National Brokerage Flashcards
An agreement in which a seller hires a broker to market a property creates an agency relationship between
the listing agent, buyer, and seller.
buyer and broker.
broker, buyer, and seller.
broker and seller.
broker and seller.
A utility right-of-way is an example of
an encroachment.
a lien.
an encumbrance.
a permit.
an encumbrance.
What kind of lease conveys a leasehold interest to an owner of a cooperative?
Net-net
Proprietary
Percentage
Index
Proprietary
AIDA stands for
Allowance, Involvement, Develop, and Action
Attention, Interest, Desire, and Action
Action, Involvement, Detail, and Allowance
Advanced, Intake, Design, and Action
Attention, Interest, Desire, and Action
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.
Refer them to another licensee.
Answer the buyer’s question to the best of your abilities.
Report the buyer to the Fair Housing Board.
Explain to the buyer that you, ethically and legally, cannot recommend housing based on religion.
Which of the following situations would give concern about working for the Sunny Valley Brokerage?
The office holds weekly staff meetings.
Most agents appear successful.
Agents seem to come and go quickly.
Office has a selection of training materials.
Agents seem to come and go quickly.
Property briefs are also called
property notes.
cheat sheets.
property flyers.
house information pads.
property flyers.
Which type of contract can have tax benefits for a seller?
Option to buy
Purchase and sale
Contract for deed
Lease
Contract for deed
Most apartment leases are
estates at will.
freehold estates.
estate at sufferance.
estates from period to period.
estates from period to period.
An agent owes all but which of these to his or her customer?
Disclosure
Funds accounting
Advertising
Skill
Advertising
Which statement about property management is FALSE?
Property management is a specialized field in real estate.
A property manager is a fiduciary.
Asset manager and resident manager mean the same thing.
A management agreement is an employment contract between the owner and the manager.
Asset manager and resident manager mean the same thing.
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
Level Grade
Ramped
Step
Graduated
Which of the following is NOT a resource for information regarding professional ethics?
Federal laws
Licensing regulations
Real estate marketing copy
Real estate associations
Real estate marketing copy
What is the purpose of a carryover clause?
Protects the seller if the buyer cancels the sale
Allows a six-week extension to the listing contract
Allows the broker to collect a commission for some period of time after the listing expires
Prevents the seller from doing an FSBO sale up to six months after the listing expires
Allows the broker to collect a commission for some period of time after the listing expires
What are persons called who act as buyers and check on fair housing compliance?
Fair housing guides
Compliance officers
Block watchers
Testers
Testers
What does risk management mean as it applies to property management?
Controlling and limiting risk through proper insurance
Limiting financial risk through the operating budget
Overseeing preventive maintenance
Keeping the grounds cleared to eliminate accident risk
Controlling and limiting risk through proper insurance
Which type of agreement assures that a broker will receive compensation regardless of who procures the buyer?
Gross listing
Net listing
Exclusive right to sell
Exclusive agency
Exclusive right to sell
The Brooks’ paid-off property sold for $247,600. What will they net after paying a 7.5% commission to their broker?
$215,830
$219,700
$227,792
$229,030
229,030
All closing real estate sales must be reported to the IRS on which form?
Estate Tax Form
Hud-78 Form
Form 1099
Form 1199
Form 1099
When a seller agrees to an MLS listing, what is the seller authorizing?
Designated agency
Subagency
Dual agency
Exclusive agency
Subagency
Agent Sam gets about 6 hours of floor time each week. What is a major duty for Agent Sam during this time?
File office documents from previous transactions.
Assist other agents.
Prepare mailings.
Respond to incoming sales calls.
Respond to incoming sales calls.
What is the purpose of the Statute of Frauds?
It invalidates certain oral contracts.
It requires certain conveyance-related contracts to be
in writing.
It nullifies oral leases and listing agreements.
It eliminates fraud in real estate contracts.
It requires certain conveyance-related contracts to be in writing.
Puffing is a term characterized by which of the following actions?
Providing opinions
Giving fraudulent statements
Giving objective information
Misrepresenting the facts
Providing opinions
Which of the following situations would cause the IRS to think that a contractor is really an employee?
The licensee attends sales meetings.
The licensee gets a commission.
The licensee takes paid sick days.
The licensee pays for transportation expenses.
The licensee takes paid sick days.
A licensee tells a neighborhood watch group that Vietnamese are moving into the neighborhood. What is this broker guilty of?
Redlining
Typecasting
Steering
Panic selling
Panic selling
Which party holds the escrow money when a dispute occurs?
Title Company
Court Appointed Escrow Agent
The Sponsoring Broker
Mortgage Lender
The Sponsoring Broker
Earnest money is usually made in the form of a
holding draft.
check.
letter of credit.
cash deposit.
check
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.
The buyer brings an open bank draft and finds out the final amount at the closing meeting.
The broker finds out from HUD and tells the buyer how much to bring.
The lender calculates what’s owed and tells the buyer what to bring.
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.
Owning a building typically
increases marketing abilities for the company.
allows better market share of the business.
reduces the flexibility of the business.
increases the flexibility of the business.
reduces the flexibility of the business.
If a group of brokers has a meeting to set commission rates, what does this violate?
Fair Housing Act
Sherman Antitrust Act
Civil Rights Act of 1968
Jones v. Mayer
Sherman Antitrust Act
A building with integrated office and retail space would be considered
a Class A building.
a mixed-use property.
institutional real estate.
a flex-space development.
a mixed-use property.
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?
MLS Form BB-1
A copy of the original listing agreement
The original listing agreement
An MLS form.
An MLS form.
A broker can enter into a single agency agreement with
seller and secondary principal.
a renter and landlord.
a buyer.
a seller and buyer.
a buyer.
How should a seller deal with an interested party that shows up at their front door unannounced and wants to see the house?
The seller should conduct a tour.
Take the person’s name and then call the office immediately so an agent can come to do the showing.
Give the visitor a flyer and the agent’s business card.
Tell the visitor when the next open house is scheduled.
Take the person’s name and then call the office immediately so an agent can come to do the showing.
Which of the following referral fees are NOT prohibited by RESPA?
Title search referral fees
Fees among cooperating brokers
Title insurance referral fees
Inspection referral fees
Fees among cooperating brokers
What type of budget is used to forecast income and expense over some period of years?
Operating
Variable
Capital Reserve
Stabilized
Stabilized
Disclosure is sometimes called what?
Openness
Honesty
Notice
Diligence
Notice
Which document is the most important at closing?
Settlement statement
Deed
Inspection reports
Listing contract
Deed
Which person is responsible for filling out a property disclosure statement?
Broker’s office assistant
The cooperating agent
The sellers
The listing agent
The sellers
Which form of agency is illegal in most states
Single agency
Buyer’s agency
Undisclosed dual agency
Subagency
Undisclosed dual agency
Which of the following is an advantage of investing in a nonresidential property?
No cost-of-living provisions
Reduced payroll taxes
No lease coverage for production interruptions
Limited rent controls
Limited rent controls
Which method can be helpful in tracking your advertising results?
Mark outs
Error codes
Assigning a code
Back testing
Assigning a code
What is the definition of a principal?
A broker who owns a real estate firm
A person who delegates another to act on his or her behalf through an agency relationship
Someone who buys a property directly from an owner with no representation
A person who expects loyalty and accounting from the person who purchases the property
A person who delegates another to act on his or her behalf through an agency relationship
What is the typical time period required to maintain escrow records?
3-5 days
3-5 weeks
3-5 months
3-5 years
3-5 years
When an agency relationship is terminated, which of the following responsibilities still remains in force?
Skill
Confidentiality
Obedience
Care
Confidentiality
Which of the following is considered a variable expense?
Real estate taxes
Insurance
Advertising
Utilities
Utilities
What can you do to increase your chances of extending a listing that is about to expire?
Call some friends and ask them to tour the property.
Meet with your sellers a few weeks before the listing expiration and review with them your marketing efforts.
Draw up an extension contract and mail it to the seller’s two weeks before the listing expires.
Meet with the sellers after the listing expires and write a new listing.
Meet with your sellers a few weeks before the listing expiration and review with them your marketing efforts.
Which type of real estate advertisement is typically located in areas with a high presence of foot traffic?
Billboards
Radio Ads
Door Hangers
Shopping Guides
Shopping Guides
What is the best approach to establishing a buyer’s possession?
Buyers take possession 2 days after the transaction close.
Buyers take possession on the day of the close.
Sellers should remain on the property at least 3 days after the closing date.
Sellers should move from the property at least 5 days before the close date.
Buyers take possession on the day of the close.
Which of the following classes are not protected by federal law?
Military status
Sex
Color
Handicap
Military status
