Chapter 4 Flashcards
a licensed real estate broker states that a lot is 1/3 of an acre when in fact the lot is 1/4 of an acre. The agent is guilty of
Misrepresentation
most real estate agencies are created by
agreement
an owner listed property with broker a. Prospective buyer is found by cooperating broker B. Broker B is a
sub agent
the misappropriation and use of a client’s funds by an agent is called
conversion
if a seller insists on selling a home as is
the prospective buyer is entitled to know all defects known to the seller and real estate agent
salesperson Schmidt works for a broker Hassan. on May 1st Schmidt takes a listing on home X for 90 days. 20 days later salesperson Schmidt transfers her license and becomes A salesperson for broker meeks. as of May 21st, the listing on home X belongs to
broker Hassan
which of the following is not correct
real estate salespersons are able to contract directly in their own name as an agent with the seller
all real estate licensees in California must abide by the
Commissioners regulations
a broker received the deposit from my buyer late Friday night with instructions to hold the check uncashed pending the seller’s acceptance of the offer. The broker decides to put it in a safe in the office for security purposes until the offer can be submitted to the seller. In doing so the broker is
innocent of any wrongdoing
if a consumer feels he or she has been dealt with poorly by a licensee and loses the lawsuit in court the consumer May
none of the above is available as a means of restitution
the real estate broker, in order to influence a person to buy, states that the property will absolutely double in value in 6 months. The sale takes place and six months later the property has declined in value. This broker could be considered guilty of
false promise
if a real estate agent knowingly makes a substantial misrepresentation of the likely value of real property it is a
agency violation
which of the following best describes the role of a broker in a real estate agency
a special agent
per the real estate Commissioners regulations a broker must
keep a formal cash receipts cash disbursement Journal
maintain a trust fund account in a bank
maintain a minimum balance in the trust fund
according to real estate licensing law for supervising purposes the relationship between a salesperson and a broker is
employer-employee
in selling a Family Residence, an owner enlisted the aid of an unlicensed person. The owner pays for the service thus violating real estate law. Who would prosecute the unlicensed person for receiving an illegal Commission
district attorney in the local County
a broker is authorized in the listing agreement to accept a deposit on behalf of the seller and receives the same from a buyer. The Broker Than uses the money received from the buyer to pay for vacation and refuses to restore the money. The person liable to the buyer for the loss would be the
broker and seller
receiving a commission from both the buyer and seller without full disclosure and approval is called
divided agency
the real estate Commissioners regulations do not apply to California licensed
appraisers
real estate commissions are
negotiable
in a real estate sale, which of the following is not considered the agent to the seller
*all or agent of the seller
the broker of the buyer who is authorized dual agent
dual agent
the listing broker
the disclosure regarding real estate agency relationship form must be signed at the time of
agency appointment
before giving a listing to a broker, the owner informed the broker that the roof was in bad shape. The broker later showed the house and a shirt the buyer that the house was in excellent condition without any known problems. After the first rain the home suffered heavy water damage due to the Leaky Roof. The buyers angry and will probably sue the
broker and the seller
a California real estate broker finds a buyer for a property in Reno listed with a Nevada broker. / California regulations the
commission can be divided per agreement between the brokers
a broker took a listing on an eight-unit apartment house and stated that it showed a 14% yield on the investment. And figuring the yield the broker unknowingly did not allow for maintenance expenses or a vacancy factor. A buyer purchase the property on the basis of the Brokers analysis. Which of the following best describes the particular violation of real estate law
misrepresentation
through negligence Blondell permitted Gildea to believe that Delgado was Blondells agent when Delgado had not really been appointed by blondell. If this creats and ostendsible agency it will be by
estoppel
at the time of the listing agreement the seller inform the broker that the floors beneath the wall to wall carpets were oh well showing the property to a buyer the broker stated the floors are oak. After the sale the buyer went to replace the carpet and discovered that the floors were fine. Responsibility for the mistake rests with
broker and seller
which of the following is not essential in creating a real estate agency
amount of the commission
conversion is a violation of real estate law and carries with it a heavy penalty. Which example best illustrates conversion
a broker receives offer and a $500 deposit in cash before the acceptance broker spend some money for supplies then replaces the $500 when it is time to close escrow
the maximum dollar amount for an individual claim against the real estate Recovery Fund is
$50,000
