RE UNIT 15

4. By Pennsylvania rule, what information should be included on a real estate company's website? a. Registered name of the broker b. How many salespeople are in the office c. The specialties of each salesperson d. Number of active listings

a. Registered name of the broker

5. What rules does Facebook impose on real estate marketing? a. Set up a business page b. Can use the personal site for displaying listings c. Nothing special that relates to real estate licensees d. May use the personal site to ask for help in locating buyers

a. Set up a business page

6. A salesperson can set up her own website so long as she a. includes her broker's name. b. indicates that she is not a broker. c. pays a marketing fee to the real estate commission. d. receives permission from her local association of REALTORS®.

a. includes her broker's name.

20. A licensed salesperson may receive compensation or commission from a. only the employing broker. b. the principal. c. any broker. d. a landlord.

a. only the employing broker.

2. A broker advertises the commission rates that her firm charges sellers. This advertising is a. permitted by antitrust laws. b. illegal under antitrust laws. c. prohibited by multiple listing services. d. unethical, but legal.

a. permitted by antitrust laws.

19. A buyer who is shown properties listed for rent by a broker is the broker's a. client. b. principal. c. customer. d. fiduciary.

c. customer.

13. Upon discovering a latent defect in the property, the licensee should discuss the problem with the seller and then a. notify the seller that the defect must be repaired. b. arrange for the repairs. c. inform any prospective buyers of the defect. d. contact the city building inspector about the defect.

c. inform any prospective buyers of the defect.

9. The amount of commission due to a salesperson is determined by a. state law. b. the local real estate board. c. mutual agreement. d. court decree.

c. mutual agreement.

15. A broker lists a property for sale at $100,000 with a 5% commission, and he later obtains a verbal offer to purchase the property from a prospective buyer. The seller indicates to the broker that the offer would be acceptable if it were submitted in writing. Before it can be put in writing, the buyer backs out and revokes the verbal offer. In this situation, the broker is entitled to a. a commission of $5,000. b. only a partial commission. c. no commission. d. the normal rate of commission.

c. no commission.

18. There is a spectacular house that a salesperson from firm A has been trying for several weeks to list for sale. The owners have been interviewing salespeople from different firms. They tell A's salesperson that firm B will charge 2 percent less commission for selling the house. What should A's salesperson say to the owner to get the listing? a. Salespeople will not show B's listings because of their commission fees. b. Most brokers in the area charge a standard rate of commission, including A. c. B cannot provide good services because they charge less. d. A provides excellent services to market their sellers' properties.

d. A provides excellent services to market their sellers' properties.

17. Antitrust laws prohibit all of the following EXCEPT a. property management companies standardizing management fees. b. brokers allocating markets based on the value of homes. c. real estate companies agreeing not to cooperate with a broker because of the fees that broker charges. d. a broker deciding whether to join a multiple listing service (MLS).

d. a broker deciding whether to join a multiple listing service (MLS).

7. Price-fixing and group boycotting are a. illegal activities prohibited by consumer protection laws. b. legal but questionably ethical activities. c. legal activities associated with successful real estate firms. d. illegal activities prohibited by antitrust laws.

d. illegal activities prohibited by antitrust laws.

12. A real estate salesperson who is an independent contractor receives a. a monthly salary or hourly wage. b. company-provided health insurance. c. a company-provided automobile. d. negotiated commissions on transactions.

d. negotiated commissions on transactions.

16. A salesperson finally concluded difficult negotiations that resulted in the sale of a listed parcel of property. For all of her extra efforts, the salesperson can legally demand a performance bonus from a. the seller. b. the buyer. c. her broker. d. no one.

d. no one.

14. To be entitled to collect a real estate commission, brokers must be able to prove all of the following EXCEPT a. that they have a valid real estate broker's license. b. that they were the procuring cause. c. that they are employed to perform certain activities. d. that they belong to a real estate board.

d. that they belong to a real estate board.

1. Who is responsible for setting the commission rates that a real estate firm charges sellers? a. Firm's broker of record b. Salespeople c. Multiple listing service (MLS) d. State Real Estate Commission

a. Firm's broker of record

11. A parcel of vacant land 80 feet wide and 200 feet deep was sold for $200 per front foot. How much money would a salesperson receive for her 60 percent share in the 10 percent commission? a. $640 b. $960 c. $1,600 d. $2,400

b. $960

8. For a salesperson to be viewed as an independent contractor, federal law requires a. attendance at office meetings. b. a written employment contract with the broker that clearly states the terms of the employment. c. salesperson's income be based on hours worked. d. all of these

b. a written employment contract with the broker that clearly states the terms of the employment.

3. Real estate brokers will lose the right to compensation in real estate transactions if they a. do not advertise the properties. b. are not licensed when employed. c. accept a commission from another licensee. d. do not personally market and sell the listings.

b. are not licensed when employed.

10. A real estate broker was responsible for a chain of events that resulted in the sale of a client's properties. This is referred to as a a. pro forma. b. procuring cause. c. private offering. d. proffered offer.

b. procuring cause.