LAW CHP3 Flashcards
In relationship to their brokers, real estate licensees are usually considered
a. general agents.
b. inadvertent agents.
C. special agents.
d. universal agents.
a. general agents.
An apparent agent is one who
a. appears to be the agent of another but does not have actual authority.
b. appears to be working for the buyer instead of the seller.
C. has actual authority from the principal.
d. has implied authority from the principal.
a. appears to be the agent of another but does not have actual authority.
A real estate agency agreement
a. is required by Ohio’s Statute of Frauds to be in writing.
b. must be ratified by the principal.
c. must have an expiration date.
d. should be created by estoppel.
c. must have an expiration date.
The agent may terminate the agency relationship by renouncing it
a. as long as the agency agreement did not specify an expiration date.
b. at any time.
c. only if it is coupled with an interest.
d. only if the principal consents.
b. at any time.
Under which circumstance is a real estate agency relationship NOT terminated by operation of law?
a. The listing salesperson dies.
b. The broker loses their real estate license.
c. A seller is in bankruptcy proceedings.
d. A property was destroyed due to a fire.
a. The listing salesperson dies.
A real estate salesperson working for the listing broker is the
a. buyer’s agent.
b. buyer’s subagent.
c. cooperating agent.
d. seller’s subagent.
d. seller’s subagent.
The real estate broker who works with a buyer must provide the buyer with the Consumer Guide to Agency Relationships form
a. at the first substantive contact.
b. only if the buyer requests one.
c. only if it is a residential transaction.
d. when the seller directs the broker to provide one.
a. at the first substantive contact.
A real estate agent representing the seller is a fiduciary in relation to the
a. buyer.
b. buyer’s agent.
C. seller.
d. seller’s subagent.
C. seller.
A seller’s real estate agent drafted a purchase contract for the transaction instead of using a form. This is
a. completely legal; although, it is discouraged by the Ohio Bar Association and the National Association of REALTORS®.
b. legal as long as the buyer does not object.
C. standard practice in rural communities in Ohio.
d. the unauthorized practice of law.
d. the unauthorized practice of law.
Broker X takes the seller’s listing, but later decides he wants to buy the property himself. Which statement is TRUE?
a. It is legal for X to buy the property only if he agrees not to resell it for two years.
b. It is legal for X to buy the property only if he turns the listing over to another broker before making an offer.
C. It is legal for X to make an offer only if the seller understands that X himself is the prospective buyer.
d. It is not legal for a broker to buy a client’s property.
C. It is legal for X to make an offer only if the seller understands that X himself is the prospective buyer.
Which statement regarding dual agency is TRUE?
a. It is listed as unethical conduct in the Ohio Real Estate Commission’s regulations.
b. It must be disclosed in writing and consented to by the parties when the agent has an ongoing business relationship with one party and not the other.
C. It requires the agent to reveal everything one client tells him to the other client.
d. It was recently made illegal in Ohio.
b. It must be disclosed in writing and consented to by the parties when the agent has an ongoing business relationship with one party and not the other.
In Ohio, for all real estate purchase contracts, the seller is required to
a. disclose all known latent defects in the property to the buyer, whether or not the buyer asks about them.
b. disclose negative information about the property only if the buyer asks a direct question about a problem.
c. disclose negative information about the property only if the buyer has not signed an “as is” clause as part of the purchase contract.
d. make no statements regarding the condition of the property.
a. disclose all known latent defects in the property to the buyer, whether or not the buyer asks about them.
Which statement describes the difference between actual fraud and constructive fraud?
a Actual fraud is actionable and constructive fraud is not.
b. Actual fraud is intentional and constructive fraud is unintentional.
C False statements are actual fraud and failure to disclose information is constructive fraud.
d. False statements are constructive fraud and misleading actions are actual fraud.
b. Actual fraud is intentional and constructive fraud is unintentional.
A listing broker knew a termite infestation had caused structural damage but told the buyer, “You don’t have to worry about termites here. This house is solid.” The buyer signed a contract that included an “as is” clause. He discovered the termite damage when he moved in and sued. The broker
a. can be held liable because the “as is” clause is void in all real estate transactions.
b. can be held liable because their statements to the buyer were fraudulent.
C. cannot be held liable because their statements were merely an opinion.
d. cannot be held liable because of the “as is” clause.
b. can be held liable because their statements to the buyer were fraudulent.
Punitive damages
a. are awarded in addition to compensatory damages in some tort suits.
b. are awarded only in criminal cases.
C. may be awarded instead of exemplary damages in some tort suits.
d. must be paid out of the Real Estate Recovery Fund
a. are awarded in addition to compensatory damages in some tort suits.
