Agency 3
A listing brokerage firm agrees to pay 50% of a 6% commission to a cooperating brokerage firm. The cooperating firm agrees to pay 60% of their commission to the sales person that finds a buyer. If the property was listed for $250,000 and sold for $240,000, how much would the salesperson receive?
$4,320
A property sells for $195,000. The existing loan balance is $114,000 and the seller's closing costs are $2,500. What are the seller's net proceeds if the brokerage fee is 6%
$66,800.
A licensee has an exclusive right to sell listing on Smith's store that entitles him to $4,000 in compensation. The licensee also has a similar type of listing on Jones' store that promises $5,000 in compensation. If the licensee arranges a 1031 exchange of the above two properties with informed consent of both parties, how much compensation if any will he receive?
$9000.
Which of the following relationships would be considered a general agency?
A broker managing an owner's rental property.
What is a primary difference between a client and a customer?
A client signs a brokerage engagement; a customer does not.
Under the Federal Fair Housing Act, familial status would apply to:
A pregnant woman.
An agent has an exclusive right to sell listing with an expiration date of September 20. The owner of the property dies before the listing expired. What happens to the listing? A. Death of the owner will terminate the listing. B. Death of the owner will not affect the listing. C. The expiration date would need to be extended. D. The heir would be responsible for the listing.
A. Death of the owner will terminate the listing.
Under a listing agreement the broker was instructed to show the property by appointment only, advertise the property in the multiple listing service. use a "FOR SALE" sign and determine the validity of the title. Which of the following NOT a duty of the listing broker? A. Determine the validity of the title. B. Advertise in the multiple listing service. C. Show the property by appointment only. D. Use a "FOR SALE" sign.
A. Determine the validity of the title.
An apartment owner signs a management contract with a real estate broker. Has a agency been established? A. Yes, the owner has created a general agency with the broker to act on their behalf in managing the apartment. B. Yes, the agreement creates a universal agency between the apartment owner and the broker. C. No, an agency can only be formed between a seller and real estate broker. D. No, an agency with a broker can only be formed in transactions of buying and selling real estate.
A. Yes, the owner has created a general agency with the broker to act on their behalf in managing the apartment.
A Georgia real estate salesperson has been paying $100 to each unlicensed person who provides a referral that results in a sale. Such payment of a referral fee is which of the following?
An unfair trade practice.
An agent has a listing on a residential property with an expiration date June 16th. On May 2nd, the seller accepts an offer from a buyer. On June 4th the title is conveyed at closing with a stipulation that the buyer will not take possession of property until June 11th. When is listing terminated? A. May 2nd. B. June 4th. C. June 11th. D. June 16th.
B. June 4th.
A broker and a seller signed a standard listing agreement. Under the terms of this listing the broker would be appointed to perform all of the following acts EXCEPT: A. Attempt to find a ready, willing and able buyer for the real property. B. Sell, trade or convey title to the real property. C. Place a "For Sale" sign on the property and market the property. D. prepare a data sheet with information about the property to give to prospective purchasers.
B. Sell, trade or convey title to the real property.
A salesperson is showing property in a racially changing neighborhood. Which of the following statements by the salesperson would be appropriate in this situation?
Based on the information you have provided, I don't think you can afford that property.
Broker Reed obtains an exclusive right to sell listing on a property owned by Mr. Lane. Which f the following would be TRUE concerning this agreement?
Broker Reed is due a commission regardless of procuring cause.
Under the *CAN-SPAM ACT* opt-out request must be handled within:
10 business days.
A brokerage company recently had a listing expire. The seller is on the Do-Not-Call list. After the end of the transaction for many months may the agents in the listing office call the seller?
18 months
A licensee should search the National Do Not Call Registry on a regular basis and drop registered consumer phone numbers from their call lists. This should be done at least once every:
31 days.
A property was listed at $260,000 and sold for $245,000. The closing costs were $2,800. The listing broker received a brokerage fee of $14,700. What was the rate of commission?
6%
Under a listing agreement which of the following is a fiduciary responsibility of the listing broker? A. Determining if the seller has a marketable title. B. Advertising the property at a price less that th listed price. C. Advertising the seller the buyer is willing to pay more than the are offering. D. Disclosing the buyer's race and national origin
C. Advertising the seller the buyer is willing to pay more than the are offering.
After a broker takes a listing on a residential property, the owner instructed the broker NOT to show the property to buyers with children, The broker should do which of the following: A. Follow the seller's instructions. B. Include "no children" in all advertising. C. Inform the owner that the instructions violate federal law and that the broker must comply with the law. D. Add the "no children" stipulation to the listing agreement.
C. Inform the owner that the instructions violate federal law and that the broker must comply with the law.
While a licensee is showing a property to a prospective buyer, the licensee tells the prospective buyer the property has a "fantastic view." Would the prospect be likely to successfully use that statement as a basis for a legal complaint? A. Yes, because it would be considered a misrepresentation. B. Yes, because it is illegal for a licensee to use nonfactual extravagant statements. C. No, because this statement would be considered puffing and not grounds for a misrepresentation. D. No, because as long as a prospect has seen a property where are no grounds for any later complaints.
C. No, because this statement would be considered puffing and not grounds for a misrepresentation.
An owner listed their property for $200,000 and instructed the agent not to present offers below $200,000. The agent receives a signed offer for $195,000. The agent should: A. Reject the offer because of the low price. B. Refuse to present the offer. C. Promptly present the offer to the seller. D. Hold the offer until the purchaser increases the price to $200,000.
C. Promptly present the offer to the seller.
The owner is renting the vacant unit of an owner occupied duplex. The owner would be exempt from the Fair Housing Law if they: A. Advertised "for Catholics only". B. Refused to rent to someone based on race. C. Refused to rent to someone who was blind. D. Advertised "adults only, no children".
C. Refused to rent to someone who was blind.
Salesperson Boyd, a licensed salesperson currently on inactive status, plans to purchase a parcel of land. Before presenting the offer to the seller the salesperson must: A. Provide the real estate commission with a copy of the contract when the offer is accepted by the seller. B. Provide his broker that he is a licensed real estate salesperson. C. State in the offer that he is a licensed real estate salesperson. D. State in the offer the purpose for which the property is being purchased.
C. State in the offer that he is a licensed real estate salesperson.
A broker received an offer to purchase in which the buyer asked the seller to carry a second mortgage for $5,000. The broker was negligent in notifying their seller to check the buyer's credit before carrying a second mortgage for the buyer. The broker breached their fiduciary obligation of:
Care.
Under BRRETA, if there is no expiration date in a brokerage engagement and no authorized termination has occurred, how long will the engagement continue after the initiation of the engagement?
One year.
In a dual agency, who is considered to be the dual agent?
Only the broker.
A broker presents an offer to a seller for the full listed price of $215,000. The offer is accepted and communicated to the buyer. Later another offer on the same property comes in at $210,000. What should the broker do with second offer?
Present the second offer to the seller immediately and suggest it be treated as a backup offer.
Salesperson Smith writes an offer on a property he has listed on Main Street at 10:00 AM. Smith immediately calls the seller and makes an appointment to present the offer at 7:00 PM. At 2:00 PM and at 4:30 PM, Smith receives subsequent offers from agents with other companies. What is Smith's BEST course of action regarding these three offers?
Smith should present all offers and do so in the manner which Smith deems will be best to help the seller client understand the options.
The seller accepted an offer on her property and must move immediately. Through a limited power of attorney, she authorized her listing agent to sign all documents for her at the closing. Legally, the agent is classified as a:
Special agent
A salesperson shows prospective buyers of a particular race, properties only in areas occupied by families of the same race. This action best describes:
Steering
A buyer wants to buy a house and fence the backyard for her dog. She tells a listing agent her plans and is shown several properties by that agent.j The agent finds a property the buyer likes and the buyer makes an offer that is accepted. After closing and moving into the property, she finds out there are deed restrictions in the subdivision that prohibit fences. Which of the following is true?
The agent knew of the buyer's intended use and should have checked the restriction or informed the buyer to do so herself.
A broker showed a buyer a forty-five year old residential home that was recently repainted. Under the federal Lead Based Paint Hazard Reduction Act which of the following statements is correct?
The buyer must be provided with a pamphlet titled "Project Your Family From Lead in Your Home"
A listing broker has an exclusive right to represent the developers in a new subdivision. The broker shows properties in the subdivision to prospective buyers who are not working with other agents and prepares offers for those who decide to buy. Which of the following statements best describes this situation?
The buyers are not represented by the listing broker.
A broker wants to charge her clients a flat fee for her commission, so that no matter what price a home sells for, the broker will receive the same amount of compensation. Which of the following must occur before the broker can make such arrangements?
The clients must agree to the arrangement prior to listing the property.
All of the following would be legitimate reasons for refusing a residential listing EXCEPT?
The property is located in a minority area and would be difficult to market.
Which of the following is a requirement of an independent contractors relationship between a broker and a salesperson?
The salesperson must enter into a written agreement with the broker.
Broker Burke is showing property to Buyer Smith, who is a client. Burke has shown Smith 7 properties and Smith most likes a property listed by Broker Zane. Broker Burke MOST likely has which of the following relationships?
The seller is a customer to Burke.
What do special, general, and universal types of agency have in common?
They originate with the principal.
An Asian buyer their real estate agent if there is an area of the city which would be receptive of her culture and family. Which of the following is MOST correct concerning this request?
To answer the question would be illegal steering and a violation of state of federal law.
Which of the following does NOT create a fiduciary relationship?
Transaction brokerage.
A broker sold a property which was listed with another broker. When would the commission be due and payable.
Upon closing.
A seller listed their house for sale on an "as is" basis. The seller disclosed to the listing agent that the plumbing was outdated and needed replacement. Later the seller discovered termite damage and notified the agent. If neither the seller nor the agent told a buyer about the damage, would the buyer be able to sue at a later date when the termite damage is found?
Yes, because the agent did not disclose the damage to the buyer when it was discovered.
A buyer's broke described the boundary lines of a property to a client without disclosing that the boundaries described were not exact. After purchasing the property, the new owner built a fence within the described boundaries. Later a neighbor brought an injunction against the new owner because the fence extended beyond the actual property boundaries. Can the broker be accountable for misrepresentation.
Yes, because the broker knew the boundaries could be wrong.
If a listing has expired, can the agents of the listing brokerage firm that handled the listing contact the seller, if the seller's name is on the "do not call list"?
Yes, for up to 18 months.
A potential buyer attends an "open house" on a listed property and inquiries about the sales price. The interested buyer is registered on the Do-Not-Call Registry. Can the salesperson call the interested buyer?
Yes, the agent can call for up to three months after the consumer makes an inquiry.
A broker has an exclusive right to sell listing agreement with a seller. The seller accepts an offer from a buyer for the sale of a house. The buyer meets all the requirements of the sales contract. Before closing the seller decides not to sell the property and backs out of the sale. Is the listing broker entitled to a commission?
Yes, the broker produced a ready, willing and able buyer.
A seller tells their listing agent that they will only accept cash or check as earnest money. The broker receives an offer with the earnest money in the form of a promissory note. If the offer is presented to the seller and the promissory note not disclosed to the seller, did the broker do anything wrong?
Yes, the broker should have disclosed the promissory note.
In Georgia, a seller says "I want $160,000 for my home and the brokerage company can have everything over that amount." This listing is considered:
a "net" listing which is prohibited by the Georgia Real Estate License Law.
A seller hires a broker to find a buyer for their apartment building. The agreement signed would be:
a listing/agency agreement
In a listing agreement the broker receives a s commission all excess monies above the minimum sales price agreed on by the broker and seller. This would be considered:
a net listing
An agent involved in conducting a single business transaction under detailed instructions of a principal is considered:
a special agent.
A buyer is interested in buying a home in an older neighborhood where new sidewalks have just been installed. The buyer contacts his real estate agent who shows him the property, which is listed with a different company. The only taxes mentioned in the MLS information are the general real estate taxes. When asked, the seller says she knows of no taxes against the property. The agent should:
advise the buyer that there may be special assessments levied against property.
As it relates to real estate, agency is created when there is an agreement to represent another party in the sale, purchase, or lease of property. Sub-agency is created when representing the:
agent.
All of the following would be considered an agent EXCEPt:
an employee of a multiple listing service.
A licensee sent out a broadcast fax to announce a reduced price of a listed property. The fax must include:
an opt-out process to prevent receiving future unsolicited advertising faxes.
A licensee is questioned by an interested buyer whether the property was the site of a homicide or suicide and was the dwelling ever inhabited by a person infected with AIDS or the HIV virus. The licensee should:
answer the question about the homicide or suicide to the best of his/her knowledge and state he/she is unable to answer the inquire on AIDS.
A group of the brokers attempt to set the commission rates for all real estate transactions within their market area. Such action could subject the brokers to prosecution under the: A. Antitrust laws. B. Real Estate Settlement Procedures Axe (RESPA). C. Truth in Lending Law (Regulation(Z). D. Federal Fair Housing Acts.
antitrust laws
In accordance with the laws of agency, a real estate broker may represent:
anyone who signs a brokerage engagement.
A real estate agent is encouraging owners to sell their homes by claiming that the entry of a religious group into the neighborhood would have a negative impact on their property values. This would be an example of:
blockbusting.
A licensee is acting as a buyer's agent for a client who is looking for a commercial property. The licensee finds an attractive corner site that may have been used as gas station. They buyer wants to prepare an offer for this property. This licensee should recommend that the client:
consult with an environmental expert
In Georgia, two licensees affiliated with the same broker are assigned by the broker to represent the buyer and seller respectively in the same transaction. Under BRRETTA this would be considered:
designated agency.
When a broker acts as agent for both a purchaser and a seller in the same transaction, this is known as a(n):
dual agency.
A seller lists his property with a broker and the agreement provides that if the seller should find a buyer for the property himself, there will be no commission due to the broker. This type of listing is MOST likely a(n):
exclusive agency listing.
A broker hired to manage an owner's rental property would be considered a:
general agent.
Under the Federal Fair Housing law, familial status would apply to:
individuals under the age of 18 living with a parent.
Broker Dole was showing a buyer different apartments for rent in a specific area of a city. The buyer asked Dole to find an apartment that did not allow children as the buyer desired peace and quiet and felt that children would destroy their privacy. Broker Dole should:
inform the buyer that only bona fide retirement communities can legally restrict children
Those facts that a party does not know, could net reasonably discover, and would reasonably want to know when making a decision best desbribes:
material facts must be disclosed to all parties with whom the broker is working.
When an active licensee anticipates transactions involving real estate owned by that licensee, the law requires the licensee to:
notify their broker, in writing, prior to entering into the transaction.
An agency relationship that arises by the actions of the parties rather than by expressed agreement is called a(n):
obstensible agency (implied agency).
Net listing are illegal in Georgia because:
of the potential conflicts they can create between the interest of the principal and the broker's self-interest.
Under the Civil Rights Act of 1866 a property for sale by owner would NOT be exempt from:
race
A professional home inspection reveals the presence of black mold in a property. The licensee representing the buyer should:
recommend that the buyer seek the advice of an expert.
The Federal Fair Housing Law prohibits discrimination baed on:
religion
An agent listed a property that was advertised on her company's website. A potential buyer emailed her for additional information. She responded and set an appointment to show the property. She showed the buyers other properties as well. Eventually, the buyers purchased her listing. Because the agent listed and sold the property, in most status she would MOST likely be considered a:
seller's agent.
The owner of a condominium complex hired a broker to find buyers for the last two available units. The broker would be considered a:
special agent.
A licensee plans to send out an e-mail offering services. According to the CAN-SPAM Act, the licensee must:
tell recipients how to opt out of receiving future emails.
All of the following are characteristics of an agency relationship EXCEPT:
the agency is between a client and customer
A listing broker earns a commission when:
the broker brings an offer from a ready, willing and able buyer at the listed price and terms.
An agent of a brokerage listed a property. Three days later, the listing agent showed property to the potential buyers. After reviewing the agency disclosure statement, the potential buyers decided they wanted their own agent. They selected another agent with the brokerage. The listing agent will MOST likely be:
the designated agent for the seller.
A "blind ad" would be best described as a real estate advertisement that fails to give:
the name and telephone number of the brokerage fire acting for the owner. (not indicating the agent's name).
A salesperson working for a selling broker found a buyer for a property listed with another broker. The selling salesperson would collect commission from:
the selling broker.
When a licensed salesperson goes to work for a broker, the Georgia Real Estate license law requires them to enter into a written: A. Listing agreement. B. Sales agreement. C. Dual agency agreement. D. Affiliation agreement.
D. Affiliation agreement.
Can a seller terminate their agency agreement with the listing broker before the stated expiration date? A. No, only the listing broker can terminate the agreement B. No, agency agreements cannont be terminated by either party prior to the expiration date C. Yes, only with prior approval of the listing broker D. yes, but the seller could be liable to the agent for damages
D. yes, but the seller could be liable to the agent for damages
An offer to purchase with a $500 earnest money check is received on Monday evening. The offer states the salesperson is to hold the earnest money until the offer is accepted by the seller. Your broker requires all earnest money deposits be turned over to the office manager during normal business hours (9 AM to 5 PM). The offer does not expire until Thursday and the seller is out of town until Wednesday. The sales person should:
Deliver the check to their broker Tuesday morning with instructions to hold the check until the offer is accepted.
Which of the following duties would be a fiduciary responsibility of a listing broker?
Disclosing to the seller the buyer is willing to offer a higher price or better terms.
Which of the following is NOT a violation of the antitrust laws?
Discrimination.
After listing a property, licensee learns that the property was used for beer production during Prohibition, as a group home in 2003, for illegal drug sales in 2006, and as a homeless shelter in 2009. The licensee is under an obligation to:
Do nothing about disclosing these past uses.
A licensee who finds a buyer a house listed with his own firm and is paid a fee by the buyer for finding a suitable house has what type of agency?
Dual
A developer lists 20 properties with four different licensees. Each licensee has a display model at the development site. Which of the following is required at each of the display models?
Each licensee must have a HUD FAIR HOUSING poster displayed with each display model.
A broker pays a salesperson on a commission plan and withholds federal income taxes, pays social security taxes and has a comprehensive medical plan available. Which of the following would BEST describe this relationship the salesperson has with the broker?
Employee and the broker would issue a W-2 form.
Which of the following laws requires the display of equal opportunity posters at real estate brokerage offices, model homes, mortgage lenders' offices, and other real estate locations?
Federal Fair Housing Act
What type of agency relationship does a real estate sales associate usually have with their employing broker?
General agency
Which of the following statements about an open listing is incorrect?
In Georgia, open listing do not have to be in writing.
A licensee is attempting to sell property under an exclusive agency listing. The entire block where the property is located has been condemned under the right of eminent domain. Which of the following is true of the licensee's agency relationship with the owner?
It is terminated
Which f the following statements regarding the federal Fair Housing Law is TRUE?
It prohibits discrimination in the selling and renting of residential housing.
In Georgia, a broker may maintain how many designated trust or escrow accounts?
More than one provided each one is registered with the commission.
If a listed property is taken under condemnation (eminent domain) or sold at foreclosure sale is the broker paid a commission?
No, the broker did not negotiate the sale.
A broker listed a property for $175,000 with instructions that seller wanted at least $5,000 earnest money. The broker produced a buyer who offered the full listed price and included $3,000 earnest money check. If the seller did not accept the offer, would the broker be due a commission?
No, the broker did not produce a buyer that fulfilled the terms of the listing agreement.
A broker's listing expired on May 10. The broker brings a new buyer to the same property on May 20. If the buyer buys the property is the seller obligated to pay the listing broker a commission?
No, the listing expired.