Ch. 17 Exam

Question 1

A cooperating broker may pay a fee directly to a broker – sales person for another company.

Answer 1

False

Question 2

And owner of rental property who manages it herself must have a real estate license.

Answer 2

False

Question 3

An unlicensed assistant who works under the direct supervision of a licensed broker or sales person may be a greeter at an open house.

Answer 3

True

Question 4

No matter how small a real estate broker Ridge, there must always be at least one licensed real estate broker under whose license the real estate activities are carried out.

Answer 4

True

Question 5

When the brokers license is suspended the licenses of those under that broker remain valid until a replacement broker can be found.

Answer 5

False

Question 6

The sales person must obtain a special permit from the real estate division when representing a client in the purchase and sale of a business that does not involve Real Property.

Answer 6

True

Question 7

An individual who desires to engage in property management must obtain both a real estate license and a property management permit.

Answer 7

True

Question 8

The RED administrator will not discipline a licensee if the licensee did not actually know the falsity of a statement, but could have known it was Falls by the exercise of reasonable care and inquiry.

Answer 8

False

Question 9

When a promissory note is used as earnest money, it is imperative that this fact be communicated to the seller prior to the sellers acceptance of the offer to purchase.

Answer 9

True

Question 10

A licensee may except compensation from more than one party in any one transaction, as long as the licensee makes full disclosure to all parties interested in the transaction.

Answer 10

True

Question 11

A broker is required to preserve all records for five years following the closing of all transactions.

Answer 11

True

Question 12

The license of a sales person or broker – sales person will be placed on inactive status if they failed to notify the RED of a change in broker association within 30 days after the previous association was terminated.

Answer 12

True

Question 13

Advance fees are not considered trust funds.

Answer 13

False

Question 14

Money received from a tenant as rent for a property owned by a sales person must be deposited into that sales persons brokers trust account

Answer 14

False

Question 15

Voided trust account checks maybe torn up and thrown away.

Answer 15

False

Question 16

A broker must deliver or send by certified mail to the read the license and an explanation of any termination of a sales person or broker – sales person.

Answer 16

True

Question 17

And advertisement of real property for sale by a licensee must include the name of licensees broker or brokerage.

Answer 17

True

Question 18

A real estate license he is permitted to discuss their firms commission rates and fees with the licensees of competing real estate brokerages.

Answer 18

False