CH 6 - AGENCY QUIZ

IF A SALESPERSON ACTS AS AN INDEPENDENT CONTRACTOR, THEN:

HE CONTROLS HIS OWN WORKING HOURS.

WHICH OF THE FOLLOWING IS CHARACTERISTIC OF AN *EXCLUSIVE RIGHT TO SELL LISTING*?

IT MAY ALLOW *MORE THAN ONE BROKER* TO SHARE A COMMISSION PAID BY THE SELLER.

WHICH OF THE FOLLOWING STATEMENTS MOST CLOSELY DESCRIBES A *LISTING CONTRACT*?

IT SERVES AS AN EMPLOYMENT AGREEMENT BETWEEN A BROKER AND A SELLER.

THE TERM *FIDUCIARY* BEST DESCRIBES:

AN *AGENT*.

A PROVISION IN A CONTRACT OF SALE THAT OBLIGATES THE PURCHASER TO LIST THE PROPERTY WITH A SPECIFIC BROKER WHEN THE PROPERTY IS RESOLD IS: *A) IN VIOLATION OF ANTITRUST LAWS*. B) GOOD BUSINESS PRACTICE AND PERFECTLY LEGAL. *C) CALLED A TIE-IN.* *D) BOTH A AND C*.

*D) BOTH *A* AND *C*.*

RONALD IS ACTING AS A BUYER BROKER FOR HIS SISTER, REGINA, WHO IS LOOKING FOR A HOUSE. SINCE HE HAS A WRITTEN CONTRACT AUTHORIZING HIM TO CONSIDER HER A CLIENT, HE IS AUTHORIZED TO DO ALL OF THE FOLLOWING ... *EXCEPT*:

*EXCEPT*.....ACCEPT A COUNTER OFFER ON REGINA'S BEHALF WHILE SHE IS OUT OF TOWN.

IF ASKED BY A PROSPECTIVE BUYER, THE LISTING AGENT MUST DISCLOSE ALL OF THE FOLLOWING ... *EXCEPT*:

*EXCEPT*.....THE PREVIOUS OCCUPANT HAD AIDS.

A LISTING THAT ALLOWS THE OWNER TO SELL THE PROPERTY WITHOUT BEING LIABLE FOR A COMMISSION, BUT ALSO APPOINTS ONLY ONE BROKER TO ACT AS A SOLE AGENT IS A:

*EXCLUSIVE AGENCY* LISTING.

IF A CONTRACT FOR SALE PROVIDES FOR THE OWNER TO SELL A HOME IN *"AS IS"* CONDITION, THEN:

*LATENT DEFECTS MUST STILL BE DISCLOSED* TO THE PURCHASER.

ACTING AS A DUAL AGENT WITHOUT THE CONSENT OF *ALL* PARTIES IS A BREACH OF A BROKER'S DUTY OF:

*LOYALTY*.

WHEN A THIRD PARTY RELIES UPON THE PRINCIPAL'S REPRESENTATION THAT A *PARTICULAR* BROKER IS HIS OR HER AGENT, EVEN THOUGH THE BROKER IS UNAWARE OF THE FACT, THE PRINCIPAL'S ACTIONS CREATE A:

*OSTENSIBLE* AGENCY.

A LISTING BROKER HAS NOTICED THAT THERE HAS BEEN WATER IN THE BASEMENT OF THE HOUSE HE IS MARKETING, BUT THE SELLER STATES THAT THE PROBLEM WAS SOLVED AND HE DOES NOT WANT IT MENTIONED. SHOULD THIS FACT BE REVEALED BY THE BROKER TO A PROSPECTIVE PURCHASER?

*YES*, THE PROBLEM IS CLEARLY A *"MATERIAL FACT"* AND MUST BE DISCLOSED.

AN OWNER DESIRES TO NET $147,600 FROM THE SALE OF HER HOME. BROKER BAILY ACCEPTS THE LISTING WITH A 6.5% COMMISSION. THE LIST PRICE WILL BE?

100-6.5=93.5. 147.600/.935=157.860.962. ROUNDS UP TO $157,900...................*$157,900 IS THE ANSWER*

*EXCLUSIVE* .....LISTINGS *MUST INCLUDE*:

A DEFINITE DATE OF EXPIRATION.

ALICE HAS A LISTED PROPERTY FOR AN OUT-OF-TOWN INVESTOR. HER ADVERTISING IS PRODUCING CALLS, BUT A HOSTILE TENANT IS DENYING HER ACCESS FOR SHOWINGS. WHEN TOLD OF THIS, THE SELLER REPLIES, "THAT'S YOUR PROBLEM." *WHICH IS TRUE*?

ALICE CAN RENOUNCE HER LISTING SINCE THE OWNER REFUSES TO COOPERATE.

WHEN A SALESPERSON PERFORMS THE DUTIES OF A *LICENSEE*, THE SALESPERSON DOES SO:

AS A *GENERAL AGENT* FOR HIS BROKER.

IF A LISTING AGREEMENT DOES NOT SPECIFICALLY AUTHORIZE A BROKER TO ACCEPT AND HOLD AN EARNEST MONEY DEPOSIT ON BEHALF OF THE SELLER, THEN THE:

BROKER HAS IMPLIED AUTHORITY TO ACCEPT SUCH DEPOSITS.

THE AMOUNT OF A BROKERS COMMISSION IS:

ESTABLISHED BY AGREEMENT BETWEEN THE BROKER AND THE SELLER.

OWNER BREWER AUTHORIZED BROKER OWENS TO SIGN A *CONTRACT OF SALE*. THIS AUTHORIZATION WAS GRANTED BY:

EXECUTING A *POWER OF ATTORNEY*.

THE LISTING BROKER AND SALESPERSON OWE ALL ... *BUT* ... WHICH OF THE FOLLOWING TO THE PURCHASER?

NEGOTIATION OF THE LOWEST POSSIBLE PRICE.

A STATEMENT OF EXAGGERATION WHICH A REASONABLE PERSON WOULD RECOGNIZE AS UNTRUE IS AN EXAMPLE OF:

PUFFING.

AN AGENCY MAY BE TERMINATED BY ALL ... *BUT*... WHICH OF THE FOLLOWING:

THE LISTING SALESPERSON DIES.

THE ONE-HUNDRED PERCENT COMMISSION PLAN MEANS:

THE SALESPERSON RECEIVES THE ENTIRE FEE BUT PAYS THE BROKER A MONTHLY FEE FOR OFFICE SPACE, ADMINISTRATIVE SERVICES, AND USE OF THE BROKER'S NAME.

A *GENERAL AGENCY* EMPOWERS THE AGENT TO:

TRANSACT THE PRINCIPAL'S AFFAIRS IN A CERTAIN BUSINESS.

IN SOME CASES A BROKERS COMMISSION CAN BE EARNED IF THE BROKER CAN PROVE HE SET IN MOTION A SERIES OF EVENTS THAT RESULTED IN THE SALE. TO DO SO MEANS THE BROKER:

WAS THE *PROCURING* CAUSE OF SALE.