Chapter 17 Flashcards
Which of the following would relate to a blind ad?
A. Brokerage house ad that has no address
B. An ad that does not state who the owner is
C. An ad that does not indicate it’s listed by a brokerage firm
D. When a licensee acting as a “For Sale By Owner” fails to list owner/agent in the ad.
C. An ad that does not indicate it’s listed by a brokerage firm
When a seller lists his property with a broker and the seller subsequently files a Chapter 13 bankruptcy, what is the status of the broker’s listing?
A. The listing is unaffected
B. The listing must be ratified by the bankruptcy court to remain valid
C. The listing would now be handled by the executor of the estate
D. The listing would be part of the estate and cannot be canceled by either owner or broker
B. The listing must be ratified by the bankruptcy court to remain valid
When a property is sold in “as is” condition, this means the
A. Seller will not make any necessary repairs
B. Seller is not responsible to disclose any material facts
C. Broker is not responsible to disclose any material facts
D. Buyer is on notice that he is responsible to discover all facts known and unknown
A. Seller will not make any necessary repairs
When a person files Chapter 7 bankruptcy, which of the following would occur?
A. The debtor would remain in possession of the business
B. All creditors’ claims against the debtor are extinguished
C. A trustee would be appointed to liquidate the assets
D. The broker’s listings would be unaffected
C. A trustee would be appointed to liquidate the assets
Regarding the size of lettering in the ad, all of the following are true EXCEPT the
A. Salesperson’s name may be larger than the brokerage name
B. Company name must be prominent on all advertising
C. Commissioner’s rules dictate the specific lettering size for brokerage advertising
D. Salesperson’s and broker’s name may be the same size
C. Commissioner’s rules dictate the specific lettering size for brokerage advertising
When a real estate brokerage declares Chapter 7 bankruptcy, the salesperson’s commission would be considered a(n)
A. Priority claim
B. Secured creditor claim
C. Unsecured creditor claim
D. Employee’s wage claim
C. Unsecured creditor claim
Which of the following actions is NOT permissible by a licensed real estate broker?
A. Preparing an appraisal for a property owner
B. Preparing a competitive market analysis for a seller
C. Paying a referral fee to an out-of-state broker
D. Placing an ad in the newspaper using a telephone number other than the company’s
A. Preparing an appraisal for a property owner
When advertising via a web page, which of the following is TRUE?
A. The broker’s name must appear on the home page
B. The licensee’s name must appear prominently on every page, without the viewer having to scroll down to see it
C. The broker’s name must appear prominently on every page, without the viewer having to scroll down to see it
D. Arizona regulations do not apply if the web page advertising is targeting out-of-state resident
C. The broker’s name must appear prominently on every page, without the viewer having to scroll down to see it
A salesperson is offering a free gift certificate as part of a marketing plan. According to Commissioner’s Rules, which of the following would NOT be required to be disclosed in the ad:
A. Date the offer expires
B. Terms and conditions
C. Name of the specific store
D. Specific restrictions
C. Name of the specific store
A home inspector misses a large crack in the foundation of the house. The seller tells the agent not to tell the buyer. What should the agent do?
A. Keep it confidential
B. Disclose the information
C. Obey the seller’s instructions
D. Let the buyer beware
B. Disclose the information
A salesperson runs an ad in the local paper promoting a broker’s listing. Which of the following is TRUE?
A. The salesperson’s name must appear
B. The designated broker’s name must be larger in size than the salesperson’s name
C. The brokerage name must appear prominently in the ad
D. The broker’s telephone number must appear in the ad
C. The brokerage name must appear prominently in the ad
Which of the following documents would a homeowners association NOT be required to give a buyer upon resale?
A. Financial statements for the HOA
B. Reserve analysis
C. Bylaws of the association
D. Personal financial statements
D. Personal financial statements
Who is responsible for providing homeowner’s association documents to a buyer upon the sale of property located in a homeowners association if there are less than 50 units in the association?
A. Broker
B. Seller
C. Association
D. Escrow agent
B. Seller
A few real estate brokers from different companies were discussing the possibility of establishing an office policy to list for sale all raw land at a 10% commission. Which of the following is TRUE?
A. The brokers are not guilty of anything because it would be an office policy
B. The brokers violated Reg Z
C. The brokers are in violation of the Sherman Antitrust Act
D. The brokers are in violation of RESPA
C. The brokers are in violation of the Sherman Antitrust Act
When a salesperson and broker are in court to settle a dispute, this would most likely be called
A. Mediation
B. Arbitration
C. Litigation
D. Interpleader
C. Litigation
