Law 6 - Quiz Flashcards
A real estate broker wants to give his neighbor a DVD player for a lead which resulted in a sale. If the broker gives this gift, it is …
A. what the neighbor expects.
B. a violation of the Law of Agency.
C. Not a violation.
D. a violation of the Kentucky License Law.
D. a violation of the Kentucky License Law
Which of the following is TRUE regarding revocation of a sales associate’s license?
A. The sales associate may, at the discretion of the Commission, reapply for a license after 5 years.
B. The sales associate may have his/her license reinstated after 4 years.
C. The sales associate must wait 2 years before reapplying for the license.
D. The sales associate must pay a find in order to get reinstated.
A. The sales associate may, at the discretion of the Commission, reapply for a license after 5 years.
Broker Sellsalot showed Mr. Smith an industrial property. Broker Goodwin has told Broker Sellsalot that the highway department may be taking a part of the property. Broker Sellsalot relayed this information to the buyer without verification. Mr. Smith bought the property based on what Broker Sellsalot said. Sellsalot is most likely liable for…
A. conflict of interest.
B. breach of contract.
C. gross negligence.
D. fraud.
C. gross negligence.
If a seller calls you (a licensed sales associate) and asks you to list his house, but under no circumstances to sell it to a minority, you should…
A. report the matter to the FHA and ask them to investigate.
B. call the KREC and get a form for the seller to complete.
C. comply with the request, because of your fiduciary duty to follow client instructions.
D. explain to the seller that he is violating the law and refuse the listing if he persists in his request.
D. explain to the seller that he is violating the law and refuse the listing if he persists in his request.
All of the following actions taken by a licensee could result in disciplinary action EXCEPT:
A. falling to report a conviction for a felony or for a misdemeanor involving sexual misconduct.
B. falling to disclose a material defect in the property.
C. falling to pay dues to the state REALTOR association.
D. acting in the capacity of licensee and undisclosed principal in any real estate transaction.
C. falling to pay dues to the state REALTOR association.
Which of the following is not an element of fraud:
A. The misrepresentation is know to be false.
B. The misrepresentation must cause injury.
C. The misrepresentation was a mistake by the licensee.
D. The misrepresentation was made to induce and act.
C. The misrepresentation was a mistake by the licensee.
Agent Fillmore wants to show a property that is listed by agent Pierce. Agent Pierce is not a member of the MLS and does not cooperate with other brokers. Agent Pierce refused to allow agent Fillmore’s buyers in to see the property. According to the Administrative Regulation of the KREC, agent Pierce:
A. is guilty of improper conduct for not cooperating with other agents.
B. Does not have to show the property to agent Fillmore’s buyers under any circumstances.
C. May, with written authority from the sellers, refuse to allow agent Fillmore’s buyers to look at the property.
D. Must allow agent Fillmore to show the property and split the commission if agent Fillmore’s buyers puchase the property.
C. May, with written authority from the sellers, refuse to allow agent Fillmore’s buyers to look at the property.
If a licensee swerves as a real estate agent and the loan originator in a real estate transaction, which of the following actions is NOT required under the license laws?
A. Advising the KREC that the licensee will be operating as a loan originator.
B. Disclosing to all parties that the licensee will be paid additional fees for this service.
C. Prior to serving in both capacities, registering with the Department of Financial Institutions.
D. Disclosing, in writing, the dual capacity to all parties.
A. Advising the KREC that the licensee will be operating as a loan originator.
If a licensed affiant misrepresents facts in a sworn statement, all of the following are TRUE EXCEPT:
A. He cannot be fined by the KREC unless the Circuit Court agrees to the fine.
B. He may be fined and/or imprisoned by the Circuit Court.
C. He may subject to disciplinary proceedings by the KREC.
D. He may be subject to criminal indictment for perjury.
A. He cannot be fined by the KREC unless the Circuit Court agrees to the fine.
In which of the following situation is a real estate licensee permitted to offer an inducement to a client?
A. When the inducement has been disclosed in writing.
B. Only when the inducement has been advertised in advance.
C. Only with the agreement of the seller.
D. A licensee is never permitted to offer an inducement.
A. When the inducement has been disclosed in writing.
All of the following are required for fraud to be proven against an agent EXCEPT:
A. Damage to a party.
B. Inducing a party to act.
C. A material misrepresentation.
D. Acting with malice toward a consumer.
D. Acting with malice toward a consumer.
Broker Goodman gave Broker Willing a referral. Broker Willing agreed to pay Broker Goodman a 10% referral fee. Regarding this situation, which of the following is TRUE?
A. Broker Goodman must be paid directly by the seller.
B. Broker Willing is in violation of State Statues.
C. Neither broker has violated License Law.
D. Both brokers are guilty of improper conduct.
C. Neither broker has violated License Law.
ABC Realty will pay for a moving van for any client or customer who buys or sells a home through their brokerage firm. ABC Realty:
A. Is prohibited from advertising this inducement,.
B. May use this ad to induce sellers but not buyers.
C. May do so with written disclosure to the client or customer.
D. Is in violation of the license law.
C. May do so with written disclosure to the client or customer.
Which of the following actions would NOT be considered improper conduct?
A. Failing to satisfy on or more of the fiduciary duties owed to the licensee’s client.
B. Paying a referral fee to a licensed out of state broker who has referred a prospect to you.
C. Assisting an unlicensed individual in the listing or sale of real estate in Kentucky.
D. Prohibiting a prospective purchaser from viewing a property without written direction from the owner.
B. Paying a referral fee to a licensed out of state broker who has referred a prospect to you.
A principal broker can do all of the following EXCEPT:
A. pay earned commission directly to sale associates who had sales close after the sales associate affiliated with another principal broker.
B. pay referral fees directly to sales associates in another office with the permission of the associate’s principal broker.
C. pay referral fees to principal brokers outside Kentucky.
D. split fees with a builder who is the principal broker for the building company.
B. pay referral fees directly to sales associates in another office with the permission of the associate’s principal broker.
