Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/20

Click to flip

20 Cards in this Set

  • Front
  • Back
Which of the following would be considered to be a dual agency?

a. the broker acting for both the buyer and the seller in the same transaction
b. brokers cooperating with each other
c. the broker representing different principals
d. the broker listing and selling the same property
a. the broker acting for both the buyer and the seller in the same transaction
Broker J was accused of violating antitrust laws. The was probably accused of

a. not having an equal housing opportunity sign in her office window
b. undisclosed dual agencies
c. allocation of customers or price fixing
d. dealing in unlicensed exchange services
c. allocation of customers or price fixing
The relationship of a broker to his or her client is that of a(n)

a. A trustee
b. Subagent
c. Fiduciary
d. Attorney in fact
c. Fiduciary
A real estate broker acting as the agent of the seller

a. is obligated to render faithful service to the principal
b. can 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
Statements by a real estate licensee 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 principals are not aware of such action
b. the broker is a subagent rather than the agent of the seller
c. commissions are collected from both parties
d. both parties have been informed and agree to the dual representation
d. both parties have been informed and agree 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 be considered fraudulent EXCEPT

a. deceitful or dishonest practices
b. exaggerated statements about the property
c. omitted statements of material fact
d. misstatements about the property
b. exaggerated statements about the property
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 her home with a broker for $90,000, and the broker tells a prospective buyer to submit a low offer because the seller is desperate 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 was unethical, but the seller did get to sell her property
c. the broker acted properly to obtain a quick offer on the property
d. any broker is authorized to encourage such bids for the property
a. the broker has violated his agency relationship with the seller
When Broker H was told by his principal not to advertise her property in the XYZ newspaper, which was out of the area, Broker H compiled because he

a. had never advertised in the XYZ newspaper anyway
b. must obey the lawful instructions of his principal
c. was not intending to advertise the property at all
d. is allowed to advertise only in local newspapers
b. must obey the lawful instructions of his principal
In a typical agency relationship between the broker and the client, the broker’s commission is determined by

a. state law
b. the local real estate board
c. mutual agreement
d. minimums based on the property type
c. mutual agreement
It is the duty of an agent to disclose to the principal every step taken in the transaction of the principal’s business. This is because the

a. commission can be adjusted up or down according to the agent’s efforts
b. agent has fiduciary obligations to the principal
c. terms of the listing contract require the agent to do so
d. terms of the purchase contract require the agent to do so
b. agent has fiduciary obligations to the principal
A salesperson who is employed by a broker told a prospective buyer that the house she was looking at is “the best house in the area.” Because of this statement

a. the salesperson was guilty of fraud
b. the broker was guilty of fraud because the employing broker is responsible for the actions of the salesperson
c. the salesperson was guilty of puffing
d. the salesperson would be guilty of fraud only if the buyer purchased the house
c. the salesperson was guilty of puffing
Which of the following best defines the “law of agency”

a. the selling of another’s property by an authorized agency
b. the rules of law that apply to the responsibilities of a person who acts for another
c. the principles that govern one’s conduct in a business
d. the rules and regulations of the state’s licensing agency
b. the rules of law that apply to the responsibilities of a person who acts for another
A broker who is the agent of the buyer should do which of the following?

a. disclose to the seller that the buyer is a minority person
b. disclose to the seller the maximum price the buyer is willing to pay
c. present to the seller only offers that are acceptable
d. advise the buyer if the listing price of the seller’s house is unrealistic
d. advise the buyer if the listing price of the seller’s house is unrealistic
A salesperson sells a buyer a property listed by another brokerage firm in the MLS. The salesperson has been working with the buyer for many months but does not have an agency contract with the buyer. This salesperson has a fiduciary obligations to

a. the seller
b. the buyer
c. no one
d. the public
c. no one
A broker’s salesperson lists a unit for sale in a condominium building. The salesperson in this transaction

a. has a direct contractual relationship with the owners of the unit
b. acts on behalf of the broker
c. acts on behalf of the condominium association
d. must find a buyer for the unit to obtain a share of the commission
b. acts on behalf of the broker
Mr. M’s house has been listed for sale for more than one year and he is very anxious to move into a retirement condominium. A salesperson, who is a subagent of the seller, tells a prospective buyer to make a low offer because the salesperson is sure that the seller will accept it. Regarding the salesperson’s conduct, all of the following are true EXCEPT

a. the salesperson acted appropriately to get the seller’s property sold
b. the salesperson violated the fiduciary to the seller
c. the salesperson’s conduct could indicate that she is working for the buyer
d. the salesperson should not assume that an anxious seller will accept a lower offer
a. the salesperson acted appropriately to get the seller’s property sold
A salesperson who represents the seller is showing a house to a prospective buyer. The salesperson knows that the house has a wet basement. Which of the following is true?

a. withholding the information protects the confidence of the seller
b. disclosing the information could create a fiduciary with the buyer
c. withholding the information prevents the buyer from making an informed decision
d. disclosing the information violates the fiduciary to the seller
c. withholding the information prevents the buyer from making an informed decision