Chap 6 Test
A person who enters into a brokerage relationship with a licensee is: Select one: A. A client B. A customer C. A claimant D. Actively engaged
A. A client
A broker lists a property. A buyer submits a written offer and the seller accepts it. On the date scheduled for closing, the seller refuses to sign any of the papers. The broker is entitled to: Select one: A. A full commission because he fully performed B. One-half of the agreed upon commission C. Out of pocket expenses, but only if the client is in breach D. Nothing until the papers are ratified
A. A full commission because he fully performed
A special agency empowers the agent to perform: Select one: A. A specific act B. Any act required C. Any legal act D. Related acts
A. A specific act
An owner is listing his rental property with a broker. Based on past experience, the owner thinks that females cause less damage. He therefore tells the broker that he only wants to rent to females. What should the broker do? Select one: A. Advise the owner that this restriction is illegal B. Follow the owner's instruction in order to protect the client's interest C. Accepting the listing and give preferential treatment to female applicants D. Follow the owner's instruction because of the fiduciary relationship
A. Advise the owner that this restriction is illegal
A broker wants to be compensated if anyone else sells his listed property during the listing period. What type of listing should the broker acquire? Select one: A. An exclusive right-to-sell listing B. An open listing C. An exclusive agency listing D. A net listing
A. An exclusive right-to-sell listing
Broker Bill with XYZ Realty sells a property that was listed by Gene, an independent broker. In this transaction, what is the relationship between Bill and Gene? Select one: A. Bill is the agent; Gene is the principal B. Bill is the trustee; Gene is the trustor C. Bill is the sub-agent; Gene is the agent D. Either A or C could be correct
A. Bill is the agent; Gene is the principal
A seller entered into a valid contract with a buyer. Afterwards, the seller realized that his broker is also representing that buyer. The seller has a right to: Select one: A. Cancel the contract without obligation to either buyer or broker B. Cancel the contract, but only with written permission from the buyer C. Cancel the contract, but with liability to the broker for any expenses D. The contract is valid and must be executed as agreed
A. Cancel the contract without obligation to either buyer or broker
A seller tells a broker that she wants him to sell her house. This agreement is: Select one: A. Express B. Implied C. Not valid unless it's in writing D. Void
A. Express
A salesperson receives an earnest money deposit check on Monday while working with Broker Allen. On Friday, the salesperson goes to work for Broker Bob. If the salesperson still has the earnest money deposit check on Friday, what should be done with it? Select one: A. It should be immediately given to Broker Allen B. It should be immediately given to Broker Bob C. It should be immediately given to the seller D. It should be immediately given to the buyer
A. It should be immediately given to Broker Allen
A salesperson takes a 90 day exclusive right-to-sell listing on April 1st, but moves out of the area on May 15th. His license placed on inactive status on June 1st. This listing would: Select one: A. Remain in effect B. Terminate on May 15th C. Revert to an open listing D. Terminate on June 1st
A. Remain in effect
The legal relationship between broker and seller is generally: Select one: A. Special agency B. General agency C. Universal agency D. None of the above
A. Special agency
It would NOT be considered commingling of funds if: Select one: A. The broker holds an earnest money check, as requested by the offeror, until acceptance by the offeree B. The broker holds an earnest money check, as requested by the offeror, after acceptance by the offeree C. The broker holds earnest money in his personal account until the offer is accepted or rejected D. The broker holds earnest money in his brokerage operating account because the deal is going to be all cash
A. The broker holds an earnest money check, as requested by the offeror, until acceptance by the offeree
A listing may be revoked by: Select one: A. The seller B. The selling broker C. The salesperson that obtained the listing D. The death of the salesperson
A. The seller
What is NOT a fiduciary duty that an agent has towards his client? Select one: A. To obey all client instructions B. To use care in completing form contracts C. To be accountable for documents and funds D. To be loyal to the client
A. To obey all client instructions
Two salespersons have been assigned as designated agents in a real estate transaction. The seller requests that her agent, Anne, not mention the mold issue in the bathroom since she wants to sell her house quickly. At an office meeting, Anne tells her broker that the seller might accept a lower price because of the issue. In this situation: Select one: A. The broker may tell the buyer that the seller wants to sell her house quickly B. The broker may tell the buyer that the seller is willing to accept a lower offer C. The broker may tell the buyer about the mold problem in the bathroom D. The broker may not tell any information that was mentioned in confidence to the buyer
C. The broker may tell the buyer about the mold problem in the bathroom
What is the agency relationship between cooperating brokers (listing broker and selling broker) who are members of the MLS? Select one: A. Co-brokers B. The cooperating broker could be a sub-agent to the seller C. The listing broker is principal, and the selling broker is the agent of the listing broker D. None of the above
C. The listing broker is principal, and the selling broker is the agent of the listing broker
Phil is a salesman working for Broker Joan. Phil takes a listing on January 3rd. The listing is a 60-day exclusive right-to-sell agreement. On February 1st, Phil was killed in an automobile accident. What is the status of the listing? Select one: A. The listing becomes an open listing B. The listing terminates by operation of law C. The listing remains valid D. The seller may now list the property with another salesman working for Broker Joan
C. The listing remains valid
The law of agency can include relationships between principals, agents, and: Select one: A. Sellers B. Buyers C. Third parties D. None of the above
C. Third parties
Seller Corcoran is in very poor health and cannot work on his farm anymore. Corcoran's broker discloses this fact to prospective buyers. Has the broker done anything wrong? Select one: A. No, because it is a material fact B. No, so long as the farm sells at or above the list price C. Yes, because it is contrary to Corcoran's interest D. Yes, because Corcoran's status is protected by Federal Fair Housing Laws
C. Yes, because it is contrary to Corcoran's interest
The relationship between a broker and client is most accurately described as: Select one: A. A trustee relationship B. A trustor relationship C. A confidential relationship D. A fiduciary relationship
D. A fiduciary relationship
How can an agency relationship be created? Select one: A. In writing B. Implicitly C. Orally D. All of the above
D. All of the above
When does an open listing terminate? Select one: A. In a reasonable time B. If the property is destroyed by fire C. When the property is sold D. All of the above
D. All of the above
Which of the following actions would create an agency relationship? Select one: A. A broker accepts the listing to sell a friend's home and agrees to a reduced commission B. An individual gives written authority for a broker to buy, sell, or exchange his real property for a one year period C. A duplex owner signs a listing agreement which authorizes a broker to market the property for one year D. All of the above
D. All of the above
An agency relationship between seller and broker may be terminated by: Select one: A. Mutual consent B. Renunciation of the agreement by the broker C. Expiration of the agreement D. Any of the above
D. Any of the above
How many brokers can be given an open listing? Select one: A. One B. Two C. Three D. As many as the owner chooses
D. As many as the owner chooses
By virtue of a signed listing agreement, the broker will generally have authority to do all of the following actions without the seller's consent, EXCEPT: Select one: A. Use the services of another broker B. Use the services of the salespersons in his own brokerage firm C. Use the MLS to market the property D. Bind the seller to a full price offer
D. Bind the seller to a full price offer
Buyer Billy and Broker Bobby enter into a buyer-broker agreement. Billy grows increasingly suspicious of Bobby's abilities. After two weeks pass without being shown a satisfying property, Billy revokes the agreement. All of the following statements could be true about this action, except: Select one: A. Billy was justified because Bobby was in breach B. Billy was in breach C. Billy owes Bobby for damages D. Bobby could sue for specific performance
D. Bobby could sue for specific performance
Which of the following listings will permit an owner to sell his property without paying a commission to any broker? Select one: A. Open listing B. Exclusive agency listing C. Exclusive right-to-sell listing D. Both A and B
D. Both A and B
Broker Carson lists a home belonging to Brandon. Buyer John, insisting on anonymity, has Salesperson Joan make an offer using her own name as the prospective buyer. What should Carson do in this situation? Select one: A. Submit the offer to Brandon B. Refuse to submit the offer to Brandon until the name of the undisclosed buyer is given C. Advise Brandon that an undisclosed buyer is involved if he suspects Joan is not the true offeror D. Both A and C
D. Both A and C
Which of the following situations is an example of dual agency? Select one: A. A broker's undisclosed representation of both buyer and seller B. Two salespersons represent a different buyer and seller in the same transaction C. A salesperson represents both buyer and seller D. Both A and C
D. Both A and C
Under contract as a property manager, the broker is: Select one: A. A special agent B. A fiduciary C. A general agent D. Both B and C
D. Both B and C
A seller lists her house with a broker for $189,500. The seller tells the broker that if necessary, she will accept $185,000. What may the broker do when showing the property to prospective buyers? Select one: A. Say that the seller will accept a few thousand less B. Suggest that the buyer should make an offer for $185,500 C. Advise the buyer that the seller is flexible D. Disclose what the seller will accept, with the seller's permission
D. Disclose what the seller will accept, with the seller's permission
An owner entered into a valid listing agreement. During the agreement period, the seller sells the property himself. The seller is not legally required to pay a commission to any broker. What type of listing agreement did the seller have? Select one: A. An open listing B. An exclusive agency C. An exclusive right-to-sell listing D. Either A or B
D. Either A or B
A person engaged to act in place of another by contractual agreement is: Select one: A. A principal B. An agent C. An attorney-in-fact D. Either B or C
D. Either B or C
What would NOT terminate an agency agreement by operation of the parties? Select one: A. Mutual consent B. Renunciation C. Revocation D. Expiration of time
D. Expiration of time
After the death of his wife, a property owner lists his property with a broker. Two days later, the owner sells the property himself, but is NOT obligated to pay a commission to the broker. What type of listing agreement did he most likely sign? Select one: A. Multiple B. Exclusive authorization-to-sell C. Exclusive right-to-sell D. General
D. General
Salesperson Lynch found a home for a buyer, who agreed to pay a commission for this service. After closing, Lynch will receive his commission from: Select one: A. The seller B. The buyer C. The buyer and seller, equally D. His broker
D. His broker
In which type of listing is the commission least likely to be expressed in terms of a percentage? Select one: A. Open B. Exclusive agency C. Exclusive right-to-sell D. Net
D. Net
Who represents the buyer in the traditional real estate transaction? Select one: A. Listing broker B. Selling broker C. Selling salesperson D. No one
D. No one
A salesperson wishes to charge a reduced commission to her sister. Where would the salesperson obtain approval for such an arrangement? Select one: A. State Association of Realtors B. Local Association of Realtors C. State Real Estate Commission D. None of the above
D. None of the above
An owner lists a home with a broker for $72,000. Two days later, the broker brings in an offer for $70,000. At this time, which of the following statements is true? Select one: A. The broker had found a buyer and has earned his commission B. A ready and willing buyer has been found and a commission is due C. A ready and willing buyer has been found, but no commission is due D. None of the above
D. None of the above
Susan has a listing agreement with Tom to sell his house and an adjoining lot. Susan sells Tom's house to Pete. Before closing, Susan also negotiates a valid option contract with Pete for Tom's adjoining lot, which is listed at $150,000. When will Susan earn her commission on the adjoining lot? A. When the sale on the home closes B. When the option period expires C. Upon Tom's acceptance of Pete's offer of the option D. None of the above
D. None of the above
The relationship that generally exists between a salesperson and a seller is a: Select one: A. Universal agency B. Special agency C. General agency D. None of the above
D. None of the above
What is the highest commission rate that a real estate broker may charge for marketing a farm property? Select one: A. 10% B. 15% C. 25% D. None of the above
D. None of the above
Randy buys a house, using a VA loan to finance the purchase. The listing broker and selling broker split the commission at a 75/25 ratio. If the Department of Veteran's Affairs learns about the arrangement between the brokers, what will they do? Select one: A. Suspend the licenses of both brokers B. Revoke the licenses of both brokers C. Force both to refund the commission D. Nothing
D. Nothing
In a real estate transaction, which of the following facts MUST an agent disclose to his principal? Select one: A. That a minority is moving into the area B. The average commission C. That the buyer intends to violate deed restrictions D. That the buyer has had previous credit problems
D. That the buyer has had previous credit problems
Barry, a salesperson with XYZ Realty, lists a property. Helen, also a salesperson with XYZ, presents an offer from her client which is accepted. In this situation, which of the following statements would best describe the position of the XYZ Broker? Select one: A. The broker is only an agent for the buyer B. The broker is only an agent for the seller C. The broker has violated a fiduciary duty D. The broker is an agent for both the buyer and the seller
D. The broker is an agent for both the buyer and the seller
If a broker has an exclusive right-to-sell listing, which of the following statements is INCORRECT? Select one: A. There must be a definite termination date in the listing B. All money given to the broker must be accounted for C. The broker may cancel the listing if he chooses D. The broker is legally obligated to sell the property
D. The broker is legally obligated to sell the property
A listing agreement must contain all of the following pieces of information EXCEPT: Select one: A. The signature of the owner of the property B. The percentage of commission or fee C. An expiration date D. The proceeds due to the seller from the sale
D. The proceeds due to the seller from the sale
All of the following are examples of dual agency except: Select one: A. Broker representing buyer and seller, with consent of both B. Escrow agents C. Broker representing both buyer and seller, without consent of either D. Two salespersons in a firm represent a different buyer and seller
D. Two salespersons in a firm represent a different buyer and seller
All of the following circumstances will automatically terminate a listing broker's agency agreement, EXCEPT: Select one: A. Bankruptcy of a principal B. Destruction of the property C. Condemnation of the property D. Unilateral action
D. Unilateral action
When must a licensee disclose agency relationships? Select one: A. When a prospective buyer asks for information about a particular property B. As soon as a prospective buyer enters the broker's office C. Any time prior to preparing an offer to purchase D. When the licensee has substantive discussions about specific property
D. When the licensee has substantive discussions about specific property
When does a broker earn commission? Select one: A. When the listing is taken B. When the purchaser signs the title insurance policy C. When closing is complete and title passes D. When the offer to purchase has been signed and accepted by the seller
D. When the offer to purchase has been signed and accepted by the seller
Seller Smith signs a listing with Broker Jones to sell a parcel of land for $65,000. While Smith is out of the country, the Mayor announces a development plan that will include Smith's land (causing it to double in value). Jones sells the property for $65,000 without telling Smith about the development. Has Jones breached his fiduciary duties? Select one: A. No, because Jones did not buy the property himself B. No, assuming he fulfilled all the requirements of the listing agreement C. Yes, because Jones did not increase the list price D. Yes, but only because the information is material
D. Yes, but only because the information is material
Which type of listing agreement allows the seller to sell his property and NOT have to pay a commission, but assures the broker a commission if anyone else (other than the owner) sells the property? Select one: A. An open listing B. An exclusive agency listing C. A special listing D. An exclusive right-to-sell listing
B. An exclusive agency listing
In order for a dual agency to be legal, it must be: Select one: A. Disclosed orally prior to negotiations B. Disclosed in writing and agreed upon prior to negotiations C. Disclosed in writing after negotiations D. None of the above
B. Disclosed in writing and agreed upon prior to negotiations
Mr. Foster signed a 60 day exclusive right-to-sell listing with Broker Ruotolo. One week later, Foster signed an exclusive agency listing with Broker Gary, who sold the home a few days later. Assuming the agreements are valid, which of the following statements is correct? Select one: A. Foster must only pay Ruotolo B. Foster owes two full commissions C. Foster must only pay Ruotolo, and Ruotolo will split the fee with Gray D. Foster should give Ruotolo and Gray one half of the commission
B. Foster owes two full commissions
What should a salesperson do with the earnest money deposit she receives from a buyer? Select one: A. Deposit it in her escrow account B. Give it to her broker C. Attach the check to the contract and file it D. Give it to the seller
B. Give it to her broker
Two brokers agree that they will charge the same commission rate on all property listed by their offices. Such an action: Select one: A. Is common practice B. Is in violation of anti-trust laws C. Is prohibited by RESPA D. Both B and C
B. Is in violation of anti-trust laws
Sam Slick lists his home with Clueless Kelly, a broker. Two weeks later, Kelly learns that Sam has a reputation for dishonesty and a bad record with other brokers. Three weeks later, Kelly learns that Sam is speaking to other brokers behind her back. Kelly confronts Sam and terminates the listing. Which party breached the listing agreement? Select one: A. Sam, because he was speaking with other brokers B. Kelly, because she unilaterally terminated the agreement C. Sam, because he terminated the agreement D. None of the above
B. Kelly, because she unilaterally terminated the agreement
The zoning commission has proposed a change that would dramatically impact the subject property in a broker's listing agreement. This information: Select one: A. Should be withheld from any prospective buyer B. Must be promptly disclosed to all parties C. Could, at the discretion of the owner, be disclosed to prospective buyers D. Must be promptly disclosed to all parties, but only if the change is approved
B. Must be promptly disclosed to all parties
Which of the following listing agreements is LEAST likely to specify a commission rate? Select one: A. Open listing B. Net listing C. Exclusive agency D. Exclusive right-to-sell
B. Net listing
Which of the following items would NOT be a latent defect that the seller must disclose to the buyer? Select one: A. Termite damage B. Non-functioning furnace C. Seasonal flooding D. Cracked foundation
B. Non-functioning furnace
Agency relationships include all of the following duties, EXCEPT: Select one: A. Obedience B. Notice C. Confidentiality D. Accounting
B. Notice
A listing agreement will automatically terminate: Select one: A. If the selling agent changes brokers B. On the date specified in the listing agreement C. If the owner abandons the property D. All of the above
B. On the date specified in the listing agreement
Under the usual listing agreement, a salesperson can: Select one: A. Accept or reject offers for the seller B. Place a "For Sale" sign on the property C. Deposit earnest money in her escrow account D. Advertise property at lower than the list price
B. Place a "For Sale" sign on the property
The relationship between a seller and a listing broker is that of a(n): Select one: A. Seller and purchaser B. Principal and agent C. Agent and subagent D. Optionor and optionee
B. Principal and agent
A seller contacted three brokers to suggest the list price for his property. Broker A said $78,000, Broker B said $79,000, and Broker C said $91,000. The seller listed with Broker C and the house ended up selling for $76,000. In this situation, Broker C might be guilty of violating which fiduciary duty? Select one: A. Loyalty B. Reasonable care C. Disclosure D. None of the above
B. Reasonable care
The relationship most likely to exist between a licensee and the seller is a: Select one: A. Universal agency B. Special agency C. Restricted agency D. None of the above
B. Special agency
A salesperson could be described as a "general" agent in his relationship with: Select one: A. The general public B. The broker C. The seller D. The buyer
B. The broker
A buyer's broker presents an offer on a property listed by another broker. Proper agency disclosures have been made. Prior to acceptance, the listing broker discovers a zoning change that will affect the value of the property. He tells the buyer and the offer is withdrawn. Which of the following statements is correct? Select one: A. The listing broker has violated his fiduciary relationship with the seller B. The listing broker has exercised due care and loyalty to his principal C. The buyer may not withdraw his offer D. Disclosure of this information violates state licensing regulations
B. The listing broker has exercised due care and loyalty to his principal
A property management contract could exist between the property manager and: Select one: A. His or her employees B. The property owner C. The tenants D. Both A and B
B. The property owner
Which of the following statements is true about an open listing? Select one: A. The commission is split between all brokers that have an open listing for the property B. The seller only pays the broker who produces a ready, willing, and able buyer C. No more than two brokers may attempt to sell the property D. If the owner sells the property, she owes a commission to the broker that took the listing first
B. The seller only pays the broker who produces a ready, willing, and able buyer C. No more than two brokers may attempt to sell the property
A general agency empowers the agent to: Select one: A. Transact matters of all types for the client B. Transact the client's affairs in a certain business C. Perform only specific acts for the client D. Perform any legal act for the client
B. Transact the client's affairs in a certain business
Wilma lists her house with Broker Fred under an exclusive right-to-sell agreement. Fred later abandons the listing. Which of the following statements is true about this situation? Select one: A. Wilma must maintain the listing with Fred until the expiration date B. Wilma may terminate the listing C. Wilma must wait 90 days before she can list the property with another broker D. Wilma must file a notice of abandonment
B. Wilma may terminate the listing
Broker Lynch has an exclusive listing to sell Jones' hardware store for a $4,500 commission. He took another exclusive listing to sell Brown's grocery store for a $5,000 commission. With the consent of Jones and Brown, Lynch arranges an exchange of these two stores. How much will Lynch make from this exchange? Select one: A. $4,500 B. $5,000 C. $9,500 D. No commission, because an exchange is not a sale
C. $9,500
A broker accepts an exclusive right-to-sell listing. However, the property is later sold by another broker. How many brokers could be owed a commission by the principals in this transaction? Select one: A. 0 B. 1 C. 2 D. 3
C. 2
Which of the following persons would likely NOT be an agent? Select one: A. A real estate salesperson handling referrals only B. A property manager employed by the owner C. A person working for a multiple listing service D. A person holding a power of attorney
C. A person working for a multiple listing service
Which of the following facts MUST a broker disclose to his seller? Select one: A. Minorities are buying homes in a neighborhood where the seller wants to later buy property B. A prospective buyer intends to violate deed restrictions that run with the land C. A prospective purchaser (who asked the seller to hold a purchase money mortgage) has a history of bad credit D. A prospective purchaser is a member of a particular minority race
C. A prospective purchaser (who asked the seller to hold a purchase money mortgage) has a history of bad credit
A sales agent obtains an exclusive right-to-sell listing. What is the sales agent's relationship with the broker and the seller? Select one: A. Agent of both the seller and broker B. Agent of the seller and sub-agent of the broker C. Agent of the broker and sub-agent of the seller D. Employee of the broker and agent to the seller
C. Agent of the broker and sub-agent of the seller
A broker could act as a fiduciary in all of the following functions, EXCEPT: Select one: A. Leasing property B. Selling property C. Appraising property D. All of the above
C. Appraising property
Which circumstance would terminate an agency by operation of law? Select one: A. Mutual agreement B. Unilateral rescission C. Bankruptcy of the seller D. Abandonment by the broker
C. Bankruptcy of the seller
Casper is selling his house and wants the broadest possible exposure. Therefore, he gives an exclusive right-to-sell listing to Bert, an exclusive agency listing to Gail, and an open listing to Mark. Mark sells the property. Assuming that all of these listings are valid, which of the following statements is true? Select one: A. Mark must split his commission with Bert and Gail B. Casper owes 2 commissions, one to Mark and one to be split between Bert and Gail C. Casper owes 3 commissions D. Only Mark earned a commission
C. Casper owes 3 commissions
A broker shows one of her listings to a prospective buyer. The broker knows that the listed property borders a toxic waste dump, as identified by the EPA. The broker should: Select one: A. Keep the information confidential because disclosure would violate a fiduciary duty B. Keep the information confidential because the event occurred off-site C. Disclose the information because it is material D. Disclose the information, but only if asked
C. Disclose the information because it is material
A seller wants to list a property with a broker, but hopes to sell it herself in order to avoid a commission. Which listing agreement should the seller NOT sign? Select one: A. Open listing B. Exclusive agency listing C. Exclusive right-to-sell listing D. General listing
C. Exclusive right-to-sell listing
A seller wants to list her home with a broker, but would like the option to sell it herself without paying a commission. Which type of listing should she AVOID signing? Select one: A. Open listing B. Exclusive agency listing C. Exclusive right-to-sell listing D. General listing
C. Exclusive right-to-sell listing
Seller Chaney rejects three offers, all of which were $2,500 below the list price. Broker Rudy receives a fourth offer which is also $2,500 below the list price. What should Rudy do? Select one: A. Reject the offer in accordance with his duty of due diligence B. As Chaney's agent, inform the prospective buyers that the offer is rejected C. Give Chaney another offer that she is sure to reject D. Either B or C
C. Give Chaney another offer that she is sure to reject
Barnwell lists property with Broker Bob, and Bob assigns the transaction to Salesperson Ben. Ben shows the property. He quickly receives an offer and earnest money check from Billy. However, Barnwell cancels the listing agreement two days later, before Ben has time to act. What should Ben do with the earnest money that he received with the offer to purchase? Select one: A. Give it back to Billy B. Give it to Barnwell C. Give it to Bob D. Split it between Bob and Billy
C. Give it to Bob
A selling broker is showing a parcel of property and tells the prospective buyer: "In my expert opinion, this property is the best for you." This statement could be interpreted as: Select one: A. Universal agency B. Special agency C. Implied agency D. General agency
C. Implied agency
A broker takes a listing and the owner later tells him that the roof leaks. Further, the owner states that she will not repair the roof, even if the house is sold at full price. The broker must: Select one: A. Not mention the condition of the roof because of his fiduciary responsibility to the seller B. Advertise the property is being sold "as is" C. Inform any prospective buyer of the condition of the roof D. Both A and B
C. Inform any prospective buyer of the condition of the roof
Which of the following acts does NOT constitute a violation of Federal Anti-Trust Laws? Select one: A. Real estate broker agreeing to charge the same commission rate B. Real estate brokers agreeing to not cooperate with a certain firm C. Lenders charging usurious interest rates D. Establishing territories in which brokers may operate
C. Lenders charging usurious interest rates
Seller Jones gives Martin an exclusive listing to sell his property. Martin is a salesman for Broker Doe. Which of the following statements would best describe the relationships between these parties? Select one: A. Jones has contracted for the services of Martin B. Doe has a fiduciary relationship with Martin C. Martin is the agent of Doe D. Jones is the agent of Doe
C. Martin is the agent of Doe
The commission received by a broker who is a member of a multiple listing service is: Select one: A. Set by the MLS B. Set by the realty board C. Negotiated between broker and seller D. Negotiated between buyer and seller
C. Negotiated between broker and seller
Broker Sam lists a house and sells it 2 months into the listing period. Sam tries to collect his commission after closing, but the seller refuses and correctly asserts that she has no legal obligation to pay. What type of listing did Sam have? Select one: A. Exclusive agency listing B. Open listing C. Net listing D. Exclusive right-to-sell listing
C. Net listing
Gwen lists her home with Broker Steve under a valid exclusive right-to-sell listing. Steve works diligently to find a buyer for Gwen. After two weeks of focused searching, Steve finally finds a buyer to make an offer. However, when Steve presents the offer to Gwen, he discovers that Gwen also worked with Broker Gerry and sold her home without informing Steve. Steve is furious and demands his commission. Is Steve's listing still active? Select one: A. Yes, because Gwen and Steve had a valid exclusive right-to-sell listing B. No, unless the offer was at or above the list price C. No, because Gerry sold the house D. Yes, assuming that Gwen is in breach
C. No, because Gerry sold the house
Susan and Sally enter into a buyer-broker agreement. However, Sally subsequently falls on hard times. Susan gets nervous and terminates the agreement. Is Susan in breach? Select one: A. Yes, if Sally is the broker B. No, so long as Sally takes no action C. No, if Sally filed for bankruptcy D. Yes, if both parties agreed
C. No, if Sally filed for bankruptcy
A buyer requests that a salesperson take a listed property off the market until his wife sees it. May the broker comply? Select one: A. Yes, as long as she sees the property within the next business day B. Yes, if the buyer pays a fee to the brokerage firm C. No, this violates the agency agreement D. No, unless the broker so authorizes the salesperson
C. No, this violates the agency agreement
Who is an intermediary between a buyer and a seller? Select one: A. Lender B. Mortgage broker C. Real estate broker D. FDIC
C. Real estate broker
Ralph is an independent broker. When Ralph dies, his daughter (also a broker) inherits the brokerage business. If she intends to operate the firm and keep her father's listings, it is necessary that she: Select one: A. File legal notice of her intent to assume responsibility for the brokerage business B. Advise the probate court of her intent to assume responsibility for the listing agreements C. Renegotiate Ralph's current listings D. Nothing is required because she is a licensed broker
C. Renegotiate Ralph's current listings
Puckett lives in Tennessee, but owns property in Virginia. She hires Samuels, a broker in Virginia, to sell that property for $75,000. Samuels knows that this property is worth considerably more since the zoning for the property was recently changed to commercial. Samuels buys the property himself and re-sells it two weeks later for $125,000. Which of the following statements is true? Select one: A. Samuels cannot act for someone from Tennessee unless he has a Tennessee real estate license B. This may be unethical, but Puckett got the asking price and therefore suffered no loss C. Samuels can only purchase the property after informing Puckett of the zoning change D. Samuels cannot purchase the property under any circumstances
C. Samuels can only purchase the property after informing Puckett of the zoning change