QUIZ - Unit 5 - National Brokerage

What does a carryover clause do?

allows the broker to collect a commission for some period of time after the listing expires

What type of training is frequently conducted by multiple office companies? Self-study Organized classroom training One-on-one On-the-job

organized classroom training

What is the most common reason a property fails to sell?

overpricing

Agent Jim works on a flat 2% commission. He sells an in-house listing for $120,000 and also earns a $2,000 bonus from the listing client. What is owed Agent Jim?

$4,400

Jim and Jane's home sold for $345,800. They owe $240,000 on their mortgage. What will their net be after they pay $10,000 in expenses and a 9% commission?

$64,678

Which of the following statements is FALSE? A broker may require licensees to carry high levels of automobile insurance. It's a good idea for brokers to carry workers' compensation coverage. A broker is not responsible for the acts of independent contractors. Employee status versus independent contractor status is an IRS issue.

A broker is not responsible for the acts of independent contractors.

Which BEST describes the role of a fiduciary? A broker can only accept a reasonable amount of profit over the agreed upon consideration. A fiduciary relationship is established when a property manager agrees to represent an owner in leasing the owner's property. A fiduciary can only disclose confidential information obtained after termination of fiduciary relationship. A fiduciary relationship is always created when a broker shows a buyer a house.

A fiduciary relationship is established when a property manager agrees to represent an owner in leasing the owner's property.

Which statement best defines the concept of "quiet enjoyment?" A tenant's requirement to comply with contract obligations A landlord's obligation to provide the tenant with egress A landlord's obligation to provide the tenant with reasonable privacy and freedom from interference A tenant's requirement to allow access for inspections and repairs

A landlord's obligation to provide the tenant with reasonable privacy and freedom from interference

Which is TRUE about listings? A net listing is illegal in all states. An open listing is an exclusive contract. A seller can sell his or her own home and owe no commission if he or she signs an exclusive agency listing. An exclusive listing must always be at least 30 days long.

A seller can sell his or her own home and owe no commission if he or she signs an exclusive agency listing.

Which of the following best defines the term procuring cause? Actions that demonstrate the unbroken efforts of an agent that are responsible for the buyer making a decision to complete the sale Being involved at some point in the transaction Scheduling and conducting open house tours Establishing a marketing plan for the listing

Actions that demonstrate the unbroken efforts of an agent that are responsible for the buyer making a decision to complete the sale

Which of these is not a helpful homeowner tip? Display lots of family photos to impress potential buyers De-clutter your garage and basement. Bake muffins or cinnamon rolls to create a "homey" feel. Make sure all light bulbs and lamps are working and are bright

Display lots of family photos to impress potential buyers

Behavioral, Financial and Type of Relationship are

IRS verification levels of control and independence regarding contractor status

Martha signs a listing agreement with Broker Patrick. Which of the following would probably not be found in the agreement they signed? Patrick's commission Martha's price Expiration date of the contract Martha's average utilities

Martha's average utilities

Who controls the internet site at www.realtor.com?

National Association of REALTORS®

What strategy should you take when the listing is about to expire?

Schedule a meeting with your sellers a few weeks before the listing is set to expire and review with them your previous marketing plan

If there is no interest in the property on a given week, what should the agent do?

Share that information with the sellers

Which of the following would be deemed an advantage of a subagency arrangement? Subagency is an easy way for the cooperating broker to share in the commission. Subagency relieves the seller and the listing broker from liable for the actions of the subagents. Subagency requires a written agreement from the buyer. Subagency allows the subagent to act like a buyer's agent without the risk of undisclosed dual agency.

Subagency is an easy way for the cooperating broker to share in the commission.

If a couple shows up at the sellers' door unexpectedly to see the home, what should the sellers do?

Take their names and call your office.

How should you follow-up on direct mail advertising?

Track and repeat those campaigns that show results.

Which of the following best describes "agency coupled with an interest?" When a licensee knows the seller in a property transaction When a licensee knows the buyer in a property transaction When a licensee has previously sold the property in a current transaction When a licensee holds interest in a property transaction

When a licensee holds interest in a property transaction

At times, the woman's shelter at St. Mary's Catholic Church has rental units open to the public. Are they allowed to advertise for female renters only?

Yes, gender based ads for shared living housing is acceptable

How frequently must companies access and update the Do-Not-Call Registry?

a minimum of every 31 days

What is special about a universal agent?

a universal agent has power of attorney

When the agency relationship has been terminated, the licensee is no longer considered the principal's agent and does not owe any further duties to the principal, except for the following? Loyalty Accounting Obedience Care

accounting

The Statute of Limitations requires that parties to a contract who have been damaged or who question the contract's provisions do what?

act within a statutory period

Which of these is not an AIDA characteristic? Interest Attention Desire Activity

activity

Which document is used to make adjustments to an existing sales contract?

addendum

Which of these is not a tool to help evaluate advertising effectiveness? Telephone log Code in a print ad Advertising budget Designated telephone number

advertising budget

What are the three primary areas of disclosure?

agency, property condition and environmental hazards

Which of the following is a good example of a unilateral contract? A listing agreement A personal services agreement A sale contract An option to buy

an option to buy

Sales of manufactured and mobile homes

are typically made with a property disclosure.

In most states, in all residential transactions when must licensees give potential sellers or buyers a written disclosure form?

at first substantive contact

The acronym AIDA stands for

attention interest desire action

A lease is

both an instrument of conveyance and a contract

Before a buyer broker shows a property, what must he or she disclose to the seller?

buyer agency relationship

Which type of agency would be most advantageous to a buyer?

buyer brokerage

Which of the following is NOT a form of agency? express agency implied agency closed agency ostensible agency

closed agency

An agency relationship

can occur through implication (what you might say or do) without a written contract

Home tours are oftentimes referred to as

caravans

Once an agency relationship has been terminated, which of the following responsibilities remain in place? Compensation Obedience Confidentiality Care

confidentiality

When the agency relationship has been terminated, the licensee is no longer considered the principal's agent and does not owe any further duties to the principal, except for the following Loyalty Obedience Confidentiality Care

confidentiality

Most home sales are

contingent on financing.

Which of these guidelines is not part of the IRS safe harbor test? Income must be based on sales input. Contractors must have access to workers compensation benefits. The contractor must be licensed as a real estate salesperson or broker. There must be a written contract in place.

contractors must have access to workers compensation benefits

Which of these words or phrases might be considered discriminatory when used in advertising? No smoking Couples only Handicap accessible Kids welcome

couples only

Which item would NOT appear on a property disclosure statement? condition of any outdoor sprinkler system basement problems deed number pest infestations

deed number

Which of the following types of newspaper ad is the most expensive? Classified Ad Display Ad Block Ad Line Ad

display ad

What technique is frequently used to increase attendance when holding an agent's open house?

drawing for incentives

In what section on a seller's disclosure would you find information regarding issues in relation to drainage problems?

environmental

Which component is not required in most listing agreements? identification of the property specifics of compensation defined signatures collected escrow company named

escrow company named

Buyer Bill has agreed to pay for a computer system after all hardware has been installed and operational. What type of contract does Bill hold?

executory

Which of the following types of information can a licensee legally provide to both a principal and a customer? counsel facts legal advice

facts

Which of the following best defines negligent misrepresentation? Intentionally misrepresenting facts Providing false information as facts Failure to use ordinary or reasonable care in a situation Manipulation of facts to direct a favorable outcome

failure to use ordinary and reasonable care in a situation

Which of the following duties best describes what an agency owes customers? fairness, care and honesty obedience, confidentiality and accounting diligence, care and loyalty honesty, diligence and skill

fairness, care and honesty

What is the term given to assigned office duty?

floor time

What happens to escrow monies when the parties are unable to reach a resolution?

funds are held in a state escrow account for six months then are turned over to the State Treasurer

Promotional items are also known as

giveaways

Agent Betty started with ABC Realty making a 1.5% commission on all listings sold. Within 6 months she will be eligible for a 2% commission. What type of program is Agent Betty on?

graduated

What is the payment program, when an agent starts out at a lower percentage payment but then graduates to higher percentage rates?

graduated

The best practice is to

have the buyers take possession on the day of the transaction close.

Which of the following does a principal owe to his or her licensee? information access accounting performance

information

A prospective homebuyer submits a signed offer to buy a house with the condition that the seller pays financing points at closing. The seller disagrees, crosses out the points clause, then signs and returns the document to the buyer. At this point, assuming all other contract validity items are in order, what is the status of the offer? It's an accepted offer; therefore a valid contract. It's an invalid contract. It's still an offer. It's an invalid offer.

it's still an offer

An agent's duties to a principal include all of the following except which? loyalty accounting notice legal advice

legal advice

A listing agreement is a

legally-binding contract that creates an agency relationship.

Agent Sue listed and sold the same property. Agent Sue is owed a

listing and selling commission

Antitrust laws prohibit

market allocation

Which of the following is a common complain buyers have against buyers? Excessive paper work Compensation fees Misrepresentation of the facts Failure to respond to questions

misrepresentation of the facts

When a tenant agrees to pay all taxes, insurance, maintenance and repairs, that tenant has what kind of lease?

net In a net lease, the tenancy pays for occupancy, maintenance and operating expenses such as taxes, insurance, utilities and repairs.

Which form of advertisement works well for an agent that deals with specialized properties?

newsletters Newsletters can be produced to focus on particular types of properties, thus effectively targeting niche markets

What is the legal requirement regarding the number of escrow accounts that can be opened?

no limit

Salesperson Larry is writing an advertisement for one of his listings. Which of the following phrases should he avoid? Desirable neighborhood Apartment complex with chapel Mother-in-law suite No wheelchairs

no wheelchairs

Broker Freehand and Broker Getrich make a deal that Freehand will take all the listings on the north side of town, which are located near his office and Broker Getrich will take all the listings on the south side near his office. They have agreed not to cross into each other's territories or allow their salespeople to do this. They have also agreed to set their rates at 7% so that the sellers will all pay the same fee. Is this acceptable?

no, this is a violation of sherman antitrust

Which type of home tour is designed expressly for other licensees? office tours open house private tours individual tours

office tours

Broker Alice has a listing agreement with Jack. If Broker Tom procures a buyer for Jack, Tom will get the commission and Alice will not. What kind of listing agreement does Alice have with Jack?

open

Which of these listing agreements is considered a unilateral contract? open exclusive agency net exclusive sale and listing

open

What are the two changes most often made to a listing agreement?

price changes and listing period extensions

"Everyone charges the same so you might as well list with me" is an example of what?

price fixing

What is another term given for a property flyer?

property briefs

Which type of compensation is more likely to be used in a commercial rather than a residential transaction?

retainer

What do we call the right of a person to have the first opportunity to purchase or lease a property?

right of first refusal

Ads should be written

rom the perspective of all the protected classes

A broker can enter into a single agency relationship with any of the following except: seller landlord buyer seller and buyer

seller and buyer

Which form of real estate advertisement is typically visible at retail locations?

shopping guides

When a listing agent signs an agreement, in reality he or she is

singing on behalf of the indicated broker

What is an agency called who represents only one person in the transaction, either the buyer or the seller?

single agent

Which form of advertising is considered the most cost-effective method for advertising a home?

social media Social Media advertising is probably the most common and often the most effective form of advertising for residential property

What type of methodology works well to ensure that all agents are given and hear the same information?

staff meetings

What marketing technique uses AM/FM radio transmissions that broadcasts a message about the listing?

talking house

What is the term given to the action when both parties mutually agree to end the listing relationship?

termination

An agent fails to discover flood marks on the walls in the basement of a property. The agent sells the property, and the buyer later sues the agent for failing to mention the problem. Which statement best describes what can happen in this case? The agent may be guilty of intentional misrepresentation. The agent has an exposure to a charge of negligent misrepresentation. The agent has little exposure, since the problem was not mentioned on the signed disclosure form. The agent is not vulnerable, since the problem was not discovered.

the agent has an exposure to a charge of negligent misrepresentation

Which party has legal authority to sign a sales contract for a property that is part of an estate? The trust committee The listing broker A judge in the county where the property is located The executor of the estate

the executor of the estate

Which of the following benchmarks might be used by a licensee when selecting a brokerage? The firm employs a number of successful agents. The firm employs a number of unsuccessful agents. The firm encourages self-training. Most agents have short term work histories with the broker

the firm employs a number of successful agents

What is the common disposition of a listing when the listing agent moves to another agency?

the listing stays with the broker

Which party is responsible for filling out a property disclosure statement?

the sellers

Which of the following summarizes the general terms of a ground lease? The landlord sells the ground to another, then leases it back. A tenant buys the landlord's ground, then leases the improvements. The landlord leases the ground floor of the building to a commercial tenant. The tenant leases the ground from the landlord and owns the improvements.

the tenant leases the ground from the landlord and owns the improvements

Matt Bower is a developer. Will Jones is a builder. Matt agrees to sell Will a lot, but he conditions the sale by insisting that Will agree to list the property with him after the home is built. What is this called?

tie-in arrangement

What is the primary purpose for agency disclosure?

to remove any confusion about who the agent is working for

What condition occurs when dual agency is not disclosed and agreed to in writing?

undisclosed dual agency

Which of the following must a broker legally provide to an employee? pension plan unemployment insurance health insurance sales commission

unemployment insurance A broker is responsible for paying federal and state unemployment taxes, workers' compensation and disability insurance

In which provision would a landlord describe what activities can take place on the property?

use of the premises

Issues that are not covered in the purchase and sale agreement itself are usually dealt through verbal agreements. via handwritten notes. using preprinted riders. using a schedule of changes

using preprinted riders