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17 Cards in this Set
- Front
- Back
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The real estate broker’s responsibility to keep the principal[al of all the facts that could affect a transaction is the duty of
a. care b. disclosure c. obedience d. accounting |
b. disclosure
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The amount of commission due to a salesperson is determined by
a. state law b. the local real estate board c. mutual agreement d. court decree |
c. mutual agreement
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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
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A sales person may advertise a property for sale only if he or she
a. personally listed the property b. uses the employing broker’s name in the advertisement c. personally pays for the advertisement d. is a member of the local real estate board |
b. uses the employing broker’s name in the advertisement
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A parcel of vacant land 80 feet wide and 200 feet deep was sold for $200 per front foot. How much money would a sales person receive for her 60 percent share in the 10 percent commission?
a. $640 b. $960 c. $1,200 d. $2,400 |
b. $960
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A real estate salesperson who is an independent contractor receives
a. a monthly salary or hourly wage b. company-provided health insurance c. a company-provided automobile d. negotiated commissions on transaction |
d. negotiated commissions on transaction
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Upon discovering a latent defect in the property, the licensee should discuss the problem with the seller and then
a. notify the seller that the defect must be repaired b. arrange for the repairs himself or herself c. inform any prospective buyers of the defect d. contact the city building inspector about the defect |
c. inform any prospective buyers of the defect
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W is a salesperson working for Broker V. W sells a $150,000 home. The listed commission is 6.5 percent of the selling price. Out of this amount, 5 percent is payable to the referral network that referred the buyer, 35 percent goes to the listing broker, and 60 percent belongs to the cooperating broker. Broker V and W agreed that W would receive 55 percent of any commission that he generated for the office. For this transaction, W is entitled to receive
a. $2,632.50 b. $3,217.50 c. $3,412.50 d. $5,850.00 |
b. $3,217.50
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To be entitled to collect a real estate commission, a broker must be able to prove all of the following EXCEPT that he or she
a. had a valid real estate broker’s license b. was a procuring cause c. was employed to perform certain activities d. belonged to a real estate board |
d. belonged to a real estate board
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A broker lists a property for sale at $100,000 with a 5 percent commission, and he later obtains a verbal offer to purchase the property from a prospective buyer. The seller indicates to the broker that the offer would be acceptable if it were submitted in writing. Before it can be put in writing, the buyer backs out and revokes the verbal offer. In this situation, the broker would be entitled to
a. a commission of $5,000 b. only a partial commission c. no commission d. the normal rate of commission |
c. no commission
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A landowner subdivides his acreage and offers the lots for sale. Broker E tells the landowner that she can sell the lots. After broker E sells some of the lots, the landowner refuses to pay her a commission. Broker E can
a. report the landowner to the real estate licensing authorities b. file a lien against the landowner’s remaining lots c. sue the landowner for breach of contract d. do nothing |
d. do nothing
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Salesperson N finally concluded some extremely difficult negotiations that resulted in the sale of a listed parcel of property. For all of her extra efforts, she can legally demand a performance bonus from
a. the seller b. the buyer c. her broker d. no one |
d. no one
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Antitrust laws prohibit all of the following EXCEPT
a. property management companies standardizing management fees b. brokers allocating markets based on the value of homes c. real estate companies agreeing not to cooperate with a broker because of the fees that broker charges d. a broker deciding whether to join a MLS |
d. a broker deciding whether to join a MLS
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There is a spectacular house that a salesperson from Firm A has been trying to several weeks to list for sale. The owners have been interviewing sales people from different firms. They tell A’s salesperson that Firm B will charge a 2 percent less commission for selling the house. What should A’s salesperson say to the owner to get the listing?
a. Salespeople will not show Firm B’s listings because of their commission fees. b. Most brokers in the area charge a standard rate of commission, including Firm A c. Firm B cannot provide good services because they charge less d. Firm A provides excellent services to market their sellers’ properties |
d. Firm A provides excellent services to market their sellers’ properties
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A buyer who is shown properties listed for rent by a broker is the broker’s
a. client b. principal c. customer d. fiduciary |
c. customer
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A licensed sales person may receive a compensation or commission from
a. only the employing broker b. from the principal c. from any broker d. from a landlord |
a. only the employing broker
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The listing and selling brokers agree to split a 7 percent commission fifty-fifty on a $95,900 sale. The listing broker gives the listing salesperson 30 percent of his commission and the selling broker gives the selling sales person 30 percent of his commission. How much does the selling salesperson earn from the sale after deducting expenses of $35
a. $1,139.78 b. $1,174.78 c. $971.95 d. $1,183.88 |
a. $1,139.78
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