Final national brokerage exam Flashcards
A licensee tells a neighborhood watch group that Vietnamese are moving into the neighborhood. What is this broker guilty of?
Panic selling
The Brooks paid-off property sold for $247,600. What will they net after paying a 7.5% commission to their broker?
$229,030
Which of the following situations would cause the IRS to think that a contractor is really an employee?
The licensee takes paid sick days.
What is the best approach to establishing a buyer’s possession?
Buyers take possession on the day of the close.
Which form of agency is illegal in most states
Undisclosed dual agency
If a group of brokers have a meeting to set commission rates, what does this violate?
Sherman Antitrust Act
What can you do to increase your chances of extending a listing that is about to expire?
Meet with your sellers a few weeks before the listing expiration and review with them your marketing efforts.
Property briefs are also called
Property flyers.
Earnest money is usually made in the form of a
Check.
Which of the following is NOT a resource for information regarding professional ethics?
Real estate marketing copy
Disclosure is sometimes called what?
Notice
A utility right-of-way is an example of
An encumbrance.
Agent Sally has been with Black Realty for over three years and has worked up to the top agent in the firm. Her commission percentage rate is double that of a starting agent. Based on this information, what type of compensation plan does the Black agency have in place?
Graduated
Which type of contract can have tax benefits for a seller?
Contract for deed
Which party holds the escrow money when a dispute occurs?
The Sponsoring Broker
Which of the following is an advantage of investing in a nonresidential property?
Limited rent controls
What is the typical time period required to maintain escrow records?
3-5 years
What process determines how much money the buyer needs to bring to closing?
The escrow agent will subtract the total of the buyer’s credits from the total debits and the result is what the buyer needs to bring.
What process determines how much money the buyer needs to bring to closing?
The escrow agent will subtract the total of the buyer’s credits from the total debits and the result is what the buyer needs to bring.
Which method can be helpful in tracking your advertising results?
Assigning a code
How should a seller deal with an interested party that shows up at their front door unannounced and wants to see the house?
Take the person’s name and then call the office immediately so an agent can come to do the showing.
A building with integrated office and retail space would be considered
A mixed-use property.
When a seller agrees to an MLS listing, what is the seller authorizing?
Subagency
Which of the following is considered a variable expense?
Utilities
Most apartment leases are
Estates from period to period.
What is the definition of a principal?
A person who delegates another to act on their behalf through an agency relationship
What does risk management mean as it applies to property management?
Controlling and limiting risk through proper insurance
What kind of lease conveys a leasehold interest to an owner of a cooperative?
Proprietary
Which type of agreement assures that a broker will receive compensation regardless of who procures the buyer?
Exclusive right to sell
If a buyer asks about homes in the “Muslim” area, what should you do?
Explain to the buyer that you, ethically and legally, cannot recommend housing based on religion.
Which document is the most important at closing?
Deed
A broker can enter into a single agency agreement with
A buyer.
After a listing agreement is signed, and if the agent is a member of a marketing service called a Multiple Listing Service (MLS), what specific form must be completed before the agent can post and market the property to other licensees who are members of MLS?
An MLS form
Puffing is a term characterized by which of the following actions?
Providing opinions
Which of the following classes are not protected by federal law?
Military status
Which of the following situations would give concern about working for the Sunny Valley Brokerage?
Agents seem to come and go quickly.
An agent owes all but which of these to their customer?
Advertising
What is the purpose of the Statute of Frauds?
It requires certain conveyance-related contracts to be in writing.
All closing real estate sales must be reported to the IRS on which form?
Form 1099
When agency relationship is terminated, which of the following responsibilities still remains in force?
Confidentiality
What are persons called who act as buyers and check on Fair Housing compliance?
Testers
Which person is responsible for filling out a property disclosure statement?
The sellers
What is the purpose of a carryover clause?
Allows the broker to collect a commission for some period of time after the listing expires
Owning a building typically
Reduces the flexibility of the business.
AIDA stands for
Attention, Interest, Desire, and Action
What type of budget is used to forecast income and expense over some period of years?
Stabilized
Agent Sam gets about six hours of floor time each week. What is a major duty for Agent Sam during this time?
Respond to incoming sales calls.
Which type of real estate advertisement is typically located in areas with a high presence of foot traffic?
Shopping Guides
Which of the following referral fees are NOT prohibited by RESPA?
Fees among cooperating brokers
Which statement about property management is FALSE?
Asset manager and resident manager mean the same thing.
An agreement in which a seller hires a broker to market a property creates an agency relationship between
Broker and seller.
