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38 Cards in this Set
- Front
- Back
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An agents duties to the principal include all of the following EXCEPT:
A. loyalty B. accounting C. abedience D. legal advice |
D. legal advice
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All of the following represent an agency relationship EXCEPT:
A. the relationship between an owner of rental property and the tenant B. the relationship an owner of rental property and the property manager C. the relationship between a designated agent and a buyer under a brokerage agreement D. the relationship between a seller of property and the broker under a listing |
A. the relationship between an owner of rental property and the tenant
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All of the following statements are true regarding real estate salespersons in Illinois EXCEPT:
A. they must have a written employment contract with their employing broker B. they must pay for their own income and social security taxes if an independent contractor C. they may accept a commission only from their employing broker D. they may accept gifts or a bonus directly from an appreciative seller |
D. they may accept gifts or a bonus directly from an appreciative seller
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A real estate sales agent presents an offer to a property owner during the listing term for the listed price payable in cash with no contingencies and the specified earnest money deposit. In this situation which of the followuing statement is correct?
A. the property owner is required to accept the offer B. the listing brokerage company is legally entitled to the commission agreed upon in the listing contract C. the sales agent will get the earnest money deposit if the offer is refused D. the property owner will forfeirt the earnest money deposit if she refuses to accept the offer |
B. the listing brokerage company is legally entitled to the commission agreed upon in the listing contract
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A real estate agent advises a buyer that a property is zoned for commercial use of the type the buyer intends to make of the property. Relaying upon the agent's advice, the buyer contracts to purchase the property.In making the statement regarding zoning, the agent did not know what zoning applied to the property. The buyer subsequently learns that the zoning is such that he cannot use the property as intended. Which of the following are correct?
A. the agent an act of misrepresentation and is liable to the buyer for any loss the buyer suffered as a consequence B. because the agent did not know the true facts regarding the zoning, no no misrepresentation of the property to the buyer took place, and therefore the agent is not liable C. the agent is not liable because the buyer was responsible to find out the facts on his own D. the agent is not liable because the property was for commercial use instead of residential |
A. the agent an act of misrepresentation and is liable to the buyer for any loss the buyer suffered as a consequence
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When a licensed real estate salesperson desires to buy property listed with their broker's office, she may:
A. buy the property at any time on any terms B. not buy the property because of the subagency relationship with the seller through her office C. buy the property, provided her interest is made known to all parties D. buy the property if she informs her broker; she doesn't have to notify the principal |
C. buy the property, provided her interest is made known to all parties
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All of the following terminate an agency agreement EXCEPT:
A. expiration of the time period set out in the agreement B. death of the principal C. bankruptcy of the salesperson D. completeion of the sale of the property subject to the agency agreement |
C. bankruptcy of the salesperson
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A licensee can accept compensation from both buyer and seller:
A. only if there is a written listing from both B. only if the total amount is equal to the total commission C. under no circumstances D. only after full disclosure to both parties |
D. only after full disclosure to both parties
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Buyer Tsang wishes to make an offer on one of his designated agent's listings. The designated agent must:
A. withdrawal from the transaction B. inform Tsang that brokerage law will not allow her to represent him in a dual agency relationship C. obtain written confirmation from both clients for her to act as a dual agent in this transaction D. show Tsang all of her listed properties |
C. obtain written confirmation from both clients for her to act as a dual agent in this transaction
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Which of the following statements is TRUE regarding dual agency in Illinois?
A. a licensee acting as a dual agent may not disclose material facts B. dual agency is prohibited under any circumstances C. confirmation of the client's consent to dual agency is required before the offer to purchase has been presented and accepted D. a dual agent may give advice to his or her client on what price to accept, what price to offer, or what price to counter with |
C. confirmation of the client's consent to dual agency is required before the offer to purchase has been presented and accepted
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Which of the following is correct regarding Article 15?
A. the requirement to keep confidential information ends when the listing expires or the property is sold B. confidential information consists of only information that the client expressly states that the clients wishes to keep confidential C. in certain instances, confidential information may be revealed to the employing or managing broker D. a broker acting as a dual agent can reveal confidential information to both the parties |
C. in certain instances, confidential information may be revealed to the employing or managing broker
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Someone who has an unlimited power of authority is typically a:
A. special agent B. general agent C. universal agent D. trust agent |
C. universal agent
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MLS is best described as:
A. listings of multiple-unit property listings in one area B. listings of properties that have multiple owners C. a means of sharing listings between member brokers and their agents, allowing for coorporation and shared compensation D. sharing lists of buyers with builders in an effort to multiply the magnitude and construction of home sales |
C. a means of sharing listings between member brokers and their agents, allowing for coorporation and shared compensation
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A property manager is typically a:
A. special agent B. general agent C. universal agent D. trust agent |
B. general agent
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A principal is one who:
A. empowers another to act for him B. buys direct from the owner, without a broker's representation C. expects care, obedience, accounting, and loyalty from the buyer of his property D. owns a brokerage firm |
A. empowers another to act for him
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When taking a listing, the agent is told by the property owner that the septic system has not been working properly. This fact is disclosed on the listing sheet or on the MLS sheet. At a showing of the propertt, the agent:
A. does not have to disclose this information unless the prospective buyer asks about the septic system B. does not have to disclose his information because it was disclosed on the listing sheet and MLS sheet C. must disclose this information whether asked or not, as the agent is to be fair, open, and honest in all dealings D. does not have to disclose this information unless in a dual situation representing both buyer and seller |
C. must disclose this information whether asked or not, as the agent is to be fair, open, and honest in all dealings
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Which of the following statements is TRUE regarding escrow accounts in lllinois?
A. escrow-moneys must be placed in an interest bearing account B. a writtem agreement by the principals must state how the interest from moneys placed in escrow is to be distributed C. security deposits are not considered to be escrow moneys D. brokers may not have more than one escrow account |
C. security deposits are not considered to be escrow moneys
D. brokers may not have more than one escrow account |
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A consumer walks into a Broker Lyons' office located in Illinois. Unless other arrangements are made, Broker lyons:
A. will automatically be the designated agent of the buyer B. will automatically be the general agent of the buyer C. they must have a written agreement between them D. Lyons cannot show the buyer his own listings |
A. will automatically be the designated agent of the buyer
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Salesperson Torres represents nButer Andrew. If Torres shows Andrew a property listed with Torres' office, which of the following is TRUE under article 15?
A. Torres is acting as a dual agent only if it is Torres own listing B. Torres is acting as a dual agent if the office has the property listed C. Torres cannot represent Andrews under these circumstances and must refer Andrew to another office D. Torres can represent Andrews , but can only receive a commission from the seller |
A. Torres is acting as a dual agent only if it is Torres own listing
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To create a dual agency in ILlinois all of the following must be adhered to EXCEPT:
A. buyer and seller must agree in writing to the dual agency B. at time of execution of any contract to purchase, buyer and seller must confirm in writing their previos agreement to allow dual agency C. the broker cannot receive a fee or commission from both the buyer and the seller D. written disclosure of receiving a fee from both the buyer and the seller, and not permission to reveive a fee, is all that is required |
C. the broker cannot receive a fee or commission from both the buyer and the seller
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A buyer walks into Sona Diorio's Illinois real estate office and asks broker Diorio to help her find a house. Under these circumstances:
A. Diorio is a subagent of the buyer B. Diorio is a subagent of the seller C. Diorio is the designated agent of the buyer D. Showing properties is always a ministerial act |
C. Diorio is the designated agent of the buyer
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All of the following are TRUE regarding confidential information EXCEPT:
A. confidential information includes information that affects the negotiating posiition of the client B. information the client requests in writing to remain confidential must be confidential C. confidential information received during a listing agreement remains confidential even after the expiration of the listing agreement D. information regarding the physical defects of the property may be confidential |
D. information regarding the physical defects of the property may be confidential
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In Illinois, subagency can only be created:
A. automatically through MLS B. by written agreement between buyer and seller C. by written agreement between the broker and buyer or broker and seller D. unilaterally by the seller |
C. by written agreement between the broker and buyer or broker and seller
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Ministerial acts include all of the following EXCEPT:
A. showing property to an appraiser B. answering ad calls C. assisting a buyer in determining a fair offer for a property D. referring a buyer to another broker |
C. assisting a buyer in determining a fair offer for a property
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Which of the following is incorrect regarding confidential information? Confidential information may be revealed if:
A. the information becomes public from anouther source B. the disclosure is required by law C. the listing or buyer-brokerage agreement has expired D. the client gives permission to release the information |
C. the listing or buyer-brokerage agreement has expired
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Broker J has been denied dual agency by a seller and is now working with a buyer that may be interested in the seller's house. J refers the buyer to salesperson X, another sales agent in the office, and continues to work with the seller. To collect a referral fee from salesperson X, J must:
A. give written notice of the referral fee to the seller B. give written notice of the referral fee to the buyer C. give written notice of the referral fee to the buyer and seller D. get the written permission of the buyer and the seller to collect a referral fee |
C. give written notice of the referral fee to the buyer and seller
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Broker Frank is holding an open house in a property Frank has had listed for several weeks. A prospective buyer arrives at the open house and Frank shows him through the property. After touring the property, The buyer asks Frank if the is the seller will accept an offer of $155,000. Frank:
A. must disclose to the buyer that his agency relationship is with the seller and he must look out for the sellers best interest. If the buyer desires to make an offer, Frank can fill in the factual information on the contract for the buyer. B. must disclose to the buyer that his agency relationship is with the seller and he must look out for the seller's best interest - he must then get someone from the office to represent the buyer C. must get permission to act as a dual agent or he will not be able to sell the property D. can deal with buyer, but only if Frank agrees to forfeit the buyer's side of the commission |
A. must disclose to the buyer that his agency relationship is with the seller and he must look out for the sellers best interest. If the buyer desires to make an offer, Frank can fill in the factual information on the contract for the buyer.
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The only article of the Illinois Real Estate License Act that allows for a private right of action against a licensee is:
A. Article 10 B. Article 15 C. Article 20 D. Article 25 |
B. Article 15
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Article 15 defines confidential information to be any information:
A. ontained from the buyer or seller during a listing or brokerage agreement B. that would affect the negotiating postion of the client C. recorded at the recorder's office D. obtained from the buyer or seller only after they have signed a listing agreement or brokerage contract |
B. that would affect the negotiating postion of the client
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Broker J's listing agreement with the D's has ended without J selling the property and the D's are now attempting to sell there house by themselves. Broker J is now working with buyer M who is interested in a home like the D's. Because the property is no longer listed with broker J:
A> J is free to reveal confidential information learned from the D's to M. B. J must reveal confidential information to his new client M C. J cannot reveal confidential information to M unless D lists his home with another real estate broker D. J must keep the confidential information confidential |
D. J must keep the confidential information confidential
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What is the duty of a broker to a client after the expiration of a listing agreement?
A. reveal the names of potiential buyers to the new listing broker B. unless stated in the written agreement to the contrary, no duty is owned the client after the agreement expires C. give a copy of the broker's competitive market analysis and the original MLS printouts of the property to the new listing broker D. the broker must keep confidential information confidential |
D. the broker must keep confidential information confidential
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A prospective buyer stops in to view broker T's open house. Broker T shows the buyer through the property, answering the buyer's questions about the age, size, asking price, physical characterisics of the property, available financing, and neighborhood amenities. Broker T:
A. is the buyer's designated agent B. is acting as a dual agent C. has implied an agency relationship when he answered questions about financing D. is performing ministerial acts |
D. is performing ministerial acts
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Under Illinois laws, which of the following is correct?
A. dual agency is prohibited except in commercial transactions B. a designated agency relationship must be in writing C. a licensee is considered a designated agent of the consumer he is working with unless there is a written agreement stating a different relationship D. a licensee is vicariously liable for the client |
C. a licensee is considered a designated agent of the consumer he is working with unless there is a written agreement stating a different relationship
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When acting as a dual agent, Illinois requires:
A. the broker to waive any commission that would have been owed by the buyer B. the agent to prohibit the buyer or seller from revealing confidential information to him C. written permission from the buyer and the seller to act as a dual agent D. the buyer and the seller to each pay half the commission that will be due the broker |
C. written permission from the buyer and the seller to act as a dual agent
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Broker S has been acting as a dual agent for buyer J and seller K. When J and K enter into a contract with each other, broker S must:
A. get J to share the cost of the commission with K B. provide a 3-day recission period in the contract for J and K to cancel the transaction C. have J and K sign a confirmation of their previous agreement to allow broker S to act as a dual agent D. have seller K provide buyer J with an agency disclosure statement |
C. have J and K sign a confirmation of their previous agreement to allow broker S to act as a dual agent
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Which of the following types of property ARE covered by the Illinois Commercial Broker Lien ACt?
A. real estate containing six residential units B. vancant land C. land classified as farmland for tax assessment purposes D. a warehouse building |
D. a warehouse building
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Under the Illinois Commercial Broker Lien ACt, a broker must file the lien:
A. before the conveyance B. after the conveyance C. within 120 days of the closing D. within four months of the closing |
A. before the conveyance
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An out-of-state seller wants to sell his property located in Illinois for $100,000 through Broker Dave. Broker Dave decides to purchase the property himself for the $100,000. Shortly after the purchase, he is able to resell the property for $150,000 due to its rezoning. Under what circumstances is this legal?
A. Dave would have had to inform the seller of the potential of the property to be rezoned and, therefore, of the greater value B. Dave's actions were legal as he did not have a listing with the seller D. Dave should have had a friend purchase the property for him |
A. Dave would have had to inform the seller of the potential of the property to be rezoned and, therefore, of the greater value
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