National Brokerage 1 of 2
Misrepresenting facts to a buyer might result in an extended contract and protracted compensation federal sanctions loss of a business license a voided contract and loss of commission
a voided contract and loss of commission
A listing agreement is a non-legal contract that does not create an agency relationship. lateral agreement for services. legally-binding contract that creates an agency relationship. for hire agreement that may or may not result in an agency relationshi
legally-binding contract that creates an agency relationship.
Agent Mary forgot to complete a sales contract rider. This resulted in a $300 loss for her client. Agent Mary's actions can be described as a hostile intent to defraud. negligent. a breach of contract. active fraud.
negligent.
What are the two forms of fraud? Active and passive Direct and nondirective Major and minor Primary and secondary
Active and passive
In what section on a seller's disclosure would you find information regarding issues in relation to drainage problems? Structural Systems and Fixtures Water Environmental
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
The listing type that assures a broker that he or she will receive compensation no matter who procures the buyer is what kind of agreement? Net listing Exclusive right to sell Open listing Exclusive agency
Exclusive right to sell
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 or reasonable care in a situation
Which of the following duties best describes what an agent 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 primary directive given to a seller's agent? Provide support to cooperating agents. Find a ready, willing and able buyer. Deal in the best interest of the buyer. Provide opinions based on experience.
Find a ready, willing and able buyer.
Which of the following is NOT a form of listing contract termination? Performance Expiration Market breach Termination
Market breach
Which of the following is a common complaint buyers have against brokers? Excessive paper work Compensation fees Misrepresentation of the facts Failure to respond to questions
Misrepresentation of the facts
Which type of listing allows a seller to sell the property himself or herself without having to pay any commission to any broker? Closed Listing Special Listing Encumbrance Listing Open Listing
Open Listing
"Everyone charges the same so you might as well list with me" is an example of what? Price fixing Boycott Market allocation Tying agreement
Price fixing
In most states, in all residential transactions when must licensees give potential sellers or buyers a written disclosure form? At first contact At first substantive contact At a contract presentation At their first face-to-face meeting
At first substantive contact
Under what type of compensation plan is the agent responsible for the costs of advertising and promotion? 70% plan 80/20 plan Net plan 100% plan
100% plan
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.
An agency relationship is created in each of the following situations EXCEPT which? A broker agrees to sell an un-licensed friend's home for no compensation. A client authorizes a broker to sell, exchange, and manage his property for 1 year. A broker and seller sign a listing agreement for 3 months. A broker shows a tenant an apartment.
A broker shows a tenant an apartment.
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 of the following sales typically do NOT come with a property disclosure? Single family residence A foreclosure or deed-in-lieu of foreclosure New construction Multi-family dwelling of up to four units
A foreclosure or deed-in-lieu of foreclosure
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 of the following information would you NOT likely find on an MLS listing? A record of previous property owners School district Driving directions to the property Phone number to call for showing
A record of previous property owners
Which of the following best defines a marketable title? A title that has been recorded at the county court house A title to a property that is free from encumbrances, litigation, and other defects and that can be readily be sold or mortgaged A title that has been reviewed by an attorney A title that has at least one lien attached to the property
A title to a property that is free from encumbrances, litigation, and other defects and that can be readily be sold or mortgaged
Which of the following contracts must be in writing to be enforceable? A parol contract A six-month lease A two-year lease An executory contract
A two-year lease
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. Select a specific, limited course of action for recouping their losses. Arbitrate prior to taking court action. Wait a statutory period before they may take legal action.
Act within a statutory period.
What document is used to make adjustments to an existing sales contract? Addendum Repeal Side bar Adjunct
Addendum
Which of these items is not included in a lease agreement? Use provisions Demising clause Description of premises Alienation clause
Alienation clause
Seller Janet delivers a disclosure statement to Buyer Amanda. Amanda reads it over and decides everything looks good enough to continue with the purchase. A few weeks later, a major hail storm damages the roof and now it leaks. So the original disclosure is no longer accurate. Which statement is false? Janet should amend the disclosure statement and deliver it to Amanda. Janet can correct the damage to the roof and tell Amanda nothing. Amanda can rescind the purchase agreement within three business days after she receives an amended disclosure. Amanda can require Janet to replace the roof.
Amanda can require Janet to replace the roof.
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
"Let's not do business with AVC Real Estate Company; they discount their commissions" is an example of what? Price fixing Boycott Market allocation Tying agreement
Boycott
In what section on an MLS listing form would an agent look at to determine the type of foundation used in the construction of the home? Special Features Neighborhood Location Building Information General Contractor's Name
Building Information
Before a buyer broker shows a property, what must he or she disclose to the seller? Seller agency relationship Subagency relationship Buyer agency relationship Dual agency relationship
Buyer agency relationship
Which type of agency would be most advantageous to a buyer? Broker's agency Buyer brokerage Designated agency Consensual dual agency
Buyer brokerage
What is the arrangement called when the agent is accountable only to the buyer? Buyer's agent Seller's agent Broker's agent Assigned agent
Buyer's agent
An agency relationship may be involuntarily terminated by which of the following? By destruction of the property through fire, vandalism or natural disaster By performance By termination of the relationship by mutual agreement By the expiration of the agency agreement
By destruction of the property through fire, vandalism or natural disaster
In which contract provision would the length of the lease be outlined? Statement of Limits Clear Statement of Term Clear Notice of Terms Order of Terms
Clear Statement of Term
Which of the following is NOT a form of agency? Express agency Implied agency Closed agency Ostensible agency
Closed agency
Which of these components is NOT required in most listing agreements? Property ID Consent to dual agency Promise of compensation Seller signatures
Consent to dual agency
What form of limited agency is a good alternative to dual agency? Non-agency Undisclosed dual agency Designated agency Buyer brokerage
Designated agency
What do you call a licensed real estate salesperson, working under the supervision of a real estate broker, who has been assigned to represent a client when a different client is also represented by such real estate broker in the same transaction? Subagent Designated agent Dual agent Single agent
Designated agent
According to contract law, every valid contract is also what? Void Enforceable Enforceable or unenforceable Voidable
Enforceable or unenforceable
Which of the following is typically NOT a licensee's duty to the brokerage? Work to promote and sell the broker's listings. Be appropriately licensed. Remain knowledgeable about the license laws and rules. Establish compensation agreements with other ancillary service providers
Establish compensation agreements with other ancillary service providers
Which kind of lease has no time limit? Estate for years Estate at will Estate from period to period Estate at sufferance
Estate at will
Broker Jill has an agreement with seller Alice that says Jill will receive compensation if anyone except Alice sells Alice's home. What kind of agreement is this? Exclusive agency Net listing Exclusive right to sell Open listing
Exclusive agency
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 Lateral Executed Open Option
Executory
Which of the following statements best defines closing costs? Marketing expenses incurred to sell the property All listing fees Expenses above the price of the property that buyers and sellers normally are required to pay to complete a real estate transaction Expenses not paid by the brokerage
Expenses above the price of the property that buyers and sellers normally are required to pay to complete a real estate transaction
All of the following may involuntarily terminate an agency relationship except which? Bankruptcy Expiration of the agreement term Agent abandonment Condemnation of the property
Expiration of the agreement term
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? Progressive Graduated Step Level
Graduated
Which kind of lease increases at specified intervals? Graduated Gross Percentage Net
Graduated
Licensee Frank works for Broker Harry. Frank lists a home. Licensee Mary, who works for Broker Sam, sells Frank's listing. With whom does the seller have the agency agreement? Frank Mary Harry Sam
Harry
Bill has informed his landlord that he will be moving in 30 days. What action has Bill taken regarding his lease requirement? He has provided an advance order of moving. He has given notice. He has given due process. He has given notice of vacating.
He has given notice.
Which of these statements about an independent contractor is true? He or she gets a regular salary with bonuses. He or she is reimbursed for all business expenses. He or she is paid commission on all sales. He or she will get three weeks of paid vacation every year.
He or she is paid commission on all sales.
If a licensee joins a company as an independent contractor, which of these will he probably have to pay for on his own? Health insurance Office space For Sale signs Errors and omissions insurance
Health insurance
In which situation can a licensee give legal advice? If the licensee is knowledgeable in the subject area If the licensee has attended real estate law classes If the licensee has practiced real estate for more than 10 years If the licensee has a separate attorney license
If the licensee has a separate attorney license
How might a voidable contract become valid? If neither party agrees to the terms. If the party who has reason to disaffirm the contract elects instead to perform it. If the party who wants to enforce the contract seeks legal relief. If the party who wants to enforce the contract seeks damages.
If the party who has reason to disaffirm the contract elects instead to perform it.
When must a seller receive a copy of the listing agreement? After the broker's receptionist has had a chance to make copies Immediately after the agreement is signed by all parties Before the home is shown for the first time Anytime before an offer is presented
Immediately after the agreement is signed by all parties
Which statement is FALSE? A single joint owner or tenant in common can sell his or her own interest in a property without the consent of the other owners. When one of the parties to a real estate transaction is a partnership, the names of all the general partners and their spouses should be entered into the contract. In a community property state, if a husband owns property separately from his wife, he cannot sell the property without her permission. If the property being sold is part of a trust, the trustee must be the one to sign all the appropriate documents.
In a community property state, if a husband owns property separately from his wife, he cannot sell the property without her permission.
Licensee Jim listed a property and Licensee Sally sold the property to her client. Jim and Sally work for the same brokerage. This type of sale is known as what? Dual-agency sale Principal sale In-house sale Net sale
In-house sale
Jim holds a commercial lease. Last year his rent went up 4% based on a 4% increase in the wholesale price index. What type of lease does Jim have? Revolving Lease Wholesale Lease Index Lease Leading Indicator Lease
Index Lease
Buyers Sam and Linda Pope are entering into a contract with sellers, Jim and Alana Jones in which part of the sale price of the property will be deferred. What kind of contract is it? Contract of Sale Option to buy Lease Installment sales contract
Installment sales contract
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.
Buyer Jim agreed to a 20-day window to get a survey done. A number of problems have occurred and after 20 days from the signed contract date, buyer Jim has yet to have a survey completed. What is now the status of the sales contract? A hold will be put on the contract, until a survey is completed. Jim has defaulted on his contract. The seller must now order a property survey. A new contract must now be written for the sale to proceed.
Jim has defaulted on his contract.
Which of the following circumstances would concern you about working for Broker John? John offers weekly training seminars. There are several successful agents at John's office. John's office has a selection of books, CDs and tapes for agent use. John expects his agents to spend 5 hours a week on unsupervised telephone duty.
John expects his agents to spend 5 hours a week on unsupervised telephone duty.
An agent's duties to a principal include all of the following except which? Loyalty Accounting Notice Legal advice
Legal advice
Licensee Jake found a buyer for seller Norm's house within three days of taking the listing. Seller Norm has now refused to sell. How does this impact licensee Jake's compensation? Licensee Jake would not be entitled to his compensation. Seller Norm would have to sell as a FSBO and licensee Jake would be out his compensation. Licensee Jake can appeal to the MLS board for partial compensation payment. Licensee Jake would still be entitled to his compensation.
Licensee Jake would still be entitled to his compensation.
Licensee Mike was owed a commission from seller Jane. Jane has refused to make payment. What recourse does licensee Mike have? Licensee Mike can sue Jane. Licensee Mike can petition the MLS for compensation. Licensee Mike can seek damages through his broker. Licensee Mike can place a lien on the property.
Licensee Mike can seek damages through his broker.
With regard to listings, in which situation would the state licensing authority not get involved? Broker dies. Licensee transfers brokers. Broker loses license. Firm closes.
Licensee transfers brokers.
What is the term given to the person who has entered into a listing agreement with a seller? Buyer's agent Agent-at-large Customer Listing agent
Listing agent
Designated agency means the clients do not have the full level of fiduciary duties available to them that they would have if they were fully involved in seller agency or buyer agency. In this situation, the client gives up the fiduciary duty of undivided what? Loyalty Confidentiality Accountability Blind obedience
Loyalty
Which of the following is NOT a form of listing contract termination? Performance Expiration Market breach Termination
Market breach
Which of these sources would NOT be a way to determine who holds title to a property? Seller Title Company County Tax office Mortgage Bank
Mortgage Bank
When a tenant agrees to pay all taxes, insurance, maintenance and repairs, that tenant has what kind of lease? Gross Periodic Net Graduated
Net
Which duty requires that the agent act in good faith and obey the principal's directions? Honesty Care Accounting Obedience
Obedience
Which contract element indicates a mutual agreement? Description and Order Terms Dissolution Offer and Acceptance
Offer and Acceptance
Which training method is conducive for a small brokerage office? Classroom training Lecture style training One-on-one training Group problem-solving training
One-on-one training
Which of these listing agreements is considered a unilateral contract? Open Exclusive Agency Net Exclusive Sale and Listing
Open
Under what type of contract is a seller obligated to sell, but the buyer is not obligated to buy? Lease Recission Option Purchase
Option
What kind of lease contains a recapture clause? Percentage Net Provisional Graduated
Percentage
Landlord Frank terminated Jerry's lease because gross sales did not meet expectations. Jerry agreed to what type of lease? Retail Level Lease Percentage Lease Reorder Lease Market Level Lease
Percentage Lease
What does a rescission contract do? Releases all parties from any present and future liability. Makes the buyers liable for damages if they default for no good reason. Specifies the terms under which either party may sue the other in a default. Releases the sellers from any responsibility for returning the buyers' earnest money deposit.
Releases all parties from any present and future liability.
Which type of compensation is more likely to be used in a commercial rather than a residential transaction? Kick-back Percent of sale Margin payment Retainer
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 First right to buy Right to resend Right to counteroffer
Right of first refusal
What are the two most common forms of compensation that brokers use? Salary draw or escrow draw Kickback payments and direct deposits Hourly and flat rates Salary or a percentage of the commission
Salary or a percentage of the commission
Which of these statements is TRUE? Salesperson Harry can solicit his own listings. Salesperson Julie can receive her commission from the cooperating broker in her latest transaction. Salespersons must perform all of their activities on behalf of their employing broker. Broker Tom has only limited responsibility for the actions of his licensees.
Salespersons must perform all of their activities on behalf of their employing broker.
A broker can enter into a single agency agreement with any of the following except? Seller Landlord Buyer Seller and buyer
Seller and buyer
What do we call an agent who represents a seller exclusively in a real estate transaction? Exclusive agent Single agent Subagent Broker agent
Single agent
What is an agent called who represents only one person in the transaction, either the buyer or the seller? Subagent Designated agent Dual agent Single agent
Single agent
If a licensee joins a company as an independent contractor, which of these will he probably have to pay for on his own? MLS Fees Social Security Tax Advertisement Expenses Utility Expenses
Social Security Tax
What type of methodology works well to ensure that all agents are given and hear the same information? Question Memos Newsletters Staff Meetings Office Announcements
Staff Meetings
Agent Norm just started working for Sunshine Realty. He was required to pay a monthly fee of $120 for a phone and $50 for desk space. The $170 is usually referred to as what? Allowance Fee Working Costs Attendance Fee Start-up Costs
Start-up Costs
After listing a home with a broker, the seller told the broker NOT to disclose a major structural defect in the house. What should the broker do? Refrain from telling prospective buyers because of the fiduciary responsibility to the seller. Refrain from telling the prospective buyers because that is the brokers responsibility to the seller. Tell the buyer only if he asks about it. Tell the buyer of the defect prior to the writing of an offer or refuse the listing.
Tell the buyer of the defect prior to the writing of an offer or refuse the listing.
What is the term given to the action when both parties mutually agree to end the listing relationship Close Estoppel Termination Contract Close
Termination
Which of the following statements best defines agency? The fiduciary relationship between the agent and the principal The fiduciary relationship between the agent and the broker The fiduciary relationship between the agents The fiduciary relationship between the agent and the customer
The fiduciary relationship between the agent and the principal
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.
A lease automatically terminates under which of the following circumstances? The tenant fails to pay rent. The leased property is foreclosed. The tenant goes out of business. The landlord cancels the lease.
The leased property is foreclosed.
In an IRS audit, which of the following situations would cause the IRS to think that a contractor might really be an employee? The licensee attends sales meetings. The licensee gets a commission. The licensee takes unpaid sick days. The licensee receives an hourly wage.
The licensee receives an hourly wage.
What is an important legal characteristic of an option to buy agreement? The potential buyer, the optionee, is obligated to buy the property once the option agreement is completed. The optionor must perform if the optionee takes the option, but the optionee is under no obligation to do so. The contract can be executed at no cost to the optionee. It is a bilateral agreement.
The optionor must perform if the optionee takes the option, but the optionee is under no obligation to do so.
Licensee Jones is in the process of closing on a sale. However, the property title has been found to have uncorrectable defects. What is the result regarding Jones compensation? If the property doesn't close, there will be no compensation. The title company owes licensee Jones compensation. Compensation will be prorated based on work performed by licensee Jones. The seller is still liable for licensee Jones' compensation.
The seller is still liable for licensee Jones' compensation.
Which party is responsible for filling out a property disclosure statement? The cooperating agent The listing agent The broker The sellers
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.
Which of the following types of transactions typically contain a property disclosure? The transfer of a deed based on a open market sale of a residential property A transfer made by the personal representative of the estate of the decedent or by a trustee in bankruptcy A transfer in which the buyer has expressly waived the receipt of the property disclosure statement A gift or other transfer to a parent, spouse, domestic partner, or child of a transferor or child of any parent, spouse, or domestic partner of a transferor
The transfer of a deed based on a open market sale of a residential property
Which of the following types of agency is not allowed in most states? Broker's agency Buyer's agency Subagency Undisclosed dual agency
Undisclosed dual agency
In which provision would a landlord describe what activities can take place on the property? Use of the Premises Property Order Location Use Property Regulations
Use of the Premises
What item is typically NOT in an independent contractor's work agreement? Duties Compensation Supervision Vacation Schedule
Vacation Schedule
As a listing agent, in most cases your listing will be sold by yourself your broker a cooperating broker an assigned agent
a cooperating broker
Agent Sue listed and sold the same property. Agent Sue is owed a listing commission. a selling commission. a listing and selling commission. combination commission.
a listing and selling commission.
A lease is both an instrument of conveyance and a contract. neither an instrument of conveyance nor contract. a promise note. a document that conveys legal title.
both an instrument of conveyance and a contract.
A contract in which an owner hires a broker to market the property creates an agency relationship between buyer and seller. buyer and broker. broker and seller. broker, buyer, and seller.
broker and seller.
A contract that conveys an interest in real estate must include a title closing entity. contain default penalties. include all outstanding liens against the property. contain a legal description of the property.
contain a legal description of the property.
Most home sales are not contingent on financing. covered by FDIC insurance. contingent on financing. based on a cash sale.
contingent on financing.
Dual agency creates two principals. is illegal in most states. establishes clear lines of fiduciary responsibilities removes all fiduciary responsibly from the licensee.
creates two principals.
Work agreements must be renewed each month. dated and signed by the parties. notarized. on file with the State
dated and signed by the parties.
The best practice is to have the buyers take possession on the day of the transaction close. have the buyers take possession at least 2 days after the day of the transaction close. have the seller remain on the property at least 2 days after the closing date. have the sellers move from the property at least 5 business days before the close date.
have the buyers take possession on the day of the transaction close.
A lease conveys exclusive use and requires recording of a leasehold conveyance. is also called an exclusive freehold estate. is not a binding contract upon agreement. it may also restrict some uses.
it may also restrict some uses.
Jim has part ownership in a house. He has decided to sell his interest. He signs an agreement with a local real estate broker without informing the other two owners. Jim is most likely holding his part ownership as tenant at-large. joint tenant shared tenant partnership tenant
joint tenant
Antitrust laws prohibit market allocation. trade unions. market coops. volume discounting
market allocation.
An agent is one who is the source of another's authority one who represents and acts for another one who has conferred authority to another one who has been paid a commission by another
one who represents and acts for another
Agent Fred fronts his cousin Norm money to buy a client's house. Shortly after the closing, Agent Fred flips the house and realizes a substantial profit. Agent Fred's actions might be describe as across the table. arms length. direct intent. self-dealing.
self-dealing.
Agent Mary sold a listing for another brokerage. Agent Mary is entitled to a selling side commission. listing side commission. shared listing side commission. finder's fee commission.
selling side commission.
Work agreements should be individualized. should be signed by all parties and a witness. should be standardized. should be notarized and a copy sent to the Real Estate Board office.
should be standardized.
When a listing agent signs an agreement, in reality he or she is signing on behalf of a cooperating broker. signing on behalf of all licensees in the company. signing on behalf of all other MLS licensees. signing on behalf of the indicated broker.
signing on behalf of the indicated broker.
Revocation of a broker's license results in reassignment of the relationship. termination of the relationship. extended agreement. open offer agreement relationship.
termination of the relationship.
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.
A contract which neither party can enforce is called voidable void open denied
void
The Criminal Antitrust Penalty Enhancement and Reform Act increased the maximum criminal penalty for individuals to what amount? $350,000 $1 million $2 million $10 million
$1 million
Violations of the Sherman Anti-Trust Act can include prison terms and fines of up to how much per violation? $50,000 $250,000 $500,000 $1,000,000
$1,000,000
Which of the following types of sale does NOT typically require a property disclosure statement? A sale of a single family home A transfer made by a trustee in bankruptcy The sale of a duplex Newly built homes in a subdivision
A transfer made by a trustee in bankruptcy
What is special about a universal agent? A universal agent has power of attorney. A universal agent has veto power. universal agent has unilateral power. A universal agent has statutory powers.
A universal agent has power of attorney.
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 way a buyer's agent might receive compensation? Seller pays the compensation. Buyer pays a flat fee. The agent receives a retainer. Agent gets everything above the net price set by the seller.
Agent gets everything above the net price set by the seller.
What is the process to make changes to a listing agreement contract? The broker owns the listing and can make changes as needed. All parties must agree to in writing to any changes. The listing agent is the only one that can make changes to the listing contract. All changes can be made by attaching a hand-written note to the existing contact.
All parties must agree to in writing to any changes.
What does a carryover clause do? Protects the broker if the seller cancels the listing agreement. Allows an automatic six-month extension to the listing contract. Prevents the seller from doing a FSBO sale after the listing expires. Allows the broker to collect a commission for some period of time after the listing expires.
Allows the broker to collect a commission for some period of time after the listing expires.
What document is submitted to the MLS when a listing agreement is signed? A copy of the original listing agreement The original listing agreement An MLS listing form Form 45-A
An MLS listing form
The difference between an exclusive right to sell listing and an exclusive agency listing has to do with what issue? Commission Dual agency Seller's warranties Closing costs
Commission
The principles of an agency relationship include all of these factors except which one? Mutual consent Authorization Compensation Fiduciary duties
Compensation
Once an agency relationship has been terminated, which of the following responsibilities remain in place? Compensation Obedience Confidentiality Care
Confidentiality
Which of the following duties is NOT owed to a customer? Confidentiality Honesty Reasonable care and skill Proper disclosure
Confidentiality
Which of the following situations might impact a listing agreement? Death of a Broker Change of broker's business address Transfer of broker to another MLS board Out of state move by seller
Death of a Broker
Which of the following situations might impact a listing agreement? Death of a Broker Change of broker's business address Transfer of broker to another MLS board Out of state move by seller
Death of a Broker
The principal of Notice is sometimes called what? Openness Honesty Disclosure Diligence
Disclosure
All of the following are common types of agency relationships that exist except which? Single agency Facilitator agency Consensual dual agency Seller/Landlord agency
Facilitator agency
Which of the following types of information can a licensee legally provided to both a principal and a customer? Counsel Facts Legal Advice
Facts
Which of the following does a principal owe to his or her licensee? Information Access Accounting Performance
Information
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? Yes, it is good business to map out a service area. Yes, the public should be allowed to all pay the same fee. No, the real estate commission sets the commission rates. No, this is violation of Sherman Antitrust.
No, this is violation of Sherman Antitrust.
What are the two changes most often made to a listing agreement? Compensation changes and property condition additions Escrow money requirements and move-in dates Price changes and listing period extensions Personal property removal and tax rate changes
Price changes and listing period extensions
he act of creating an agency relationship in which the principal accepts the conduct of someone who acted without prior authorization is called what? Revision Reaction Ratification Presumptive
Ratification
Which of these is not a violation of Sherman Antitrust laws? Boycott Price Fixing Redlining Market allocation
Redlining
Which of the following terminations of an agency relationship could result in legal or financial ramifications? Contract performance Contract expiration Mutual agreement between broker and client Renunciation by the client
Renunciation by the client
What do we call the unreasonable restriction of business activities that results from conspiracy among members of a trade? Market allocation Group boycott Restraint of trade Tie-in arrangement
Restraint of trade
If a cooperating broker accepts the offer of subagency from a listing broker, to whom does the cooperating broker owe fiduciary duties? Listing broker Buyer Seller No one
Seller
Subagency Facilitator Disclosure Non-agency
Subagency
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.
Puffing is best characterized as which of the following Fraud Subjective opinion Objective opinion Misrepresentation
Subjective opinion
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.
Obedience of the agent to the principal means what? The agent may disobey those instructions in good faith if the agent feels it is necessary The agent must follow all the instructions of the seller even if they violate state law The agent must follow those instructions regardless of personal feelings about them, as long as they do not violate the state or federal laws. The agent must follow all those instructions regardless of the consequences.
The agent must follow those instructions regardless of personal feelings about them, as long as they do not violate the state or federal laws.
A safety clause in a listing contract means what? The broker may claim a commission if the owner sells to a person the broker introduced to the property within a certain time after the listing expired. The owner is protected from any liability from actions the broker performed while the listing was in force. The broker can extend the term of the listing agreement if a buyer is preparing to make an offer. The seller may not have to pay a commission if the buyer doesn't complete the offer.
The broker may claim a commission if the owner sells to a person the broker introduced to the property within a certain time after the listing expired.
Seller Joe Needy lists his home for $40,000 and the broker tells the prospective buyer to submit a low offer because the seller is desperate. The buyer offers $38,000 and the seller accepts. Which statement is TRUE about this situation? The broker was unethical but because no one was hurt, it is not improper. The broker violated the agency relationship. The broker's action was proper in obtaining a quick offer. Any broker is authorized to encourage bidders.
The broker violated the agency relationship.
What is the common disposition of a listing when the listing agent moves to another agency? The listing is void. The listing stays with the broker. The listing goes with the agent. The listing is terminated.
The listing stays with the broker.
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? Market allocation Price fixing Coercion Tie-in arrangement
Tie-in arrangement
What condition occurs when dual agency is not disclosed and agreed to in writing? Non-disclosed dual agency Agency by association Undisclosed dual agency Dual agency by design
Undisclosed dual agency
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
Misrepresenting facts to a buyer might result in an extended contract and protracted compensation . federal sanctions loss of a business license a voided contract and loss of commission
a voided contract and loss of commission
An agency relationship can occur through implication (what you might say or do) without a written contract always require a written contract is always derived by express act is better accomplished through implication or ratification
can occur through implication (what you might say or do) without a written contract
A multiple listing service (MLS) is an organization of member brokers who agree to share marketing costs within a designated region. cooperate in the sale of properties listed by other brokers in exchange for a share of the broker's resulting commission. pool and share compensation based on a geographic location. cooperate in the purchase of property for the express purpose of reselling at a profit.
cooperate in the sale of properties listed by other brokers in exchange for a share of the broker's resulting commission.
The broker, who has listed a property for sale, has the obligation to do whatever the broker believes to be in the best interest of the owner. do whatever the owner has instructed him to do legally. discriminate at the owner's instructions. accept and sign offers in the name of the owner.
do whatever the owner has instructed him to do legally.
A special agent is also known as a single or solo agent. directed or assigned agent. limited or specific agent. general or area agent.
limited or specific agent.
