RE Chapter 4 Study

Bob Broker listed acreage for $90,000. Jim verbally offered $88,000. Another buyer who knew about Jim's offer made an offer of $93,000. The broker drew up a written contract for $93,000 but did not inform the owner about the offer for $88,000. Which is correct? Broker correctly submitted only the higher offer. Broker should have submitted both offers to Owner. Owner must accept any offer that meets, or exceeds, the listing price and terms Broker was right in using his own judgment as to which offer to submit.

Broker should have submitted both offers to Owner.

On July 1, Abrams lists his home on a 90-day exclusive contract with Broker Baker. On July 30, Abrams's Chapter 7 bankruptcy claim is approved. On August 6, the broker found a ready, willing, and able purchaser for Abrams's home. Can the broker claim a commission from Abrams? Yes, even if the bankruptcy court denies it. Yes, because there was executory contract. No, because the executory contract was terminated before the buyer was procured. No, because Broker Baker is not a preferred creditor

No, because the executory contract was terminated before the buyer was procured.

A buyer is a broker's principal. Legally, the sales associates who work for the broker are only partly obligated to the buyer under agency requirements. encumbered with agency obligations to the seller. also legally bound by the broker's agency obligations. assuming all fiduciary duties to both buyer and seller.

also legally bound by the broker's agency obligations.

A seller has her property listed for $85,000 but tells the broker she is desperate to sell and will take as little as $74,500. She even mentions this while the broker is showing the house to a prospective buyer. The broker cannot legally mention the $74,500 price. should encourage the prospective buyer to offer $74,500 so the house will sell faster. should encourage the prospective buyer to offer a figure just above $74,500. can legally represent the price of the property at less than $74,500.

cannot legally mention the $74,500 price.

A broker listed a house and is the single agent of the seller. A prospective buyer wants to view the home and wants the broker to represent him too. The broker must disclose in writing to a buyer that the licensee is an agent of seller. have the seller sign a Transition to Transaction Broker form before showing the house to the buyer. deliver a copy of the Agency Disclosure Form to the seller. get the informed, written consent of all parties prior to becoming a dual agent.

have the seller sign a Transition to Transaction Broker form before showing the house to the buyer.

When must the No Brokerage Relationship notice be presented? in writing before getting signatures on contracts in writing before the showing of property at any time before closing of transaction at no time since, it is presumed by law

in writing before the showing of property

A broker lists a home that she knows would be perfect for her mother. The home is being sold due to the death of the owner, and the broker knows the owner's heir, who lives in Pennsylvania, is willing to accept a much lower offer than the home's listed price. The broker should tell her mother that the owners will accept a substantially lower bid than the listed price. that the owners are divorcing and are very anxious to sell. nothing, but make suggestions about a lower price when his friend expresses an offer. nothing, but present to Owner any offer that his friend wishes to make.

nothing, but present to Owner any offer that his friend wishes to make.

A transaction broker is best described as the concept of all fiduciary duties apply. one who provides limited representation in a brokerage transaction between buyer and seller. trust and confidence apply. broker represents both the buyer and seller with full fiduciary duties.

one who provides limited representation in a brokerage transaction between buyer and seller.

Although the roof on a house for sale leaks, the ceilings show no water damage. A broker represents the seller as a single agent and the seller has told the broker about the leak. If a prospective buyer asks nothing about the roof, the broker's legal obligation is satisfied if she says: nothing about the roof's condition. the roof appears to be in good condition. that there is no sign of water damage. that there is a leak in the roof.

that there is a leak in the roof.

When a broker employs a licensed real estate sales associate, the sales associate has no obligations to the broker's clients and customers. a fiduciary duty to his employing brokers, only. the same obligations to the broker's clients and customers as the broker. no fiduciary duties or obligations to anyone.

the same obligations to the broker's clients and customers as the broker.