Chapter 2 (Set 2)
A Lead Paint Disclosure Form is required for all properties built prior to what year...?
1978
If the commission for a transaction is 6% and the seller's agent agrees to share 50% of his/her commission with participating brokers, what percentage of the purchase price is shared with the buyer's broker...?
3 (Percent %)
What is the typical commission paid to the buyer's agent in a transaction...?
3 (Percent %)
Brian, a property owner, recently accepted an offer from an interested buyer. Brian's attorney recommended that he NOT fill out the Property Disclosure Form. If Brian takes his attorney's advice, how much money will he have to pay at the closing in the form of a credit...?
500
What is the typical length of term for an Exclusive Right to Sell agreement...?
6 months
According to NYS law, how long is a broker allowed to take an extended leave of absence from his/her brokerage office...?
A broker is not allowed to take an extended leave of absence
How is an agent's commission typically paid in a residential rental transaction...?
A percentage of the annual rent
Only after January 1, 2011 was this permitted, as stated under Section 443 of the NYS Real Property Law...?
Advance consent to dual agency
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 employee
Which of the following is a fundamental difference between an independent contractor and an employee...?
An independent contractor does NOT have set working hours, while an employee does
At what time during a transaction may a principal dissolve a dual agency arrangement...?
Any point in the transaction
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...?
Any point in the transaction
What alternative action can be taken if consent to dual agency is not granted or subsequently withdrawn...?
Assign designated sales agents
As stated in the Buyer's Agency Agreement, which of the following is considered a broker's obligation to his/her buyer...?
Assist in negotiating any offer by the buyer
David is a real estate broker who represents the seller in a transaction. When do David's fiduciary duties to his client terminate...?
At the closing of the transaction
When do the fiduciary responsibilities of an agent to a principal terminate...?
At the completion of the transaction
Which of the following clauses is NOT found in an Exclusive Right to Sell Agreement...?
Automatic Renewal clause
Jason is a broker who is involved in a dual agency arrangement. In order to satisfy the demands of his clients, Jason assigned designated sales agent to both the buyer and seller. As a broker in the transaction, to whom does Jason owe a fiduciary responsibility to...?
Both the buyer and the seller
In order for dual agency to occur, what scenario must exist...?
Both the seller's and buyer's agent work for the same broker
As stated in the Buyer's Agency Agreement, which of the following is considered a buyer's obligation to the broker...?
Compensate the broker for services rendered
If two brokerage firms enter into a market allocation agreement, what may they be limiting...?
Competition
According to the Buyer's Agency Agreement, which of the following is considered a buyer's obligation to the broker...?
Conduct all negotiations through the broker
While working as a landlord's broker in a transaction, David learned from the landlord in confidence that he is looking to sell his building in the next 6-12 months. When is David permitted to share this information with his colleagues...?
David is never permitted to share this information
When an agent is appointed to act on behalf of the seller in a dual agency arrangement, they are referred to as a...?
Designated Sales Agent
This form informs the client about dual agency and details the risks and benefits involved in the transaction...?
Disclosure Form
Which of the following forms is used to inform the parties to a transaction about the risks of dual agency...?
Disclosure Form
Which of the following is NOT considered an anti-trust violation...?
Divided Loyalty
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
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...?
Dual Agency
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...?
Dual Agency
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...?
Dual Agency
When agents from the same brokerage firm represent both the buyer and the seller, what type of agency is created...?
Dual Agency
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...?
Employee
Which of the following is NOT considered an anti-trust violation...?
Estoppel
If a broker engages in anti-trust actions or agreements, what will they most likely be in breach of...?
Fiduciary duties to their client
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...?
Full disclosure of the referral fee
Which of the following is considered an anti-trust violation...?
Group Boycott
According to the Buyer's Agency Agreement, which of the following is NOT an obligation owed by the buyer to the broker...?
Have a personal real estate attorney on call to help with the negotiations
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 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 did not earn any money as his compensation is directly related to sales
As a/an ............... the work activities of a real estate agent cannot be controlled by his/her broker...?
Independent Contractor
Debby is a New York State real estate agent. According to State law, Debby is considered a/an...?
Independent Contractor
According to this agreement, taxes are NOT deducted from commissions an agent has earned over the course of business...?
Independent Contractor Agreement
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...?
Informed Consent
What should be provided before a dual agency relationship occurs...?
Informed consent by all parties
Which of the following is a required New York State disclosure for all buildings built prior to 1978...?
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...?
Listing Price
Michael, a real estate broker, is hesitant to enter into a dual agency arrangement as he may compromise this fiduciary duty...?
Loyalty
Which of the following is considered an anti-trust violation...?
Market Allocation
According to this document, the buyer and/or seller do not have vicarious liability for the actions of a broker's agent...?
NYS Disclosure Form
This document describes the roles and duties of a dual agent...?
NYS Disclosure Form
Which of the following documents should an agent most often keep record of for all past transactions...?
NYS Disclosure Form
Which of the following forms do seller's attorneys often recommend that their client not fill out and instead pay a credit to the buyer...?
NYS Property Disclosure Form
As stated in the Buyer's Agency Agreement, which of the following is NOT considered an obligation owed by the buyer to the broker...?
Obtain a pre-approval from a bank prior to viewing any properties
According to the Buyer's Agency Agreement, which of the following is NOT considered a buyer's obligation to the broker...?
Pay the broker a bonus for negotiating a lower purchase price
According to the Buyer's Agency Agreement, which of the following in an obligation owed by the broker to the buyer...?
Present all offers to the seller or seller's agent as the buyer directs
Which of the following is considered an anti-trust violation...?
Price Fixing
According to the Buyer's Agency Agreement, which of the following is NOT considered an obligation owed by the broker to the buyer...?
Provide a survey of all potential properties
Which of the following is considered a broker's obligation to his/her client, according to the Buyer's Agency Agreement...?
Provide the buyer with information describing and identifying properties that match the buyer's criteria
According to the 'In-house Sales' clause in an Exclusive Right to Sell agreement, a seller cannot do which of the following if the listing broker also finds a buyer...?
Refuse to pay a commission to the listing broker
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
David is a real estate broker who represents a buyer in a transaction. David finds a potential property for his client on the MLS. By agreeing to the cooperative arrangement of the MLS, David has become a sub-agent to whom...?
Seller
When a buyer's broker agrees to the cooperative arrangement of the MLS, he/she becomes a sub-agent to whom...?
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
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...?
Sub-agent
According to NYS law, a broker is not allowed to do which of the following...?
Take an extended leave of absence from his/her brokerage office
How does a salesperson pay taxes on commissions earned...?
Taxes are paid in arrears
Jason is a real estate agent who is seeking to rent an apartment on behalf of his client. Jason's colleague, David, works for the same broker and has a client who is interested in renting the apartment. What document should Jason and David have their clients review and sign-off on prior to entering a dual agency relationship...?
The Disclosure Form
According to an Exclusive Right to Sell agreement, what price is listed in the agreement...?
The Listing Price
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...?
The Seller
Which of the following is a typical characteristic of an independent contractor relationship...?
The agent can be employed by another company
Which of the following orders from a seller must a seller's agent NOT follow...?
The agent cannot sell to a minority
Which of the following is a characteristic of an independent contractor relationship...?
The agent is not required to work in a specific location
Which of the following is a characteristic of an independent contractor relationship...?
The agent is not required to work set hours
Which of the following is NOT a characteristic of an independent contractor relationship...?
The agent is paid hourly wages
Who is required to sign the NYS Agency Disclosure Form...?
The buyer or seller
If one or both of the parties in a transaction are not aware that a dual agency relationship exists, what can occur...?
The contract can be rescinded
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...?
The dual agency cannot proceed
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 original listing broker
What happens if any of the principals in a transaction refuse to grant consent to dual agency...?
The parties cannot proceed with dual agency
The Listing Price is also referred to as what...?
The price agreed upon in the contract between the seller and seller's agent
David, a real estate broker representing the seller, received an offer on his client's property for $450,000, $50,000 below the asking price. However, the prospective buyer told David that he is capable and willing to offer up to $525,000. According to David's fiduciary duties to his client, what should he tell the client...?
The prospective buyer is willing to offer $25,000 over the asking price
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 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
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
In order for two brokers to enter into a dual agency arrangement, who must provide informed consent...?
The seller and buyer
If an owner opts NOT to list his/her property on the MLS, what may they be risking...?
Their property may not sell
According to NYS Law, how much income must an agent generate in order to maintain their status as a licensed real estate agent...?
There are no required minimum earnings
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
Maggie, a real estate broker representing a buyer, tells her client that they must use her mortgage broker to obtain a mortgage, otherwise, she won't show the best deals on the market. What has Maggie introduced to her client...?
Tie-in Arrangement
Marcus, a real estate broker representing a buyer, is insisting that his client use his real estate attorney, otherwise, he will only show a limited number of properties to the client. What has Marcus introduced to his client...?
Tie-in Arrangement
The amount of commission paid to an agent for a residential rental transaction is typically based on a percentage of this amount...?
Total annual rent
Which of the following does an agent NOT have to disclosure to his/her client...?
Traffic flow in the neighborhood
As an independent contractor, which of the following is an expense that must be paid by the agent...?
Travel expenses
When dual agency exists between the landlord's agent and tenant's agent, which fiduciary duty may be most at risk to both principals...?
Undivided loyalty
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...?
When his client signs the lease
Josh is a real estate broker who represents a landlord in a rental transaction. When do Josh's fiduciary duties to his client terminate...?
When the tenant signs the lease
As an independent contractor, which of the following must exist between the salesperson and a specific broker...?
Written contract