chapter 6 quiz

Question 1

which of the following statements most closely describes a listing contract?

Answer 1

it serves as an employment agreement between a broker and a seller.

Question 2

in some cases a broker’s commission can be earned if the broker can prove he/she set in motion a series of events that resulted in the sale. to do so means the broker:

Answer 2

was the procuring cause of sale

Question 3

when a salesperson performs the duties of a licensee, the salesperson does so:

Answer 3

as a general agent for his/her broker

Question 4

if a salesperson acts as an independent contractor, then:

Answer 4

he/she controls his/her own working hours.

Question 5

the listing broker and salesperson owe all but which of the following to the purchaser?

Answer 5

negotiation of the lowest possible price

Question 6

if asked by a prospective buyer, the listing agent must disclose all of the following EXCEPT:

Answer 6

the previous occupant had AIDS. (protected by Fair Housing, considered handicapped)

Question 7

the term fiduciary best describes:

Answer 7

an agent

Question 8

the amount of a broker’s commission is:

Answer 8

established by agreement between the broker and the seller

Question 9

a listing broker has noticed that there has been water in the basement of the house he is marketing, but the seller states that the problem was solved and he does not want it mentioned. should this fact be revealed by the broker to a prospective purchaser?

Answer 9

Yes, the problem is clearly a “material fact” and must be disclosed.

Question 10

an agency may be terminated by all but which of the following?

Answer 10

the listing salesperson dies

Question 11

owner Brewer authorized Broker Owen to sign a contract of sale. this authorization was granted by:

Answer 11

executing a power of attorney.

**document authorizing one person to act on behalf of another

Question 12

a general agency empowers the agent to:

Answer 12

transact the principal’s affairs in a certain business.

Question 13

a listing that allows the owner to sell the property without being liable for a commission, but also appoints only one broker to act as sole agent is an:

Answer 13

exclusive agency listing.

Question 14

Exclusive Listings must include:

Answer 14

a definite date of expiration

Question 15

when a third party relies upon the principal’s representation that a particular broker is his/her agent, even though the broker is unaware of the fact, the principal’s actions create a/an:

Answer 15

ostensible agency.

Question 16

if a listing agreement does not specifically authorize a broker to accept and hold an earnest money deposit on behalf of the seller, then the

Answer 16

broker has implied authority to accept such deposit

Question 17

acting as a dual agent w/out the consent of all parties is a breach of a broker’s duty of:

Answer 17

loyalty

Question 18

a provision in a contract of sale that obligates the purchaser to list the property w/a specific broker when the property is resold is:

Answer 18

both A and C
A. in violation of antitrust laws
C. called a tie-in

Question 19

an owner desired to net $147,600 from the sale of her home. Broker Baily accepts the listing with a 6.5% commission. the list price will be?

Answer 19

$157,900

look at example/book

Question 20

the 100% commission plan means:

Answer 20

the salesperson receives the entire fee but pays the broker a monthly fee for office space, administrative services, and use of the broker’s name.

Question 21

which of the following is characteristic of an exclusive right to sell listing?

Answer 21

it may allow more than one broker to share a commission paid by the seller

Question 22

Ronald is acting as a buyer broker for his sister, Regina, who is looking for a house. since he has a written contract authorizing him to consider her a client, he is authorized to do all of the following EXCEPT:

Answer 22

accept a counter offer on Regina’s behalf while she is out of town.

Question 23

Alice has listed a property for an out-of-town investor. Her advertising is producing calls, but a hostile tenant is denying her access for showings. when told of this, the seller replies, “that’s your problem.” which is true?

Answer 23

Alice can renounce her listing since the owner refuses to cooperate.

Question 24

a statement of exaggeration which a reasonable person would recognize as untrue is an example of:

Answer 24

puffing

Question 25

if a contract for sale provides for the owner to sell a home in “as is” condition, then:

Answer 25

latent defects must still be disclosed to the purchaser.