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20 Cards in this Set

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  • Back
Which disclosure notice must be given before a single agent can change to a transaction broker?

A. No brokerage relationship
B. Single agent
C. Consent to transition to transaction broker
D. Transaction broker
C. Consent to transition to transaction broker
Steven is so cautious that he refuses to sign all legal documents. Your office policy is to include a note in his file indicating the time, date, place, and circumstance under which you made the disclosure that Steven refused to sign. You may NOT work with Steven under which circumstance?

A. List Steven's home as a single agent
B. Provide limited representation to Steven in locating a new home
C. Provide real estate services to Steven in a no brokerage relationship
D. Change from a single agent to a transaction broker to show Steven's home to an in-house buyer-principal
D. Change from a single agent to a transaction broker to show Steven's home to an in-house buyer-principal
The brokerage relationship disclosure requirements in Chapter 475 apply to the

A. sale of a 20-unit apartment complex.
B. sale of a condominium unit.
C. residential lease agreement in a duplex.
D. sale of a book store business and real property.
B. sale of a condominium unit.
Which statement BEST describes the duty of loyalty in a single agent relationship?

A. The broker must act in the best interest of the principal.
B. The broker must disclose all latent defects to prospective buyers.
C. The broker is held to a standard of care that requires knowledge concerning the land and physical characteristics of the property.
D. The broker must be able to account for all funds received on behalf of the principal.
A. The broker must act in the best interest of the principal.
A real estate broker who works in a limited capacity for both the buyer and the seller in the same transaction is

A. a dual agent.
B. a transaction broker.
C. bound to fiduciary duties to both the buyer and the seller.
D. a single agent of both the buyer and the seller.
B. a transaction broker.
A buyer has entered into a buyer broker agreement with a real estate company. The agreement includes the transaction broker notice. The licensee added the duties of loyalty and full disclosure to the agreement.

A. Licensees may not modify the transaction broker notice.
B. The licensee may add any additional duties provided both parties agree to the new duties.
C. The duties of loyalty and full disclosure are duties associated with a single agent relationship and may subject the licensee to liability.
D. The buyer must initial each additional duty to indicate his or her consent.
C. The duties of loyalty and full disclosure are duties associated with a single agent relationship and may subject the licensee to liability.
A licensee of ABC Realty must give the no brokerage relationship notice to

A. a buyer who has a single agent relationship with XYZ Realty.
B: every prospective buyer and prospective seller in all cases.
C. a for-sale-by-owner (FSBO) seller before showing the FSBO
home to a buyer customer of ABC Realty.
D. every prospective buyer who walks through an open house listed by ABC Realty.
C. a for-sale-by-owner (FSBO) seller before showing the FSBO
home to a buyer customer of ABC Realty.
Broker Murl is an agent of the seller. The seller has disclosed to Murl that the ceramic tile is loose in the dining room because the cement did not adhere to the tile. The loose tile is not readily visible because it is covered with an area rug to protect the seller's toddler. Murl has satisfied his legal obligation if he tells the buyer

A. that the floor appears to be in good condition.
B. that ceramic tiles in the dining room are loose.
C. that the buyer can order an inspection at his own expense if he is concerned about the floor.
D. nothing unless he is asked specifically about the tile floor's condition.
B. that ceramic tiles in the dining room are loose.
A transaction broker has all of the duties listed below EXCEPT

A. limited confidentiality.
B. to use skill, care, and diligence.
C. to disclose all known facts that materially affect the value of residential real property and are not readily observable to the buyer.
D. obedience.
D. obedience.
A brokerage relationship is terminated under which circumstance?

A. The broker agent renounces the brokerage relationship.
B. The purchase and sale contract is signed.
C. At the will of either party without notice.
D. An offer is accepted.
A. The broker agent renounces the brokerage relationship.
A seller lists her home for $116,900. The seller tells the sales associate that she needs to get at least $112,000 for the home. Following Sunday's open house, the sales associate receives two offers on the home. The first offer for $116,900 is contingent on the seller's taking back a $10,000 second mortgage. The second offer is for $112,000, with the buyer to secure her own financing. The sales associate should

A. seek his broker's advice regarding which offer to present.
B. present the full-price offer to the seller.
C. present the second offer to the seller.
D. present both offers, explaining the details of each to the seller.
D. present both offers, explaining the details of each to the seller.
In the common public relationship that exists in a typical real estate transaction, buyers and sellers are said to be dealing

A. in a fiduciary capacity.
B. at arm's length with each other.
C. in an agency status with each other.
D. under the doctrine of ethical confidentiality.
B. at arm's length with each other.
If a principal gives his or her broker instructions that will result in loss or harm to the principal, the broker

A. is justified in not carrying out such instructions.
B. should carry out such instructions without question.
C. should carry out only that portion of the instructions that will not cause loss or harm to the principal.
D. should inform the principal of possible harm inherent in the instructions, and then either do as instructed or withdraw from the relationship.
D. should inform the principal of possible harm inherent in the instructions, and then either do as instructed or withdraw from the relationship.
A broker's obligations to consumers with whom the brokerage firm has no brokerage relationship include the duty of

A. full disclosure.
B. accounting for all funds.
C. loyalty.
D. limited confidentiality.
B. accounting for all funds.
Designated sales associates are best described as

A. single agents for the buyer and the seller in nonresidential transactions where the buyer and the seller meet certain asset thresholds.
B. the sales associates designated to represent the buyer and the seller in a transaction broker relationship.
C. undisclosed dual agents.
D. the sales associates in charge of the required brokerage disclosure forms for the brokerage office.
A. single agents for the buyer and the seller in nonresidential transactions where the buyer and the seller meet certain asset thresholds.
An individual who is empowered by a principal to handle a particular transaction for the principal is a

A. third party.
B. special agent.
C. general agent.
D. universal agent.
B. special agent.
Jim, an ambitious, hardworking sales associate, was eager to snag a listing on a beautiful two-story home. The seller told Jim that the mortgage on the home also encumbered the adjoining vacant lot he owned. The seller plans to build a new home for his family on the vacant lot. Jim did not mention to prospects that the mortgage also included the vacant lot because he was confident that there would be enough seller proceeds to satisfy the lien at closing.

A. This is legal as long as the lien is satisfied at closing.
B. Jim must disclose that the lien also encumbers the vacant lot at the time an offer is reduced to writing.
C. Jim is guilty of culpable negligence.
D. Jim is guilty of fraudulent and dishonest dealing by trick, scheme, or devise.
D. Jim is guilty of fraudulent and dishonest dealing by trick, scheme, or devise.
For a buyer to prove a charge of fraud against a real estate licensee who has made a nonfactual statement about a property, the buyer must prove all EXCEPT that the

A. misstatement was made by the licensee.
B. misstatement made by the licensee was material to the transaction.
C. buyer was damaged by the misstatement.
D. information misstated could be proved to be false with due diligence.
D. information misstated could be proved to be false with due diligence.
A transaction broker involved in a residential sale discovered before the closing that a large recycling facility will be built approximately three-quarters of a mile from the home site. The transaction broker should

A. disclose the information to both the buyer and the seller.
B. inform only the buyer of this fact.
C. inform only the seller of this fact.
D. ignore the information to protect the transaction.
A. disclose the information to both the buyer and the seller.
A real estate sales associate must disclose to a prospective buyer that

A. a former occupant of the property committed suicide in the home.
B. the seller has been diagnosed with HIV.
C. the family room addition does not comply with local building codes.
D. families of other racial groups live in the immediate area.
C. the family room addition does not comply with local building codes.