Chapter 1

Question 1

When testing the conduct of an agent while engaged in real estate related activities, the independent contractor (IC) provision in the broker-agent employment agreement cannot and does not change the sales agent’s classification as:

a. an agent of the client.
b. an agent of the broker.
c. Both a and b.
d. Neither a nor b.

Answer 1

B

Question 2

An outside salesperson is defined as a person who regularly works:

a. more than half of their time away from their place of employment.
b. less than half of their time away from their place of employment.
c. Both a and b.
d. Neither a nor b.

Answer 2

A

Question 3

An agent needs to collect income data during an interview with a prospective broker, including:

a. the number of sales the agent is likely to close during their first year.
b. the share of the gross broker fees the agent will receive under the fee-sharing schedule offered by the broker.
c. Both a and b.
d. Neither a nor b.

Answer 3

C

Question 4

The best time for a sales agent to renegotiate their share of broker fees is:

a. at the height of a booming market.
b. during the slowdown following the boom.
c. just prior to an upswing in sales.
d. None of the above.

Answer 4

A

Question 5

To keep claims from clients and others under control, a broker needs to maintain a:

a. multiple listing service (MLS).
b. risk reduction program.
c. low turnover rate.
d. All of the above.

Answer 5

B

Question 6

Agents are required to be members of the trade association that owns a multiple listing service (MLS) to post listings and access the MLS database.

a. True
b. False

Answer 6

B

Question 7

A ____________ relationship is created between a seller and a buyer’s agent when the seller pays the buyer’s agent’s fee.

a. subagency
b. dual agency
c. Both a and b.
d. Neither a nor b.

Answer 7

D

Question 8

When a dual agency is established on a one-to-four unit residential sales transaction, the dual agent may pass on any pricing information from the buyer to the seller without the buyer’s prior consent.

a. True
b. False

Answer 8

B

Question 9

A broker must disclose to their seller the existence of an indirect interest one of the broker’s agents holds in the property.

a. True
b. False

Answer 9

A

Question 10

A Compensation Disclosure form is used to inform sellers/buyers of the broker’s ownership interest in an affiliated business.

a. True
b. False

Answer 10

B