Practice Quizzes 1

Question 1

When testing the conduct of an agent while engaged in real estate related activities, the independent contractor (IC) provision in the broker-agent employment agreement cannot and does not change the sales agent’s classification as:

Answer 1

an agent of the broker.

Question 2

An outside salesperson is defined as a person who regularly works:

Answer 2

more than half of their time away from their place of employment.

Question 3

An agent needs to collect income data during an interview with a prospective broker, including:

Answer 3

the number of sales the agent is likely to close during their first year..
the share of the gross broker fees the agent will receive under the fee-sharing schedule offered by the broker.

Question 4

The best time for a sales agent to renegotiate their share of broker fees is:

Answer 4

at the height of a booming market.

Question 5

To keep claims from clients and others under control, a broker needs to maintain a:

Answer 5

risk reduction program.

Question 6

Agents are required to be members of the trade association that owns a multiple listing service (MLS) to post listings and access the MLS database.

Answer 6

False

Question 7

When a dual agency is established on a one-to-four unit residential sales transaction, the dual agent may pass on any pricing information from the buyer to the seller without the buyer’s prior consent.

Answer 7

False

Question 8

A broker must disclose to their seller the existence of an indirect interest one of the broker’s agents holds in the property.

Answer 8

True

Question 9

A Compensation Disclosure form is used to inform sellers/buyers of the broker’s ownership interest in an affiliated business.

Answer 9

False

Question 10

The content of the Agency Law Disclosure form is not dictated by statute.

Answer 10

False

Question 11

An Agency Law Disclosure form needs to be presented to all parties by an agent when listing, selling, buying or leasing for a term greater than one year:

Answer 11

commercial property..

mobilehomes.

Question 12

A separate agency confirmation provision is not mandated for inclusion in purchase agreement forms.

Answer 12

False

Question 13

An open listing does not need to contain an expiration date.

Answer 13

true

Question 14

A seller’s broker needs to disclose to the seller the broker fee they will receive on a net listing:

Answer 14

before the seller accepts a buyer’s offer.

Question 15

A broker is prohibited from including an advance fee provision in a guaranteed sale listing.

Answer 15

True

Question 16

A client’s oral promise to pay a broker fee entitles the broker to enforce collection of the fee.

Answer 16

False

Question 17

The diligent effort of a broker under an exclusive listing includes:

Answer 17

analyzing the property..

marketing the property.

Question 18

A broker will be paid a full listing fee on the further leasing of the listed property without the broker’s consent when a(n) ____________________ is included in the listing agreement.

Answer 18

withdrawal-from-sale clause

Question 19

A broker can require a seller to relist with them if the seller decides to sell within the cancellation period.

Answer 19

False

Question 20

A properly worded and perfected safety clause is enforceable:

Answer 20

even when a seller relists with another broker.

Question 21

The price agreed to in a purchase agreement is based on the property conditions “as disclosed.”

Answer 21

True

Question 22

A broker needs to keep all advance cost accounting records for at least:

Answer 22

3 years

Question 23

Placing a “For Sale” sign ___________ is a misdemeanor public nuisance

Answer 23

on private property with the owner’s permission.

on public property with the city’s permission

Question 24

Special agency duties owed to a buyer by a broker arise when the broker enters into an exclusive right-to-buy listing agreement with the buyer.

Answer 24

True

Question 25

The exclusive right-to-buy listing agreement is the agent’s offer to render services for a fixed period of time.

Answer 25

True

Question 26

A cooperating broker is used as the title for:

Answer 26

the subagent of the seller

Question 27

Records of an agent’s activities on behalf of a buyer during the listing period need to be retained by:

Answer 27

the buyer’s broker