study guide chapter 4

Each of the following statements about brokerage engagement contracts is correct, EXCEPT: Select one: a. An exclusive brokerage engagement does not need a specific expiration date, but will automatically expire at the end of one year. b. A non-exclusive brokerage engagement does not need a specific expiration date, but will automatically expire at the end of one year. c. Net engagements are prohibited. d. Engagement contracts should have one original document, with a true copy given to each person who signs it.

a

Under BRRETA, what rules regarding fidelity bonds or fidelity insurance apply to a brokerage firm which handles community association management: Select one: a. A fidelity bond or policy is required if the firm collects more than $60,000, and a separate bond or policy is required for each association managed. b. A fidelity bond or policy is required if the firm collects more than $60,000, but only one bond or policy is required per firm. c. There are no requirements for fidelity bonds or insurance. d. A fidelity bond or policy is required for each association for which collections exceed $60,000.

a

What is the most dangerous issue facing a licensee representing two clients as a dual agent? Select one: a. Confidentiality. b. Disclosure of adverse facts. c. Disclosure of personal relationships. d. Presenting all offers.

a

Which of the following is TRUE? Select one: a. A brokerage engagement must be in writing. b. A brokerage engagement is always a listing. c. Every person who signs an engagement must be given an original. d. Brokerage engagements must have a written termination date.

a

Which of the following statements is correct? Select one: a. An agency relationship must be created by a written brokerage engagement b. A brokerage relationship always involves an agency relationship. c. The terms agency and engagement are synonymous. d. A consumer who hires a licensee as an agent could be considered either a client or a customer.

a

Acme Realty has a seller's listing with one client and a buyer's listing with another client. The client buyer decides to make an offer on the client seller's home. Acme offers to act as dual agent for both clients, in accordance with its written policies. The seller is willing to accept the dual agency, but the buyer is not. Acme then withdraws from its agency relationship with the buyer and refers the buyer to Blackhawk Realty. Which of the following statements is correct? Select one: a. Acme may withdraw from the agency relationship with the buyer without penalty, but MAY NOT receive any referral fee from Blackhawk. b. Acme may withdraw from the agency relationship with the buyer without penalty, and MAY receive a referral fee from Blackhawk. c. Acme would be required to offer designated agency to both parties. d. Acme may withdraw from the agency relationship with the buyer, but Acme would be liable to the buyer for any liquidated damages.

b

BRRETA requires licensees to disclose adverse material facts affecting the neighborhood: Select one: a. Within 1 mile of the property, to clients only. b. Within 1 mile of the property, to clients and customers. c. Within 5 miles of the property, to clients only. d. Within 5 miles of the property, to clients and customers.

b

In a cooperating agency relationship, which of the following statements is correct? Select one: a. Each licensee must represent a different side of the transaction. b. Each licensee may represent the same side of the transaction. c. Cooperating agency representation is another term for acting as transaction broker. d. Cooperating agency representation must be used in place of dual agency.

b

The phrase "a broker who has not entered into an agency relationship with any of the parties to a particular real estate transaction, and who performs only ministerial acts on behalf of one or more of the parties, for which he or she is paid valuable consideration" describes a: Select one: a. Designated broker. b. Transaction broker. c. Standard broker. d. Ministerial broker.

b

Which of the following statement best describes an agent's obligations to his or her principal? Select one: a. The agent has a fiduciary obligation to his or her principal. b. The agent has the obligations specified by BRRETA and by the brokerage engagement agreement. c. The agent has only those obligations which are specified in the brokerage engagement agreement. d. The agent has an obligation of fair and honest dealings only.

b

A broker must disclose the types of agency relationships offered and how compensation might be shared with other brokers. Select one: a. prior to signing a contract for sale. b. prior to showing the property. c. prior to signing a listing agreement. d. within a reasonable time.

c

A transaction broker is NOT responsible for? Select one: a. disclosing known adverse material facts concerning the property. b. timely accounting for all monies and valuables. c. maintaining confidentiality. d. disclosing known adverse facts about the neighborhood.

c

Acts which an agent can perform for an individual the agent does not represent without creating an agency with that person are known as: Select one: a. Incidental acts. b. Non-essential acts. c. Ministerial acts. d. Subsidiary acts.

c

As defined by BRRETA, a "brokerage relationship" may be: Select one: a. An agency relationship only. b. A non-agency relationship only. c. Either an agency or non-agency relationship. d. Neither an agency nor a non-agency relationship.

c

Georgia's agency law is known as: Select one: a. BEAST (Brokerage Engagement Agreements in Sales Transactions). b. BARE (Brokerage Agreements in Real Estate). c. BRRETA (Brokerage Relationships in Real Estate Transactions Act). d. BEAR (Brokerage Engagement Acts in Real Estate)

c

Samantha represents the seller in a residential transaction. Which of the following would NOT be one of Samantha's responsibilities? Select one: a. Advise the seller of the market value of the property. b. Get the seller's permission before placing a For Sale sign on the property. c. Show the property to prospective buyers while the property is under contract. d. Advise the seller that a prospective buyer might be a credit risk.

c

Under BRRETA, a licensee must disclose material facts: Select one: a. Of which the licensee has imputed knowledge. b. Which the licensee can discover through reasonable due diligence. c. Of which the licensee has personal knowledge. d. Which are known to the licensee, his or her associates or his or her broker, as applicable.

c

Under BRRETA, it is the broker's responsibility to: Select one: a. Inform the buyer or customer of all prior written offers. b. Disclose all discoverable facts to any interested party. c. Disclose potential conflicts of interest. d. Provide only ministerial acts to the party he or she represents

c

Under Georgia law, offers and counteroffers must be presented to a client: Select one: a. Within 24 hours b. Within 48 hours c. In a timely manner d. Immediately

c

When a broker appoints two associates in his firm to represent the seller and buyer respectively in the same transaction, this is called: Select one: a. Disclosed dual agency. b. An unfair practice. c. Designated Agency. d. Limited Agency.

c

Which of the following is FALSE? Select one: a. Brokerage engagements must be in writing. b. An agency relationship always has a client. c. Ministerial acts are only performed for customers. d. The definition of "timely" varies with circumstances

c

Which of the following statement best describes an agent's obligations to his or her principal? Select one: a. The agent has a fiduciary obligation to his or her principal. b. The agent has the obligations specified by BRRETA and by the brokerage engagement agreement. c. The agent has only those obligations which are specified in the brokerage engagement agreement. d. The agent has an obligation of fair and honest dealings only

c

Which of the following statements is true under BRRETA? Select one: a. The agent, on behalf of the buyer, not the buyer himself, is responsible for obtaining information from public records. b. An agent owes a fiduciary responsibility to his principal. c. If a broker elects designated agency, the firm is not in a dual agency situation. d. Ministerial acts are those acts performed by an agent for his or her principal.

c

Acme Realty is acting as transaction broker for both the buyer and the seller in a particular transaction. Acme Realty would be considered the agent of: Select one: a. The buyer only. b. The seller only. c. Both the buyer and the seller. d. Neither the buyer nor the seller.

d

After listing a home with Angela the seller tells Angela that there is some termite damage but the seller does not intend to disclose the damage and wants to sell the house "as is". What should Angela do? Select one: a. Respect the confidentiality of the client. b. Tell a buyer about the damage if asked a specific question, regardless of the client's instructions. c. Tell the client that she must tell buyers the truth if they ask about termite damage. d. Tell the client that she will be unable to follow these instructions.

d

Broker Bob has retired and placed his license on inactive status. He plans to sell his personal residence personally. What rules will apply: Select one: a. He may do so without any restriction. b. He may do so but must disclose his licensed status, only in any sales contract. c. He may do so, but must disclose his licensed status only in any advertising d. He may do so but must disclose his licensed status in both the sales contract and any advertising.

d

Broker Smith wants to list John's house. Prior to signing a brokerage engagement with John, Smith must disclose which of the following: Select one: a. his firm offers dual agency. b. he will be offering commission splits with other brokers. c. his cousin has expressed an interest in the property. d. all of these choices

d

Sam is licensed in South Carolina. Sam has a client who wants to sell property he owns in Georgia. Sam refers his client to Stephanie who is a Georgia broker. Stephanie represents Sam's client and sells the Georgia property. Stephanie splits her commission with Sam. Stephanie does not tell the client about the commission split. Select one: a. This is legal because the seller is Sam's client. b. This is legal because Sam is not licensed in Georgia. c. This is illegal because Stephanie cannot split a commission with an out of state broker. d. This is illegal because Stephanie must inform her client of all fees paid to a third party.

d

Terri is a transaction broker for Sam. Benny wants to buy Sam's house. Terri must: Select one: a. represent Benny as a transaction broker. b. inform Sam that Benny might be a credit risk. c. be paid by Sam. d. present all offers.

d

Which type of agency relationship can be created without having a written brokerage engagement agreement? Select one: a. Transaction broker. b. Dual agent. c. Single agent. d. None of these choices.

d

True or False: Zenith Realty is a real estate brokerage firm that is licensed only in Tennessee. Acme Realty is licensed only in Georgia. Zenith refers a buyer to Acme, but is otherwise not involved in the transaction. Acme may legally pay a referral fee to Zenith.

true