Chapter 3 Flashcards
The AVID asks what time of day and what were the weather conditions when you inspected the property. Why?
The weather conditions and the time of day will make a difference. If it was sunny but the roof was leaking, you would not know because it was not raining of the day you inspected the property.
Any fact that would influence the decision of a reasonably prudent person is known as a …..?
A. Objective fact
B. Subjective fact
C. Substantial fact
D. Material fact
D. Material fact
A person in a position of trust and confidence is known as a ……?
A. Fiduciary
B. Partner
C. Employee
D. Client
A. Fiduciary
All disclosures involved in a real estate transaction should be in writing….?
A. T (True)
B. F(False)
A. True
Anything greater than four dwelling units is considered commercial real estate…..?
A. T (True)
B. F (False)
A. T (True)
A mandated disclosure is a disclosure that is required by law…..?
A. T (True)
B. F (False)
A. T (True)
A broker never owes fiduciary duties to a buyer…..?
A. T (True)
B. F(False)
B. (False)
Agency exists between the principal and …..?
A. Real estate salesperson
B. Customer
C. real estate broker
D. Client
C. Real Estate Broker
Who owns any listings obtained by a real estate salesperson?
A. The salesperson only
B. Both the salesperson and the salesperson’s sponsoring broker
C. The principal only
D. The salesperson’s sponsoring broker only
D. The salesperson’s sponsoring broker only
An agent who works only for the buyer or the seller is known as a …..?
A. Single-agent
B. Dual agent
C. Intermediary
D. Associate agent
A. Single-Agent
Dual agency is illegal in California …..?
A. T
B. F
B. False
Which of the following occurs when two agents working under the same sponsoring broker represent both sides in a transaction……?
a. Single Agency
B. Mandated Agency
C. Associated Agency
D. Duel Agency
D. Duel Agency
What is the final step in disclosing an agency relationship…..?
A. Disclose
B. Record
C Confirm
D. Elect
C. Confirm
That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure is known as a……?
A. Disclosed duty
B. Legal duty
C. Fiduciary duty
D. Express duty
C. Fiduciary duty
The real estate broker is responsible for completing the AVID form….?
A. T (True_
B. F. (False)
A. T (True)
When conducting their visual inspection, the real estate agent is required to check the crawl spaces roof….?
A. T (True)
B. F (False)
B. False
The weather conditions at the time of the visual inspection must be described on the AVID form….?
A. T
B. F
A. True
Any agent involved in a residential transaction must disclose agency….?
A. T (True)
B. F (False)
A. True
Purchasers of residential real estate are entitled to a Real Estate Transfer Disclosure Statement….?
A. T (True)
B. F (False)
A. True
The natural hazards disclosure is required for…..?
A. Commercial properties
B. Special - Use properties
C. Residential properties
D. Multi-family properties
C. Residential Properties
Which of the following must be double-braced in California….?
A. Plumbing fixtures
B. Celling tiles
C. Large Windows
D. Water heaters
D. Water Heaters
Which of the following is an indication of a water problem in the house….?
A. Sloped floors
B. Mold
C. Cracks in the foundation
D. All of the Above
B. Mold
TILA was enacted in…..? (Truth In Lending Act)
A. 1964
B. 1968
C. 1974
D. 1988
B. 1968
TILA is also known as…..?
A. REgulation L
B. Regulation T
C. Regulation Y
D. REgulation Z
D. Regulation D
A real estate broker acts as a fiduciary to the principal….?
A. T
B. F
A. T (True)
An agency relationship in which the agent acts concurrently for both of the principals in a transition is known as ……?
A. Single Agency
B. Dual Agency
C. Implied Agency
D. Partial Agency
B. Dual Agency
A real estate salesperson operates as a sub-agent to its broker….?
A. T (True)
B. F (False)
A. True
The seller’s broker is responsible for completing the Transfer Disclosure Statement….?
A. T (True)
B. F (False)
B. False
What are Material Facts?
Any fact that would influence the decision of a reasonably prudent person.
What is a Fiduciary?
A person in a position of trust and confidence, as between principal and broker; broker as a fiduciary owes certain loyalty which cannot be breached under the rules of agency.
What is a Fiduciary Duty?
That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure.
What is a Dual Agency?
An agency relationship in which the agent acts concurrently for both of the principals in a transaction.
What is Regulation Z?
The Truth in Lending Act of 1968 is United States federal law designated to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed.
