Chapter 2 - Part 1 - Quiz

A property was sold for $525,600. 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 65/35 split with his broker, how much commission is paid to the real estate agent...?

$10,249.2

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...?

$13,875

A property was sold for $605,500. 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...?

$18,165

A property was sold for $200,000. 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 65/35 split with his broker, how much commission is paid to the real estate agent...?

$3,900

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...?

$4,140

Doug's house was listed for $635,000. The property eventually sold for $615,000. The agreed upon commission was 5%. How much did Doug pay in commissions at the closing of the property...?

$30,750

What is a common breach of the fiduciary duty of accountability...?

Being negligent with the client's money

Which of the following is considered a principal in an agency relationship...?

Owner

A contract where one transaction depends upon another is known as a...?

Tie-in Arrangement

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...?

$7,245

A property was sold for $325,000. 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...?

$9,750

Mark is a real estate broker who represents a buyer in a transaction. He recommended a mortgage broker to help his client obtain financing for a property. What the client doesn't know is that Mark will receive a referral fee from the mortgage broker if the client obtains a mortgage from the mortgage broker. This is a breach of which fiduciary duty...?

Accountability

If the seller or buyer agrees to dual agency before it occurs, by indicating the same on the agency disclosure form, it is referred to as...?

Advance Consent to Dual Agency

Which of the following is NOT considered a principal in an agency relationship...?

Agent

An agent who represents the buyer of real property is referred to as a...?

Buyer's Agent

Cindy was a real estate salesperson in a successful transaction. Who paid Cindy her commission for the deal...?

Cindy's Broker

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...?

Confidentiality

An agent has become aware of information that may affect the value of his client's property. If the agent reveals this information to a prospective buyer, he will be in breach of which fiduciary duty...?

Confidentiality

An agent's duty to safeguard his/her principal's lawful confidences and secrets is known as...?

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...?

Confidentiality

Which of the following fiduciary duties is conversely related to the duty of Disclosure...?

Confidentiality

A selling agent or participating agent is referred to as the...?

Cooperating Agent

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...?

Designated Sales Agent

The release of relevant information about a property that may influence the final sale, especially if it represents defects or problems is known as...?

Disclosure

Which of the following fiduciary duties is conversely related to the duty of Confidentiality...?

Disclosure

Which of the following is NOT considered one of the six fiduciary duties an agent owes to his/her client...?

Employee

An agreement of employment by a broker under which the exclusive right to sell for a specified period is granted to the broker is known as...?

Exclusive Right to Sell

You may be breaching the fiduciary duties you owe to your principal if you do not do which of the following...?

Exercise reasonable care

A person who on behalf of, or for the benefit of another, transacts business or handles money or property not the person's own is known as a...?

Fiduciary

The legal duty of a fiduciary to act in the best interests of the beneficiary is known as...?

Fiduciary Duty

Mark is a real estate agent who has entered into an agency relationship with David, a homeowner, to sell David's house. They agreed to set Mark's commission at 6% of the sales price. How else may the commission be calculated...?

Flat fee

There are generally two ways an agent is compensated for a transaction. One is a percentage of the sales price, while the other is...?

Flat fee

As an agent to a condo board, John has the power to hire and/or fire employees. This suggests that John is what type of agent...?

General Agent

Mark, a real estate broker, teamed up with Chris, another real estate broker, in an effort to not do business with a cross-town broker. What may Mark and Chris be accused of...?

Group Boycotting

John, a real estate salesperson, was referred a client from another agent. After successfully closing on the deal, John would like to offer a referral fee to the agent who referred the client. What must John obtain first before offering a referral fee...?

Informed consent of the client

Which of the following is NOT an example of an agency relationship...?

Landlord - Tenant

A person who has oral or written authority, either express or implied, to act for or on behalf of a landlord is known as...?

Landlord's Agent

An agent and the principal enter into an agency relationship through what document...?

Listing Agreement

John, a real estate broker, and Chris, a property owner, have entered into an agency relationship. The scope of their agency relationship is defined in what document...?

Listing Agreement

An agent's duty to place the client's interest above those of all others, including the agent's own self-interest, is known as...?

Loyalty

Although an agent or principal is not obligated to disclose all information in a transaction, it is recommended that what information be revealed, in order to help the customer make an informed decision...?

Material information

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...?

Open Listing

Which of the following is NOT an example of an agency relationship...?

Owner - Tenant

The employer of an agent or broker is known as a...?

Principal

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...?

Reasonable Care

Andrew is a real estate agent specializing in condo sales. However, he tries to facilitate the sale of a commercial office building, only to find that he is not familiar with commercial leases. Under which fiduciary duty can he be sued for negligence, if a party in the transaction loses money...?

Reasonable Care

A general agent is typically granted more power than what other type of agent...?

Special Agent

A real estate salesperson is typically what type of agent...?

Special Agent

An agent of a broker who is already acting as an agent of a principal is known as a...?

Sub-agent

Which of the following is considered a principal in an agency relationship...?

Tenant

Abby, a real estate broker, has entered into an agreement to sell John's house. Who will be the customer in the transaction...?

The Buyer

Chris, a real estate broker, has entered into an agreement to lease one of John's apartments. Who is the customer in the transaction...?

The Tenant

According to Section 442-C of the NYS Real Property Law, who may be held liable for a salesperson's actions...?

The broker

Philip is a real estate salesperson who represents a seller in a transaction. However, Philip violated several of his fiduciary duties to the client. According to the concept of vicarious liability, who can be held liable for Philip's actions...?

The broker

A relationship in which the real estate agent is found to be the agent of both the buyer and seller in a transaction, but without the knowledge and informed consent of both parties, is known as...?

Undisclosed Dual Agency