National Brokerage Quiz Questions
Violations of the Sherman Anti-Trust Act can include prison terms and fines of up to how much per violation?
$1,000,000
An agency relationship is created in each of the following situations EXCEPT which?
A broker shows a tenant an apartment.
Which BEST describes the role of a fiduciary?
A fiduciary relationship is established when a property manager agrees to represent an owner in leasing the owner's property.
Which of these statements is true?
A listing agreement can be modified, but only if all parties agree in writing
Which of the following information would you NOT likely find on an MLS listing?
A record of previous property owners
Which of the following best defines a marketable title?
A title to a property that is free from encumbrances, litigation, and other defects and that can be readily be sold or mortgaged
Which of the following types of sale does NOT typically require a property disclosure statement?
A transfer made by a trustee in bankruptcy
Which of the following contracts must be in writing to be enforceable?
A two-year lease
What is special about a universal agent?
A universal agent has power of attorney.
When the agency relationship has been terminated, the licensee is no longer considered the principal's agent and does not owe any further duties to the principal, except for the following?
Accounting
Agent Sam told a buyer that the fence line also marked the property line. Agent Sam knew that the property line did not extend to the fence line. Agent Sam's actions are an example of what?
Active fraud
What document is used to make adjustments to an existing sales contract?
Addendum
What are the three primary areas of disclosure?
Agency, property condition, and environmental hazards
Which of these is not a way a buyer's agent might receive compensation?
Agent gets everything above the net price set by the seller.
What document is submitted to the MLS when a listing agreement is signed?
An MLS listing form
Which of the following is a good example of a unilateral contract?
An option to buy
Which contract provision allows for the transfer of the contract to another person?
Assignment of a Contract
Which of the following is an example of involuntarily termination of agency?
Bankruptcy
Before a buyer broker shows a property, what must he or she disclose to the seller?
Buyer agency relationship
Which type of agency would be most advantageous to a buyer?
Buyer brokerage
What is the arrangement called when the agent is accountable only to the buyer?
Buyer's agent
An agency relationship may be involuntarily terminated by which of the following?
By destruction of the property through fire, vandalism or natural disaster
Which of the following is NOT a form of agency?
Closed agency
In a company's policy and procedures manual, where would you find information regarding acceptable business standards and practices?
Code of Ethics
An agency relationship may be involuntarily terminated by which of the following?
Condemnation of the property
Once an agency relationship has been terminated, which of the following responsibilities remain in place?
Confidentiality
Which of these components is NOT required in most listing agreements?
Consent to dual agency
Which item would NOT appear on a property disclosure statement?
Deed Number
What form of limited agency is a good alternative to dual agency?
Designated agency
What do you call a licensed real estate salesperson, working under the supervision of a real estate broker, who has been assigned to represent a client when a different client is also represented by such real estate broker in the same transaction?
Designated agent
The principal of Notice is sometimes called what?
Disclosure
What exists when a real estate firm or a real estate licensee represents both the seller and the buyer or the landlord and the tenant in the same transaction?
Dual agency
When the real estate agent has produced a buyer who is ready, willing and able, the agent has generally done what?
Earned a commission
According to contract law, every valid contract is also what?
Enforceable or unenforceable
In what section on a seller's disclosure would you find information regarding issues in relation to drainage problems?
Environmental
Which component is not required in most listing agreements?
Escrow company named
Jim signed a six months lease. What type of lease did Jim sign?
Estate for years
Buyer Bill has agreed to pay for a computer system after all hardware has been installed and operational. What type of contract does Bill hold?
Executory
Which of the following statements best defines closing costs?
Expenses above the price of the property that buyers and sellers normally are required to pay to complete a real estate transaction
All of the following are common types of agency relationships that exist except which?
Facilitator agency
Which of the following types of information can a licensee legally provided to both a principal and a customer?
Facts
What is the primary directive given to a seller's agent?
Find a ready, willing and able buyer.
Agent Betty started with ABC Realty making a 1.5% commission on all listings sold. Within 6 months she will be eligible for a 2% commission. What type of program is Agent Betty on?
Graduated
What is the payment program, when an agent starts out at a lower percentage payment but then graduates to higher percentage rates?
Graduated
Bill has informed his landlord that he will be moving in 30 days. What action has Bill taken regarding his lease requirement?
He has given notice.
Sally is a subagent working for Seller Pat. What does Sally owe to Buyer Brad?
Honesty and fair dealing
In which situation can a licensee give legal advice?
If the licensee has a separate attorney license
What is one important difference between a sublease and a lease assignment?
In a sublease, the original tenant retains primary responsibility for performance of the original lease contract.
Which of the following does a principal owe to his or her licensee?
Information
Which of the following is a characteristic of land leases?
Inherently long-term leases
A prospective homebuyer submits a signed offer to buy a house with the condition that the seller pays financing points at closing. The seller disagrees, crosses out the points clause, then signs and returns the document to the buyer. At this point, assuming all other contract validity items are in order, what is the status of the offer?
It's still an offer.
An agent's duties to a principal include all of the following except which?
Legal advice
What is the term given to the person who has entered into a listing agreement with a seller?
Listing agent
Which of the following is NOT a form of listing contract termination?
Market breach
Which of these sources would NOT be a way to determine who holds title to a property?
Mortgage bank
When a tenant agrees to pay all taxes, insurance, maintenance and repairs, that tenant has what kind of lease?
Net
Which contract element indicates a mutual agreement?
Offer and Acceptance
Broker Alice has a listing agreement with Jack. If Broker Tom procures a buyer for Jack, Tom will get the commission and Alice will not. What kind of listing agreement does Alice have with Jack?
Open
What are the three most common types of listings?
Open Listing, Exclusive Right to Sell Listing, and Exclusive Agency Listing
Under what type of contract is a seller obligated to sell, but the buyer is not obligated to buy?
Option
What is a form of implied agency relationship created by the actions of the parties involved rather than by written agreement?
Ostensible agency
Landlord Frank terminated Jerry's lease because gross sales did not meet expectations. Jerry agreed to what type of lease?
Percentage lease
"Everyone charges the same so you might as well list with me" is an example of what?
Price fixing
The act of creating an agency relationship in which the principal accepts the conduct of someone who acted without prior authorization is called what?
Ratification
What does a rescission contract do?
Releases all parties from any present and future liability.
Which of the following terminations of an agency relationship could result in legal or financial ramifications
Renunciation by the client
Which type of compensation is more likely to be used in a commercial rather than a residential transaction?
Retainer
What are the two most common forms of compensation that brokers use?
Salary or a percentage of the commission
If a cooperating broker accepts the offer of subagency from a listing broker, to whom does the cooperating broker owe fiduciary duties?
Seller
What do we call an agent who represents a seller exclusively in a real estate transaction?
Single agent
A seller can agree to accept or reject which of these options when he or she signs the listing contract?
Subagency
When a seller gives permission to a broker to submit the property to the MLS, the seller is authorizing the broker to make a blanket unilateral offer of what to all the other members of that MLS?
Subagency
Which of the following would be deemed an advantage of a subagency arrangement?
Subagency is an easy way for the cooperating broker to share in the commission.
Puffing is best characterized as which of the following
Subjective opinion
What is the term given to the action when both parties mutually agree to end the listing relationship
Termination
An agent fails to discover flood marks on the walls in the basement of a property. The agent sells the property, and the buyer later sues the agent for failing to mention the problem. Which statement best describes what can happen in this case?
The agent has an exposure to a charge of negligent misrepresentation.
Which party has legal authority to sign a sales contract for a property that is part of an estate?
The executor of the estate
What is the best course for a licensee who has been denied compensation due to a fraudulent seller?
The licensee should inform his or her broker.
What is an important legal characteristic of an option to buy agreement?
The optionor must perform if the optionee takes the option, but the optionee is under no obligation to do so.
Matt Bower is a developer. Will Jones is a builder. Matt agrees to sell Will a lot, but he conditions the sale by insisting that Will agree to list the property with him after the home is built. What is this called?
Tie-in arrangement
What condition occurs when dual agency is not disclosed and agreed to in writing?
Undisclosed dual agency
Which of the following types of agency is not allowed in most states?
Undisclosed dual agency
Which of the following best describes "agency coupled with an interest?"
When a licensee holds interest in a property transaction
Should a policy manual contain a section on referral fees?
Yes, all licensees should be given the same information in writing.
Misrepresenting facts to a buyer might result in
a voided contract and loss of commission
An agency relationship is based on
authorization and mutual consent
A lease is
both an instrument of conveyance and a contract.
A contract in which an owner hires a broker to market the property creates an agency relationship between
broker and seller.
Most home sales are
contingent on financing.
Work agreements must be
dated and signed by the parties.
Licensee Frank works for Broker Harry. Frank lists a home. Licensee Mary, who works for Broker Sam, sells Frank's listing. With whom does the seller have the agency agreement?
harry
A special agent is also known as a
limited or specific agent.
Antitrust laws prohibit
market allocation.
Paul Shafer is acting as the agent of David Smith. He
must report all offers to Smith.
Agent Fred fronts his cousin Norm money to buy a client's house. Shortly after the closing, Agent Fred flips the house and realizes a substantial profit. Agent Fred's actions might be describe as
self-dealing.
Agent Mary sold a listing for another brokerage. Agent Mary is entitled to a
selling side commission.
Revocation of a broker's license results in
termination of the relationship.
Issues that are not covered in the purchase and sale agreement itself are usually dealt
using preprinted riders.
A contract which neither party can enforce is called
void