PRINCIPLES AND PRACTICES CHP 12 Flashcards
Jane is being transferred. Using the ABC Realty website to look at photos of listed houses, she makes an offer on one. The seller accepts, and settlement is handled with a long-distance conference call. When Jane arrives in town, nothing looks familiar. ABC determines that its website was linking to photos of another house. This could best be described as an example of
A. actual fraud.
B. bait and switch.
C. constructive fraud.
D. puffing.
C. constructive fraud.
A buyer’s agent has actual knowledge of structural damage to the floorboards of a home due to termite infestation. They inform their client that there are no termites in the home. The buyer signs a contract to purchase the property. Could the licensee be susceptible to claims of fraud?
A. Yes. They knowingly made an untrue statement that could be seen as an inducement to buy.
B. Yes, unless there are visible signs of termites, in which case the buyer should have recognized it.
C. No, because they are protected by the “as is” clause in the purchase agreement.
D. No, because they said there were no termites, which could be true at present.
A. Yes. They knowingly made an untrue statement that could be seen as an inducement to buy.
Which of these situations would LEAST LIKELY be considered an example of fraud?
A. A buyer’s agent knew their client used doctored W-2s to apply for a mortgage loan.
B. A licensee advertised a recently sold property as though it was available for purchase.
C. A listing agent did not disclose that their seller clients were getting divorced.
D. A listing agent did not tell the buyer about a lien on the property they had listed.
C. A listing agent did not disclose that their seller clients were getting divorced.
A listing agent heard that the state wants to build a freeway ramp through the neighborhood next year, and all the homes will be leveled. They decide not to disclose this, assuming the buyer would be reimbursed market value when the state condemns the house. Could the listing agent be susceptible to claims of fraud?
A. No, because the buyer should have done their due diligence.
B. No, because they have no evidence that this will happen for sure.
C. No, because this is not related to the condition of the property.
D. Yes, because they knowingly withheld material information.
D. Yes, because they knowingly withheld material information.
Which is NOT one of the sections in the REALTOR® Code of Ethics?
A. Duties Owed to Clients and Consumers
B. Duties Owed to Other REALTORS®
C. Duties Owed to the Public
D. Duties Owed to Real Estate Licensees
D. Duties Owed to Real Estate Licensees
Of these, which is MOST LIKELY to be considered an example of puffing?
A. “Beautifully-maintained colonial located in historic district”
B. “Charming country estate on 5 acres”
C. “Great bargain on the most prestigious street in town”
D. “Stunning lakefront views from this modern condominium”
C. “Great bargain on the most prestigious street in town”
Antitrust laws are in place to ensure that
A. all monies in financial transactions are accounted for.
B. competition in the marketplace is fair and unrestrained.
C. licensees have a minimum level of education and training to protect the public.
D. no one is discriminated against because of race, sex, or national origin.
B. competition in the marketplace is fair and unrestrained.
Which of these phrases is LEAST LIKELY to be evidence of a licensee’s conspiracy to commit an antitrust violation?
A. “If you list with us, just be aware that we will use only YES Title for the closing.”
B. “We traditional brokers should do something about Top’s discount fee policy.”
C. “Our brokerage charges 7%, but I can talk to the broker about lowering it for your house.”
D. “Your firm can have the listings north of Broad Street, and we’ll take the ones south of Broad.”
C. “Our brokerage charges 7%, but I can talk to the broker about lowering it for your house.”
A licensee maintains several websites, each directed at various niches, such as condo buyers, seniors, etc. However, listings are currently thin in the market. To keep the websites from looking skimpy, they decide to keep several sold or expired listings on the site. This could be an example of
A. bait and switch.
B. blind advertising.
C. collusion.
D. negligence.
A. bait and switch.
George is one of three brokers recently convicted of illegal boycotting. What did he and his fellow co- conspirators do?
A. They agreed to charge the same commission for specific services.
B. They divided up their town into four quadrants so
that each could focus on their specific area.
C. They decided to avoid showing clients homes listed by Discount Realty.
D. They included a clause in their listing contracts requiring clients to use AAA Co. as their home inspector.
C. They decided to avoid showing clients homes listed by Discount Realty.
Hank and Julie run brokerages on opposite sides of town. They decide they can save a lot of money on gas if they concentrate on their side only. Hank agrees to send customers interested in north side properties to Julie if she will send him any customers interested in south side properties. This is an example of
A. territory allocation.
B. blockbusting.
C. price-fixing.
D. redlining.
A. territory allocation.
Stan is interested in listing his house with licensee Tina because she is very successful. Tina knows that for the house to show well, the walls need to be painted and the carpet needs to be replaced. She tells Stan she’ll take the listing as long as he uses Ultimate Remodeling to do the work. Did Tina do anything wrong?
A. No, if Stan is OK about using Ultimate, Tina didn’t do anything wrong.
B. No, she didn’t do anything wrong if she doesn’t accept a fee from Ultimate.
C. No, she doesn’t have to accept the listing if she does not want to.
D. Yes, Tina could be guilty of promoting an illegal tie- in agreement.
D. Yes, Tina could be guilty of promoting an illegal tie- in agreement.
Bettina is a licensed salesperson for ABC Realty in Newtown. Her mother is selling a house in Oldtown, which is 100 miles away. Mom lists the property with ABC, but because Bettina’s name is well-known in Oldtown, and ABC Realty is not, Bettina puts up a yard sign with just her name on it. What kind of ad is this?
A. blind
B. spam
C. spot
D. tied-in
A. blind
You can contact a former client for up to ____ after a transaction closes even if that client is on the National Do Not Call Registry.
A. 3 months
B. 9 months
C. 12 months
D. 18 months
D. 18 months
After the weekly business meeting of XYZ Realty, two licensees decide it makes sense to be more focused in their prospecting. Licensee Anna decides to stay on the north side of town, and licensee Billy decides to stay on the south side of town. What type of antitrust violation might this situation be considered, if any?
A. boycotting
B. tie-in agreement
C. market allocation
D. no violation
D. no violation
