New York Real Estate Exam Prep**
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53 terms
Terms | Definitions |
|---|---|
 The situation with the most potential for conflict is when a real estate licensee acts as a:-Dual Agent -Buyers Broker -Sellers Agent -Transaction Broker | -Dual Agent |
| 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 situations: -The broker has violated his agency relationship with the seller -The broker was unethical, but the seller did get to sell the property -The broker acted properly to obtain a quick offer on the property -Any broker is authorized to encourage such bids for the property | -The broker has violated his agency relationship with the seller |
| The words "procurring cause" would have an important meaning to which of the following: -A dispute over commission on an exclusive agency listing -A lawsuit against a licensee involving fraud -The sale of government land -When securing a listing | -A dispute over commission on an exclusive agency listing "Procurring cause is the act of the broker which is instrumental in effecting the meeting of minds between the seller and the buyer as to the price and terms. It is one of the requisites for entitlement to commission" |
| If a salesperson acts as an independent contractor, then: -He controls his own working hours -All of his listings belong to him -His broker must withhold income tax from his commission checks -He is responsible to his broker as to how his work is performed | -He controls his own working hours |
| In a real estate transaction, fiduciary duties are owed to the: -Principal -Customer -Broker -Agent | -Principal |
| In a real estate transaction, both the seller's agent and the buyer's agent are legally required to put whose interest first? -Their Principal's -Their Brokers -The Sellers -The Buyers | -Their Principals |
| In addition to the duties of diligence, care, and skill, a real estate agent owes the principal a full disclosure of all facts material to the subject of the agency. Any intentional concealment of such facts by the agent would probably be regarded as; -Misrepresentation -Constructive Fraud -Commingling -Conversion | -Misrepresentation |
| When serving as a buyer's agent, according to the Civil Code sections dealing with agency, a licensee owes a fidicuary duty: -To the buyer -To the seller -To the broker -To the buyer and seller | -To the Buyer |
| When a selling agent is a subagent of the listing broker: -His fiduciary duty and primary allegiance are to the seller only -He only owes each party the normal customer services -His fiduciary duty and primary allegiance are to the buyer only -His fiduciary duty and primary allegiance are to the seller and buyer equally | -His fiduciary duty and primary allegiance are to the seller only |
| What is the best most desired way of ending a special relationship? -Performance of the objective -Discharge by either principal -Resignation by the agent -Death or disability of the client | -Performance of the objective |
| An actual agency relationship that arises by the actions of the parties rather than by expressed written agreement is called: -ostensible/implied agency -general agency -special agency -universal agency | -ostensible/implied agency |
| The obligation of protecting any deposits entrusted to an agent is an example of the fiduciary duty of: -Accounting -Competence -Obedience -Disclosure | -Accounting |
| If the owner enters into an Exclusive agency listing and thereafter sells the property through his own efforts: -No commission is payable -Broker is entitled to full commission -Broker is entitled to 50 percent of his commission -Broker is entitled to be reimbursed for expenditures | -No commission is payable |
| A real estate agent who is placed in a position of trust, loyalty, and confidence is a: -fiduciary -dual agent -principal -independent contractor | -fiduciary |
| The relationship of a property manager with the owner is a: -General agency -Dual agency -Special agency -Limited partnership | -General agency |
| If two parties want to create an enforceable broker-principal relationship concerning a right, title or interest in real property, the most essential element to do so would be: -An employment contract -The authority to accept a deposit -A purchase agreement -An agreement about the commission | -An employment contract an employment contract is also considered a listing contract |
| Which of the following would not terminate an agency relationship? -Renewal -Performance -Expiration -Termination | -Renewal |
| Once an agency relationship is ended, any confidential information learned by the agent during the relationship is: -Still confidential -A part of the MLS historical data base -Considered to be used for blackmail -Shared with future clients | -Still confidential |
| Jones agrees to represent Brown in the sale of a property. The listing contract states that Jones will receive a fee of $25,000 from the Brown closing, regardless of the sale price. Is this a valid form of compensation? -Yes. Compensation can be determined in any number of ways, as long as the seller and broker agree -Yes. The broker is supposed to charge what the traffic will bear -No. A flat fee exposes the seller to being cheated -No. The seller should pay on a basis of a stated percentage of contract price | -Yes. Compensation can be determined in any number of ways, as long as the seller and broker agree *Compensation is negotiated between broker and seller and may be stated in many different ways, including; as a percentage of price hourly rate by the transaction by a menu of services |
| Which of the following best describes a "client" ? -Anyone who signs a real estate purchase agreement with a licensed real estate agent or broker -Anyone who expresses interest in working with a licensed real estate agent or broker -Anyone who inquires about specific properties with licensed real estate agent or broker -Anyone who views properties with a licensed real estate agent or broker | -Anyone who expresses interest in working with a licensed real estate agent or broker |
| A real estate licensee has a buyer agency agreement. What is the seller in this situation? -A customer -A Client -A fiduciary -An agent | -A customer |
| Agency is the act of representing someone in the purchase, sale, or lease of a property. Sub-agency is the act of representing: -A principal who is represented by an agent -A department of the federal government -A lending institution -An anonymous purchaser | -A principal who is represented by an agent |
| The representation of opposing principals (buyers and seller) at the same time would be a: -Dual agency -Billateral agency -Mutual agency -Great agency | -Dual agency |
| Typically a listing broker is usually considered to be: -a fiduciary (agent) of the seller -the principal in the transaction -the client in the transaction -a dual agent | -a fiduciary (agent) of the seller |
| To be legally entitle to a commission related to a real estate transaction, the agent must be all of the following except: -Under contract to either the buyer or seller -Authorized to be involved in the marketing effort -The procurring cause of the transaction -Licensed | -Under contract to either the buyer or seller the agent could be functioning as a cooperating broker |
| Which of the following listings is illegal in most states and open to fraudulent dealings? -A net listing -An open listing -An exclusive agency -An exclusive right to sell | -A net listing which the agent keeps any part of the sale price above a given amount |
| The main obligation the principal owes a real estate agent is: -Compensation -Obedience -Accounting -Confidentiality | -Compensation |
| Within the agency agreement is a statement that binds the buyer to paying the broker's fee if, within a stated number of days, the buyer purchases a property that was shown to the buyer during the agency period. This clause is called the: -Broker protection clause -Automatic extension clause -Limited coverage clause -Buyer liability clause | -Broker protection clause unless the buyer subsequently hires another buyer agent and purchases this property, the broker protections clause obligates the buyer to pay the broker's fee |
| Which of the following represents the minimum time period for an exclusive right to sell listing: -Whatever is agreed upon by the seller and the broker -90 days -6 months -45 days | -Whatever is agreed upon by the seller and the broker |
| When an agency relationship ends, which of the following duties does not continue? -Loyalty -Accounting for property -Accounting for money -Confidentiality | -Loyalty |
| When is a broker relieved of the obligation to present an offer to purchase real property to the principal: -When the offer is patently frivolous or the broker is acting on written instructions of the principal -A broker is never relieved of the obligation to present an offer -When the offer contains more than 3 contingency clauses -When the offer is for the purchase of nonresidential property | -When the offer is patently frivolous or the broker is acting on written instructions of the principal |
| Which of the following statements BEST shows the differences between an exclusive right to sell and either an open or an exclusive agency? -An exclusive right-to-sell guarantees the listing broker a commission if he/she, or any other cooperating broker, procures a ready, willing and able buyer under the seller's terms and conditions; exclusive agency and open listing do not provide the same | -An exclusive right-to-sell guarantees the listing broker a commission if he/she, or any other cooperating broker, procures a ready, willing and able buyer under the seller's terms and conditions; exclusive agency and open listing do not provide the same |
| The fiduciary duty of full disclosure requires the seller's agent to: -Tell the principal anything that would be of use in negotiations -Advise the buyer about how much the seller is likely to accept for the property -Obey all the seller's lawful instructions -Advertise listed property frequently | -Tell the principal anything that would be of use in negotiations |
| When agent Andy took a listing he promised the seller he would advertise the property in a magazine until it was sold. Andy did not do the advertising that he promised. Andy is guilty of: -Actual Fraud -Constructive Fraud -Objective Fraud -Comprehensive Fraud | -Actual Fraud |
| The broker who most qualifies for a commission is the one who: -Communicated the acceptance to the buyer -Received the acceptance of an offer -Received the offer from the buyer -Gave the offer to the seller | -Communicated the acceptance to the buyer |
| Ron lists his house and tells his listing agent, Kyle, "I'm listing for $480,000 but I might take less." Kyle may properly: -Keep the information to himself -Explain Rons' Position to prospective buyers in an effort to obtain an offer -Share Ron's statement only with the buyer's broker -Advertise the property for "$480,000 or less." | -Keep the information to himself |
| A prospective buyer would be entitle to damages from a real estate broker in the event the broker: -Acts in excess of the authority given the broker by the seller -Makes misrepresentation based on information received from the employing seller -Executes a contract in the name of the seller after being properly authorized by a power of attorney -Turns the buyer deposit over to the seller and thereafter the contract fails without the agent's fault | -Acts in excess of the authority given the broker by the seller |
| A real estate licensee is usually presumed to be the agent of the: -Party with whom a written contract has been signed -Party paying the commission -Owner of the real estate -Buyer | -Party with whom a written contract has been signed |
| Which of the following statements about the law of agency is CORRECT? -It establishes a fiduciary relationship -It refers specifically to insurance -It does not require a high degree of loyalty and fidelity from an agent -There is no employment relationship | -It establishes a fiduciary relationship |
| If a broker is an agent of the seller, he owes to the buyer: -A duty of fair and honest dealing -Only a duty to disclosure any items which relate directly to the sales price -Only the duty to answer questions honestly -The same fiduciary obligations | -A duty of fair and honest dealing |
| Which is an example of ostensible agency? -The principal showed by actions that the agent's actions were accepted -A broker was able to sell any or all of an owner's properties -A broker was able to sell only one of an owner's properties -A selling broker acting as a sub-agent of a listing broker | -The principal showed by actions that the agent's actions were accepted the same as implied agency where the relationship is created by the actions of the parties rather than written contract |
| Jones makes a written offer to buy Brown's house for $250,000. Jones confides in Brown's agent, White, that if necessary he would pay $10,000 more, but he doesn't want Brown to know. White should: -Warn Jones that he must pass on to Brown anything useful he knows -Explain to Jones why the house isn't worth more than$250,000 -Refuse to convey the lower offer to Brown -Present the offer to Brown but respect Jones confidentiality | -Warn Jones that he must pass on to Brown anything useful he knows |
| A listing broker may legally refuse to present a proper offer on the property to the seller when: -Acting on the express instructions from the seller -The seller has already accepted a backup offer -The broker plans to purchase the property himself -The broker is acting as gratuitous agent | -Acting on the express instructions from the seller |
| In an agency relationship, the person identified as the client is usually the: -Principal -Subagent -Fiduciary -Customer | -Principal |
| A prospect for the lease of a commercial property feels the need for adversarial representation and hires a broker to negotiate the lease on his behalf. What is the name of the contract entered into between the prospect and the broker? -A buyer broker agreement -A property management agreement -An authorization to negotiate -A cooperative brokerage agreement | -A buyer broker agreement |
| Under what circumstances might a broker collect a commission from both buyer and seller? -If both parties give informed consent -Under no circumstances -Only with approval from the state licensing authorities -If doing so does not violate company policy | -If both parties give informed consent |
| If a principal no longer desires the broker to act for him during the period of an exclusive right to sell listing, he may: -Revoke the agency created by the listing contract buy may be liable for damages -Be forced to sell his property -Not revoke the agency because an exclusive right to sell listing is an irrevocable contract -Revoke the agency created by the listing contract but not be liable for damages | -Revoke the agency created by the listing contract but may be liable for damages |
| A representative with full authority to bind the principal to all agreements is: -A general agent -A double agent -An accidental agent -A special agent | -A general agent |
| Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property. What, if any, is the relationship between the buyer's broker, the seller and the listing broker? -There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smith represents the Buyer -Customer -Agency -Dual Agency | -There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smith represents the Buyer |
| If a principal terminates the listing agreement during the listing period, the broker may be able to do any of the following except: -Encourage termination of any contract in process -Recover marketing expenses -Continue to cooperate with any subsequent listing broker -Collect a commission for a transaction in process | -Encourage termination of any contract in process |
| Which of the following is not essential to the creation of an agency relationship? -Agreement to pay consideration -Competency of the principal -Consent of the principal -A fiduciary relationship | -Agreement to pay consideration |
| In which of the following ways could an agency relationship not be created? -Voluntary offer by the agent -Written contract -Oral contract -Implied contract | -Voluntary offer by the agent |
| An agency could be terminated by all EXCEPT: -when the owner cancels the listing in order to contact the potential buyer and sell to him or her directly -when the house burns down -when the performance of the seller is lacking -when the performance of the broker is suspect | -when the owner cancels the listing in order to contact the potential buyer and sell to him or her directly |
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