D. The listing agent's broker
A
According to this agreement, taxes are NOT deducted from commissions an agent has earned over the course of business...? A. Independent Contractor Agreement B. Broker / Agent Agreement C. Broker / Client Agreement D. Compensation Agreement
A
Andrew is a real estate broker who represents a buyer in a transaction. When do Andrew's fiduciary duties to his client terminate...? A. At the closing of the transaction B. 15 days after the closing of the transaction C. 30 days after the closing of the transaction D. When the sales contract is signed
A
As a/an ............... the work activities of a real estate agent cannot be controlled by his/her broker...? A. Independent Contractor B. Employee C. Assistant D. Associate
A
As an agent, how many brokers are you typically allowed to work for at any given time...? A. One B. Two C. Three D. As many as the agent chooses
A
As an independent contractor, which of the following must exist between the salesperson and a specific broker...? AWritten contract BHandshake agreement CImplied contract DExplicit agreement
A
As stated in the Buyer's Agency Agreement, which of the following is NOT considered an obligation owed by the buyer to the broker...? A. Obtain a pre-approval from a bank prior to viewing any properties B. Compensate the broker for services rendered C. Work exclusively with the broker during the term of the agreement D. Cooperate with the broker to complete a contract
A
As stated in the Exclusive Right to Sell Agreement, any changes or modifications to the Agreement must be made in this manner...? A. Must be in-writing B. Must be given orally C. Must be agreed upon by the attorneys D. Must be notarized
A
As stated in the Exclusive Right to Sell Agreement, this clause dictates that an owner cannot discriminate against any potential buyers...? A. Fair Housing clause B. Use of Listing clause C. Termination clause D. Amount of Commission clause
A
At what time during a transaction may a principal dissolve a dual agency arrangement...? A. Any point in the transaction B. Only at the beginning of the transaction C. Within 30 days of the first substantive meeting D. Within 30 days of the closing
A
Ben, a real estate agent, represents several buyers. In an attempt to increase his commission, he decides to have his clients bid against the same property without their knowledge or consent. Which fiduciary duty has Ben breached...? A. Loyalty B. Obedience C. Reasonable Care D. Accountability
A
Ben, a real estate broker, entered into an Exclusive Right to Sell agreement with his client. Ben introduced a buyer to the seller who eventually bought the property, however, the client decided to terminate the agreement with Ben prior to the closing. Who is entitled to the commission...? A. Ben, the listing broker B. The seller C. The buyer D. No party is entitled to the commission
A
Both the seller and the buyer must give their consent in writing for the creation of what...? A. Dual Agency B. Cooperative Agency C. Implied Agency D. Primary Agency
A
Chris and Mark are real estate agents working for the same broker. Chris is seeking to rent an apartment on behalf of his client, while Mark's client is interested in renting the apartment. If all parties in the transaction agree to dual agency, which fiduciary duty to the principals may be most at risk...? A. Undivided loyalty B. Confidentiality C. Reasonable care D. Obedience
A
David is a real estate agent with City brokerage. City brokerage is headquartered on Park Avenue in Manhattan; however, there are satellite offices in each of the major neighborhoods throughout Manhattan. As an agent, in which office is David required to work...? A. David is not required to work in any office if he so chooses B. The office headquarters on Park Avenue C. Any satellite office D. David must choose an office and only work out of that location
A
Emily is a real estate agent representing the seller in a transaction. Her colleague, Mark, works for the same broker and represents a prospective buyer. What should Emily and Mark have their clients review and sign-off on before entering into a dual agency relationship...? A. The Disclosure Form B. The Cooperative Agreement Form C. Single Agency Form D. The Sales Contract
A
Even if the buyer's and seller's brokers agree to dual agency, who may reject the arrangement of dual agency in a transaction...? A. The buyer B. The buyer's agent C. The seller's agent D. Dual agency cannot be rejected if both brokers agree
A
Even if the buyer's and seller's brokers agree to dual agency, who may reject the arrangement of dual agency in a transaction...? A. The seller B. The buyer's agent C. The seller's agent D. Dual agency cannot be rejected if both brokers agree
A
If a real estate agent representing the buyer enters into a dual agency arrangement, to whom does he/she become a sub-agent...? A. The seller B. The client C. The principal D. The agent will not be a sub-agent in the transaction
A
If all principals in a transaction initially agree to dual agency, but one of the principals subsequently withdraws their consent, what happens to the dual agency...? A. The dual agency cannot proceed B. The principals must retain new agents C. The seller must retain a new agent D. The buyer must retain a new agent
A
If an independent contractor relationship is breached and the agent is considered an employee according to New York State, what is the broker required to do...? A. Withhold income taxes B. Provide paid advertisements for the agent C. Pay for the agent's lunches with clients D. Provide a company car for the agent to use
A
If an owner opts NOT to list his/her property on the MLS, what may they be risking...? A. Their property may not sell B. Their property may be viewed by more prospective buyers C. Their property may sell above market value D. Their property may decrease in investment value
A
If one or both of the parties in a transaction are not aware that a dual agency relationship exists, what can occur...? A. The contract can be rescinded B. The buyer's earnest money must be forfeited C. Both parties must walk away from the deal D. Nothing will occur
A
If two brokerage firms enter into a market allocation agreement, what may they be limiting...? A. Competition B. Open listings C. The number of properties on the market D. The maximum price an owner may receive for their property
A
In a single agency transaction, what are the seller's broker's duties to the buyer...? A. To be fair and honest B. Confidentiality C. Reasonable care D. Undivided loyalty
A
In addition to the agent signing the independent contractor agreement, what else is required before the agreement can be finalized...? A. The agreement must be notarized B. The agreement must be recorded C. The agreement must be delivered to the Department of State D. The agreement must be copied and delivered to all parties involved
A
In order for two brokers to enter into a dual agency arrangement, who must provide informed consent...? A. The seller and buyer B. The seller's agent C. The buyer's agent D. Informed consent is not needed
A
Jason, a buyer's broker, found a property for his client on the MLS. By agreeing to the cooperative arrangement of the MLS, who in addition to his client does Jason have an agency relationship with...? A. The seller B. The seller's broker C. The seller's agent D. The principal
A
Jim is a real estate salesperson who represents the seller in a transaction. Michael, a real estate salesperson from the same brokerage firm as Jim, represents the buyer in the transaction. In this scenario, what type of agency exists...? A. Dual Agency B. Single Agency C. Cooperative Agency D. Implied Agency
A
Joan, a real estate agent, and her colleague Philip, a real estate agent working under the same broker as Joan, have entered into a dual agency relationship. At what point in the transaction may a principal dissolve the dual agency arrangement...? A. Any point in the transaction B. Only within 30 days of the closing C. Only within 30 day of the first substantive meeting D. The principals cannot dissolve the dual agency arrangement after giving their initial consent
A
John is a real estate salesperson with City brokerage. How many hours per week is John required to work for City brokerage...? A. John is not required to work a set amount of hours each week B. 37.5 hours C. 40 hours D. 20 hours
A
John is an agent who has been designated to represent the buyer in a dual agency arrangement. Who does John owe a fiduciary duty to...? A. Only the buyer B. Only the seller C. Both the buyer and the seller D. Neither the buyer nor the seller
A
John, a real estate broker representing the owner, listed his client's property on the MLS. Any buyer's agent will be a sub-agent to whom...? A. John's client B. The buyer's broker C. The buyer's client D. The buyer's agent will not be a sub-agent in the transaction
A
John, a real estate broker, is referring his client to David, a mortgage broker, as a means to help his client obtain financing on a property. In return, David is offering to give John a referral fee. Before John can accept the referral fee, what must be provided to the client...? A. Full disclosure of the referral fee B. A percentage of the referral fee C. Reduced commission paid by the client D. Implied consent
A
Josh is a real estate broker who represents a landlord in a rental transaction. When do Josh's fiduciary duties to his client terminate...? A. When the tenant signs the lease B. 15 days after the tenant signs the lease C. 30 days after the tenant signs the lease D. When the tenant agrees to rent the apartment
A
Josh, a real estate broker, is hesitant to enter into a dual agency arrangement as it may affect these duties to his client...? A. Fiduciary Duties B. Legal Duties C. Agency Duties D. Expressed Duties
A
Justin, a real estate broker representing a buyer in a transaction, found a property for his client on the MLS. By agreeing to the cooperative arrangement of the MLS, Justin will have what type of relationship to the owner of the listed property...? A. Sub-agent B. Principal C. Primary agent D. Justin does not have a relationship with the seller
A
Kevin is a real estate agent in New York City. Over the past two months, Kevin has worked nearly 40 hours per week on average; however, he has not closed a deal in that time frame. How much did Kevin earn over the past two months while working as a real estate agent...? A. He did not earn any money as his compensation is directly related to sales B. He earned the State regulated minimum wage for hours worked C. He earned the Federal regulated minimum wage for hours worked D. He earned a minimum wage of $3,000 for his efforts
A
MLS is an acronym for what...? A. Multiple Listing Service B. Multiple Listing Source C. Many Listing Service D. Multiple Listing Software
A
Mark is a real estate broker who represents a tenant seeking to rent an apartment. When do Mark's fiduciary duties to his client terminate...? A. When his client signs the lease B. 15 days after his client signs the lease C. 30 days after his client signs the lease D. When his client agrees to rent the apartment
A
Mark is an agent with City Brokers. Mark decides that he wants to leave City Brokers to work with another broker. Who is capable of terminating the independent contractor relationship that exists between Mark and City Brokers...? A. Either Mark and/or City Brokers B. City Brokers only C. Mark only D. Neither Mark nor City Brokers
A
Mark, a buyer's broker, found a perspective property for his client on the MLS. By agreeing to the cooperative arrangement of the MLS, who does Mark have an agency relationship with, in addition to his client...? A. The seller B. The seller's broker C. The seller's agent D. The principal
A
Mark, a real estate agent, is attempting to rent an apartment on behalf of his client. Another agent, who works for Mark's broker, is seeking to show the apartment to his client. In this scenario, what type of agency exists...? A. Dual Agency B. Cooperative Agency C. Implied Agency D. Single Agency
A
Mark, a real estate broker representing a seller, insists that his client use his real estate attorney, otherwise, he won't sell the house. What has Mark introduced...? A. Tie-in Arrangement B. Price Fixing C. Self Dealing D. Undivided Loyalty
A
Only after January 1, 2011 was this permitted, as stated under Section 443 of the NYS Real Property Law...? A. Advance consent to dual agency B. Advance consent to net listing agreements C. Advance consent to commingling of funds D. Advance consent to market allocation
A
Prior to January 1, 2011, which of the following was NOT permitted under New York State law...? A. Advance consent to dual agency B. Consent to exclusive agency agreements C. Independent Contractor agreements between brokers and agents D. Open listing agreements
A
The Listing Price is also referred to as what...? A. The price agreed upon in the contract between the seller and seller's agent B. The market value of a property C. The value described in the appraisal report D. The assessed value of the property
A
The amount of commission paid to an agent for a residential rental transaction is typically based on a percentage of this amount...? A. Total annual rent B. Monthly rent C. 6 months worth of rent D. 3 months worth of rent
A
This document describes the roles and duties of a dual agent...? A. NYS Disclosure Form B. Independent Contractor Agreement C. Exclusive Right to Sell Agreement D. Exclusive Right to Rent Contract
A
Two agents are attempting to create a dual agency with permission from both the buyer and seller. According to New York State law, what must be given in-writing...? A. Informed consent from all parties B. Implied consent from all parties C. Dual consent from all parties D. Oral consent from all parties
A
Two brokers entered into an agreement whereby one broker will only do business on the east side of the city and the other broker will only do business on the west side of the city, in essence creating a market allocation agreement. What would this agreement limit...? A. Competition B. Housing prices C. The number of properties on the market D. The number of buyers in the market place
A
What happens if any of the principals in a transaction refuse to grant consent to dual agency...? A. The parties cannot proceed with dual agency B. The seller must find a new agent C. The buyer must find a new agent D. The transaction can close nonetheless
A
What is the typical length of term for an Exclusive Right to Sell agreement...? A. 6 months B. 3 months C. 1 month D. 12 months
A
What should be provided before a dual agency relationship occurs...? A. Informed consent by all parties B. Implied consent by all parties C. Oral consent by all parties D. Partial disclosure by all parties
A
When a buyer's broker agrees to the cooperative arrangement of the MLS, he/she becomes what to the seller, who's property is listed on the MLS...? A. Sub-agent B. Principal C. Primary broker D. Secondary agent
A
When a buyer's broker agrees to the cooperative arrangement of the MLS, who do they have an agency relationship with, in addition to their client...? A. The seller of the property B. The seller's broker C. The seller's agent D. The principal
A
When an agent represents either the buyer or the seller, but NOT both in a transaction, the agent is considered what...? A. Single Agent B. Dual Agent C. Primary Agent D. Designated Agent
A
When do the fiduciary responsibilities of an agent to a principal terminate...? A. At the completion of the transaction B. At the signing of the sales contract C. Once the principal obtains financing D. 30 day after the transaction is complete
A
When two brokers agree to the MLS' cooperative arrangement, what type of agency is created...? A. Expressed Agency B. Implied Agency C. Single Agency D. Primary Agency
A
Which of the following disclosures must be provided by an agent on behalf of his/her client...? A. Lead paint B. Near-by school zones C. Traffic flow in the neighborhood D. Ease of transportation in the neighborhood
A
Which of the following does an agent NOT have to disclosure to his/her client...? A. Ease of transportation in the neighborhood B. Lead paint C. Extensive termite damage D. Major structural damage
A
Which of the following forms is used to inform the parties to a transaction about the risks of dual agency...? A. Disclosure Form B. Dual Agency Form C. Cooperative Agreement Form D. Single Agency Form
A
Which of the following is NOT a characteristic of an independent contractor relationship...? A. The agent cannot work for another company B. The agent does not have set working hours C. The agent is not required to work in a specific location D. The agent is responsible for covering his/her own expenses
A
Which of the following is NOT a characteristic of an independent contractor relationship...? A. The agent is entitled to health benefits B. The agent is not required to work set hours C. The agent is not required to work in a specific location D. The agent is responsible for his/her own expenses
A
Which of the following is NOT a characteristic of an independent contractor relationship...? A. The agent is paid hourly wages B. The agent is not required to work in a specific location C. The agent is responsible for his/her own expenses D. The agent can be employed by another company
A
Which of the following is NOT an obligation owed by the broker to the buyer, as stated in the Buyer's Agency Agreement...? A. Inspect potential properties for structural defects B. Assist in locating qualified properties C. Assist in negotiating any offer made by the buyer D. Present all offers to the seller as the buyer directs
A
Which of the following is NOT considered an anti-trust violation...? A. Divided Loyalty B. Market Allocation C. Group Boycott D. Tie-in Arrangement
A
Which of the following is NOT considered an anti-trust violation...? A. Estoppel B. Price Fixing C. Tie-in Arrangement D. Market Allocation
A
Which of the following is NOT considered an anti-trust violation...? A. Vicarious Liability B. Group Boycott C. Tie-in Arrangement D. Price Fixing
A
Which of the following is a characteristic of an independent contractor relationship...? A. The agent is not required to work set hours B. The agent is paid an hourly wage C. The agent cannot be employed by another company D. The agent is not responsible for his/her expenses
A
Which of the following is a required New York State disclosure for all buildings built prior to 1978...? A. Lead paint disclosure B. Asbestos disclosure C. Leaking roof disclosure D. Light and air disclosure
A
Which of the following is a typical characteristic of an independent contractor relationship...? A. The agent can be employed by another company B. The agent must work set hours each week C. The agent must work in a specific location D. The agent is entitled to health benefits
A
A person who is hired to provide services to a company on a regular basis in exchange for compensation and who does not provide these services as part of an independent business is known as a/an...? A. Employee B. Independent Contractor C. Agent D. Associate
A
A seller agrees to have their property listed on the MLS. As a result, the seller agrees to a dual agency relationship. What may arise if the seller subsequently withdraws their consent to dual agency...? A. The property can no longer be listed on the MLS B. The seller must retain a new broker C. The seller must retain a new agent D. The property will not be sold
A
Abby is a New York State real estate agent, specializing in condominium sales. According to State law, Abby's compensation is directly related to what...? A. Sales B. Hours worked C. Number of clients D. Number of listings
A
Abby is a real estate agent who represents the seller in a transaction. Her colleague, Kimberly, works for the same broker and represents a prospective buyer. Both Abby and Kimberly's clients want to gain a better understanding as to the risks and benefits of entering into a dual agency relationship. What document should Abby and Kimberly present to their clients...? A. The Disclosure Form B. The Cooperative Agreement Form C. The Single Agency Form D. The Dual Agency Form
A
Abby, a buyer's broker, found a property for her client on the MLS. As a result, Abby has now become a sub-agent to the owner of the MLS listing. This is an example of what type of agency...? A. Dual Agency B. Implied Agency C. Cooperative Agency D. Single Agency
A
Abby, a real estate agent, is working to rent an apartment on behalf of her client. Mark, a real estate agent who works for the same broker as Abby, has a client who is interested in renting the apartment. Before the apartment can be shown, what must be provided by the landlord and prospective tenant...? A. Informed Consent B. Implied Consent C. Oral Consent D. Full Disclosure
A
According to NYS law, a broker is not allowed to do which of the following...? A. Take an extended leave of absence from his/her brokerage office B. Operate as a dual agent C. Give bonuses to his/her agent's D. Hire a personal assistant
A
According to New York State law, an independent contractor agreement can NOT be signed under what condition...? A. Duress B. Lack of job prospects C. Influence by another agent D. Accepting the position to earn extra income
A