Section 4 Multiple Choice Flashcards
Which residential sales disclosure form does NOT have to be kept for 5 years?
1) Single agency disclosure
[A] 2) Transaction broker disclosure
3) Transition to transaction broker disclosure
4) No brokerage relationship disclosure
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[Section 4F, Slide 61]
In what type of agency relationship is the client responsible for the acts of the broker?
1) No brokerage
2) Special
[A] 3) Single
4) Transaction
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[Section 4D, Slide 10]
Sellers Kevin and Nancy both feel comfortable handling their real estate transaction without the assistance of an agent’s knowledge or skill. As such, they choose to waive agency representation. What kind of relationship is formed?
1) Dual agency relationship
2) Single agency relationship
3) Arm’s length relationship
[A] 4) No brokerage relationship
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[Section 4C, Slide 13]
Lou Agent with Top Notch Realty had listed a 100-unit apartment complex for sale. Sam Agent also with Top Notch Realty had a buyer interested in buying the property. In order to work as designated sales associates, what events had to take place?
1) Have the buyer sign required disclosures describing the designated sales agency relationship and stating that the buyer had assets of $1 million or more
2) Have the seller sign required disclosures describing the designated sales agency relationship and stating that the seller had assets of $1 million or more
[A] 3) Have both the buyer and seller sign required disclosures describing the designated sales agency relationship and stating that each the buyer and seller had assets of $1 million or more
4) They are not allowed to work in this capacity as the designated sales associates only applies to residential real estate
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[Section 4F, Slide 17]
Buddy Bear Broker had a sale that failed to close. How long does Buddy Bear Broker have to keep the applicable agency disclosure documents?
1) 3 years
2) 4 years
[A] 3) 5 years
4) 7 years
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[Section 4F, Slides 56 & 57]
Which agency relationship has the broadest and most comprehensive form of agency duties?
[A] 1) Universal agent
2) General agent
3) Special agent
4) Subagent
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[Section 4A, Slide 66]
Seller Skip is in a hurry to sell his home. Thus, he wants his agent Alan Agent to let buyers know that he will consider all offers. Alan Agent has a transaction agency relationship with Seller Skip. What should Alan Agent do to adhere to the duty of limited confidentiality?
1) Alan Agent should not share this type of confidential information no matter what
[A] 2) Alan Agent should have Seller Skip give permission in writing to disclose to buyers that Seller Skip will consider all offers.
3) Having been told by Seller Skip that it is okay to disclose the information, Alan Agent is free to share it with all buyers
4) Alan Agent can only share it with agents working in the same brokerage as Alan Agent
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[Section 4E, Slide 91]
Sales Associate Jay Bird held an open house for one of his sellers for which he represented as a single agent. A potential buyer reported that the home was too small for his needs but spent about an hour at the property asking many questions about other homes for sale. Which of the following statements is TRUE regarding this situation?
1) Jay Bird was required to make a no brokerage disclosure before letting the buyer enter the open house
2) Jay Bird was required to make a no brokerage disclosure before responding to general questions about the property
3) Jay Bird was required to make a no brokerage disclosure before communicating about real estate services available
[A] 4) Jay Bird was under no obligation to make a disclosure unless he agreed to show him other property and didn’t intend to represent the buyer as a transaction broker.
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[Section 4B, Slides 78-80]
A broker associate listed a villa home for $320,000 as a single agent. A sales associate from a competing firm called the listing associate to inform them of a verbal offer of $250,000. The listing associate did not present the verbal offer to the seller. Which statement applies to this situation?
1) Licensees are required to present written offers only.
[A] 2) The listing associate was required to present the verbal offer to the seller when acting as a single agent or a transaction agent.
3) Licensees are required to present all written and verbal offers only when working in the capacity as a single agent.
4) The listing associate was not required to present the verbal offer if the seller had indicated in previous verbal conversations that she only wanted to consider written offers.
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[Section 4D, Slides 96-100]
Sales associate Jo King took a listing on behalf of Broker Barbara knowing that the seller was covering up a major crack in the foundation by a pile of landscaping bricks. Broker Barbara was never told about the crack. The property sold to a buyer who failed to have the property inspected. After discovering the crack, the buyer sued both Jo King and Broker Barbara. What would be the likely charge?
[A] 1) Both could be charged with misrepresentation and fraud even though only Jo King knew about the crack
2) Only Jo King could be found guilty of misrepresentation and fraud because Broker Barbara knew nothing about the crack
3) Only Broker Barbara could be found guilty of misrepresentation and fraud because the agency relationship is between broker and principal, not the sales associate
4) The buyer could not sue because the buyer had an opportunity to inspect the property
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[Section 4C, Slides 33 & 34]
Which duties apply to both single agency and transaction brokerage relationships but not to the no brokerage relationship?
[A] 1) Use skill, care, and diligence in the transaction and Present all offers and counteroffers in a timely manner
2) Exercise limited confidentiality and Perform additional duties as mutually agreed
3) Account for all funds and Deal honestly and fairly
4) Loyalty and Obedience
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[Section 4E, Slide 20 & 42]
When representing a seller as a single agent, which of the following is lawful?
1) Also, working with the buyer as a single agent in the same transaction
2) Also, working with the buyer in the same transaction but as a transaction agent
3) Having another agent in the same brokerage work with the buyer as a single agent
[A] 4) Also, working with the buyer but as a no brokerage relationship capacity
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[Section 4D, Slide 24]
Broker Chris Cross was in a single agency relationship with a buyer. Broker Chris Cross made an offer on behalf of the buyer to a For Sale by Owner with the condition that the seller pay Broker Chris Cross a 3% commission. What written disclosure should Broker Chris Cross have made to the For Sale by Owner?
1) Transition to Transaction Agent Disclosure
[A] 2) No brokerage relationship disclosure
3) Single Agency Disclosure
4) Dual Agency Disclosure
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[Section 4C, Slides 20-22]
A real estate broker is typically authorized by a principal to help in the sale of a house by acting as what?
1) Universal agent
[A] 2) Special agent
3) General agent
4) Nonagent
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[Section 4A, Slide 78]
When the broker is acting as general agent by conducting property management duties, what type of relationships do the licensees employed by the broker have with the principal?
1) Special agent
2) General agent
3) Universal agent
[A] 4) Subagent
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[Section 4B, Slides 16-18]
