Chapter 4 Flashcards
Broker fee provisions in a purchase agreement are to be placed:
a. above the buyer’s signature.
b. within the four corners of the contract.
c. Both a and b.
d. Neither a nor b.
C
Brokers become third party beneficiaries when both seller and buyer enter into an agreement with a provision calling for the payment of broker fees.
a. True
b. False
A
When a buyer has orally agreed to pay a broker fee and the seller knowingly interferes by inducing the buyer to breach their promise to pay, the seller owes the broker the promised fee.
a. True
b. False
A
The best protection a broker has against the alteration of broker fee instructions is to dictate that escrow prepare unilateral fee instructions.
a. True
b. False
B
A bona fide employee finder of a broker may not be compensated for referrals under the Real Estate Settlement Procedures Act (RESPA).
a. True
b. False
B
ecords of an agent’s activities on behalf of a buyer during the listing period need to be retained by:
a. the agent.
b. the buyer’s broker.
c. the buyer.
d. the seller’s broker.
B
A seller’s agent does not have a duty to investigate the accuracy of any information provided by the seller before passing it on to a prospective buyer.
a. True
b. False
A
A seller’s agent’s visual inspection of a one-to-four unit residential property needs to include defects:
a. known to the seller’s agent.
b. readily observable by the seller’s agent.
c. Both a and b.
d. Neither a nor b.
C
A seller’s agent’s opinion given to a buyer becomes a statement of fact due to their fiduciary relationship with the buyer.
a. True
b. False
B
An inexperienced seller can rely on an agent’s opinion as a positive statement of truth when the agent holds themselves out to be specially qualified in the subject matter.
a. True
b. False
A
