Chapter 16 (Extra questions)

The buyer is in front of a house for sale, and with a cell phone, calls the listing agent. What disclosures, if any, must the listing agent make to this buyer? a. Any information that you give me at this time is not considered to be confidential. b. Although we haven't met, you can trust me with your financial information. c. There can be no disclosure until the first substantive meeting. d. I cannot tell you anything about the home you are calling on until we meet in person.

a. Any information that you give me at this time is not considered to be confidential

A customer may expect all of the following EXCEPT a. confidential information. b. disclosure about a physical problem with the property. c. reasonable skill and care. d. honesty and fair dealing.

a. confidential information

An errors and omissions insurance policy would most likely offer protection against an allegation of a. forgetting to turn on the burglar alarm after showing the property. b. antitrust activity. c. not showing the property to Asians. d. fraudulent activity.

a. forgetting to turn on the burglar alarm after showing

When hired by a management agreement, the broker represents the a. owner. b. tenant. c. buyer. d. seller.

a. owner

A licensee is hired as a buyer's agent by a first-time buyer to help with the purchase of a home. The buyer confides that being approved for a mortgage loan may be complicated by his bankruptcy filing two years ago. The buyer would like to find a seller who will accept an installment sale. In this situation, a correct statement about the licensee's responsibility regarding this information during the presentation of an offer to purchase a property is that the licensee is a. required to disclose it because it is a material fact—information important to the seller's evaluation of the offer. b. not required to disclose it because the seller might reject the offer. c. required to disclose it under the Fair Credit Registry Act. d. not required to disclose it because the licensee has no agency relationship with the seller.

a. required to disclose it because it is a material fact-information important to the seller's evaluation to the offer

For how long must a real estate licensee retain a copy of the signed Consumer Notice? a. Six months b. Six weeks c. One year d. Three years

a. six months

Which of the following is an example of dual agency? a. The broker acting for both the buyer and the seller in the same transaction b. Brokers cooperating with each other c. The broker representing different principals d. The broker listing and selling the same property

a. the broker acting for both the buyer and the seller in the same transaction

The agent has visited the prospective sellers three times hoping to list the property. When should the listing agent present the Consumer Notice to these sellers? a. The first time the licensee visits the home b. At the time the sellers sign the listing agreement c. Before the property is placed in the Multiple Listing Service (MLS) d. At the time the sellers accept an offer from the buyers

a. the first time the licensee visits the home

In Pennsylvania, the broker is providing communication and document preparation services and is assisting both parties in a transaction without advocating for either party. This broker is a a. transaction licensee. b. single agent. c. dual agent. d. designated agent.

a. transaction licensee

Who does the real estate broker represent? a. Whoever hired the broker b. The buyer c. The seller d. Both the seller and the buyer

a. whoever hired the broker

In Pennsylvania, what is necessary in order to be compensated? a. Written agreement between a real estate licensee and a consumer b. Promise of compensation upon completion of the work c. Recommendation by a previous client d. Upon an action, such as showing a property to a prospective buyer

a. written agreement between a real estate licensee and a consumer

Statements by a real estate licensee exaggerating the benefits of a property are called a. polishing. b. puffing. c. prospecting. d. marketing.

b. puffing

Which of the following may obligate a buyer client to owe a fee to the real estate agent? a. Signed the Consumer Notice b. Signed a written agency agreement c. Agent takes the buyer to see a property d. Asks for assistance in locating a home to purchase

b. signed a written agency agreement

A buyer who is a client of the broker wants to purchase a house that the broker has listed for sale. Which of the following is TRUE? a. If the listing salesperson and the selling salesperson are two different people, there is no conflict of interest. b. The seller and the buyer must be informed and agree to have the broker represent both of them. c. The buyer should not have been shown a house listed by the broker representing them. d. The broker should refer the buyer to another broker to negotiate the sale.

b. the seller and the buyer must be informed and agree to have the broker represent both of them

The relationship of a broker to a client is that of a. a trustee. b. a subagent. c. a fiduciary. d. an attorney in fact.

c. a fiduciary

Unless some other written agreement has been made, the broker will usually receive the sales commission from the seller when a. the purchaser takes possession of the property. b. the seller lists the property with the broker. c. the transaction is closed. d. an offer is procured from a ready, willing, and able buyer.

c. the transaction is closed

A real estate licensee was representing a buyer. At their first meeting, the buyer explained that he planned to operate a dog-grooming business out of any house he bought. The licensee did not check the local zoning ordinances to determine in which parts of town such a business could be conducted. Which fiduciary duty did the licensee violate? a. Obedience b. Loyalty c. Accounting d. Care

d. Care

By Pennsylvania law, all of the following must receive the Consumer Notice EXCEPT a. a couple is selling their home. b. an individual is purchasing a home. c. a tenant is looking for a rental home. d. a corporation is selling the property.

d. a corporation is selling the property

A broker did not have enough money in the business account to pay two salespeople, so he wrote two checks out of a trust account. After the next closing, the broker put the money back into the trust account. This an example of a. commingling. b. what needs to be done in the rat race. c. a reasonable business practice. d. conversion.

d. conversion

The broker had a listing with a seller who had a heart attack and is in a coma and is not expected to live. In this situation, what is the status of the listing? a. The listing status has not changed. b. The heirs are obligated to relist with the broker. c. The seller's heirs are responsible for fulfilling the terms of the listing. d. The agency relationship has been terminated.

d. the agency relationship has been terminated