Ch 7 - Brokerage, Agency & Faur Housing

Question 1

Appears to exist

Answer 1

Ostensible

Question 2

The decision by the appropriate public agency that a property is no longer fit and therefore must be closed or destroyed

Answer 2

Condemnation

Question 3

Making statements of opinion while selling real estate

Answer 3

Puffing

Question 4

A provision that protects the broker in the event the seller sells to one of the prospects with whom he had negotiated during the listing term

Answer 4

Safety or protection clause

Question 5

The channeling of home-seekers to particular areas, either to maintain the homogeneity of an area or to change the character of an area in order to create a speculative situation

Answer 5

Steering

Question 6

The practice of refusing to make mortgage loans due to the age of the neighborhood or its ethnic composition without regard to the economic qualification of the applicant

Answer 6

Redlining

Question 7

Created when one person, called the principal, delegates to another person-called the agent – the right to act on the principal’s behalf in dealing with third parties

Answer 7

An agency

Question 8

Inducing homeowners to sell by making representations regarding the entry or perspective entry of minorities into the neighborhood

Answer 8

Panic selling / blockbusting

Question 9

True or false:

advertising a property for sale “as is” relieves the seller and broker from the responsibility of revealing hidden or latent defects to a buyer

Answer 9

False

Question 10

True or false:

Compensation must always be negotiated between the owner and broker

Answer 10

True

Question 11

True or false:

Because of the mutual promises between the owner and the broker, and exclusive agency listing is a unilateral contract

Answer 11

False - it’s a bilateral contract

Question 12

True or false:

The most frequent of the antitrust violations that can occur in the real estate business are price fixing and allocation of customers or markets

Answer 12

True

Question 13

Meant to expand the scope of federal regulations to protect handicapped individuals and familial status of individuals

Answer 13

The fair housing amendments act of 1988

Question 14

How long does any aggrieved person have to file a complaint with the secretary or his or her delegate after a discriminatory action occurs?

Answer 14

360 days

1 real estate year

Question 15

What are the three levels of agency?

Answer 15

• universal agency
• general agency
• special agency

Question 16

What are five ways to create an agency?

Answer 16

• written agreement
• ostensible agency
• agency by ratification
• agency coupled with an interest
• dual agency

Question 17

All exclusive listings must have a definite __________

Answer 17

Termination date

Question 18

An agent is entitled to _________ and is to be held blameless for actions of the principal, such as a misrepresentation by the principal that was passed on in good faith to a buyer

Answer 18

Indemnification

Question 19

What are the four ways an agency is most often terminated?

Answer 19

• by purpose of the agency being completed
• by expiration of the term of the agency
• by mutual agreement
• by revocation

Question 20

When a broker has produced a ready, willing, and able buyer, he or she is said to be the ________ Of the sale and is entitled to the commission

Answer 20

Procuring cause

Question 21

What are the few types of listings in use?

Answer 21

• open listing
• exclusive agency listing
• exclusive right to sell listing
• net listing