Real Estate U NYS - Chapter 2 Exam 2
What happens if any of the principals in a transaction refuse to grant consent to dual agency...? A. The buyer must find a new agent B. The parties cannot proceed with dual agency C. The seller must find a new agent D. The transaction can close nonetheless
B. The parties cannot proceed with dual agency
The Listing Price is also referred to as what...? A. The market value of a property B. The price agreed upon in the contract between the seller and seller's agent C. The assessed value of the property D. The value described in the appraisal report
B. The price agreed upon in the contract between the seller and seller's agent
A seller agrees to have their property listed on the MLS. As a result, the seller agrees to a dual agency relationship. What may arise if the seller subsequently withdraws their consent to dual agency...? A. The seller must retain a new agent B. The property can no longer be listed on the MLS C. The seller must retain a new broker D. The property will not be sold
B. The property can no longer be listed on the MLS
Jason, a buyer's broker, found a property for his client on the MLS. By agreeing to the cooperative arrangement of the MLS, who in addition to his client does Jason have an agency relationship with...? A. The seller's broker B. The seller C. The principal D. The seller's agent
B. The seller
In order for two brokers to enter into a dual agency arrangement, who must provide informed consent...? A. Informed consent is not needed B. The seller and buyer C. The seller's agent D. The buyer's agent
B. The seller and buyer
Marcus, a real estate broker representing a buyer, is insisting that his client use his real estate attorney, otherwise, he will only show a limited number of properties to the client. What has Marcus introduced to his client...? A. Vicarious Liability B. Tie-in Arrangement C. Self Dealing D. Group Boycott
B. Tie-in Arrangement
Which of the following forms do seller's attorneys often recommend that their client not fill out and instead pay a credit to the buyer...? A. Exclusive Agency Agreement B. Independent Contractor Agreement C. NYS Property Disclosure Form D. Dual Agency Disclosure Form
C. NYS Property Disclosure Form
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. Principal B. David will not become a sub-agent to anyone in the transaction C. Seller D. Seller's agent
C. Seller
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. Secondary agent B. Primary broker C. Sub-agent D. Principal
C. Sub-agent
Which of the following is NOT a characteristic of an independent contractor relationship...? A. The agent is not required to work in a specific location B. The agent does not have set working hours C. The agent cannot work for another company D. The agent is responsible for covering his/her own expenses
C. The agent cannot work for another company
According to NYS Law, how much income must an agent generate in order to maintain their status as a licensed real estate agent...? A. 5000 B. 1000 C. There are no required minimum earnings D. 10000
C. There are no required minimum earnings
If a broker insists his/her client use a mortgage banker as a condition to the sale, the broker has engaged in what unlawful arrangement...? A. Conditional Arrangement B. Contingency Arrangement C. Tie-in Arrangement D. Self Dealing Arrangement
C. Tie-in Arrangement
As an independent contractor, which of the following is an expense that must be paid by the agent...? A. Broker office supplies B. MLS fees C. Travel expenses D. Broker office computers
C. Travel expenses
As a real estate agent working as an independent contractor, compensation is directly related to what...? A. Number of Listings B. Number of Clients C. Hours Worked D. Sales
D. Sales
Emily is a real estate agent representing the seller in a transaction. Her colleague, Mark, works for the same broker and represents a prospective buyer. What should Emily and Mark have their clients review and sign-off on before entering into a dual agency relationship...? A. The Cooperative Agreement Form B. The Sales Contract C. Single Agency Form D. The Disclosure Form
D. 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 Single Agency Form B. No document needs to be provided C. The Cooperative Agreement Form D. The Disclosure Form
D. The Disclosure Form
Who is required to sign the NYS Agency Disclosure Form...? A. The broker B. The salesperson C. The owner's attorney D. The buyer or seller
D. The buyer or seller
If a real estate agent representing the buyer enters into a dual agency arrangement, to whom does he/she become a sub-agent...? A. The agent will not be a sub-agent in the transaction B. The client C. The principal D. The seller
D. The seller
As an independent contractor, which of the following must exist between the salesperson and a specific broker...? A. Implied contract B. Explicit agreement C. Handshake agreement D. Written contract
D. Written contract
According to NYS law, how long is a broker allowed to take an extended leave of absence from his/her brokerage office...? A. A broker is not allowed to take an extended leave of absence B. 6 months C. 1 year D. 2 years
A. A broker is not allowed to take an extended leave of absence
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. The broker does not owe any fiduciary duties, only the designated sales agents do D. Only the seller
A. Both the buyer and the seller
When an agent is appointed to act on behalf of the seller in a dual agency arrangement, they are referred to as a...? A. Designated Sales Agent B. Seller's Agent C. Principal's Agent D. Client's Agent
A. Designated Sales Agent
This form informs the client about dual agency and details the risks and benefits involved in the transaction...? A. Disclosure Form B. Single Agency Form C. Cooperative Agreement Form D. Dual Agency Form
A. Disclosure Form
Which of the following is NOT considered an anti-trust violation...? A. Estoppel B. Tie-in Arrangement C. Market Allocation D. Price Fixing
A. Estoppel
According to this agreement, taxes are NOT deducted from commissions an agent has earned over the course of business...? A. Independent Contractor Agreement B. Compensation Agreement C. Broker / Agent Agreement D. Broker / Client Agreement
A. Independent Contractor Agreement
Michael, a real estate broker, is hesitant to enter into a dual agency arrangement as he may compromise this fiduciary duty...? A. Loyalty B. Confidentiality C. Reasonable Care D. Obedience
A. Loyalty
As an agent, how many brokers are you typically allowed to work for at any given time...? A. One B. Three C. Two D. As many as the agent chooses
A. One
Which of the following is considered a broker's obligation to his/her client, according to the Buyer's Agency Agreement...? A. Provide the buyer with information describing and identifying properties that match the buyer's criteria B. Inspect potential properties for structural defects on behalf of the buyer C. Provide legal advice to the buyer D. Conduct a survey of potential properties that match the buyer's criteria
A. Provide the buyer with information describing and identifying properties that match the buyer's criteria
How does a salesperson pay taxes on commissions earned...? A. Taxes are paid in arrears B. Taxes are deducted per transaction C. Taxes are withdraw from the salesperson's pay check D. Taxes are paid in advance
A. Taxes are paid in arrears
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 Dual Agency Form C. The Cooperative Agreement Form D. The Single Agency Form
A. The Disclosure Form
Which of the following is a typical characteristic of an independent contractor relationship...? A. The agent can be employed by another company B. The agent must work in a specific location C. The agent must work set hours each week D. The agent is entitled to health benefits
A. The agent can be employed by another company
Which of the following is NOT considered an anti-trust violation...? A. Vicarious Liability B. Price Fixing C. Tie-in Arrangement D. Group Boycott
A. Vicarious Liability
If an independent contractor relationship is breached and the agent is considered an employee according to New York State, what is the broker required to do...? A. Withhold income taxes B. Pay for the agent's lunches with clients C. Provide a company car for the agent to use D. Provide paid advertisements for the agent
A. Withhold income taxes
According to an Exclusive Right to Sell agreement, what price is listed in the agreement...? A. The Sale Price B. The Listing Price C. The Fair Market Value Price D. The price as determined by an appraisal
B. The Listing Price
What is the typical commission paid to the buyer's agent in a transaction...? A. 5 (Percent %) B. 3 (Percent %) C. 6 (Percent %) D. 1 (Percent %)
B. 3 (Percent %)
Andrew is a real estate broker who represents a buyer in a transaction. When do Andrew's fiduciary duties to his client terminate...? A. 30 days after the closing of the transaction B. At the closing of the transaction C. 15 days after the closing of the transaction D. When the sales contract is signed
B. At the closing of the transaction
According to New York State law, an independent contractor agreement can NOT be signed under what condition...? A. Lack of job prospects B. Duress C. Accepting the position to earn extra income D. Influence by another agent
B. Duress
The agreed upon price between the seller and seller's agent, for which the property will be sold, is also known as what...? A. Market Value Price B. Listing Price C. Discounted Price D. Sale Price
B. Listing Price
According to this document, a seller's agent owes his/her client the following six fiduciary duties; reasonable care, undivided loyalty, confidentiality, full disclosure, obedience, and duty to account...? A. Independent Contractor Agreement B. Open Non-exclusive Agency Contract C. NYS Disclosure Form D. Exclusive Buyer's Agreement
C. NYS Disclosure Form
This document describes the roles and duties of a dual agent...? A. Independent Contractor Agreement B. Exclusive Right to Rent Contract C. NYS Disclosure Form D. Exclusive Right to Sell Agreement
C. NYS Disclosure Form
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. Single Agency B. Implied Agency C. Dual Agency D. Cooperative Agency
C. Dual Agency
Chris is a real estate salesperson who represents the seller in a transaction. If another agent from Chris' brokerage firm represents the buyer in the same transaction, what type of agency will exist...? A. Implied Agency B. Single Agency C. Dual Agency D. Cooperative Agency
C. Dual Agency
Which of the following should an agent recommend to their client as a means to verify the financial capabilities of the client...? A. Have the buyer put money in escrow B. Have the buyer open a line of credit C. Have the buyer obtain a pre-approval letter from a lender D. Have the buyer pay off their credit cards
C. Have the buyer obtain a pre-approval letter from a lender
Kevin is a real estate agent in New York City. Over the past two months, Kevin has worked nearly 40 hours per week on average; however, he has not closed a deal in that time frame. How much did Kevin earn over the past two months while working as a real estate agent...? A. He earned a minimum wage of $3,000 for his efforts B. He earned the State regulated minimum wage for hours worked C. He did not earn any money as his compensation is directly related to sales D. He earned the Federal regulated minimum wage for hours worked
C. He did not earn any money as his compensation is directly related to sales
Debby is a New York State real estate agent. According to State law, Debby is considered a/an...? A. Associate B. Assistant C. Independent Contractor D. Employee
C. Independent Contractor
As part of an agent's fiduciary duties to his/her client, if a prospective buyer tells the seller's agent that he is capable of paying more than the asking price, what should the seller's agent do...? A. Inform the client that the buyer can only pay up to what he offers on the property B. To be fair to the buyer, the agent should only tell the client the buyer can pay up to the asking price C. Inform the client that the buyer is capable of paying more D. Do not tell the client anything
C. Inform the client that the buyer is capable of paying more
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. Dual consent from all parties B. Implied consent from all parties C. Informed consent from all parties D. Oral consent from all parties
C. Informed consent from all parties
Which of the following is NOT an obligation owed by the broker to the buyer, as stated in the Buyer's Agency Agreement...? A. Assist in locating qualified properties B. Assist in negotiating any offer made by the buyer C. Inspect potential properties for structural defects D. Present all offers to the seller as the buyer directs
C. Inspect potential properties for structural defects
If the commission for a transaction is 6% and the seller's agent agrees to share 50% of his/her commission with participating brokers, what percentage of the purchase price is shared with the buyer's broker...? A. 5 (Percent %) B. 6 (Percent %) C. 2 (Percent %) D. 3 (Percent %)
D. 3 (Percent %)
Prior to January 1, 2011, which of the following was NOT permitted under New York State law...? A. Independent Contractor agreements between brokers and agents B. Open listing agreements C. Consent to exclusive agency agreements D. Advance consent to dual agency
D. Advance consent to dual agency
When agents from the same brokerage firm represent both the buyer and the seller, what type of agency is created...? A. Single Agency B. Cooperative Agency C. Implied Agency D. Dual Agency
D. Dual Agency
As stated in the Exclusive Right to Sell Agreement, this clause dictates that an owner cannot discriminate against any potential buyers...? A. Use of Listing clause B. Termination clause C. Amount of Commission clause D. Fair Housing clause
D. Fair Housing clause
A person that provides services to another under terms specified in a contract or within a verbal agreement is known as an...? A. Employee B. Assistant C. Associate D. Independent Contractor
D. Independent Contractor
Abby is an agent who has been designated to represent the seller in a dual agency arrangement. Abby owes a fiduciary duty to whom...? A. Both the seller and the buyer B. Only the buyer C. Neither the seller nor the buyer D. Only the seller
D. Only the seller
