State Laws Brokerage Relationships True/False Flashcards
Broker is NOT required to prove procuring cause in order to collect a commission under an exclusive right of sale listing.
True
Broker is NOT required to prove procuring cause in order to collect a commission under an open listing.
False
Seller’s property is listed for $65,000. Seller tells broker that seller will accept an offer of $60,000. Broker must disclose this information to all prospective buyers.
False:
Must keep confidential
Seller is showing the property to broker. Seller tells broker about a problem with the septic system & asks broker NOT to disclose the condition. Broker should explain that to do so they would BOTH be violating the law.
True
Broker discovers a hidden problem with the condition of Seller’s listed property. After being notified of the problem Seller orders broker NOT to disclose the problem. Under the circumstances, broker should cancel the listing.
True
Sales Associate & a group of friends have purchased property for investments. Sales Associate wants to earn a commission regardless of who procures the buyer when they later sell the land. This type of listing is exclusive agency.
False:
Exclusive Rights of Sale
Broker has an exclusive right of sale listing on Seller’s property. While seller is out of town broker finds a buyer to make an offer on the property. Broker signed the contract for sale & purchase on behalf of seller. This was acceptable because broker held an exclusive right of sale listing.
False:
Broker did not have a power of attorney
Someone who is granted the power of attorney is principal’s attorney-in-fact.
True
Seller asked sales associate to help sell the house. Sales Associate agreed to do so. This is an implied listing.
True
A single agency exists. The duties owed include loyalty, honesty, & obedience.
True
Seller has entered into a transaction broker relationship with broker. The broker owes the duty of full disclosure.
False
A transaction broker owes the duty of limited confidentiality.
True
Laundromat owner allows friend to place a sign in the front window advertising friend’s house for rent. If rented, friend agrees to give owner tickets to the magic for the remainder of the season. Owner is guilty of acting as a real estate broker without a license.
True
Although the state & regional REALTOR association did not condone it, brokers in a local MLS agreed to charge a set fee for services. Since it was only the local group, this is NOT a violation of the Sherman & Clayton Antitrust Laws.
False:
This is price-fixing
A broker who charges a 10% commission is in violation of the Sherman & Clayton Antitrust laws.
False
A transaction broker owes limited confidentiality.
True
Seller has agreed to list with only one broker & has retained the right to find they buyer without paying a commission. Seller has signed an open listing.
False:
Exclusive agency listing.
A buyer’s binder check received by Sales Associate must be delivered to Broker immediately.
True:
Immediately is by the next business day
Binder money is evidence of the buyer’s good faith.
True
A buyer’s binder check must be deposited by the broker within 3 business days of receipt from the sales associate.
False:
3 business days from receipt by the sales associate
Binder money is required in every residential real estate transaction.
False
Sales associate receives a promissory note as binder money. Broker must keep it in a safe place.
True
A promissory note is a legal tender & may be deposited in an escrow account.
False
The purchase price is entered on the closing statement as a credit to the seller & a debit to the buyer.
True
Unpaid city & county taxes are entered on the closing statement as a credit to the seller & debit to the buyer.
False:
Debit seller and credit buyer
A listing agreement violates the Statute of Frauds if it is patrol with a term less than 12 months.
False:
Patrol listings of 12 months or less are exempt
Rental property managers may pay a referral fee to tenants not to exceed $50.
True
The buyer of a condominium sends written instructions to the licensee to cancel the purchase of a resale condominium within 3 business days of receipt of condominium documents. Broker may return the earnest money deposit without Seller’s permission.
True
Sales associate who receives an earnest money deposit on Friday morning must turn it over to broker by Saturday.
False:
Saturday is not a business day
Example: sales associate, who receives an earnest money deposit on Friday morning must turn it over to broker by Saturday. Answer: false.
In the above example, assuming no holidays, broker must deposit the money by end of day, Wednesday.
True
The authorized brokerage relationship disclosure requirements of Florida statues, chapter 475. Applied to a contract to purchase 8 acres of undeveloped agricultural property.
True
Full confidentiality is required in single agency relationships, but NOT in transaction broker relationships.
True
Broker uses a little company to hold escrow funds. Broker must receive a written receipt for each deposit.
True
The chapter 475 definition of residential real estate includes unimproved property zoned for 6 houses.
False
A parcel of land zone for more than 4 condo units is defined as residential real estate.
False
Agricultural property of 10 or fewer acres is residential real estate.
True
A fiduciary relationship includes the responsibilities of: skill, care & diligence; loyalty; confidentiality; disclosure; obedience; & accounting.
True
The maximum amount per hundred dollars that can be charged for a documentary stamp tax is $.35.
false:
$.70
The purpose of recording a deed is to give constructive notice.
True
If Adidas recorded one, may assume that the title is merchantable.
False:
Recordation does NOT prove validity
A grantee would record a deed to give actual notice.
False:
Constructive notice
