Barnes Real Estate Ch. 25 Test Results

Q: Section 858-363, the Authority of Broker Associates deals with?

A: A clearer description of an associate's authority. Explain: Associates shall not enter into a brokerage agreement with a party in the associate's name and shall only be allowed to enter into the agreement in the name of the real estate broker.

Q: Which of the following individuals are NOT classified as a broker?

A: A provider of real estate industry related services. Explain: To be classified under the broker title, the individual must be authorized by a real estate broker to provide brokerage services.

Q: Under the Brokerage Relationships Act which of the following actions is mandatory?

A: Account for all money and property received by the broker in a timely manner. Explain: Regardless of whether or not you have a brokerage services agreement in place accounting for money and property received is mandatory and you cannot waive, ignore, or otherwise do away with it in any way.

Q: Under the new Oklahoma Brokerage Relationships Act the duties and responsibilities that were previously designated to transaction brokers?

A: Are now "assigned" to all brokers. Explain: The term transaction broker has been eliminated from the law and those duties formerly belonging to transaction brokers now belong to all brokers.

Q: Which Oklahoma Broker Relationships Act law section has remained unchanged?

A: Duties of Broker Following Termination, Expiration or Completion of Performance. Explain: Not everything in the Oklahoma Broker Relationships Act has changed. For example Section 858- 358 remains exactly the same regarding duties of broker following termination, expiration or completion of performance.

Q: What is the suggested strategy for currently active brokerage agreements signed into effect prior to November 1, 2013?

A: Enter into a new agreement when it expires. Explain: Your clients might be better served to enter into new agreements using the new forms for those agreements that expire after November 1, 2013. Using the new forms will minimize confusion for both you and your clients.

Q: Which of the following broker actions converts a customer into a client?

A: Entering into a listing agreement. Explain: The term brokerage service agreement means an oral or written agreement to provide brokerage services entered into by a real estate broker and a person who is a party to a real estate transaction.

Q: Broker Jones agreed to list his neighbor's vacant lot. The agreement was not in writing, just an over-the-fence handshake. What's the best advice that you can give to Broker Jones?

A: Good practice dictates that Broker Jones put the agreement in writing. Explain: Brokerage service agreements can be oral. However, all agreements should be in writing, so as to be clear about the specific duties you will be providing to your clients.

Q: Under what conditions can you disclose confidential information?

A: If the disclosure is required by law. Explain: You or your firm can disclose confidential information without client consent if mandated by law.

Q: After November 1, 2013?

A: If you use the terms "single party broker" and "transaction broker," you should clearly define the usage, since it is no longer defined in the law. Explain: The terms "single party broker" and "transaction broker" have been eliminated from the law, but you can still use those terms if you describe them.

Q: Where would you find documentation that confirms that a client received notice of the type of services provided by a broker?

A: In a separate provision or document that is either incorporated into or attached to the contract to purchase, lease, option, or exchange real estate. Explain: Brokerage services must disclose in writing and kept with the transaction file.

Q: If a broker intends to provide fewer brokerage services than those required to complete a transaction, the broker?

A: Must include a description of those steps in the transaction for which he or she will not provide brokerage services. Explain: A full listing of services offered and not offered must be disclosed.

Q: In those cases when a broker is involved in a transaction but he or she does not prepare the contract, the broker?

A: Must still document that he or she has complied with the services provided disclosure requirements. Explain: Regardless of what services that a broker performs in a transaction, that broker must document that disclosure confirmation requirements have been met.

Q: When must a firm inform all parties in a transaction when providing services to both parties?

A: Prior to the parties signing a contract to purchase, lease, option, or exchange real estate. Explain: The firm must provide written notice to both parties prior to a contract.

Q: Which type of information is NOT automatically considered confidential?

A: Proposed property zoning change. Explain: Information that is public does not fall under the confidentiality rule.

Q: The term "transaction broker" has been removed from?

A: The paragraph on vicarious liability. Explain: Section 858-362 on vicarious liability did not change, but was rewritten to drop the term "transaction broker."

Q: Brokerage services means?

A: Those services provided by a broker to a party in a transaction. Explain: Brokerage services means those services directly provided by a broker to a party in a transaction.

Q: What are the duties of broker following termination, expiration, or completion of performance?

A: To account for all monies and property relating to the transaction and maintain confidentiality. Explain: Section 858-358 remains the same regarding monies and property relating to the transaction and confidentiality.

Q: A seller's net sheet is best defined as a tool that is used to help?

A: Unknown.

Q: Which of the following statements is TRUE?

A: You are permitted to use the word "agent" in a trade name. Explain: A real estate broker is permitted to use the word "agent" in a trade name and as a general reference as a real estate licensee.

Q: Fiduciary duties?

A: do not take precedence over the duties defined in the Oklahoma law. Explain: Section 858-360(A) indicates that the broker duties and responsibilities under the law take precedence over any fiduciary duties based on the common law of agency.