questions real estate exams Flashcards
The salesperson must be competent and not act in negligent manner. this is known as
reasonable care
the salesperson must work in the best interest of the client. this is known as
loyalty
the salesperson must communicate with the client and present all offers this is known as
disclosure of information
the salesperson must safeguard any money or property held on behalf of the client. this is known as
accountabilty
the salesperson must act in accordance to the client’s demands and instructions this is known as
obedience
your client is going through a divorce and must quickly sell their house. this fiduciary duty requires that this information remain private, as it may affect a buyer’s office price. this is
confidentiality
you have a client who is looking for a 2 bedroom rental apartment in a desirable neighborhood. you find an apartment that matches your clients criteria but the apartment is listed well below market value. Although you personally may want the apartment for yourself, this fiduciary duty requires that you present the apartment to your client first. this is
loyalty
your expertise as a salesperson lies in residential rentals. according to this fiduciary duty, you may have to pass on a deal if a client comes to you looking to lease a new 50,000 sq.ft office space this is
reasonable care
your client demands that you list her property below market value as she wants to sell the property quickly. although you can earn a higher commission I the property were sold at market value, this fiduciary duty requires you to follow through with your clients listing price. this is
obedience
a mortgage broker offers to give you a referral fee if you refer your buyer to them to obtain a mortgage. this fiduciary duty requires that you disclose the referral fee to the buyer as there can be no hidden profits in the deal. this is
accountability
A property was sold for $555,000. The total commission for the transaction was 5%. The listing broker and buyer’s broker agreed to split the commission 50/50. What is the amount of commission paid to the buyer’s broker..
13,857
The one by whom a broker is employed is known as a
principal
Justin, a real estate salesperson, would like to offer his colleague a referral fee for referring him a new client. Before offering the referral fee, however, Justin obtained informed consent from the client. Why must Justin obtain consent from the client…?
Justin has a fiduciary duty to the client
Amy’s house was listed for $455,000. The property eventually sold for $410,000. The agreed upon commission was 5%. How much did Amy pay in commissions at the closing of the property…?
20,500
Justin, a real estate salesperson with City Brokerage, recently met a client who is looking to purchase a condo in Manhattan. Since Justin specializes in Brooklyn rentals, he decides to refer the client to a colleague of his at City Brokerage and instead receive a referral fee. If Justin’s client closes a deal with the other salesperson, who ultimately pays Justin his referral fee…
Justin’s sponsoring broker
Appointing one or more individual agents in a firm to represent only the interests of the seller, and one or more different individual agents in the firm to represent only the interests of the buyer, when a firm has an “in-house” dual agency situation, is known as…?
Designated Sales Agent
An agent has become aware of information that may affect the value of his client’s property. If the agent reveals this information to a prospective buyer, he will be in breach of which fiduciary duty.
Confidentiality
Mark is a real estate agent who has entered into an agency relationship with David, a homeowner, to sell David’s house. They agreed to set Mark’s commission at 6% of the sales price. How else may the commission be calculated…?
flat fee
A contract where one transaction depends upon another is known as a…?
Tie-in Arrangement
If two or more brokerage firms conspire to not do business with another brokerage firm, what may they be liable of…?
Group Boycotting
An agreement of employment of a broker to the exclusion of all other brokers is known as…?
Exclusive Agency
A property was sold for $230,000. The total commission for the transaction was 6%. The listing broker and buyer’s broker agreed to split the commission 50/50. If the listing broker’s real estate agent was responsible for the sale of the property and receives a 60/40 split with his broker, how much commission is paid to the real estate agent…?
4140
An agent who represents the buyer of real property is referred to as a…?
Buyer’s Agent
Which of the following fiduciary duties is conversely related to the duty of Disclosure…?
Confidentiality
A real estate salesperson is typically what type of agent…?
Special Agent
Which of the following is considered a principal in an agency relationship…?
owner
The ‘L’ in the acronym ‘OLD CAR’ refers to which of the agent’s six fiduciary duties…?
loyalty
The ‘C’ in the acronym ‘OLD CAR’ refers to which of the agent’s six fiduciary duties…?
Confidentiality
An actual agency created by written or oral agreement between the principal and the broker is known as…?
expressed agency
In a typical agency structure, who is the primary agent to the client…?
real estate broker
John is interested in purchasing a two bedroom house and enters into an agency relationship with Chris, a real estate broker, to help him find a house. According to the fiduciary duties Chris owes to John, which of the following is true…?
According to the duty of Obedience, Chris should not show John one bedroom houses
Which of the following is considered a principal in an agency relationship…?
tenant
According to an agent’s fiduciary duties, the agent must present all offers to his/her client. Which of the following fiduciary duties best reflects this…?
Disclosure
Representing both principals (seller and buyer) in a transaction is known as…?
dual agency
According to an agent’s fiduciary duties, the agent must be competent and not act in a negligent manner. Which of the following fiduciary duties best reflects this…?
Reasonable Care
According to an agent’s fiduciary duties, the agent must not change or modify the financial terms of a deal. Which of the following fiduciary duties best reflects this…
Accountability
A property was sold for $650,000. The total commission for the transaction was 6%. The listing broker and buyer’s broker agreed to split the commission 50/50. What is the amount of commission paid to the buyer’s broker…?
39,000
An agent and the principal enter into an agency relationship through what document…?
listing agreement
Which of the following is an example of obedience, one of the six fiduciary duties an agent owes his/her client…?
Only showing the type/size of house the client is looking for
John, a real estate broker, and Chris, a property owner, have entered into an agency relationship. Soon after, a dispute arose in regards to how much commission should be paid to John if he finds a buyer for Chris’ property. What should they do to resolve their dispute…?
Refer back to the listing agreement, which states the agreed upon commission
The ‘O’ in the acronym ‘OLD CAR’ refers to which of the agent’s six fiduciary duties…?
Obedience
Which of the following fiduciary duties is conversely related to the duty of Confidentiality…?
disclosure
In a typical transaction, who directly pays the real estate salesperson his/her commission…?
broker
John, a real estate salesperson, was referred a client from another agent. After successfully closing on the deal, John would like to offer a referral fee to the agent who referred the client. What must John obtain first before offering a referral fee…?
informed consent of the client
A written explanation, to be signed by a prospective buyer or seller of real estate, explaining to the client the role that the broker plays in the transaction is described on the…?
agency disclosure form
The broker, as a franchisee of a national brokerage, is considered what to the national brokerage…?
sub-agent
The first contact or meeting by a licensee when some detail and information about the property is shared with parties who express some interest in the real estate transaction is known as…?
first-substantive contact
According to this fiduciary duty, an agent cannot fail to reveal material information about a property in an effort to secure the sale…?
disclosure
John is a real estate broker and wants to enter into an agency relationship with Steve, a property owner. What document must John and Steve execute in order to enter into an agency relationship…?
listing agreement
According to this doctrine, a principal cannot claim that an implied agency relationship did not exist…?
Estoppel
A property was sold for $625,000. The total commission for the transaction was 5%. The listing broker and buyer’s broker agreed to split the commission 50/50. If the listing broker’s real estate agent was responsible for the sale of the property and receives a 50/50 split with his broker, how much commission is paid to the real estate agent…?
7812.5
An agent who represents the seller of real property is referred to as the…?
seller`s agent
The employer of an agent or broker is known as a…?
principal
John, a real estate salesperson, has entered into an agency agreement with a client whose scope is limited to that described in the agreement. This level of authority suggests that John is what type of agent…?
special agent
A property was sold for $750,000. The total commission for the transaction was 6%. The listing broker and buyer’s broker agreed to split the commission 50/50. If the buyer’s broker’s real estate agent was responsible for the sale of the property and receives a 40/60 with his broker, how much commission is paid to the real estate agent…?
9000
In order to disclose confidential information, the agent must first obtain what from the client…?
written consent
Justin, a real estate salesperson, would like to offer his colleague a referral fee for referring him a new client. Before offering the referral fee, however, Justin obtained informed consent from the client. Justin’s actions are an example of what policy…?
dull disclosure
Many brokerages allow in-house referral fees when an agent refers a client to another agent. Who ultimately distributes the referral fee to a referring agent…?
the sponsoring broker
According to an agent’s fiduciary duties, the agent must work in the best interests of his/her client. Which of the following fiduciary duties best reflects this…?
loyalty
A property was sold for $525,600. The total commission for the transaction was 6%. The listing broker and buyer’s broker agreed to split the commission 50/50. If the buyer’s broker’s real estate agent was responsible for the sale of the property and receives a 65/35 split with his broker, how much commission is paid to the real estate agent…?
10249.2
According to the duties a principal owes to the agent, the principal commits to doing which of the following…?
Compensate the agent for a successful transaction
Mark, a property owner, signed an agency agreement with Andrew, a real estate broker, to sell his house. What type of agency was created between Mark and Andrew…?
expressed agency
Lisa is a real estate broker who has entered into an agency relationship with Robert, a landlord looking to lease one of his apartments. Lisa brings Andrew, a prospective tenant, to Robert with an offer to rent Robert’s apartment. Which of the following statements is correct…?
Lisa is the Agent, Robert is the Principal, and Andrew is the Customer
Susan and Mark are in the process of getting a divorce and need to sell their house quickly. They have hired a real estate broker to help facilitate the transaction. According to which fiduciary duty must the information regarding the divorce not be disclosed…?
confidentiality
An agent of a broker who is already acting as an agent of a principal is known as a…?
sub-agent
According to the Buyer’s Agency Agreement, which of the following in an obligation owed by the broker to the buyer…?
Two brokers entered into an agreement whereby one broker will only do business on the east side of the city and the other broker will only do business on the west side of the city, in essence creating a market allocation agreement. What would this agreement limit…?
Vicarious Liability
According to the Buyer’s Agency Agreement, which of the following is considered a buyer’s obligation to the broker…?
Conduct all negotiations through the broker
Only after January 1, 2011 was this permitted, as stated under Section 443 of the NYS Real Property Law…?
dvNCE CONSET TO DUAL AGENCY
A person that provides services to another under terms specified in a contract or within a verbal agreement is known as an…?
independent contractor
According to the Buyer’s Agency Agreement, which of the following is NOT an obligation owed by the buyer to the broker…?
Have a personal real estate attorney on call to help with the negotiations
What should be provided before a dual agency relationship occurs…?
informed consent by all parties
When dual agency exists between the landlord’s agent and tenant’s agent, which fiduciary duty may be most at risk to both principals…?
undivided loyalty
Brian, a property owner, recently accepted an offer from an interested buyer. Brian’s attorney recommended that he NOT fill out the Property Disclosure Form. If Brian takes his attorney’s advice, how much money will he have to pay at the closing in the form of a credit…?
500
The Listing Price is also referred to as what…?
The price agreed upon in the contract between the seller and seller’s agent
According to this document, a seller’s agent owes his/her client the following six fiduciary duties; reasonable care, undivided loyalty, confidentiality, full disclosure, obedience, and duty to account…?
NYS disclosure form
Which of the following is a typical characteristic of an independent contractor relationship…?
Which of the following is a typical characteristic of an independent contractor relationship…?
If two brokerage firms enter into a market allocation agreement, what may they be limiting…?
competition
MLS is an acronym for what…?
Multiple Listing Service
At what time during a transaction may a principal dissolve a dual agency arrangement…?
any point in the transaction
According to the Buyer’s Agency Agreement, which of the following is the broker’s obligation to his/her client…?
assist in locating available property
A Lead Paint Disclosure Form is required for all properties built prior to what year…?
1978
Josh, a real estate broker, is hesitant to enter into a dual agency arrangement as it may affect these duties to his client…?
Fiduciary Duties
When an agent represents either the buyer or the seller, but NOT both in a transaction, the agent is considered what…?
dual agent
Which of the following is NOT an obligation owed by the broker to the buyer, as stated in the Buyer’s Agency Agreement…?
Inspect potential properties for structural defects
If the commission for a transaction is 6% and the seller’s agent agrees to share 50% of his/her commission with participating brokers, what percentage of the purchase price is shared with the buyer’s broker…?
3%
Mark, a real estate agent, is attempting to rent an apartment on behalf of his client. Another agent, who works for Mark’s broker, is seeking to show the apartment to his client. In this scenario, what type of agency exists…?
dual agency
Mark is a real estate broker who represents a tenant seeking to rent an apartment. When do Mark’s fiduciary duties to his client terminate…?
when his client signs the lease
In a single agency transaction, what are the seller’s broker’s duties to the buyer…?
to be fair and honest
Ben, a real estate agent, represents several buyers. In an attempt to increase his commission, he decides to have his clients bid against the same property without their knowledge or consent. Which fiduciary duty has Ben breached…?
reasonable care
When a broker is involved in a dual agency arrangement, whereby he/she designates sales agents to represent both the buyer and seller, the broker owes a fiduciary duty to whom…?
An estate which the tenant holds his own right, without being joined in interest with any other person is known as
estate in severalty
An ownership of realty by two or more persons, each of whom has an undivided interest, without the “right of survivorship” is known as
tenancy in common
Ownership of realty by two or more persons, each of whom has an undivided interest with the “right of survivorship” is known as
joint tenancy
Ownership of real property by a married couple in which interests cannot be transferred without the consent of the other spouse is known as
tenancy by the entirely
Absolute ownership of real property is known as what…?
Fee Simple Estate
In this type of estate, the owner is entitled to the entire property with unconditional power of disposition during the owner’s life and descending to the owner’s heirs or distributees…?
Fee Simple Estate
A lien imposed against property without consent of the owner, e.g., taxes, special assessments.
Involuntary Lien
A contractual or consensual lien that is created by an action taken by the debtor, such as a mortgage loan to buy real estate.
Voluntary Lien
An instrument in writing, duly executed and delivered, that creates a lien upon real estate as security for the payment of a specified debt, which is usually in the form of a bond.
Mortgage
A lien that attaches to all personal and real property of a person or firm.
General Lien
A lien that only binds to a specific asset or property.
Specific Lien
A legal document, filed in the office of the county clerk giving notice that an auction or proceeding is pending in the courts affecting the title to the property. (Not applicable in commission disputes.)
Lis Pendens
A security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.
Mechanic’s Lien
A lien imposed by law upon a property to secure the payment of taxes.
Tax Lien
Any right to or interest in the land interfering with its use or transfer, or subjecting it to an obligation.
Encumbrance
A legal document used to make the claim of one party junior to (or inferior to) a claim in favor of another.
Subordination Agreement
A right to cross or otherwise use someone else’s property for a specified purpose.
Easement
A type of negative easement. This easement prevents an adjoining land owner from building any structure that would obstruct the passage of light or air from reaching the dominant land.
Easement for Light and Air
An easement that benefits an individual or a legal entity, rather than a dominant estate.
Easement in Gross
An easement that benefits the dominant estate and “runs with the land”. In other words, an easement appurtenant generally transfers automatically when the dominant estate is transferred.
Easement Appurtenant
Something which is outside property itself but belongs to the land and adds to its greater enjoyment such as a right-of-way or a barn or a dwelling.
Appurtenances
A parcel of real property that has an easement over another piece of property (the servient estate).
Dominant Tenement
A parcel of real property that is encumbered by an easement of a dominant estate.
Servient Tenement
Parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access.
Easement by Necessity
Implied easements granted after the dominant estate has used the property in a hostile, continuous, and open manner for a statutorily prescribed number of years.
Easement by Prescription
The creation of an easement by one party expressly transferring the easement to another party.
Easement by Grant
An easement that is not created by express statements between the parties; but as a result of surrounding circumstances that dictate that an easement must have been intended by the parties.
Easement by Implication
An easement created by the government or government agency that has exercised its right under eminent domain.
Easement by Condemnation
A wall built along the line separating two properties, partly on each, which wall either owner, the owner’s heirs and assigns has the right to use; such right constituting an easement over so much of the adjoining owner’s land as is covered by the wall.
Party Wall
A building, part of a building, or obstruction which intrudes upon or invades a highway or sidewalk or trespasses upon the property of another
Encroachment
Something which is outside property itself but belongs to the land and adds to its greater enjoyment such as a right-of-way or a barn or a dwelling.
Appurtenances
Permission granted by a party to another party as an element of an agreement between both parties.
