Chapter 12 Practice Questions

Front 1

real estate brokers serve as

Back 1

intermediaries

Front 2

how do real estate brokers serve as intermediaries

Back 2

bringing sellers and buyers together in a real estate market

Front 3

real estate brokers serve as intermediaries by brining buyers and sellers together in the real estate market. for this service, brokers are paid what is commonly referred to as a

Back 3

commission

Front 4

in the absence of a real estate broker, what would one expect to be true

Back 4

a seller would most likely rely on a thinner market, it would be more difficult and costly for an individual to buy or sell a property, and buyers would be more inclined to negotiate prices downward by at least the value of a typical commission

Front 5

in the absence of a real estate broker, what would one expect to be not true in regard to the real estate values

Back 5

real estate values would be higher

Front 6

real estate brokers and salespersons traditionally have operated under what law

Back 6

law of agency

Front 7

law of agency

Back 7

gives a brokers or salesperson the right to act for a principal in trying to buy or sell a property

Front 8

universal agent

Back 8

broadest scope of authority; whom a principal delegates the power to act in all matters that can be delegated in place of the principal

Front 9

general agent

Back 9

delegated by the principal to act within the confines of a business or employment relationship

Front 10

meaghan is a blank agent for simon harrison

Back 10

general

Front 11

special agent

Back 11

authorized by the principal to handle only a specific business transaction or to perform only a specific function

Front 12

fiduciary relationship

Back 12

in acting as an agent for another person, the broker carries several special responsibilities, which by law must be adhered here to throughput the transaction process

Front 13

in real estate, what is a principal

Back 13

buyers and sellers

Front 14

a person can be one of three types of agents. what are the three types of agents

Back 14

universal, special, general

Front 15

modern real estate brokerage normally relied on what type of list service

Back 15

multiple listing service (MLS)

Front 16

multiple listing services

Back 16

brokers have access to each other's listings

Front 17

subagency agreement

Back 17

type of agency agreement established with the use of a MLS

Front 18

agency relationship

Back 18

created between a seller and broker when both parties agreed to a listing contract

Front 19

buyer agency agreement

Back 19

agency relationship between a buyer and a broker

Front 20

dual agency

Back 20

the broker is an agent of both a seller and a buyer and the broker owes equal loyalty to both

Front 21

transaction brokerage

Back 21

broker assists the buyer and seller, but does not represent either party

Front 22

state licensing laws generally prescribe two levels of real estate brokerage licensing, what are they

Back 22

the broker license and the salesperson license

Front 23

individual with a salesperson license is permitted to

Back 23

negotiate listing contracts or contracts for sale

Front 24

interpreting and enforcing state licensing laws falls under the responsibilities of which party

Back 24

real estate commission

Front 25

licensing laws

Back 25

regulate persons and companies that engage in the brokerage business

Front 26

most complete license is

Back 26

broker license

Front 27

errors and omission insurance

Back 27

licensees must purchase errors and omission insurance to cover damages arising from professional mistakes

Front 28

market segmentation

Back 28

real estate firms identify submarkets in which they can specialize and concentrate their transaction activity

Front 29

blockbusting

Back 29

involveer persuading an individual to sell her home by telling her that minority groups are moving into the neighborhood

Front 30

blockbusting is one form of discrimination in housing that is prohibited by what act of Congress

Back 30

Fair Housing Act (Title VIII of the Civil Rights Act)

Front 31

globalization

Back 31

many US investors have expanded their purchases of real estate into foreign countries, and many foreign investors have held interests in US real estate

Front 32

exclusive right of sale listing

Back 32

requires the broker to be paid a commission if any other broker, or even the owner, sells the property during the contract period

Front 33

average commission that a broker could expect to receive today would most likely range between

Back 33

5-6%

Front 34

disclosure

Back 34

duties that refers to a broker's obligation to be completely open and honest with the principal

Front 35

MLS only accept which type of listing contract

Back 35

multiple listing

Front 36

listing agreement defines the relationship between the

Back 36

property owner and the real estate broker

Front 37

in the basic principal-agent relationship of real estate brokerage, real estate brokers act in the capacity of a

Back 37

special agent

Front 38

in the legal relationship known as "agency" the blank is authorized by the blank to transact business on his or her behalf

Back 38

agent; principal

Front 39

the commission paid in the real estate brokerage industry is normally

Back 39

percentage of the gross sales price

Front 40

open listing

Back 40

listing agreement whereby the seller reserves the right to sell the property himself without having to pay a commission and also allows other real estate agencies to sell the property and earn a commission

Front 41

if you were the listing broker, which of the following listings would you most prefer

Back 41

exclusive right to sell listing

Front 42

exclusive right of sale listing

Back 42

type of listing requires the broker to be paid a commission if any other broker, or even the owner, sells the property during the contract period

Front 43

securitization

Back 43

fannie mae and freddie mac buy loans from mortgage originators, pool the purchases loans, and then issue financial instruments that pay interest and principal to investors using cash flows provided by the pool of purchased loans

Front 44

Private Mortgage Insurance (PMI) protects a lender against

Back 44

losses due to default on the loan

Front 45

the interest rate of an adjustable rate mortgage may rise or fall based on the

Back 45

index rate

Front 46

lenders generally require what type of insurance for conventional loans over 80% of the value of the security property

Back 46

private mortgage insurance (PMI)