Failed Quiz Questions

What is considered a customer and what is considered a client, in real estate terms?

A customer is considered a person who is in the process of making a buying decision. A client is a customer who has signed a contract and is in a binding contractual relationship with an agent and is, at that point, entitled to representation.

Which of the following statements about firm license renewal is true?

A firm license must be renewed every two years, just like a broker's license.

What must a licensee disclose to a customer?

A licensee must disclose to a customer anyone he or she might be representing. They must also provide that customer with any required notices and disclosures and, as a customer, that person is not entitled to representation.

What must a licensee do before preparing a CMA for a property in which he or she is interested?

A licensee must first provide full written disclosure to the seller if it is a property in which he or she is interested.

Which statement is true about a general agent?

A property manager is a type of general agent.

The timing of the provision of the Law of Agency Pamphlet is critical because this disclosure must be given before the earliest of all of these events except:

After any party acknowledges and agrees to the creation of a dual agency relationship.

Tom is acting as an agent for property owner Bill in a building that has rent restrictions. Tom has been knowingly charging rents that are above the maximum that is legally allowed. Which statement is true about Bill's liability?

All of the answer choices provided are correct.

What is the difference between a subagent and an agent?

An agent is authorized by a principal to represent them; a subagent is authorized by an agent to represent the principal the agent represents.

What is a special agent when referring to the real estate industry?

An agent who is granted limited authority on behalf of the principal. Almost all real estate agents are acting as special agents.

In what situations can an agreement to pay compensation be expected for different types of services requested by a principal?

An agreement to pay compensation can be expected when the principal only pays for services as they are provided such as, when a seller wants to list his or her property on the MLS, for an open house or online advertising and when the principal requests contact with a specific property owner.

What are brokerage owners instructed to stay away from when choosing a name for a firm?

Anything that may imply the office is a research center, non-profit, public bureau, or group.

Which is considered a primary responsibility of a Designated Transaction Broker?

Attempting to guide a buyer or prospective tenant to increase an offer to a level that will be accepted by the seller or lessor.

To whom must a transaction broker disclose property details?

Buyer and seller equally.

In real estate, when does confidentiality not apply?

Confidentiality does not apply when the confidential information is regarding latent material defects.

When should a principal expect confidentiality in real estate?

Confidentiality is required if a principal of a broker reasonably expects his or her information to be kept confidential or if he or she has not given permission for their information to be disclosed to other parties.

Which term is NOT an example of how an agency relationship can be created in real estate?

Double agency

Which is an example of implied agency?

Franz has been so helpful for Frank and Pat in finding the house of their dreams. He's shown them houses that are on the MLS listed with other agencies as well as listings he has in his office. When Frank and Pat talk about how stressful the search is, Franz says "don't worry, I've got your back." Frank and Pat believe Franz is working for them, but they've never discussed it directly.

A property manager operates as a ..............agent.

General

Which statement is true about universal agents?

Having power of attorney is one type of universal agent.

Agency that exists as a result of actions of the parties is known as...?

Implied agency

In what situation would an agency relationship not result in compensation?

It would not result in compensation when an agent works for a buyer, represents a buyer and shows that buyer some homes but doesn't have that buyer sign a buyer's agreement. There would also not be compensation if that buyer purchases a FSBO home and a cooperation amount isn't being paid by the seller.

Transaction Broker status by any licensee:

Must be confirmed in writing prior to execution of a real estate contract.

What are three best practices of real estate ethical behavior?

Showing all available properties regardless of the commission being paid, not steering any given customer/client to a particular area or neighborhood, and practicing professional courtesies whenever possible.

Dougie owns a 16-unit rental building and goes into a real estate brokerage that has been recommended to him. He speaks to the broker, Tara, and explains what services he would like from the brokerage. He wants someone who will choose new tenants, set the rental rates based on market value and relevant laws, and sign all the leases on his behalf, as well as hiring anyone needed to conduct maintenance and repairs. Basically, Dougie is moving to Florida, and he doesn't want to have to worry about the rental property anymore. Which response of Tara's makes the most sense:

Tara will happily provide that service as her office offers property management. In that capacity, she will be a general agent to Dougie for that property, she will bill him a set fee for this service every month.

Which of the following is not a basic requirement a firm must meet to be licensed?

The firm must have an LLC.

Which of the following is not required to be included in a brokerage firm license application?

The firm's EIN number.

Why are implied agency relationships so bad for real estate brokers?

They risk losing out on commission.

An agreement to pay or the payment of some form of compensation to a broker establishes which type of agency relationship between the broker and the principal client?

This will NOT establish any type of agency relationship.

Which of the following statements is NOT a duty of a Transaction Broker?

To act as a limited agent of both the seller and buyer or the landlord and tenant, with fiduciary responsibility to both.

Which of the following is an example of express agency?

Tory is a real estate broker who has just signed an exclusive listing agreement with Jon to sell his house.

In what situations does an agreement to pay compensation result in an agency relationship?

When a real estate agent signs a compensation agreement, all parties agree that said agent is acting as a sole representative to that buyer in a particular transaction. The contract is what will specify exactly which tasks are to be performed by the real estate brokerage which determines what creates an agency relationship or not.

When a licensee is acting as a principal, which events require a written disclosure before any transactions take place?

When the licensee is the buyer, seller, landlord or tenant, a written disclosure must be provided to the other party when he or she is acting as the principal. Disclosure is also required when the licensee has a personal interest in any given property or the licensee is representing a related party.