Chapter 11 Quiz Flashcards
Which of the following would create an agency relationship?
A. Commission Agreement
B. Listing Agreement
C. Purchase Contract
D. Rental Agreement
B. Listing Agreement
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
B. $10
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
C. Fiduciary
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
B. Accept or reject offers of purchase
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
D. Contract for personal services
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
D. June 30th
A licensed real estate salesperson is which type of agent to his/her broker?
A. General
B. Special
C. Universal
D. Attorney-in-Fact
A. General Agent
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
B. All lawful instructions of the client
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
B. Honesty
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
C. $30,000
A person who is authorized to represent the interest of another is called a(n)
A. Client
B. Agent
C. Principal
D. Customer
B. Agent
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
D. Financing
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
D. The claimant must be a resident of Arizona
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
C. The broker secures a willing and able buyer who makes an offer meeting the seller’s terms
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
C. Acceptance of offer and opening escrow
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
C. Special agent
A person having authority under a power of attorney is called a(n)
A. Principal
B. Grantor
C. Attorney-in-Fact
D. Trustee
C. Attorney-in-Fact
Who can sign a document on your behalf?
A. Attorney-in-Fact
B. Power of Attorney
C. Attorney at Law
D. Your spouse
A. Attorney-in-Fact
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
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
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
A. Unethical because of fiduciary duties
