Chapter 2 Pt.I
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...? 15249.2 15768 12250.2 10249.2
10249.2
Ely's house was listed for $225,000. The property eventually sold for $215,000. The agreed upon commission was 6%. How much did Ely pay in commissions at the closing of the property...? 13500 13900 12900 11900
12900
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...? 38100 30750 31750 36930
30750
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...? 3900 6000 12000 7800
3900
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...? 7245 14500 5175 10350
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...? 22500 11250 9000 18000
9000
John is interested in purchasing a two bedroom house and enters into an agency relationship with Chris, a real estate broker, to help him find a house. According to the fiduciary duties Chris owes to John, which of the following is true...? According to the duty of Loyalty, Chris should allow John to buy a house which he knows to be defective According to the duty of Obedience, Chris should not show John one bedroom houses According to the duty of Obedience, Chris should only show John three bedroom houses According to the duty of Confidentiality, Chris should reveal John's maximum offer to the owner
According to the duty of Obedience, Chris should not show John one bedroom houses
An agent that cooperates or is engaged by a listing agent or a buyer's agent to assist in locating a property to sell or buy is known as a...? Landlord's Agent Broker's Agent Buyer's Agent Exclusive Agent
Broker's Agent
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...? Disclosure Confidentiality Reasonable Care Loyalty
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...? Reasonable Care Obedience Confidentiality Accountability
Confidentiality
The 'C' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...? Classified Competent Confidentiality Client
Confidentiality
Which of the following fiduciary duties is conversely related to the duty of Disclosure...? Loyalty Obedience Reasonable Care Confidentiality
Confidentiality
A selling agent or participating agent is referred to as the...? Exclusive Agent Cooperating Agent Buyer Agent Designate Sales Agent
Cooperating agent
The party the agent brings to the principal as seller or buyer of the property is known as the...? Employee Client Broker Customer
Customer
Which of the following may be considered a 3rd party to a transaction...? Broker Principal Customer Client
Customer
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...? Disclosure Loyalty Obedience Confidentiality
Disclosure
The 'D' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...? Dual Agent Director Disclosure Determined
Disclosure
The release of relevant information about a property that may influence the final sale, especially if it represents defects or problems is known as...? Self Dealing Reasonable Care Estoppel Disclosure
Disclosure
Representing both principals (seller and buyer) in a transaction is known as...? General Agent Dual Agency Specific Agent Disclosure
Dual agency
Michael, a property owner, allowed Andrew, a real estate broker, to show his house to prospective buyers. However, Michael and Andrew do not have a signed agency agreement and instead operated under an implied agency. According to this doctrine, Michael cannot claim that an agency relationship did not exist...? Disclosure Estoppel Exclusivity Sub-agency
Estoppel
The principle which precludes a person from asserting something contrary to what is implied by a previous action or statement of that person, or by a previous pertinent judicial determination, is known as...? Consent Disclosure Misrepresentation Estoppel
Estoppel
An agreement of employment of a broker to the exclusion of all other brokers is known as...? Exclusive Agency Implied Agency Dual Agency General Agency
Exclusive agency
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 Employee Employer Broker
Fiduciary
Justin, a real estate salesperson, would like to offer his colleague a referral fee for referring him a new client. Before offering the referral fee, however, Justin obtained informed consent from the client. Why must Justin obtain consent from the client...? Justin has a fiduciary duty to the client Federal law requires consent None of the above The client may like to know how the commission is being distributed
Fiduciary
The legal duty of a fiduciary to act in the best interests of the beneficiary is known as...? Confidentiality Loyalty Fiduciary Duty Obedience
Fiduciary Duty
An agent with the full authority over one property of the principal, such as a property manager, is considered a...? Buyer's Agent General Agent Specific Agent Seller's Agent
General Agent
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...? Universal Agent General Agent Unlimited Agent Specific Agent
General Agent
As an agent to a cooperative board, Jason has the authority to negotiate contracts with 3rd party vendors to service the building. This level of authority suggests that Jason is what type of agent...? Universal Agent General Agent Unlimited Agent Specific Agent
General agent
An agreement between members of a trade to exclude other members from fair participation in the trade is known as...? Group Boycott Price Fixing Misrepresentation Market Allocation
Group Boycott
This is a form of agency that occurs when the words and actions of the parties indicate that there is an agency relationship...? Actual Agency Implied Agency General Agent Expressed Agency
Implied agency
It is strongly recommended that informed consent from a client be obtained in what manner...? None of the above Oral In-writing Through the client's attorney
In-writing
Justin, a real estate salesperson with City Brokerage, received a referral fee after referring a client to Mark, another real estate salesperson with City Brokerage. Who ultimately pays Justin his referral fee...? Justin's sponsoring Broker The client Mark himself None of the above
Justin's sponsoring Broker
Which of the following is considered a principal in an agency relationship...? Landlord Agent Broker Associate Broker
Landlord
An agent and the principal enter into an agency relationship through what document...? Listing Agreement Lease Agreement Sales Contract Letter of Intent
Listing Agreement
John is a real estate broker and wants to enter into an agency relationship with Steve, a property owner. What document must John and Steve execute in order to enter into an agency relationship...? Listing Agreement Letter of Intent Sales Contract Lease Agreement
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 Letter of Intent Sales Contract Lease Agreement
Listing Agreement
According to which fiduciary duty is an agent prohibited from forcing on his or her client a sale, lease or opportunity to buy...? Reasonable Care Loyalty Accountability Disclosure
Loyalty
The 'L' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...? Limited Liberal Loyalty Legally
Loyalty
Both the principal and the agent cannot do what to the customer...? Counteroffer Show the property Misrepresent facts Withhold from disclosing non-material facts
Misrepresent facts
As a special agent in a transaction, a real estate salesperson cannot do which of the following on behalf of the owner...? List the property Negotiate the terms of the contract Show the property Meet with potential buyers of the property
Negotiate the terms of the contract
Which of the following is an example of obedience, one of the six fiduciary duties an agent owes his/her client...? Acting in the best interest of the client Not disclosing the maximum offer price to the seller Only showing the type/size of house the client is looking for Only working with property types that the agent is competent with
Only showing the type/size of house the client is looking for
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...? Percentage of the listing price Percentage of the sales price Percentage of the appraised value The difference between the sales price and the listing price
Percentage of the sales price
The broker's client is also referred to as the...? Sub-agent Buyer Customer Principal
Principal
In a typical agency structure, who is the primary agent to the client...? Associate Broker Real Estate Broker Principal Real Estate Salesperson
Real Estate Broker
The 'R' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...? Resilient Reliability Reconciliation Reasonable Care
Reasonable Care
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...? Loyalty Accountability Reasonable Care 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...? Reasonable Care Disclosure Diligence 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...? Refer back to the letter of intent, which states the amount of commission due Refer back to the local real estate association standards for the amount of commission due in a transaction Contact their attorneys to review the case Refer back to the listing agreement, which states the agreed upon commission
Refer back to the listing agreement, which states the agreed upon commission
Which section of the New York State Real Property Law states that the broker may be liable for the salesperson's actions...? Section 442-C Section 11-C Section 443 Section 12-A
Section 442-C
As a special agent in a transaction, a real estate salesperson is permitted to do which of the following on behalf of the client...? Consummate a sale of the property Negotiate the terms of the contract Show the property Enter into contract on behalf of the owner
Show the property
John, a real estate salesperson, has entered into an agency agreement with a client whose scope is limited to that described in the agreement. This level of authority suggests that John is what type of agent...? Universal Agent Limited Agent Special Agent Narrow Agent
Special Agent
An agent of a broker who is already acting as an agent of a principal is known as a...? Tenant's Agent Buyer Agent Sub-agent Seller Agent
Sub-agent
If a principal or agent provides a customer with a material fact, which of the following must apply...? The fact does not have to be accurate The fact must be true and accurate The agent should not disclose material facts The fact must at least state a version of the truth
The fact must be true and accurate
There are generally two ways an agent is compensated for a transaction. One is a percentage of the sales price, while the other is...? Hourly wage Any amount above the listing price Flat fee Donation
flat fee
In addition to the principal, the agent also owes fiduciary duties to which of the following...? The Inspector The Customer The NYS DOS The Sub-agent
the customer
