Unit 7 Flashcards
- The real estate broker’s fiduciary responsibility to keep the principal informed of all facts that could affect a transaction is the duty of
a. skill, care, and diligence.
b. disclosure.
c. obedience.
d. accounting.
b. disclosure.
- The amount of compensation due to a broker licensee from the brokerage firm is determined by the
a. state real estate regulator to ensure the public the most protection from incompetent licensees.
b. local real estate board’s minimum wage guarantee to agents.
c. in-house employment contract.
d. listing agreement.
c. in-house employment contract.
- Which of these would be an example of dual agency?
a. A broker-in-charge assisting a buyer client in the purchase of a property that was listed by a provisional broker of the firm
b. A provisional broker and a broker licensee from firms that are cooperating in a transaction
c. A firm that represents buyers and sellers
d. A broker finding a buyer for a for sale by owner property
a. A broker-in-charge assisting a buyer client in the purchase of a property that was listed by a provisional broker of the firm
- If a real estate licensee is an independent contractor affiliated with a real estate brokerage firm, the licensee is solely responsible for all of the following EXCEPT
a. paying local, state, and federal income taxes.
b. determining daily and weekly work hours.
c. violations of state licensing law.
d. setting individual business goals.
c. violations of state licensing law.
- The relationship of a broker to a client is that of
a. a trustee.
b. a subagent.
c. a fiduciary.
d. an attorney in fact.
c. a fiduciary.
- A real estate broker was responsible for a chain of events that resulted in the sale of one of his client’s properties. This is referred to as a
a. pro forma.
b. procuring cause.
c. private offering.
d. proffered offer.
b. procuring cause.
- A real estate broker acting as the agent of the seller
a. is obligated to render faithful service to the principal.
is allowed, but not required, to disclose the seller’s minimum price.
c. should present to the seller only the highest offer for the property.
d. can accept an offer on behalf of the seller.
a. is obligated to render faithful service to the principal.
is allowed, but not required, to disclose the seller’s minimum price.
- Opinion statements by an agent exaggerating the benefits of a property are called
a. polishing.
b. puffing.
c. prospecting.
d. marketing.
b. puffing.
A broker is permitted to represent both the seller and the buyer in the same transaction when
a. the broker decides principals will benefit from the dual representation.
b. the broker is a subagent rather than the agent of the seller.
c. commission is paid by the seller.
d. both parties have been informed and agreed (in writing) to the dual representation.
d. both parties have been informed and agreed (in writing) to the dual representation.
- Unless some other written agreement has been made, the broker will usually receive the sales commission from the seller when
a. the purchaser takes possession of the property.
b. the seller lists the property with the broker.
c. the transaction is closed.
d. an offer is procured from a ready, willing, and able buyer.
c. the transaction is closed.
- All of the following could legally be considered fraudulent EXCEPT
a. deceitful or dishonest practices.
b. exaggerated opinions about the property.
c. omitted statements of material fact.
d. misstatements about the property.
b. exaggerated opinions about the property.
- A real estate licensee who is an independent contractor with a real estate brokerage firm usually receives
a. a monthly salary or hourly wage.
b. company-provided health insurance.
c. a company-provided automobile.
d. negotiated commissions on transactions.
d. negotiated commissions on transactions.
- As an agent for the seller, a real estate broker can
a. guarantee a prospective buyer that the seller will accept an offer at the listed price and terms.
b. solicit an offer to purchase the property from a prospective buyer.
c. advise a prospective buyer of the best manner of taking title to the property.
d. change the terms of the listing contract on behalf of the seller.
b. solicit an offer to purchase the property from a prospective buyer.
- A seller has listed a home with a broker for $90,000, and the broker suggests to a prospective buyer-customer to submit a low offer because of the seller’s urgent need to sell. The buyer offers $85,000, and the seller accepts it. In this situation,
a. the broker has violated his agency relationship with the seller.
b. the broker’s action was acceptable since the seller accepted the offer.
c. the broker acted properly to obtain a quick offer on the property.
d. any broker is encouraged to solicit such bids for the property.
a. the broker has violated his agency relationship with the seller.
- A broker was told by his seller-principal not to advertise her property in the newspaper, which was just across the state line. The broker must comply with the seller’s wishes because he
a. is required to comply with the Interstate Land Sales Full Disclosure Act.
b. must obey the lawful instructions of his principal.
c. only has an advertising contract with another newspaper.
d. is allowed to advertise only in local newspapers.
b. must obey the lawful instructions of his principal.