Chapter 11

Question 1

Which of the following would create an agency relationship?

A. Commission Agreement
B. Listing Agreement
C. Purchase Contract
D. Rental Agreement

Answer 1

B. Listing Agreement

Question 2

How much would a licensed real estate salesperson have to pay into the Real Estate Recovery Fund at the next renewal when the reserve falls below $600,000?

A. $5
B. $10
C. $15
D. $20

Answer 2

B. $10

Question 3

The relationship of a licensed real estate broker to the principal is best described by which of the following terms?

A. Trustee
B. Salesperson
C. Fiduciary
D. Beneficiary

Answer 3

C. Fiduciary

Question 4

A licensed broker employed by a principal may NOT

A. Advertise the listed property
B. Accept or reject offers of purchase
C. Negotiate offers and acceptance
D. Show property to prospective purchasers

Answer 4

B. Accept or reject offers of purchase

Question 5

An authorization to sell consists of mutual agreement between broker and seller and is considered a(n)

A. Contract of sale
B. Agreement of sale
C. Purchase contract
D. Contract for personal services

Answer 5

D. Contract for personal services

Question 6

The Real Estate Recovery Fund must have a minimum balance of $600,000 by what date?

A. December 31st
B. January 1st
C. March 15th
D. June 30th

Answer 6

D. June 30th

Question 7

A licensed real estate salesperson is which type of agent to his/her broker?

A. General
B. Special
C. Universal
D. Attorney-in-Fact

Answer 7

A. General

Question 8

A broker is hired by a seller to sell the client’s real property. The broker must obey which of following?

A. The concept of buyer beware (caveat emptor)
B. All lawful instructions of the client
C. All of the buyer’s instructions
D. Full disclosure to the buyer of any and all information

Answer 8

B. All lawful instructions of the client

Question 9

When a broker represents only a buyer in a transaction, which of the following duties would a buyer owe the seller?

A. Loyalty
B. Honesty
C. Accountability
D. Confidentiality

Answer 9

B. Honesty

Question 10

What is the maximum amount of money which someone may recover from the Real Estate Recovery Fund per transaction?

A. $10,000
B. $15,000
C. $30,000
D. $90,000

Answer 10

C. $30,000

Question 11

A person who is authorized to represent the interest of another is called a(n)

A. Client
B. Agent
C. Principal
D. Customer

Answer 11

B. Agent

Question 12

All of the following would be the responsibility of a real estate agent EXCEPT

A. Reasonable skill and care
B. Accountability
C. Obedience
D. Financing

Answer 12

D. Financing

Question 13

Which of the following statements is FALSE regarding the Real Estate Recovery Fund?

A. A party wishing to file a claim must file a lawsuit within 5 years
B. A real estate licensee may not file a claim against the fund
C. The dollar award paid from the Recovery Fund may contain attorney’s fee
D. The claimant must be a resident of Arizona

Answer 13

D. The claimant must be a resident of Arizona

Question 14

A broker has earned a commission when

A. The broker lists the property
B. The broker has shown the property to several prospects
C. The broker secures a willing and able buyer who makes an offer meeting the seller’s terms
D. The seller accepts the buyers offer the escrow has closed

Answer 14

C. The broker secures a willing and able buyer who makes an offer meeting the seller’s terms

Question 15

Which of the following would NOT terminate an agency relationship?

A. Destruction of property
B. Death of the seller
C. Acceptance of offer and opening escrow
D. Court order

Answer 15

C. Acceptance of offer and opening escrow

Question 16

A real estate broker in the typical agency relationship with a client is a(n)

A. Implied agent
B. Ostensible agent
C. Special agent
D. General agent

Answer 16

C. Special agent

Question 17

A person having authority under a power of attorney is called a(n)

A. Principal
B. Grantor
C. Attorney-in-Fact
D. Trustee

Answer 17

C. Attorney-in-Fact

Question 18

Who can sign a document on your behalf?

A. Attorney-in-Fact
B. Power of Attorney
C. Attorney at Law
D. Your spouse

Answer 18

A. Attorney-in-Fact

Question 19

Which of the following is required in a dual agency disclosure?

A. The licensee is the buyer’s cousin
B. The seller and buyer are represented by two different brokerage firms affiliated with the same national franchise company
C. A salesperson in a branch office of a company that represents the buyer, and an associate broker in the main office of the same company that represents the seller
D. A licensee is purchasing a property from a seller who is represented by another brokerage firm

Answer 19

C. A salesperson in a branch office of a company that represents the buyer, and an associate broker in the main office of the same company that represents the seller

Question 20

You previously closed a real estate transaction for a client who is now deceased. You tell another agent about a bank account that the deceased person’s spouse didn’t know about. Which of the following describes this action?
A. Unethical because of fiduciary duties
B. Illegal because of fair housing duties
C. Ethical because the client is deceased
D. Legal because of fair housing

Answer 20

A. Unethical because of fiduciary duties