Real Estate Practice: Q 1/Chp 1-6

Question 1

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:
a. an agent of the client.
b. an agent of the broker.
c. Both a and b.
d. Neither a nor b.

Answer 1

b. an agent of the broker. (pg 6)

Question 2

2) An outside salesperson is defined as a person who regularly works:
a. more than half of their time away from their place of employment.
b. less than half of their time away from their place of employment.
c. Both a and b.
d. Neither a nor b.

Answer 2

a. more than half of their time away from their place of employment. (pg 8)

Question 3

3) An agent needs to collect income data during an interview with a prospective broker, including:
a. the number of sales the agent is likely to close during their first year.
b. the share of the gross broker fees the agent will receive under the fee-sharing schedule offered by the broker.
c. Both a and b.
d. Neither a nor b.

Answer 3

c. Both a and b. (pg 15)

Question 4

4) The best time for a sales agent to renegotiate their share of broker fees is:
a. at the height of a booming market.
b. during the slowdown following the boom.
c. just prior to an upswing in sales.
d. None of the above.

Answer 4

a. at the height of a booming market. (pg 19)

Question 5

5) To keep claims from clients and others under control, a broker needs to maintain a:
a. multiple listing service (MLS).
b. risk reduction program.
c. low turnover rate.
d. All of the above.

Answer 5

b. risk reduction program. (pg 27)

Question 6

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.
True
False

Answer 6

False (pg 35)

Question 7

7) A ____________ relationship is created between a seller and a buyer’s agent when the seller pays the buyer’s agent’s fee.
a. subagency
b. dual agency
c. Both a and b.
d. Neither a nor b.

Answer 7

d. Neither a nor b. (pg 39)
(Brokers and agents working for buyers to locate suitable property are not considered agents of the seller simply because they show their buyers properties listed with other brokers. Buyer’s brokers do not typically conduct themselves as subagents of the seller or as dual agents representing both seller and buyer.)

Question 8

8) 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.
True
False

Answer 8

False (pg 42)

Question 9

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

Answer 9

True (pg 46)

Question 10

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

Answer 10

False (pg 46)
The referral of a client to a financially controlled business, owned or co-owned by the broker must be disclosed by use of an ‘affiliated business arrangement (ABA) disclosure’