Section3 Chapters 6-10

the statute of limitations for a negligent visual inspection is

2 years

the statute of limitations for a breach of fiduciary duties is

3 years

An addendum may be used for which of the following

All of the above Clarifying what inspections the seller will pay for a change in the escrow date a change in the the occupancy date

which of the following forms of ADR are closest to litigation

Arbitration

the acronym BATNA stands for

Best alternative to a negotiated agreement

a violation of the terms or conditions of a contract without legal excuse is referred as a

Breach of contract

an agency relationship should be disclosed in which order

Disclose, elect, confirm

an agency relationship in which the agent acts concurrently for both of the principals in a transaction is referred to as

Dual agency

which of the following court cases determined that an agent is only responsible for performing a diligent visual inspection

Easton Vs. Strassburger

which of the following is an example of a listing contract

Exclusive right to sell agreement

a contract in which both parties have completely performed their contractual obligations is known as a

Executed contract

T/F a counter offer is not voidable

False

T/F a decision made by a mediator is final and binding

False

T/F an agent is allowed to provide legal advice to their clients

False

T/F the listing agent can never be the selling agent in a transaction

False

T/F the sellers property questionnaire is required by law

False

that duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure, is referred to as a

Fiduciary duty

The intentional and successful employment of any cunning, deception, collusion, or artifice, used to circumvent, cheat or deceive another person whereby that person acts upon it to the loss of property and to legal injury, is known as

Fraud

a writ order issued under the seal of a court to restrain one or more parties to a suit or proceeding from doing an act which is deemed to be inequitable or unjust in regard to the rights of some other party or parties in the suit or proceeding is known as

INJUNCTION

a person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another is referred to as a

Independent contractor

The individual who enters into a listing contract with a principal is referred to as the

Listing agent

an agents duty to place the clients interest above those of all others, including the agents own self interest is known as

Loyalty

any fact that would influence the decision of a reasonably prudent person is known as a

Material fact

A form of alternative dispute resolution in which the parties to a lawsuit meet with a neutral third party in a effort to settle the case is known as

Mediation

which of the following helps facilitate a voluntary agreement between two disputing parties

Mediator

which of the following is the least expensive form of ADR

Negotiation

the substitution or exchange or new obligation or contract for an old one by the mutual agreement of the parties is known as

Novation

This refers to a right given for a consideration to purchase or lease a property upon specified terms within a specified time, without obligating the party who receives the right to exercise the right

Option

what is the standard commission split between a broker and their salesperson

There is no standard commission split

T/F a broker is entitled to a commission if they find a ready willing and able buyer

True

T/F a licensee may have their license suspended for the unauthorized practice of law

True

T/F money is commonly used as consideration in a real estate transaction

True

T/F the buyer is entitled to their earnest money if they back out of the purchase contract during the inspection period

True

T/F the commission split between a broker and agent can change over time

True

when one party promises to do something if the other party performs a certain act, but the other party doesn't promise to perform it, it is referred to as an

Unilateral contract

A contract that complies with all if the essential elements of a contact, and is enforceable and binding on all parties, is known as a

Valid contract

a contract which has no force or effect is considered

Void

which of the following is an example of a material fact

a leaking roof

if the seller wants to change the terms of the contract, they can use either a counter offer or an

addendum

these are additional pages of a material that are added to and become part of a contract

addendum

which of the following is a disclosure that may be included in the sale of a residential property

all of the above Mold disclosure natural hazards disclosure lead based paint hazard disclosure

which of the following is an example of a fiduciary duty owed by a broker to the principal

all of the above confidentiality loyalty reasonable skill and care

which of the following is an example of an essential element of a valid contract

all of the above consideration mutual consent capacity to contract

which of the following is an example of a bilateral contract

all of the above exclusive right to sell agreement exclusive agency agreement purchase contract

Which of the following is an example of an express contract

all of the above listing contract purchase contract independent contractor agreement

The resolution of disputes by various means including but not limited to negotiation, mediation, and arbitration is referred to as

alternative dispute resolution

A contract in which each party promises to do something is known as a

bilateral contract

a listing agreement is signed between a seller and a

broker

a purchase contract is signed between a seller and

buyer

anything given or promised by a party to induce another to enter into a contract is known as

consideration

an agreement to do or not to do a certain thing is known as a

contract

a response to an offer to enter into a contract, changing some of the terms of the original offer, is referred to as a

counter offer

a response to an offer to enter into a contract, changing some of the terms of the original offer, is referred to as a

counter-offer

which of the following fiduciary duties demands that an agent work to the best of their abilities to achieve the goals of the principal

diligence

The ability to sue for the enforcement of the contract is referred to as

enforceability

a listing given to only one broker who is entitled to the commission if anyone sells the property during the term of the listing contract is referred to as an

exclusive right to sell agreement

which of the following listing contracts offers the most protection to the broker

exclusive right to sell agreement

a contract that has been put into words, either spoken or written, is referred to as a

express contract

Liquidated damages generally do not exceed 3% of the purchase price

false

T/F a broker may require their agents to spend at least 40 hours per week in the brokers office

false

T/F according to the IRS, a real estate salesperson is an employee of their sponsoring broker

false

T/F all lease contracts must be in writing

false

T/F dual agency is illegal in California

false

a person in a position and trust and confidence, as between principal and broker, serves as an

fiduciary

an agreement that has not been put into words, but is implied by the actions of the parties, is referred to as a

implied contract

the ..................... serves as an employment contract between a sponsoring broker and agent?

independent contractor agreement

which of the following types of negotiation aims for a win/win outcome

integrative negotiation

A sum agreed upon by the parties to be full damages if a certain event occurs is known as

liquidated damages

a contract in which a propert owner employs a real estate broker to market the property described in the contract is known as a

listing contract

False statements made negligently or innocently is referred to as

misrepresentation

the broker is responsible for paying which of the following expenses of their agents

none of the above

which of the following is an example of a unilateral contract

open listing

damages simply for the purpose of punishment are known as

punitive damages

a right of preemption is also known as

right of first refusal

the extended clause is also known as the

safter clause

Any profit that the agent obtains without principals authorization is known as a

secret profit

if a sellers agent is related to the buyer but does not disclose this fact to the seller, they may be guilty of

self dealing

the individual who finds the buyer (or seller) for the property is referred to as the

selling agent

an action to compel performance of an agreement is known as

specific performance

A state law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as

statute of frauds

a statute prescribing a period of limitation for the bringing of certain kinds of legal action is known as the

statute of limitations

who serves as the cooperating broker to a sellers broker

the buyers broker

which of the following typically serves as the escrow instructions for a transaction

the purchase contract

who is responsible for completing the transfer disclosure statement form

the seller only

a condition of a contract expressing the essential nature of performance of the contract by a party in a specified period of time is referred to as

time is the essence

T/F A sellers agent owes the duties of honesty and fairness to all third parties in a transaction

true

T/F Commission are always negotiable

true

T/F a Judge in califonia may require two parties to go to mediation or arbirtation prior to going to court

true

T/F a TDS form is not required when property is transferred between husband and wife

true

T/F a counter offer is not a form of acceptance

true

T/F a distributive negotiation typically leads to a win/lose outcome for the parties involved

true

T/F a mediator must serve as a neutral party during mediation

true

T/F a sponsoring broker holds workers compensation insurance for their agents

true

T/F all real estate sales contracts must be in writing

true

T/F an agent is required to disclose all known material facts to the customer

true

T/F as an independent contractor, an agent is required to pay their own taxes

true

T/F contact contingencies create a voidable contract

true

T/F dual agency must be disclosed to all parties

true

T/F the agent owes fiduciary duties to the principal

true

That is which is capable of being adjudged void, but is not void unless action is taken to make it so, is referred to as

voidable