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45 Hour Class > Ch 17: Working with Buyers > Flashcards

Ch 17: Working with Buyers Flashcards

1
Q

How long must a licensee keep a refused Consumer Notice on file?

A

Licensees must keep a copy of the signed/refused acknowledgement for 6 months.

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2
Q

In Pennsylvania, licensees are required to give what document to any party before he or she signs a buyer’s agency agreement?

A

Consumer Notice

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3
Q

What are the fiduciary duties owed to a customer?

A

There are no fiduciary/statutory duties owed to a customer.

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4
Q

What are the specific duties owed to clients when in an agency relationship?

A

Care
Obedience
Loyalty
Disclosure
Diligence
Accounting
Confidentiality

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5
Q

How many licensees are usually involved in a designated agency transaction?

A

Two licensees - one for the buyer and one for seller

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6
Q

How does designated agency work?

A

Designated agency refers to a situation where the buyer and the seller each have their own agent, but both agents work for the same broker.

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7
Q

In subagency, the agent bringing the buyer is working for which party?

A

The agent bringing the buyer is actually working for the seller as a subagent of the listing broker.

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8
Q

What is a dual agency?

A

Dual agency means that the listing licensee represents both the seller and the buyer in the same real estate transaction.

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9
Q

How does the law define the initial interview?

A

The initial interview is the first contact between a licensee and a consumer when a substantive discussion about real estate occurs.

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10
Q

What is the key to maintaining loyalty to a buyer?

A

Loyalty to the buyer is achieved by acting in the buyer’s best interest.

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11
Q

How is a mortgage loan pre-qualification figured?

A

You determine the debt-to-income ratio by looking at the buyer’s monthly gross income compared to the monthly debt that the buyer will pay for at least the next 10 months.

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12
Q

Which person preapproves a loan application?

A

Loan applications are preapproved by an underwriter.

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13
Q

About what percent of residential real estate transactions in the United States are in-house transactions

A

About 22 percent

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14
Q

What type of agency was created to avoid the problems with dual-agency?

A

Designated Agency was established.

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15
Q

What is the cash limit, when a Form 1099-MISC must be completed for compensation to a non-employee?

A

The Internal Revenue Service (IRS) requires that listing brokers who pay a cooperative commission in excess of $600 to an individual who is not their employee must complete a Form 1099-MISC. While this is not a new law, but not all real estate professionals are aware of this requirement.

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16
Q

What is another term used to describe an undisclosed dual agency?

A

Unintended dual agency or non-disclosed dual agency

17
Q

What does Megan’s Law do?

A

Provides for community notification of certain convicted sex offenders

18
Q

What section in the BAC informs the buyer to seek information regarding specific conditions or components of a property which are outside licensee’s area of expertise?

A

Paragraph 9. Expertise of Real Estate Agents

19
Q

What section in the BAC informs the buyer that second-hand information regarding the description of the property may or may not be accurate?

A

Paragraph 13. Buyer Inspections

20
Q

What section in the BAC form would you include additional documents that become part of the buyer’s contract?

A

Paragraph 15. Special Clauses

21
Q

Subagency is uncommon now because:

A

buyer’s need an agent to represent their interests.

22
Q

A seller’s agent working with a buyer will use methods specifically designed to get the buyer to sign the contract but a buyer’s agent will:

A

advise the buyers of pros and cons about any property.

23
Q

What kind of agency describes a licensee representing the seller and buyer in the same transaction?

A

Dual agency

24
Q

What agreement is known as the exclusive right to represent?

A

An exclusive buyer agency

25
Q

What type of agency describes when the buyer and seller each have their own agent but the agents work for the same broker?

A

Designated agency

26
Q

What is a good place for a licensee to start a home search for a buyer?

A

MLS

27
Q

Whose responsibility is it to determine whether the condition of a property is satisfactory?

A

The buyer

28
Q

In what type of an agreement does the buyer still pay an agent a commission even if the buyer finds the property him or herself?

A

An exclusive buyer agency agreement

29
Q

What do you call a broker who participates in facilitating a real estate transaction along with the broker who listed the property?

A

A cooperating broker

30
Q

The disclosure a broker gives to a buyer contains a statement that any sales agreement must contain the zoning classification of a property, except in cases where the property is zoned solely:

A

to permit single family dwellings.

31
Q

When a licensee has a financial interest in the same property as his or her buyer it is:

A

a conflict of interest.

32
Q

What will a lender provide to a buyer after evaluating the debt to income ratio and establishing a rough estimate of the buyer’s ability to obtain financing?

A

A pre-qualification

33
Q

What section of the Buyer Agency Contract explains how a buyer might seek restitution due to fraud, misrepresentation, or deceit in a real estate transaction?

A

Recovery Fund

34
Q

What section of the Buyer Agency Contract outlines federal and state discrimination violations regarding a buyer’s rights?

A

Civil Rights Acts

35
Q

What type of agency agreement is an exclusive contract with one broker?

A

An exclusive agency buyer agency

36
Q

What type of agency agreement allows the buyer to enter into other agreements with multiple brokers?

A

A nonexclusive buyer agency

37
Q

According to the IRS, what must a listing broker complete if he or she pays a cooperative commission in excess of $600 to an individual who is not his or her employee?

A

A Form 1099-MISC

38
Q

What can happen to many buyers if they are not pre-approved?

A

They start with an unrealistic price range.

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