Chapter 2 Quiz
A property was sold for $650,000. 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...? A. 19500 B. 39000 C. 15500 D. 13500
19500
David's house was listed at $465,000. The property eventually sold for $485,000. The agreed upon commission was 6%. How much did David pay as a commission at the closing of the property...? A. 29100 B. 27000 C. 14550 D. 27100
29100
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...? A. 4140 B. 8280 C. 3450 D. 6900
4140
Cindy's house was listed at $732,100. The property eventually sold for $736,250. The agreed upon commission was 6%. How much did Cindy pay in commissions at the closing of the property...? A. 44175 B. 43926 C. 44926 D. 43175
44175
What is the typical length of term for an Exclusive Right to Sell agreement...? A. 6 months B. 3 months C .1 month D. 12 months
6 months
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...? A. 7245 B. 14500 C. 10350 D. 5175
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...? A. 9000 B. 18000 C. 22500 D. 11250
9000
David is a real estate agent working for City Brokers. City Brokers offered to pay David an hourly wage as an incentive to keep David at the firm. If David accepts the hours wage, what may he be considered according to New York State Law...? A. An employee B. An associate C. An assistant D. A broker
An employee
Which of the following is a fundamental difference between an independent contractor and an employee...? A. An independent contractor does NOT have set working hours, while an employee does B. An independent contractor has a specific work location, while an employee does not C. An independent contractor's taxes are withheld by the broker, while an employee's taxes are paid in arrears D. An independent contractor cannot deduct expenses, while an employee is able to deduct all expenses
An independent contractor does NOT have set working hours, while an employee does
At what time during a transaction may a principal dissolve a dual agency arrangement...? A. Any point in the transaction B. Only at the beginning of the transaction C. Within 30 days of the first substantive meeting D. Within 30 days of the closing
Any point in the transaction
Two brokers entered into an agreement whereby one broker will only do business on the east side of the city and the other broker will only do business on the west side of the city, in essence creating a market allocation agreement. What would this agreement limit...? A. Competition B. Housing prices C. The number of properties on the market D. The number of buyers in the market place
Competition
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...? A. Confidentiality B. Disclosure C. Reasonable Care D. Loyalty
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...? A. Confidentiality B. Obedience C. Loyalty D. Reasonable Care
Confidentiality
A selling agent or participating agent is referred to as the...? A. Cooperating Agent B. Exclusive Agent C. Buyer Agent D. Designate Sales Agent
Cooperating Agent
The party the agent brings to the principal as seller or buyer of the property is known as the...? A. Customer B. Client C. Broker D. Employee
Customer
Mark, a property owner, signed an agency agreement with Andrew, a real estate broker, to sell his house. What type of agency was created between Mark and Andrew...? A. Expressed Agency B. Implied Agency C. Inherit Agency D. Written Agency
Expressed Agency
When two brokers agree to the MLS' cooperative arrangement, what type of agency is created...? A. Expressed Agency B. Implied Agency C. Single Agency D. Primary Agency
Expressed Agency
John, a real estate broker, is referring his client to David, a mortgage broker, as a means to help his client obtain financing on a property. In return, David is offering to give John a referral fee. Before John can accept the referral fee, what must be provided to the client...? A. Full disclosure of the referral fee B. A percentage of the referral fee C. Reduced commission paid by the client D. Implied consent
Full disclosure of the referral fee
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...? A. General Agent B. Specific Agent C. Unlimited Agent D. Universal Agent
General Agent
An agreement between members of a trade to exclude other members from fair participation in the trade is known as...? A. Group Boycott B. Market Allocation C. Misrepresentation D. Price Fixing
Group Boycott
If two brokerage firms create an alliance in an attempt to prevent another brokerage firm from competing in the marketplace, what may the two firms be liable of...? A. Group Boycotting B. Price Fixing C. Self Dealing D. Vicarious Liability
Group Boycotting
Lisa is a real estate broker who has entered into an agency relationship with Robert, a landlord looking to lease one of his apartments. Lisa brings Andrew, a prospective tenant, to Robert with an offer to rent Robert's apartment. Which of the following statements is correct...? A. Lisa is the Agent, Robert is the Principal, and Andrew is the Customer B. Lisa is the Agent, Robert is the Customer, and Andrew is the Client C. Lisa is the Principal, Robert is the Client, and Andrew is the Customer D. Lisa is the Principal, Robert is the Customer, and Andrew is the Client
Lisa is the Agent, Robert is the Principal, and Andrew is the Customer
Ben, a real estate agent, represents several buyers. In an attempt to increase his commission, he decides to have his clients bid against the same property without their knowledge or consent. Which fiduciary duty has Ben breached...? A. Loyalty B. Obedience C. Reasonable Care D. Accountability
Loyalty
Which of the following is considered an anti-trust violation...? A. Market Allocation B. Divided Loyalty C. Dual Agency D. Estoppel
Market Allocation
Both the principal and the agent cannot do what to the customer...? A. Misrepresent facts B. Show the property C. Withhold from disclosing non-material facts D. Counteroffer
Misrepresent facts
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...? A. Reasonable Care B. Loyalty C. Accountability D. 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...? A. Reasonable Care B. Disclosure C. Diligence D. 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...? A. Refer back to the listing agreement, which states the agreed upon commission B. Contact their attorneys to review the case C. Refer back to the letter of intent, which states the amount of commission due D. Refer back to the local real estate association standards for the amount of commission due in a transaction
Refer back to the listing agreement, which states the agreed upon commission
According to the 'In-house Sales' clause in an Exclusive Right to Sell agreement, a seller cannot do which of the following if the listing broker also finds a buyer...? A. Refuse to pay a commission to the listing broker B. Elect to dissolve the agency relationship C. Allow the listing broker to become a dual agent D. Pay the full commission to the listing broker
Refuse to pay a commission to the listing broker
Abby is a New York State real estate agent, specializing in condominium sales. According to State law, Abby's compensation is directly related to what...? A. Sales B. Hours worked C. Number of clients D. Number of listings
Sales
Which section of the New York State Real Property Law states that the broker may be liable for the salesperson's actions...? A. Section 442-C B. Section 443 C. Section 12-A D. Section 11-C
Section 442-C
The conduct of a trustee, an attorney, a corporate officer, or other fiduciary that consists of taking advantage of his position in a transaction and acting for his own interests rather than for the interests of his clients is known as...? A. Self Dealing B. Tie-in Arrangement C. Misrepresentation D. Dishonesty
Self Dealing
David is a real estate broker who represents a buyer in a transaction. David finds a potential property for his client on the MLS. By agreeing to the cooperative arrangement of the MLS, David has become a sub-agent to whom...? A. Seller B. Seller's agent C. Principal D. David will not become a sub-agent to anyone in the transaction
Seller
When a buyer's broker agrees to the cooperative arrangement of the MLS, he/she becomes a sub-agent to whom...? A. Seller B. Principal C. Seller's agent D. Tenant
Seller
As a special agent in a transaction, a real estate salesperson is permitted to do which of the following on behalf of the client...? A. Show the property B. Negotiate the terms of the contract C. Enter into contract on behalf of the owner D. Consummate a sale of the property
Show the property
Abby is a real estate agent who represents the seller in a transaction. Her colleague, Kimberly, works for the same broker and represents a prospective buyer. Both Abby and Kimberly's clients want to gain a better understanding as to the risks and benefits of entering into a dual agency relationship. What document should Abby and Kimberly present to their clients...? A. The Disclosure Form B. The Cooperative Agreement Form C. The Single Agency Form D. The Dual Agency Form
The Disclosure Form
Jason is a real estate agent who is seeking to rent an apartment on behalf of his client. Jason's colleague, David, works for the same broker and has a client who is interested in renting the apartment. What document should Jason and David have their clients review and sign-off on prior to entering a dual agency relationship...? A. The Disclosure Form B. The Cooperative Agreement Form C. The Single Agency Form D. No document needs to be provided
The Disclosure Form
Chris, a real estate broker, has entered into an agreement to lease one of John's apartments. Who is the customer in the transaction...? A. The Tenant B. The Buyer C. The Agent D. The Landlord
The Tenant
In addition to the agent signing the independent contractor agreement, what else is required before the agreement can be finalized...? A. The agreement must be notarized B. The agreement must be recorded C. The agreement must be delivered to the Department of State D. The agreement must be copied and delivered to all parties involved
The agreement must be notarized
According to Section 442-C of the NYS Real Property Law, who may be held liable for a salesperson's actions...? A. The broker B. The client C. The customer D. The associate broker
The broker
If one or both of the parties in a transaction are not aware that a dual agency relationship exists, what can occur...? A. The contract can be rescinded B. The buyer's earnest money must be forfeited C. Both parties must walk away from the deal D. Nothing will occur
The contract can be rescinded
If an owner opts NOT to list his/her property on the MLS, what may they be risking...? A. Their property may not sell B. Their property may be viewed by more prospective buyers C. Their property may sell above market value D. Their property may decrease in investment value
Their property may not sell
A contract where one transaction depends upon another is known as a...? A. Tie-in Arrangement B. Dependence Contract C. Double Closing D. Double Contract
Tie-in Arrangement
Mark, a real estate broker representing a seller, insists that his client use his real estate attorney, otherwise, he won't sell the house. What has Mark introduced...? A. Tie-in Arrangement B. Price Fixing C. Self Dealing D. Undivided Loyalty
Tie-in Arrangement
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...? A. 13875 B. 27750 C. 15875 D. 6750
13875
A property was sold for $525,000. 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 listing broker...? A. 15750 B. 31500 C. 7875 D. 30500
15750
Mr. Smith's house was listed at $325,000. The property eventually sold for $365,000. The agreed upon commission was 5%. How much did Mr. Smith pay in commissions at the closing of the property...? A. 18250 B. 16250 C. 14250 D. 9125
18250
Which of the following fiduciary duties is conversely related to the duty of Confidentiality...? A. Disclosure B. Loyalty C. Reasonable Care D. Obedience
Disclosure
Which of the following is NOT considered an anti-trust violation...? A. Divided Loyalty B. Market Allocation C. Group Boycott D. Tie-in Arrangement
Divided Loyalty
Representing both principals (seller and buyer) in a transaction is known as...? A. Dual Agency B. Disclosure C. General Agent D. Specific Agent
Dual Agency
Josh, a real estate broker, is hesitant to enter into a dual agency arrangement as it may affect these duties to his client...? A. Fiduciary Duties B. Legal Duties C. Agency Duties D. Expressed Duties
Fiduciary Duties
If a property owner seeking to sell his house knows that an agent is showing his house to prospective buyers, but does not have an agency agreement with the agent, what type of agency relationship may arise...? A. Implied Agency B. Expressed Agency C. Inherent Agency D. Trust Agency
Implied Agency
In New York State, all real estate agents are considered...? A. Independent Contractors B. Employees C. Assistants D. Associates
Independent Contractors
The 'L' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...? A. Loyalty B. Legally C. Limited D. Liberal
Loyalty
An agreement between members of a trade to refrain from competition in specific market areas is known as...? A. Market Allocation B. Price Fixing C. Group Boycott D. Buyout
Market Allocation
Justin, a real estate broker representing a buyer in a transaction, found a property for his client on the MLS. By agreeing to the cooperative arrangement of the MLS, Justin will have what type of relationship to the owner of the listed property...? A. Sub-agent B. Principal C. Primary agent D. Justin does not have a relationship with the seller
Sub-agent
The fiduciary duty that prohibits the agent from advancing any interests adverse to the principal's interest, or conducting the principal's business in such a way as to benefit a customer is known as...? A. Undivided Loyalty B. Obedience C. Reasonable Care D. Confidentiality
Undivided Loyalty
John is a real estate broker who has entered into an agency relationship with Kevin, a property owner looking to sell his house. John brings Steve, a prospective buyer, to Kevin with an offer to purchase Kevin's house. Which of the following statements is correct...? A. John is the Agent, Kevin is the Client, and Steve is the Customer B. John is the Agent, Kevin is the Customer, and Steve is the Client C. John is the Client, Kevin is the Customer, and Steve is the Agent D. John is the Customer, Kevin is the Agent, and Steve is the Client
John is the Agent, Kevin is the Client, and Steve is the Customer
John, a real estate broker representing the owner, listed his client's property on the MLS. Any buyer's agent will be a sub-agent to whom...? A. John's client B. The buyer's broker C. The buyer's client D. The buyer's agent will not be a sub-agent in the transaction
John's client
Which of the following is considered a principal in an agency relationship...? A. Landlord B. Agent C. Broker D. Associate Broker
Landlord
A person who has oral or written authority, either express or implied, to act for or on behalf of a landlord is known as...? A. Landlord's Agent B. Tenant's Agent C. Buyer's Agent D. Seller's Agent
Landlord's Agent
Which of the following disclosures must be provided by an agent on behalf of his/her client...? A. Lead paint B. Near-by school zones C. Traffic flow in the neighborhood D. Ease of transportation in the neighborhood
Lead paint
If two brokerage firms enter into a market allocation agreement, what may they be limiting...? A. Competition B. Open listings C. The number of properties on the market D. The maximum price an owner may receive for their property
Competition
Which of the following is NOT considered a principal in an agency relationship...? A. Agent B. Landlord C. Tenant D. Owner
Agent
Which of the following is NOT an example of an agency relationship...? A. Agent - Appraiser B. Agent - Owner C. Tenant - Agent D. Broker - Agent
Agent - Appraiser
What is a common breach of the fiduciary duty of accountability...? A. Being negligent with the client's money B. Revealing confidential information C. Working in a capacity outside of your expertise D. Showing the client a two bedroom house when they clearly stated they are looking for a three bedroom house
Being negligent with the client's money
When a broker is involved in a dual agency arrangement, whereby he/she designates sales agents to represent both the buyer and seller, the broker owes a fiduciary duty to whom...? A. Both the buyer and the seller B. Only the buyer C. Only the seller D. The broker does not owe any fiduciary duties, only the designated sales agents do
Both the buyer and the seller
Which of the following is NOT considered a principal in an agency relationship...? A. Broker B. Landlord C. Tenant D. Owner
Broker
Cindy was a real estate salesperson in a successful transaction. Who paid Cindy her commission for the deal...? A. Cindy's Broker B. The Principal C. The Client D. The Customer
Cindy's Broker
David is a real estate agent with City brokerage. City brokerage is headquartered on Park Avenue in Manhattan; however, there are satellite offices in each of the major neighborhoods throughout Manhattan. As an agent, in which office is David required to work...? A. David is not required to work in any office if he so chooses B. The office headquarters on Park Avenue C. Any satellite office D. David must choose an office and only work out of that location
David is not required to work in any office if he so chooses
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...? A. Designated Sales Agent B. Cooperating Agent C. General Agent D. Specific Agent
Designated Sales Agent
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...? A. Disclosure B. Loyalty C. Obedience D. Confidentiality
Disclosure
The 'D' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...? A. Disclosure B. Determined C. Dual Agent D. Director
Disclosure
Abby, a buyer's broker, found a property for her client on the MLS. As a result, Abby has now become a sub-agent to the owner of the MLS listing. This is an example of what type of agency...? A. Dual Agency B. Implied Agency C. Cooperative Agency D. Single Agency
Dual Agency
When agents from the same brokerage firm represent both the buyer and the seller, what type of agency is created...? A. Dual Agency B. Cooperative Agency C. Implied Agency D. Single Agency
Dual Agency
According to New York State law, an independent contractor agreement can NOT be signed under what condition...? A. Duress B. Lack of job prospects C. Influence by another agent D. Accepting the position to earn extra income
Duress
Mark is an agent with City Brokers. Mark decides that he wants to leave City Brokers to work with another broker. Who is capable of terminating the independent contractor relationship that exists between Mark and City Brokers...? A. Either Mark and/or City Brokers B. City Brokers only C. Mark only D. Neither Mark nor City Brokers
Either Mark and/or City Brokers
Which of the following is NOT considered an anti-trust violation...? A. Estoppel B. Price Fixing C. Tie-in Arrangement D. Market Allocation
Estoppel
An agreement of employment of a broker to the exclusion of all other brokers is known as...? A. Exclusive Agency B. Dual Agency C. Implied Agency D. General Agency
Exclusive Agency
The legal duty of a fiduciary to act in the best interests of the beneficiary is known as...? A. Fiduciary Duty B. Loyalty C. Confidentiality D. Obedience
Fiduciary Duty
Abby, a real estate agent, is working to rent an apartment on behalf of her client. Mark, a real estate agent who works for the same broker as Abby, has a client who is interested in renting the apartment. Before the apartment can be shown, what must be provided by the landlord and prospective tenant...? A. Informed Consent B. Implied Consent C. Oral Consent D. Full Disclosure
Informed Consent
An agreement to do something or to allow something to happen only after all the relevant facts are disclosed is known as...? A. Informed Consent B. Estoppel C. Confidentiality D. Exclusive Right to Sell
Informed Consent
Two agents are attempting to create a dual agency with permission from both the buyer and seller. According to New York State law, what must be given in-writing...? A. Informed consent from all parties B. Implied consent from all parties C. Dual consent from all parties D. Oral consent from all parties
Informed consent from all parties
In New York State, a referral fee may only be paid after this is obtained...? A. Informed consent of the client B. An agreement between the two agents C. An agreement between the agent and his/her sponsoring broker D. Informed consent of the broker
Informed consent of the client
As a special agent in a transaction, a real estate salesperson cannot do which of the following on behalf of the owner...? A. Negotiate the terms of the contract B. List the property C. Show the property D. Meet with potential buyers of the property
Negotiate the terms of the contract
According to an agent's fiduciary duties, the agent must act in accordance to his/her client's demands and instructions. Which of the following fiduciary duties best reflects this...? A. Obedience B. Loyalty C. Reasonable Care D. Accountability
Obedience
As an agent, how many brokers are you typically allowed to work for at any given time...? A. One B. Two C. Three D. As many as the agent chooses
One
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...? A. Open Listing B. MLS C. Exclusive Listing D. Public Listing
Open Listing
Which of the following is NOT an example of an agency relationship...? A. Owner - Tenant B. Tenant - Agent C. Owner - Agent D. Agent - Broker
Owner - Tenant
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...? A. Percentage of the sales price B. Percentage of the listing price C. The difference between the sales price and the listing price D. Percentage of the appraised value
Percentage of the sales price
When a buyer's broker agrees to the cooperative arrangement of the MLS, he/she becomes what to the seller, who's property is listed on the MLS...? A. Sub-agent B. Principal C. Primary broker D. Secondary agent
Sub-agent
A licensed real estate agent who acts on behalf of a tenant in a commercial property transaction is known as a...? A. Tenant's Agent B. Buyer's Agent C. Seller's Agent D. Specific Agent
Tenant's Agent
The Listing Price is also referred to as what...? A. The price agreed upon in the contract between the seller and seller's agent B. The market value of a property C. The value described in the appraisal report D. The assessed value of the property
The price agreed upon in the contract between the seller and seller's agent
Which of the following should NOT be disclosed by a seller's agent, as it may harm the seller's negotiating position...? A. The reasons why the seller is selling B. Significant termite damage C. Major structural damage to the property D. Lead paint
The reasons why the seller is selling
Even if the buyer's and seller's brokers agree to dual agency, who may reject the arrangement of dual agency in a transaction...? A. The seller B. The buyer's agent C. The seller's agent D. Dual agency cannot be rejected if both brokers agree
The seller
Which of the following does an agent NOT have to disclosure to his/her client...? A. Traffic flow in the neighborhood B. Lead paint C .Extensive termite damage D. Major structural damage
Traffic flow in the neighborhood
As an independent contractor, which of the following is an expense that must be paid by the agent...? A. Travel expenses B. MLS fees C. Broker office computers D. Broker office supplies
Travel expenses
Chris and Mark are real estate agents working for the same broker. Chris is seeking to rent an apartment on behalf of his client, while Mark's client is interested in renting the apartment. If all parties in the transaction agree to dual agency, which fiduciary duty to the principals may be most at risk...? A. Undivided loyalty B. Confidentiality C. Reasonable care D. Obedience
Undivided loyalty
When dual agency exists between the landlord's agent and tenant's agent, which fiduciary duty may be most at risk to both principals...? A. Undivided loyalty B. Reasonable care C. Obedience D. Confidentiality
Undivided loyalty
As an independent contractor, which of the following must exist between the salesperson and a specific broker...? A. Written contract B. Handshake agreement C. Implied contract D. Explicit agreement
Written contract
