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42 Cards in this Set

  • Front
  • Back
A buyer and broker entered into a buyer agency agreement. The buyer’s broker cooperated with another brokerage company representing a seller. The buy’s broker would consider the seller to be the:
• Customer
A listing broker has an exclusive right to represent the developers in a new subdivision. The broker shows properties in the subdivision to prospective buyers who are not working with other agents and prepares offers for those who decide to buy. Which if the following statements best describes this situation?
• The buyers are not represented by the listing broker.
An attorney-in-fact acting under a limited power of attorney is a:
• Special agent
All of the following are characteristics of an agency relationship EXCEPT
• The agency is between a client and a customer
Which of the following relationships would be considered a general agency?
• A broker managing an owner’s rental property
Under a listing agreement, the seller instructs the broker not to put a “FOR SALE” sign on the property and only advertise in the local multiple listing service. Is this permissible?
• Yes, the client has the right to give instructions that are legal to the broker.
A buyer’s agent was showing property in a new subdivision. The agent informed the prospective buyer that the subdivision would have cable television. The agent had not verified this information, but assumed the developer would provide cable tv. The buyer purchased the property based on the agent’s statement. The sales contract did not address the cable TV, and the developer did not provide it. Who would be held liable for damages?
• The agent, because the statement was a misrepresentation
A broker received an offer to purchase in which the buyer asked the seller to carry a second mortgage for $5,000. The broker was negligent in notifying their seller to check the buyer’s credit before carrying a second mortgage for the buyer. The broker breached their fiduciary obligation of:
• CARE
A seller is considering selling their property for $200,000. The sales price of comparable properties indicates that the subject is worth 250,000.
• The listing agent should: Tell the seller the property should sell for $250,000 based on comparable sales
A licensee represents a prospective buyer. The buyer requests to see a particular listed property. Which of the following would be a valid reason not to show the property to the buyer?
• The buyer is not financially qualified to buy the property
A sales person should show perspective buyers only properties that
• They are financially able to purchase
A gas station in a rural area went out of business and was torn down. The site was vacant for several years. The owner is considering selling the commercial property. To assist the seller in making proper disclosures and the buyer in making an informed offer a licensee should recommend the seller obtain:
• An environmental site assessment
A person who violates the provisions of the Sherman Antitrust Act is:
• Subject to a fine of up to $250,000 ($10,000 if a corporation) and/or up to three (3) years imprisonment
Which of the following facts would LEAST LIKELY need to be proven in order for a broker to claim a commission in a court action?
• The transaction closed according to the contract
A broker has an exclusive right to sell listing agreement with a seller. The seller accepts an offer form a buyer for the sale of a house. The buyer meets all the requirements of the contract. Before closing the seller decides not to sell the property and backs out the sale. Is the listing broker entitled to a commission?
• Yes the broker produced a ready, willing and able buyer
A brokers listing expired and the 90 day protection period has ended. Several weeks later the broker finds a new ready, willing and able buyer. Is the listing broker due a commission?
• No, the broker’s listing agreement had expired
The commission rate on the sale of a property is MOST LIKELY determined by an agreement between:
• Seller and buyer
A broker wants to change her clients a flat fee for her commission, so that no matter what price a home sells for, the broker will receive the same amount of compensation. Which of the following must occur before the broker can make such arrangements?
• The clients must agree to the arrangement prior to listing the property
A broker listed a property for $175,000 with instructions that seller wanted at least $5,000 earnest money. The broker produced a buyer who offered the full listed price and included $3,000 earnest money back. If the seller did not accept the offer, would the broker be due a commission?
• No, the broker did not produce a buyer that fulfilled the terms of the listing agreement
Once a commission rate has been agreed upon in a listing contract, can it be changed?
• Yes, if both the client and broker agree to the change
Due to poor market conditions a seller sod his property for considerably less than the listed price. Could the seller lower the broker’s commission to make up for the loss?
• No, once the commission rate has been negotiated and agreed upon it cannot be changed unless both parties agree
A seller listed their house for sale on an “as is” basis. The seller disclosed to the listing agent that the plumbing was outdated ad needed replacement. Later the seller discovered termite damage and notified the agent. If neither the seller nor the agent told a buyer about the damage, would the buyer be able to se at a later date when the termite damage is found?
• Yes, because the agent did not disclose the damage to the buyer when it was discovered.
While a licensee is showing a property to a perspective buyer, the licensee exaggerates somewhat when he tells the prospective buyer the property has a “fantastic view”. Would the prospect be likely to successfully use that statement as a basis for a legal complaint?
• No, because this statement would be considered puffing and not grounds for misrepresentation
An agent has an exclusive right to sell listing with an expiration date of September 20. The owner of the Property died before the listing expired. What happens to the listing?
• Death of the owner will terminate the listing
Which of the following would terminate a listing agreement with a seller?
• Sale of the property
An agent has a listing on a residential property with an expiration date of June 16th. On May 2nd, the seller accepts an offer form a buyer. On June 4th the title is conveyed at closing with a stipulation that the buyer will not take possession of the property until June 11th. When is the listing is terminated?
• On June 4th
A salesperson obtains a listing on behalf of the listing company. If the salesperson leaves the listing company or becomes unlicensed during the listing the listing would:
• remain valid with the listing company
Can a seller terminate their agency agreement with the listing broker before the stated expiration date?
• Yes, but the seller could be liable to the agent for damages
A sales person working for a selling broker sold a property listed with another broker. The selling salesperson would collect their commission from:
• The selling broker
The amount of compensation a sales person would receive for a completed real estate transaction would be determined by:
• The sales person’s contract with their broker
Which of the following statements regarding the federal fair housing law is TRUE?
• If prohibits discrimination based only on race, religion and national origin
Which of the following activities by a real estate brokerage firm would NOT be a violation of the Federal Fair Housing Law?
• The brokerage company has posted an “Equal Housing Opportunity” poster in their office
The federal fair housing law exempts which of the following activities?
• Renting of an owner occupied building with no more than four units
The owner is renting the vacant unit of an owner occupied duplex. The owner would be exempt form the Fair housing law if they:
• Refused to rent to someone who is blind
Which of the following statements is TRUE regarding the Federal Fair Housing Law?
• Aggrieved persons may file a complaint with HUD within one year of the discriminatory act or elect civil action in federal court within two years
An owner decided to find a tenant to rent the upstairs portion of is home. He did not use any form of discriminating advertising but required the tenant to be a religious, non smoking, white male. Is this a violation of the Federal Fair Housing Act?
• Yes, the owner discriminated on race
The federal Fair housing Act is administered by the
• Department of Housing and Urban Development (HUD)
A buyer requested an agent show them properties that do not allow children. Which of the following would be the agent’s best response?
• Housing that qualifies for older people is exempt from familial status
A licensee is questioned by an interested buyer whether the property was the site of a homicide or suicide and was the dwelling ever inhabited by a person with AIDS or the HIV virus. The Licensee should:
• answer the question about the homicide or suicide to the best of his/her knowledge and state he/she is unable to answer the inquiry on AIDS.
Under BRETTA, if there is no expiration date in a brokerage engagement and no authorized termination has occurred, how long wills the engagement continue after the initiation of the engagement?
• One Year
In Georgia, when a licensed firm is advertising a specific property or properties for sale, lease or exchange in any media, the advertisement must include the name of the firm that is registered with the commission and the Firm’s:
• Telephone Number
An inactive salesperson who receives security deposits on rental property they own:
• Must maintain those funds in a designed trust account