Chapter 5 Flashcards
To best accomplish a level of financial certainty between a buyer’s agent and the buyer, a buyer’s agent enters into a written employment agreement with a prospective buyer, called a:
a. buyer’s exclusive right-to-buy listing agreement.
b. seller’s listing agreement.
c. fee sharing agreement.
d. triple-net lease agreement.
A
The function of a __________ is limited to soliciting, identifying, and referring potential real estate clients or participants to brokers, agents, or principals in exchange for the promise of a fee.
a. finder.
b. appraiser.
c. home inspector.
d. mortgage broker.
A
The primary document used to negotiate the transaction between a buyer and seller is a:
a. listing agreement.
b. counteroffer.
c. purchase agreement.
d. waiver.
C
The _________________, contained in all purchase agreements, states the existence or nonexistence of each broker’s fiduciary agency with the various parties to the transaction.
a. agency confirmation provision
b. broker liability agreement
c. hold harmless agreement
d. attorney fee provision
A
An Agency Law Disclosure is provided each time any broker prepares a purchase agreement or:
a. lease for less than one year.
b. lease for more than one year.
c. makes any contact with a client.
d. All of the above.
B
A(n) ____________ is an individual’s opinion or estimate of a property’s value on a specific date.
a. termite inspection
b. home inspection
c. appraisal
d. open house
C
The __________ of a property is the highest price on the date of valuation a willing seller and buyer would agree to, both having full knowledge of the property’s various uses.
a. fair market value
b. depreciation schedule
c. replacement cost
d. None of the above.
A
The third step in the appraisal process is applying the data collected using the __________ appraisal method.
a. capitalization approach
b. cost approach
c. comparative market approach
d. Any of the above.
D
A process employing an independent agent to manage the closing of a real estate transaction through the exchange of documents and money between two parties is referred to as:
a. a tile search.
b. escrow.
c. underwriting.
d. pre-approval.
B
The specific duties of the escrow officer in a particular transaction are documented in:
a. the county records.
b. the escrow officer’s oath.
c. the listing contract.
d. escrow instructions.
D
