Chapter 2 Quiz

A property was sold for $650,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. What is the amount of commission paid to the buyer's broker...? A. 19500 B. 39000 C. 15500 D. 13500

19500

David's house was listed at $465,000. The property eventually sold for $485,000. The agreed upon commission was 6%. How much did David pay as a commission at the closing of the property...? A. 29100 B. 27000 C. 14550 D. 27100

29100

A property was sold for $230,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. If the listing broker's real estate agent was responsible for the sale of the property and receives a 60/40 split with his broker, how much commission is paid to the real estate agent...? A. 4140 B. 8280 C. 3450 D. 6900

4140

Cindy's house was listed at $732,100. The property eventually sold for $736,250. The agreed upon commission was 6%. How much did Cindy pay in commissions at the closing of the property...? A. 44175 B. 43926 C. 44926 D. 43175

44175

What is the typical length of term for an Exclusive Right to Sell agreement...? A. 6 months B. 3 months C .1 month D. 12 months

6 months

A property was sold for $345,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. If the listing broker's real estate agent was responsible for the sale of the property and receives a 70/30 split with his broker, how much commission is paid to the real estate agent...? A. 7245 B. 14500 C. 10350 D. 5175

7245

A property was sold for $750,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. If the buyer's broker's real estate agent was responsible for the sale of the property and receives a 40/60 with his broker, how much commission is paid to the real estate agent...? A. 9000 B. 18000 C. 22500 D. 11250

9000

David is a real estate agent working for City Brokers. City Brokers offered to pay David an hourly wage as an incentive to keep David at the firm. If David accepts the hours wage, what may he be considered according to New York State Law...? A. An employee B. An associate C. An assistant D. A broker

An employee

Which of the following is a fundamental difference between an independent contractor and an employee...? A. An independent contractor does NOT have set working hours, while an employee does B. An independent contractor has a specific work location, while an employee does not C. An independent contractor's taxes are withheld by the broker, while an employee's taxes are paid in arrears D. An independent contractor cannot deduct expenses, while an employee is able to deduct all expenses

An independent contractor does NOT have set working hours, while an employee does

At what time during a transaction may a principal dissolve a dual agency arrangement...? A. Any point in the transaction B. Only at the beginning of the transaction C. Within 30 days of the first substantive meeting D. Within 30 days of the closing

Any point in the transaction

Two brokers entered into an agreement whereby one broker will only do business on the east side of the city and the other broker will only do business on the west side of the city, in essence creating a market allocation agreement. What would this agreement limit...? A. Competition B. Housing prices C. The number of properties on the market D. The number of buyers in the market place

Competition

According to an agent's fiduciary duties, the agent must not reveal information detrimental to his/her client without written permission. Which of the following fiduciary duties best reflects this...? A. Confidentiality B. Disclosure C. Reasonable Care D. Loyalty

Confidentiality

Andrew has accepted a new job in San Francisco and needs to sell his house quickly. Andrew hired a real estate agent to help with the transaction. If the agent reveals this information to a prospective buyer, it would be a breach of which fiduciary duty...? A. Confidentiality B. Obedience C. Loyalty D. Reasonable Care

Confidentiality

A selling agent or participating agent is referred to as the...? A. Cooperating Agent B. Exclusive Agent C. Buyer Agent D. Designate Sales Agent

Cooperating Agent

The party the agent brings to the principal as seller or buyer of the property is known as the...? A. Customer B. Client C. Broker D. Employee

Customer

Mark, a property owner, signed an agency agreement with Andrew, a real estate broker, to sell his house. What type of agency was created between Mark and Andrew...? A. Expressed Agency B. Implied Agency C. Inherit Agency D. Written Agency

Expressed Agency

When two brokers agree to the MLS' cooperative arrangement, what type of agency is created...? A. Expressed Agency B. Implied Agency C. Single Agency D. Primary Agency

Expressed Agency

John, a real estate broker, is referring his client to David, a mortgage broker, as a means to help his client obtain financing on a property. In return, David is offering to give John a referral fee. Before John can accept the referral fee, what must be provided to the client...? A. Full disclosure of the referral fee B. A percentage of the referral fee C. Reduced commission paid by the client D. Implied consent

Full disclosure of the referral fee

As an agent to a cooperative board, Mark has the authority to enter into contracts with 3rd party vendors to help service the building. This level of authority suggests that Mark is what type of agent...? A. General Agent B. Specific Agent C. Unlimited Agent D. Universal Agent

General Agent

An agreement between members of a trade to exclude other members from fair participation in the trade is known as...? A. Group Boycott B. Market Allocation C. Misrepresentation D. Price Fixing

Group Boycott

If two brokerage firms create an alliance in an attempt to prevent another brokerage firm from competing in the marketplace, what may the two firms be liable of...? A. Group Boycotting B. Price Fixing C. Self Dealing D. Vicarious Liability

Group Boycotting

Lisa is a real estate broker who has entered into an agency relationship with Robert, a landlord looking to lease one of his apartments. Lisa brings Andrew, a prospective tenant, to Robert with an offer to rent Robert's apartment. Which of the following statements is correct...? A. Lisa is the Agent, Robert is the Principal, and Andrew is the Customer B. Lisa is the Agent, Robert is the Customer, and Andrew is the Client C. Lisa is the Principal, Robert is the Client, and Andrew is the Customer D. Lisa is the Principal, Robert is the Customer, and Andrew is the Client

Lisa is the Agent, Robert is the Principal, and Andrew is the Customer

Ben, a real estate agent, represents several buyers. In an attempt to increase his commission, he decides to have his clients bid against the same property without their knowledge or consent. Which fiduciary duty has Ben breached...? A. Loyalty B. Obedience C. Reasonable Care D. Accountability

Loyalty

Which of the following is considered an anti-trust violation...? A. Market Allocation B. Divided Loyalty C. Dual Agency D. Estoppel

Market Allocation

Both the principal and the agent cannot do what to the customer...? A. Misrepresent facts B. Show the property C. Withhold from disclosing non-material facts D. Counteroffer

Misrepresent facts

According to an agent's fiduciary duties, the agent must be competent and not act in a negligent manner. Which of the following fiduciary duties best reflects this...? A. Reasonable Care B. Loyalty C. Accountability D. Obedience

Reasonable Care

The degree of caution and concern for the safety of himself/herself and others an ordinarily prudent and rational person would use in the circumstances is known as...? A. Reasonable Care B. Disclosure C. Diligence D. Tenacity

Reasonable Care

John, a real estate broker, and Chris, a property owner, have entered into an agency relationship. Soon after, a dispute arose in regards to how much commission should be paid to John if he finds a buyer for Chris' property. What should they do to resolve their dispute...? A. Refer back to the listing agreement, which states the agreed upon commission B. Contact their attorneys to review the case C. Refer back to the letter of intent, which states the amount of commission due D. Refer back to the local real estate association standards for the amount of commission due in a transaction

Refer back to the listing agreement, which states the agreed upon commission

According to the 'In-house Sales' clause in an Exclusive Right to Sell agreement, a seller cannot do which of the following if the listing broker also finds a buyer...? A. Refuse to pay a commission to the listing broker B. Elect to dissolve the agency relationship C. Allow the listing broker to become a dual agent D. Pay the full commission to the listing broker

Refuse to pay a commission to the listing broker

Abby is a New York State real estate agent, specializing in condominium sales. According to State law, Abby's compensation is directly related to what...? A. Sales B. Hours worked C. Number of clients D. Number of listings

Sales

Which section of the New York State Real Property Law states that the broker may be liable for the salesperson's actions...? A. Section 442-C B. Section 443 C. Section 12-A D. Section 11-C

Section 442-C

The conduct of a trustee, an attorney, a corporate officer, or other fiduciary that consists of taking advantage of his position in a transaction and acting for his own interests rather than for the interests of his clients is known as...? A. Self Dealing B. Tie-in Arrangement C. Misrepresentation D. Dishonesty

Self Dealing

David is a real estate broker who represents a buyer in a transaction. David finds a potential property for his client on the MLS. By agreeing to the cooperative arrangement of the MLS, David has become a sub-agent to whom...? A. Seller B. Seller's agent C. Principal D. David will not become a sub-agent to anyone in the transaction

Seller

When a buyer's broker agrees to the cooperative arrangement of the MLS, he/she becomes a sub-agent to whom...? A. Seller B. Principal C. Seller's agent D. Tenant

Seller

As a special agent in a transaction, a real estate salesperson is permitted to do which of the following on behalf of the client...? A. Show the property B. Negotiate the terms of the contract C. Enter into contract on behalf of the owner D. Consummate a sale of the property

Show the property

Abby is a real estate agent who represents the seller in a transaction. Her colleague, Kimberly, works for the same broker and represents a prospective buyer. Both Abby and Kimberly's clients want to gain a better understanding as to the risks and benefits of entering into a dual agency relationship. What document should Abby and Kimberly present to their clients...? A. The Disclosure Form B. The Cooperative Agreement Form C. The Single Agency Form D. The Dual Agency Form

The Disclosure Form

Jason is a real estate agent who is seeking to rent an apartment on behalf of his client. Jason's colleague, David, works for the same broker and has a client who is interested in renting the apartment. What document should Jason and David have their clients review and sign-off on prior to entering a dual agency relationship...? A. The Disclosure Form B. The Cooperative Agreement Form C. The Single Agency Form D. No document needs to be provided

The Disclosure Form

Chris, a real estate broker, has entered into an agreement to lease one of John's apartments. Who is the customer in the transaction...? A. The Tenant B. The Buyer C. The Agent D. The Landlord

The Tenant

In addition to the agent signing the independent contractor agreement, what else is required before the agreement can be finalized...? A. The agreement must be notarized B. The agreement must be recorded C. The agreement must be delivered to the Department of State D. The agreement must be copied and delivered to all parties involved

The agreement must be notarized

According to Section 442-C of the NYS Real Property Law, who may be held liable for a salesperson's actions...? A. The broker B. The client C. The customer D. The associate broker

The broker

If one or both of the parties in a transaction are not aware that a dual agency relationship exists, what can occur...? A. The contract can be rescinded B. The buyer's earnest money must be forfeited C. Both parties must walk away from the deal D. Nothing will occur

The contract can be rescinded

If an owner opts NOT to list his/her property on the MLS, what may they be risking...? A. Their property may not sell B. Their property may be viewed by more prospective buyers C. Their property may sell above market value D. Their property may decrease in investment value

Their property may not sell

A contract where one transaction depends upon another is known as a...? A. Tie-in Arrangement B. Dependence Contract C. Double Closing D. Double Contract

Tie-in Arrangement

Mark, a real estate broker representing a seller, insists that his client use his real estate attorney, otherwise, he won't sell the house. What has Mark introduced...? A. Tie-in Arrangement B. Price Fixing C. Self Dealing D. Undivided Loyalty

Tie-in Arrangement

A property was sold for $555,000. The total commission for the transaction was 5%. The listing broker and buyer's broker agreed to split the commission 50/50. What is the amount of commission paid to the buyer's broker...? A. 13875 B. 27750 C. 15875 D. 6750

13875

A property was sold for $525,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. What is the amount of commission paid to the listing broker...? A. 15750 B. 31500 C. 7875 D. 30500

15750

Mr. Smith's house was listed at $325,000. The property eventually sold for $365,000. The agreed upon commission was 5%. How much did Mr. Smith pay in commissions at the closing of the property...? A. 18250 B. 16250 C. 14250 D. 9125

18250

Which of the following fiduciary duties is conversely related to the duty of Confidentiality...? A. Disclosure B. Loyalty C. Reasonable Care D. Obedience

Disclosure

Which of the following is NOT considered an anti-trust violation...? A. Divided Loyalty B. Market Allocation C. Group Boycott D. Tie-in Arrangement

Divided Loyalty

Representing both principals (seller and buyer) in a transaction is known as...? A. Dual Agency B. Disclosure C. General Agent D. Specific Agent

Dual Agency

Josh, a real estate broker, is hesitant to enter into a dual agency arrangement as it may affect these duties to his client...? A. Fiduciary Duties B. Legal Duties C. Agency Duties D. Expressed Duties

Fiduciary Duties

If a property owner seeking to sell his house knows that an agent is showing his house to prospective buyers, but does not have an agency agreement with the agent, what type of agency relationship may arise...? A. Implied Agency B. Expressed Agency C. Inherent Agency D. Trust Agency

Implied Agency

In New York State, all real estate agents are considered...? A. Independent Contractors B. Employees C. Assistants D. Associates

Independent Contractors

The 'L' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...? A. Loyalty B. Legally C. Limited D. Liberal

Loyalty

An agreement between members of a trade to refrain from competition in specific market areas is known as...? A. Market Allocation B. Price Fixing C. Group Boycott D. Buyout

Market Allocation

Justin, a real estate broker representing a buyer in a transaction, found a property for his client on the MLS. By agreeing to the cooperative arrangement of the MLS, Justin will have what type of relationship to the owner of the listed property...? A. Sub-agent B. Principal C. Primary agent D. Justin does not have a relationship with the seller

Sub-agent

The fiduciary duty that prohibits the agent from advancing any interests adverse to the principal's interest, or conducting the principal's business in such a way as to benefit a customer is known as...? A. Undivided Loyalty B. Obedience C. Reasonable Care D. Confidentiality

Undivided Loyalty

John is a real estate broker who has entered into an agency relationship with Kevin, a property owner looking to sell his house. John brings Steve, a prospective buyer, to Kevin with an offer to purchase Kevin's house. Which of the following statements is correct...? A. John is the Agent, Kevin is the Client, and Steve is the Customer B. John is the Agent, Kevin is the Customer, and Steve is the Client C. John is the Client, Kevin is the Customer, and Steve is the Agent D. John is the Customer, Kevin is the Agent, and Steve is the Client

John is the Agent, Kevin is the Client, and Steve is the Customer

John, a real estate broker representing the owner, listed his client's property on the MLS. Any buyer's agent will be a sub-agent to whom...? A. John's client B. The buyer's broker C. The buyer's client D. The buyer's agent will not be a sub-agent in the transaction

John's client

Which of the following is considered a principal in an agency relationship...? A. Landlord B. Agent C. Broker D. Associate Broker

Landlord

A person who has oral or written authority, either express or implied, to act for or on behalf of a landlord is known as...? A. Landlord's Agent B. Tenant's Agent C. Buyer's Agent D. Seller's Agent

Landlord's Agent

Which of the following disclosures must be provided by an agent on behalf of his/her client...? A. Lead paint B. Near-by school zones C. Traffic flow in the neighborhood D. Ease of transportation in the neighborhood

Lead paint

If two brokerage firms enter into a market allocation agreement, what may they be limiting...? A. Competition B. Open listings C. The number of properties on the market D. The maximum price an owner may receive for their property

Competition

Which of the following is NOT considered a principal in an agency relationship...? A. Agent B. Landlord C. Tenant D. Owner

Agent

Which of the following is NOT an example of an agency relationship...? A. Agent - Appraiser B. Agent - Owner C. Tenant - Agent D. Broker - Agent

Agent - Appraiser

What is a common breach of the fiduciary duty of accountability...? A. Being negligent with the client's money B. Revealing confidential information C. Working in a capacity outside of your expertise D. Showing the client a two bedroom house when they clearly stated they are looking for a three bedroom house

Being negligent with the client's money

When a broker is involved in a dual agency arrangement, whereby he/she designates sales agents to represent both the buyer and seller, the broker owes a fiduciary duty to whom...? A. Both the buyer and the seller B. Only the buyer C. Only the seller D. The broker does not owe any fiduciary duties, only the designated sales agents do

Both the buyer and the seller

Which of the following is NOT considered a principal in an agency relationship...? A. Broker B. Landlord C. Tenant D. Owner

Broker

Cindy was a real estate salesperson in a successful transaction. Who paid Cindy her commission for the deal...? A. Cindy's Broker B. The Principal C. The Client D. The Customer

Cindy's Broker

David is a real estate agent with City brokerage. City brokerage is headquartered on Park Avenue in Manhattan; however, there are satellite offices in each of the major neighborhoods throughout Manhattan. As an agent, in which office is David required to work...? A. David is not required to work in any office if he so chooses B. The office headquarters on Park Avenue C. Any satellite office D. David must choose an office and only work out of that location

David is not required to work in any office if he so chooses

Appointing one or more individual agents in a firm to represent only the interests of the seller, and one or more different individual agents in the firm to represent only the interests of the buyer, when a firm has an "in-house" dual agency situation, is known as...? A. Designated Sales Agent B. Cooperating Agent C. General Agent D. Specific Agent

Designated Sales Agent

According to an agent's fiduciary duties, the agent must present all offers to his/her client. Which of the following fiduciary duties best reflects this...? A. Disclosure B. Loyalty C. Obedience D. Confidentiality

Disclosure

The 'D' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...? A. Disclosure B. Determined C. Dual Agent D. Director

Disclosure

Abby, a buyer's broker, found a property for her client on the MLS. As a result, Abby has now become a sub-agent to the owner of the MLS listing. This is an example of what type of agency...? A. Dual Agency B. Implied Agency C. Cooperative Agency D. Single Agency

Dual Agency

When agents from the same brokerage firm represent both the buyer and the seller, what type of agency is created...? A. Dual Agency B. Cooperative Agency C. Implied Agency D. Single Agency

Dual Agency

According to New York State law, an independent contractor agreement can NOT be signed under what condition...? A. Duress B. Lack of job prospects C. Influence by another agent D. Accepting the position to earn extra income

Duress

Mark is an agent with City Brokers. Mark decides that he wants to leave City Brokers to work with another broker. Who is capable of terminating the independent contractor relationship that exists between Mark and City Brokers...? A. Either Mark and/or City Brokers B. City Brokers only C. Mark only D. Neither Mark nor City Brokers

Either Mark and/or City Brokers

Which of the following is NOT considered an anti-trust violation...? A. Estoppel B. Price Fixing C. Tie-in Arrangement D. Market Allocation

Estoppel

An agreement of employment of a broker to the exclusion of all other brokers is known as...? A. Exclusive Agency B. Dual Agency C. Implied Agency D. General Agency

Exclusive Agency

The legal duty of a fiduciary to act in the best interests of the beneficiary is known as...? A. Fiduciary Duty B. Loyalty C. Confidentiality D. Obedience

Fiduciary Duty

Abby, a real estate agent, is working to rent an apartment on behalf of her client. Mark, a real estate agent who works for the same broker as Abby, has a client who is interested in renting the apartment. Before the apartment can be shown, what must be provided by the landlord and prospective tenant...? A. Informed Consent B. Implied Consent C. Oral Consent D. Full Disclosure

Informed Consent

An agreement to do something or to allow something to happen only after all the relevant facts are disclosed is known as...? A. Informed Consent B. Estoppel C. Confidentiality D. Exclusive Right to Sell

Informed Consent

Two agents are attempting to create a dual agency with permission from both the buyer and seller. According to New York State law, what must be given in-writing...? A. Informed consent from all parties B. Implied consent from all parties C. Dual consent from all parties D. Oral consent from all parties

Informed consent from all parties

In New York State, a referral fee may only be paid after this is obtained...? A. Informed consent of the client B. An agreement between the two agents C. An agreement between the agent and his/her sponsoring broker D. Informed consent of the broker

Informed consent of the client

As a special agent in a transaction, a real estate salesperson cannot do which of the following on behalf of the owner...? A. Negotiate the terms of the contract B. List the property C. Show the property D. Meet with potential buyers of the property

Negotiate the terms of the contract

According to an agent's fiduciary duties, the agent must act in accordance to his/her client's demands and instructions. Which of the following fiduciary duties best reflects this...? A. Obedience B. Loyalty C. Reasonable Care D. Accountability

Obedience

As an agent, how many brokers are you typically allowed to work for at any given time...? A. One B. Two C. Three D. As many as the agent chooses

One

A listing given to any number of brokers without liability to compensate any broker, except the one who first secures a buyer ready, willing and able to meet the terms of the listing, is known as a/an...? A. Open Listing B. MLS C. Exclusive Listing D. Public Listing

Open Listing

Which of the following is NOT an example of an agency relationship...? A. Owner - Tenant B. Tenant - Agent C. Owner - Agent D. Agent - Broker

Owner - Tenant

Sandy is a real estate agent who has entered into an agency relationship with Jim, a homeowner, to sell Jim's house. They agreed upon a flat fee for Sandy as compensation for a successful transaction. What other means of compensation may be agreed upon between the two...? A. Percentage of the sales price B. Percentage of the listing price C. The difference between the sales price and the listing price D. Percentage of the appraised value

Percentage of the sales price

When a buyer's broker agrees to the cooperative arrangement of the MLS, he/she becomes what to the seller, who's property is listed on the MLS...? A. Sub-agent B. Principal C. Primary broker D. Secondary agent

Sub-agent

A licensed real estate agent who acts on behalf of a tenant in a commercial property transaction is known as a...? A. Tenant's Agent B. Buyer's Agent C. Seller's Agent D. Specific Agent

Tenant's Agent

The Listing Price is also referred to as what...? A. The price agreed upon in the contract between the seller and seller's agent B. The market value of a property C. The value described in the appraisal report D. The assessed value of the property

The price agreed upon in the contract between the seller and seller's agent

Which of the following should NOT be disclosed by a seller's agent, as it may harm the seller's negotiating position...? A. The reasons why the seller is selling B. Significant termite damage C. Major structural damage to the property D. Lead paint

The reasons why the seller is selling

Even if the buyer's and seller's brokers agree to dual agency, who may reject the arrangement of dual agency in a transaction...? A. The seller B. The buyer's agent C. The seller's agent D. Dual agency cannot be rejected if both brokers agree

The seller

Which of the following does an agent NOT have to disclosure to his/her client...? A. Traffic flow in the neighborhood B. Lead paint C .Extensive termite damage D. Major structural damage

Traffic flow in the neighborhood

As an independent contractor, which of the following is an expense that must be paid by the agent...? A. Travel expenses B. MLS fees C. Broker office computers D. Broker office supplies

Travel expenses

Chris and Mark are real estate agents working for the same broker. Chris is seeking to rent an apartment on behalf of his client, while Mark's client is interested in renting the apartment. If all parties in the transaction agree to dual agency, which fiduciary duty to the principals may be most at risk...? A. Undivided loyalty B. Confidentiality C. Reasonable care D. Obedience

Undivided loyalty

When dual agency exists between the landlord's agent and tenant's agent, which fiduciary duty may be most at risk to both principals...? A. Undivided loyalty B. Reasonable care C. Obedience D. Confidentiality

Undivided loyalty

As an independent contractor, which of the following must exist between the salesperson and a specific broker...? A. Written contract B. Handshake agreement C. Implied contract D. Explicit agreement

Written contract