Western Upstate Unit II

At what time must the buyers sign a consent to dual agency agreement? A)Before the buyer makes an offer B)After the buyer makes an offer C)Before the offer is presented to the seller D)At the time of notification of acceptance

A)Before the buyer makes an offer

Who is considered a client? A)Buyer who signed a written agreement with the brokerage firm B)Seller who says she will pay a commission if the agent finds a buyer C)Seller who prefers to represent herself D)Buyer who promises to work only with one agent

A)Buyer who signed a written agreement with the brokerage firm

What type of agency relationship is prohibited in some states? A)Dual agency B)Single agency C)Seller-only representation D)Buyer-only representation

A)Dual agency

Which owners of the following properties must fill out the SC property disclosure? A)Duplexes B)Factories C)Farm acreage D)Commercial properties

A)Duplexes

Which of the following is a characteristic of single agency? A)Is the safest agency option B)been described as a time bomb C)Has been outlawed in some states D)Requires constant monitoring and consent of both parties

A)Is the safest agency option

Which of the following can be considered a liability defense shield? A)Owner mandatory property disclosures B)Errors and omissions insurance C)Property hazard insurance D)Discoveries by the buyers' home inspector

A)Owner mandatory property disclosures

With regard to the addendum to the SC property disclosure, who is responsible for obtaining inspections for on-site conditions? A)Purchasers B)Buyer's agent C)Listing agent D)Sellers

A)Purchasers

With regard to the addendum to the SC property disclosure, who is responsible for obtaining inspections for on-site conditions? A)Purchasers B)Buyer's agent C)Sellers D)Listing agent

A)Purchasers

Which of the following is considered confidential information? A)Seller will accept less than the list price B)Buyer is applying for a VA loan C)Another agent has an interested buyer D)Seller has a permit to add a sunroom

A)Seller will accept less than the list price

What is an example of a latent defect? A)Tree roots intruding in the sewer lines to the street B)Standing water in the basement C)Unfinished bathroom D)Broken windows in the garage

A)Tree roots intruding in the sewer lines to the street.

The most effective representation in a real estate transaction is MOST likely to involve the services of A)a seller's agent and buyer's agent. B)a nonagent. C)a transaction agent. D)a disclosed dual agent.

A)a seller's agent and buyer's agent.

When the owners of single-family dwelling are in foreclosure, they A)are obligated to disclose the foreclosure to prospective buyers. B)should disclose, but they don't have to. C)have a choice whether or not to disclose. D)are not obligated to disclose the foreclosure to prospective buyers.

A)are obligated to disclose the foreclosure to prospective buyers.

Regarding the changing role of agency relationships, all of the following may reduce the broker's liability risk EXCEPT A)continued use of subagency. B)a written company agency policy. C)written agency disclosure forms. D)education and training in agency relationships.

A)continued use of subagency.

When putting their homes on the market in South Carolina, owners of single-family homes are obligated to A)disclose known problems that will require repairs. B)identify repairs that will most likely need to be completed within five years. C)provide copies of their summer cooling and winter heating bills. D)summarize neighborhood issues that could affect the sales price.

A)disclose known problems that will require repairs.

A real estate licensee may offer all of the following services to unrepresented consumers EXCEPT A)full confidentiality. B)identify property for lease. C)provide preprinted real estate contracts. D)show property for sale.

A)full confidentiality.

The sellers have indicated that they are selling their home "as is." In this situation, the sellers A)have no intention of making any repairs. B)can avoid legal liability for nondisclosure. C)rely on the law to avoid disclosure. D)are not required to disclose any problems.

A)have no intention of making any repairs.

When should a licensee present the South Carolina Disclosure of Real Estate Relationships form to a real estate prospect? A)Once the prospect indicates she wants to work with this licensee B)As soon as is practical C)Only when they meet face-to-face D)Only when contacted by phone

B)As soon as is practical

Who is most responsible for discovery of problems? A)Real estate licensees B)Buyers C)Both buyers and sellers D)Sellers

B)Buyers

Of the following, who is NOT required to complete the SC owner disclosure form? A)Buyer who purchased the property from a flipper B)Lender that acquired the property through foreclosure C)Owner who acquired the property through settlement of an estate D)Owner who acquired the property from the lender and is "flipping" it

B)Lender that acquired the property through foreclosure

What question may a real estate licensee answer when asked by an unrepresented buyer? A)How much should I offer? B)What is the asking price? C)I've changed my mind; how do I get out of the contract? D)Can you help me get the seller to come down in price?

B)What is the asking price?

A licensee acting as a nonagent may be called A)a buyer's agent. B)a transaction broker. C)a dual agent. D)a single agent.

B)a transaction broker.

A real estate licensee represents the seller. The buyer does not have an agent. In this situation, the agent who represents the seller is permitted to A)advise the buyer on what to offer the seller B)convey the buyer's offer to the seller C)tell the buyer that the seller is going through a divorce and has to sell quickly D)point out that the property is overpriced

B)convey the buyer's offer to the seller

The client of a BIC wishes to purchase a property listed by an agent in the BICs office, which allows designated agency. In this situation, the BIC is a A)designated agent. B)dual agent. C)non-agent. D)single agent.

B)dual agent.

Purchasers of a property subject to rules imposed by an association should determine A)\if there are any restrictions against having a support animal. B)if there are additional owners association charges. C)the racial composition of the community. D)the religious composition of the community.

B)if there are additional owners association charges.

When transferring a single-family home, the party who received the home through settlement of an estate A)is required to complete the owner disclosure. B)is not required to complete the owner disclosure if the party never lived there. C)has an option to disclose. D)may not make any disclosures.

B)is not required to complete the owner disclosure if the party never lived there.

A builder built a house according to plans submitted by the purchasers who are excited about being the first occupants in the home. In this situation, the builder A)has the choice of completing the SC property disclosure. B)is relieved of completing the SC property disclosure. C)is not relieved of completing the SC property disclosure. D)should complete the SC property disclosure just as a precaution.

B)is relieved of completing the SC property disclosure.

There is an additional addendum to the SC property disclosure when the residential property A)was constructed before 1978. B)is subject to condominium bylaws. C)was occupied by several generations. D)is located near a school

B)is subject to condominium bylaws.

Real estate owners are generally required to disclose any problems with the property that a prudent buyer would be unable to observe. Such defects are called A)caveat emptor. B)latent defects. C)concealed flaws. D)concealed deficiencies.

B)latent defects.

The South Carolina residential disclosure is a defense shield for A)real estate licensees. B)lenders. C)buyers. D)closing agents.

B)lenders.

The agent who represents the seller is duty-bound to A)only present an offer that meets the seller's stated asking price and terms. B)present all offers. C)explain to a buyer how the seller arrived at the asking price. D)explain the seller's financial position to a prospective buyer.

B)present all offers

The BIC has adopted policies to permit designated dual agency in the office. In this situation, the BIC A)can represent a seller as a designated agent. B)remains a dual agent. C)can represent a buyer as a designated agent. D)becomes a transaction broker.

B)remains a dual agent.

A licensee who is guilty of a breach of agency duties may be subject to A)public service. B)rescission of the transaction. C)receipt of commission. D)imprisonment.

B)rescission of the transaction.

In the case of Divided David, what representation, if any, may David offer the buyers? A)Designated agency B)Single agency C)Dual agency D)Transaction brokerage

C)Dual agency

In the case of Divided David, what are the consequences, if any, of dual agency? A)Duties increased B)Opportunity for double the paycheck C)Duties reduced D)There are no consequences with dual agency

C)Duties reduced

At what time in the real estate transaction is it a good idea for the real estate licensee to provide the disclosure form to buyers? A)Before the offer is written B)Anytime prior to closing C)Early in the transaction D)After the offer is written

C)Early in the transaction

For how long should the licensee retain the copy of the signed South Carolina Disclosure of Real Estate Relationships form? A)Indefinitely B)Three years C)Five years

C)Five years

What is the problem when a company chooses to only represent sellers? A)No consumer familiarity with this method of conducting real estate transactions B)More protections offered for buyers C)High potential for unintended undisclosed dual agency D)No understanding by sellers of advantages to them

C)High potential for unintended undisclosed dual agency

Which of these factors requires the completion of an addendum to the South Carolina property disclosure? A)Short sale B)Foreclosure C)Property is subject to covenants, conditions, restrictions, bylaws, rules, or condominium D)Bankruptcy

C)Property is subject to covenants, conditions, restrictions, bylaws, rules, or condominium

Which service may a licensee perform when working with an unrepresented consumer? A)Maintain complete confidentiality B)Obey the lawful instructions of the consumer C)Provide real estate statistics and information on the property D)Work in the best interests of the consumer at all times

C)Provide real estate statistics and information on the property

Which of the following statements regarding the listing agent's fiduciary duty of disclosure owed to the seller is FALSE? A)The agent must disclose the identity of all potential buyers. B)The agent must disclose the buyer's intention to resell or subdivide the property at a profit. C)The agent has no obligation to disclose any business or family relationship with the buyer. D)The agent must disclose that the seller is liable for acts by any subagents.

C)The agent has no obligation to disclose any business or family relationship with the buyer.

What question may a real estate licensee answer when asked by an unrepresented buyer? A)Help me get the seller to come down in price. B)I've changed my mind; how do I get out of the contract? C)What is the asking price? D)How much should I offer?

C)What is the asking price?

What question may a real estate licensee answer when asked by an unrepresented buyer? A)I've changed my mind; how do I get out of the contract? B)How much should I offer? C)What is the asking price? D)Help me get the seller to come down in price.

C)What is the asking price?

In South Carolina, a real estate licensee who performs only ministerial acts in a transaction has the role of A)a disclosed dual agent. B)an undisclosed dual agent. C)a nonagent. D)a single agent.

C)a nonagent.

The BEST policy to avoid in-house dual agency problems is to use A)disclosed dual agency. B)single agency. C)designated representation. D)nonagency.

C)designated representation.

A dual agent must A)disclose all known information including the lowest price the buyer may intend to offer. B)not disclose familial relationships. C)disclose all material facts required by law. D)disclose information as to a lower price that the seller may accept.

C)disclose all material facts required by law.

Purchasers of a property subject to rules imposed by an association should determine A)the racial composition of the community. B)if there are any restrictions against having a support animal. C)if there are additional owners association charges. D)the religious composition of the community.

C)if there are additional owners association charges.

If the seller checks "no representation," the seller A)indicates that the seller will not be making any repairs.. B)is relieved of making any disclosures, even known ones. C)must still disclose any known problems. D)places the responsibility of discovery on the buyer.

C)must still disclose any known problems.

In the same company, each office has different BIC. In this situation, when an agent from one office shows a listing from another office, A)transaction brokerage is formed. B)a dual agency relationship is necessary. C)no dual agency is formed. D)limited agency is formed.

C)no dual agency is formed.

A listing agreement creates an agency agreement between the firm and the A)both seller and buyer. B)buyer. C)seller. D)cooperating brokerage.

C)seller.

The agent from one office represents the buyers and an agent from another firm represents the sellers. In this situation, the type of agency is A)limited agency. B)designated agency. C)single agency. D)dual agency.

C)single agency.

The SC property disclosure applies to the owners of A)commercial properties. B)dwellings of five or more units. C)single-family homes. D)industrial properties.

C)single-family homes.

Which of the following is likely to be a consequence of breach of agency duties? A)Referrals from the client B)Compensation from the client C)Confirmation of the transaction D)Loss or suspension of license

D)Loss or suspension of license

To reduce risk, at what time should an agency disclosure be made to the seller? A)Before any discussion about the asking price B)Between the accepted offer and closing C)Before an offer is presented D)Prior to listing the property

D)Prior to listing the property

Which of the following is an example of dual agency? A)The buyer's agent contacts a for-sale-by-owner seller. B)The buyer is a close relative of the agent, who is showing property listed by a rival firm. C)The first-time buyer is making an offer on a HUD property. D)The seller, whose house is under contract, wants to see a house listed by the seller's agent.

D)The seller, whose house is under contract, wants to see a house listed by the seller's agent.

Which of the following assists in reducing the broker's liability? A)Minimal training in the office B)Reliance on subagency C)Oral disclosure of the various types of agency relationships D)Written company policy regarding permitted agency relationships

D)Written company policy regarding permitted agency relationships

A real estate broker's son is purchasing his first home and has asked his mother, who holds a real estate license, to assist him. The broker should take part in the transaction as A)a nonagent. B)a transaction broker. C)a dual agent for both parties to the transaction. D)a buyer's agent for her son.

D)a buyer's agent for her son.

In South Carolina, two sales associates of ABC Realty who are involved in a transaction, with each representing a different party, take part in a relationship that is called A)nonagency. B)single agency. C)transaction brokerage. D)designated agency

D)designated agency

The agent who represents the seller is duty-bound to A)explain to a buyer how the seller arrived at the asking price. B)explain the seller's financial position to a prospective buyer. C)only present an offer that meets the seller's stated asking price and terms. D)present all offers.

D)present all offers.

The SC property disclosure applies to the owners of A)commercial properties. B)dwellings of five or more units. C)industrial properties. D)single-family homes.

D)single-family homes

The buyer prospect wants to discuss her financial qualifications to help determine the price of home she can afford. This is an example of A)unintentional off-the-cuff conversation. B)nonchalant conversation. C)casual conversation. D)substantive contact.

D)substantive contact.

One risk reduction recommendation regarding agency relationships is A)state sponsored agency relationship training classes. B)an oral company policy addressing agency relationships. C)emphasizing oral disclosure of the various types of agency relationships. D)use of written disclosure forms.

D)use of written disclosure forms.

Which of the following is the BEST time to discuss buyer representation? A)At a well-attended open house with many people walking around B)After the buyer has decided to make an offer C)During the interview, before the agent determines financial ability and needs versus wants D)When the buyer calls to enquire while driving by the property

During the interview, before the agent determines financial ability and needs versus wants

If the residential property is subject to ________________, _______________, ________________, _______________ ______ ________, or is a ____________________, an additional addendum is required.

covenants, conditions, restrictions, bylaws or rules, or is a condominium

South Carolina owners of up to ________________ dwelling units are obligated to disclose to prospective buyers of factors that may affect the closing, such as being under lease, subject to a short sale or foreclosure, bankruptcy, an estate, or that the property is vacant.

four-family

A ___________________ is one that is not easily discerned by the buyers, such as a plumbing problem due to tree roots penetrating into the sewer line to the street.

latent defect