unit 11 review
1.Seller's property is listed for $175,000. Seller tells the listing sales associate that Seller will accept an offer of $165,000. The sales associate must: A.tell all prospective buyers. B.advertise for $165,000. C.cancel the listing. D.keep Seller's comment confidential.
1.D)The sales associate must maintain Seller's confidentiality related to price, terms, or motivations. ( always confidential)
10.The authorized brokerage relationship disclosure requirements of Florida Statutes Chapter 475 DO NOT apply to: A.a lease-option agreement to purchase a single-family home. B.a contract to purchase a vacant residential site. C.a contract to purchase 5 acres of undeveloped agricultural property. D.an auction agreement
10.D)The disclosure requirement does not apply to auctions. It applies to sales of improved residential property of four units or fewer, the sale of unimproved residential property intended for use of four units or fewer, or the sale of agricultural property of 10 acres or fewer (disclosure requirements of Florida Statutes Chapter 475 DO NOT apply to=an auction agreement)
11.Which of the following is required in single agency relationships but NOT required in transaction broker relationships? A.Skill, care and diligence B.Honesty C.Full disclosure. D.Present all offers and counteroffers.
11.C)Full disclosure is ONLY a requirement in a fiduciary single agency relationship (single agency relationships but NOT required in transaction broker relationships=Full disclosure.)
12.Owner signed an open listing with Broker. Broker showed the property to a potential buyer, butleft for a 2-week vacation. While Broker was away, Owner sold the property to Buyer. Which of the following is a CORRECT statement: A.Broker violated the contract because an open listing is a bilateral contract B.Procuring cause is NOT an issue in an open listing C.Broker may be able to collect a commission because Broker brought Buyer and Seller together D.Broker gets paid regardless of who procures the buyer in an open listing
12.C)An open listing is a unilateral contract. Broker's right to a commission only exists if Broker proves that through bringing Buyer and Seller together Broker was the procuring cause of the sale (While Broker was away, Owner sold the property to Buyer=Broker may be able to collect a commission because Broker brought Buyer and Seller together)
2.Broker discovers a hidden problem with the condition of the listed property. After being notified of the problem, Seller orders Broker to keep silent. Broker should: A.keep silent. B.note the problem on a listing addendum. C.terminate the listing. D.notify FREC
2.C)Following Seller's instructions is a violation of the law. Broker must cancel the listing. ( never follow sellers instructions)
3.Sales Associate has put together a small investment group to purchase a plot of land. When they later sell the land, Sales Associate wants to earn a commission no matter who sells the property. This type of listing is: A.illegal. B.open. C.exclusive-agency. D.exclusive-right-of-sale
3.D)Exclusive-right-of sale (exclusive-right-to-sell) allows the listing broker to be paid regardless of who finds the buyer sell the land =exclusive-right-to-sell
4.Seller told Broker "Please help me sell my house." Broker said "Yes, I will do that." Is this a fiduciary relationship? A.YES, as this is an implied listing B.NO, as all listing agreements must be in writing C.YES, as this is a single agency D.NO, as this is a transaction broker relationship
4.D)This is a parol (oral) listing. It is presumed to be a transaction broker relationship with no fiduciary obligations "sell my house" transaction broker relationship
5.Buyer has entered into a transaction broker relationship with Broker. The duties owed by Broker include: A.loyalty, honesty, obedience B.limited confidentiality, accounting, skill, care and diligence C.obedience, loyalty, confidentiality D.disclosure, accept or reject offers, loyalty
5.B)Transaction brokers have the statutory obligations plus skill, care and diligence, accounting, and limited confidentiality. (limited confidentiality, accounting, skill, care and diligence)
6.A transaction broker DOES NOT owe: A.skill, care and diligence. B.disclosure of all known facts that affect value and are not readily observable. C.complete confidentiality. D.accounting for all funds.
6.C)A transaction broker owes limited confidentiality. (for the transaction broker its only limited confidentiality)
7.Seller has agreed to list with only one broker and has retained the right to find the buyer without paying commission. Seller has signed which type of listing? A.Exclusive-right-of-sale B.Exclusive-agency C.Open D.Net
7.B)An exclusive-agency listing authorizes one broker as the sole representative of the owner,but allows the owner to sell it without paying the listing broker. (B.Exclusive-agency=without paying the listing broker.)
8.Seller signed an exclusive-right-of-sale listing with Broker. While Seller was travelling out of town, Broker procured a Buyer and signed the contract for sale and purchase on behalf of Seller. Which of the following is TRUE? A.This was legal because Broker held an exclusive-right-of-salelisting. B.This was illegal because Broker did not hold the power of attorney. C.This was legal because Broker is automatically Seller's attorney-in-fact. D.This was legal because all listing Brokers are authorized by law to accept or reject offers on behalf of Sellers
8.B)This would only be legal if Broker had been granted power of attorney, making Broker the Seller's attorney-in-fact (This was illegal because Broker did not hold the power of attorney.=exclusive-right-of-sale listing with Broker.)
9.A listing agreement violates the Statute of Frauds if: A.it is parol with a term greater than 12 months. B.it is in writing. C.it is a net listing. D.it is for the sale of a foreclosed property
9.A)Parol(oral) listings of more than 12 months must be in writing according to the Statute of Frauds. (Statute of Frauds =A.it is parol with a term greater than 12 months.)
