CHAPTER 2 QUIZ PT 2

When an agent is appointed to act on behalf of the seller in a dual agency arrangement, they are referred to as a...? Client's Agent Seller's Agent Principal's Agent Designated Sales Agent

Designated Sales Agent

Even after an agent's fiduciary duties to his/her client have terminated, what is the agent still obliged to do...? Follow up with the principal to ensure they were satisfied with the transaction Reserve a portion of the commission earned for any potential lawsuits Work with the principal on a future transaction Keep confidential any information shared by the principal

Keep confidential any information shared by the principal

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...? The Single Agency Form The Cooperative Agreement Form The Dual Agency Form The Disclosure Form

The Disclosure Form

According to an Exclusive Right to Sell agreement, what price is listed in the agreement...? The Sale Price The price as determined by an appraisal The Fair Market Value Price The Listing Price

The Listing Price

Which party is capable of terminating an independent contractor relationship...? The broker Neither party The agent Either party

Either party

How is an agent's commission typically paid in a residential rental transaction...? A percentage of the appraised value of the property A percentage of the annual rent A percentage of the net monthly rent A percentage of the property value

A percentage of the annual rent

As stated in the Buyer's Agency Agreement, which of the following is considered a broker's obligation to his/her buyer...? Inspect the property for structural defects on behalf of the buyer Provide legal advice to the buyer Assist in negotiating any offer by the buyer Provide a survey of any potential properties

Assist in negotiating any offer by the buyer

When do the fiduciary responsibilities of an agent to a principal terminate...? At the completion of the transaction Once the principal obtains financing 30 day after the transaction is complete At the signing of the sales contract

At the completion of the transaction

David is a real estate agent working for City Brokers. City Brokers offered to pay David an hourly wage as an incentive to keep David at the firm. If David accepts the hours wage, what may he be considered according to New York State Law...? An associate An employee A broker An assistant

An employee

Marcus is a real estate agent with Town Brokers. Town Brokers demanded that Marcus work a minimum of 25 hours per week at their main office location. Under this scenario, what may New York State consider Marcus if he were to work a set amount of hours in a specific location...? An assistant An employee A broker An associate

An employee

What alternative action can be taken if consent to dual agency is not granted or subsequently withdrawn...? Assign designated sales agents Reduce the agent's commission Walk away from the deal Sue the principal for breach of contract

Assign designated sales agents

According to the Buyer's Agency Agreement, which of the following is the broker's obligation to his/her client...? Provide legal advice to the client Conduct a survey of the property Assist in locating available property Inspect potential properties for structural defects

Assist in locating available property

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...? Ben, the listing broker No party is entitled to the commission The seller The buyer

Ben, the listing broker

Which of the following forms is used to inform the parties to a transaction about the risks of dual agency...? Single Agency Form Cooperative Agreement Form Dual Agency Form Disclosure Form

Disclosure Form

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...? Dual Agency Cooperative Agency Implied Agency Single Agency

Dual Agency

Chris is a real estate salesperson who represents the seller in a transaction. If another agent from Chris' brokerage firm represents the buyer in the same transaction, what type of agency will exist...? Single Agency Dual Agency Cooperative Agency Implied Agency

Dual Agency

Jason, a buyer's broker, found a property for his client on the MLS. By agreeing to the MLS' cooperative arrangement, what type of agency was created...? Cooperative Agency Single Agency Implied Agency Dual Agency

Dual Agency

Unlike single agency where a broker represents either the buyer or the seller, but not both, in this type of agency a broker can represent both the buyer and seller...? Implied Agency Express Agency Cooperative Agency Dual Agency

Dual Agency

When agents from the same brokerage firm represent both the buyer and the seller, what type of agency is created...? Dual Agency Single Agency Cooperative Agency Implied Agency

Dual Agency

According to New York State law, an independent contractor agreement can NOT be signed under what condition...? Accepting the position to earn extra income Influence by another agent Lack of job prospects Duress

Duress

As stated in the Exclusive Right to Sell Agreement, this clause dictates that an owner cannot discriminate against any potential buyers...? Use of Listing clause Fair Housing clause Termination clause Amount of Commission clause

Fair Housing clause

Which of the following is considered an anti-trust violation...? Dual Agency Estoppel Divided Loyalty Group Boycott

Group Boycott

Which of the following should an agent recommend to their client as a means to verify the financial capabilities of the client...? Have the buyer pay off their credit cards Have the buyer put money in escrow Have the buyer obtain a pre-approval letter from a lender Have the buyer open a line of credit

Have the buyer obtain a pre-approval letter from a lender

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...? He earned a minimum wage of $3,000 for his efforts He earned the Federal regulated minimum wage for hours worked He earned the State regulated minimum wage for hours worked He did not earn any money as his compensation is directly related to sales

He did not earn any money as his compensation is directly related to sales

Debby is a New York State real estate agent. According to State law, Debby is considered a/an...? Independent Contractor Associate Employee Assistant

Independent Contractor

In New York State, all real estate agents are considered...? Independent Contractors Assistants Employees Associates

Independent Contractors

As part of an agent's fiduciary duties to his/her client, if a prospective buyer tells the seller's agent that he is capable of paying more than the asking price, what should the seller's agent do...? Inform the client that the buyer is capable of paying more Do not tell the client anything Inform the client that the buyer can only pay up to what he offers on the property To be fair to the buyer, the agent should only tell the client the buyer can pay up to the asking price

Inform the client that the buyer is capable of paying more

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...? Full Disclosure Implied Consent Informed Consent Oral Consent

Informed Consent

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...? Implied consent from all parties Oral consent from all parties Dual consent from all parties Informed consent from all parties

Informed consent from all parties

Which of the following is a required New York State disclosure for all buildings built prior to 1978...? Lead paint disclosure Light and air disclosure Leaking roof disclosure Asbestos disclosure

Lead paint disclosure

The agreed upon price between the seller and seller's agent, for which the property will be sold, is also known as what...? Sale Price Market Value Price Discounted Price Listing Price

Listing Price

Michael, a real estate broker, is hesitant to enter into a dual agency arrangement as he may compromise this fiduciary duty...? Loyalty Reasonable Care Confidentiality Obedience

Loyalty

Which of the following documents should an agent most often keep record of for all past transactions...? Property Assessment Reports Property Surveys Property Appraisal Reports NYS Disclosure Form

NYS Disclosure Form

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...? Only the buyer Only the seller Both the buyer and the seller Neither the buyer nor the seller

Only the buyer

Abby is an agent who has been designated to represent the seller in a dual agency arrangement. Abby owes a fiduciary duty to whom...? Both the seller and the buyer Neither the seller nor the buyer Only the buyer Only the seller

Only the seller

How does a salesperson pay taxes on commissions earned...? Taxes are deducted per transaction Taxes are paid in arrears Taxes are paid in advance Taxes are withdraw from the salesperson's pay check

Taxes are paid in arrears

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...? Sales Hours worked Number of listings Number of clients

Sales

When a buyer's broker agrees to the cooperative arrangement of the MLS, he/she becomes a sub-agent to whom...? Principal Tenant Seller Seller's agent

Seller

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...? Sub-agent Justin does not have a relationship with the seller Primary agent Principal

Sub-agent

If an agent signs an Exclusive Right to Sell agreement with a client and does NOT sell the property within the term listed in the agreement, who is given authority to renew the agreement between seller and agent...? Both the Agent and Seller The Agent The Seller The Agent's Broker

The Seller

Which of the following is a typical characteristic of an independent contractor relationship...? The agent is entitled to health benefits The agent must work in a specific location The agent can be employed by another company The agent must work set hours each week

The agent can be employed by another company

Which of the following is NOT a characteristic of an independent contractor relationship...? The agent cannot work for another company The agent does not have set working hours The agent is responsible for covering his/her own expenses The agent is not required to work in a specific location

The agent cannot work for another company

Even if the buyer's and seller's brokers agree to dual agency, who may reject the arrangement of dual agency in a transaction...? The buyer The buyer's agent Dual agency cannot be rejected if both brokers agree The seller's agent

The buyer

If an owner terminates an Exclusive Right to Sell agreement prior to closing on the property, but the listing broker introduced the buyer to the seller, who is entitled to the commission...? The buyer No party is entitled to the commission The original listing broker The seller

The original listing broker

According to the Exclusive Right to Sell Agreement, who is liable for any damage, theft or loss attributed to a lockbox...? The seller The potential buyer The listing agent's broker The Listing Agent

The seller

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...? The seller's broker The seller's agent The principal The seller

The seller

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...? The seller's agent The seller's broker The principal The seller

The seller

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...? The seller's broker The seller of the property The seller's agent The principal

The seller of the property

Chris, a real estate broker representing a buyer, insists that his client use his home inspector during the due diligence phase, otherwise, he will only show the client a limited number of properties. What has Chris introduced to his client...? Tie-in Arrangement Group Boycott Vicarious Liability Self Dealing

Tie-in Arrangement

In a single agency transaction, what are the seller's broker's duties to the buyer...? Reasonable care To be fair and honest Undivided loyalty Confidentiality

To be fair and honest

The amount of commission paid to an agent for a residential rental transaction is typically based on a percentage of this amount...? 6 months worth of rent 3 months worth of rent Total annual rent Monthly rent

Total annual rent

Which of the following does an agent NOT have to disclosure to his/her client...? Traffic flow in the neighborhood Lead paint Extensive termite damage Major structural damage

Traffic flow in the neighborhood

As an independent contractor, which of the following is an expense that must be paid by the agent...? Broker office computers MLS fees Broker office supplies Travel expenses

Travel expenses

Which of the following is NOT considered an anti-trust violation...? Market Allocation Estoppel Tie-in Arrangement Price Fixing

Vicarious Liability

Which of the following is NOT considered an anti-trust violation...? Vicarious Liability Price Fixing Group Boycott Tie-in Arrangement

Vicarious Liability