Modern Real Estate Practice 17th Edition (Chapter 4)
This quiz will be used for practice only. The questions are from class material.
- 1.A real estate broker's responsibility to keep the principal informed of all of the facts that could affect a transaction is the duty of
- A.
Care
- B.
Disclosure
- C.
Obedience
- D.
Accounting
- 2.Which of the following would be considered dual agency?
- A.
A broker acting for both the buyer and the seller in the same transaction
- B.
Two brokerage companies' cooperating with each other
- C.
A broker representing more than one pricipal
- D.
A broker listing and then selling the same property
- 3.The relationship of a broker to his or her client is that of a(n)
- A.
Trustee
- B.
Subagent
- C.
Fiduciary
- D.
Attorney in fact
- 4.A real estate broker acting as the agent of the seller
- A.
Must promote and safeguard the seller's best interest
- B.
Can disclose the seller's minimum price
- C.
Should present to the seller only the highest offer for the property
- D.
Can accept an offer on behalf of the seller
- 5.In designated agency all of the following apply EXCEPT
- A.
The broker could be a dual agent
- B.
The same agent may represent both the buyer and the seller at the same time
- C.
The broker can choose an agent in the office to reprsent the seller
- D.
The broker may appoint an agent to negotiate for the buyer
- 6.A broker is permitted to represent both the seller and the buyer in the same transaction when
- A.
The principals are not aware o fsuch action
- B.
The broker is a subagent rather than the agent of the seller
- C.
Commisions are collected from both parties
- D.
Both parties have been informed and agree to the dual representation
- 7.Which of the following would be considered lawful practice in real estate brokerage?
- A.
Deceitful or dishonest practices
- B.
Exaggerated statements about the property
- C.
Omitted statements of material fact
- D.
Misstatements about the property
- 8.As an agent for the seller, a real estate broker can
- A.
Guarantee a prospective buyer that the seller will accept an offer at the listed price and terms
- B.
Solicit an offer to purchase the propery from a prospective buyer
- C.
Advise a prospective buyer as to the best manner of taking title to the property
- D.
Change the terms of the listing contract on behalf of the seller.
- 9.A seller has listed her home with a broker for $190,000. The listing broker tellls a prospective buyer to submit a low offer because the seller is desperate to sell. The buyer offers $185,000 and the seller accepts it. In this situation,
- A.
The broker has violated his agency relationship with the seller.
- B.
The broker was unethical, but the seller did get her property.
- C.
The broker acted properly to obtain a quick offer on the property
- D.
Any broker is authorized to encourage such bids for the property
- 10.When Broker Hearn was told by his principle not to advertise her property in a certain newspaper, which was out of the area, hearn complied because he
- A.
Had never advertised in that newspaper anyway
- B.
Must obey the lawful instructions of his pricipal
- C.
Was NOT intending to advertise the property at all
- D.
Is allowed to advertise only in local newspapers
- 11.It is the duty of the agent to disclose to the principal every material step taken in the transaction of the principal's business. This is because the
- A.
Commission can be adjusted up or down according to the agent's efforts
- B.
Agent has fiduciary obligations to the principal.
- C.
Terms of the listing contract require the agent to do so.
- D.
Terms of the purchase contract require the agent to do so.
- 12.Upon discovering a latent defect in a property, the Broker Alice should discuss the problem with seller Juan and then
- A.
Tell him that the defect must be repaired
- B.
Arrange fr the repairs herself
- C.
Inform any prospective buyers of the defect
- D.
Contact the city building inspector about the defect
- 13.The type of agency practiced in which there is only ever one client is
- A.
Designated agency
- B.
Disclosed dual agency
- C.
Exclusive buyer agency
- D.
Single agency
- 14.A salesperson who is employed by a broker told a prospective buyer that the house she was looking at is "the best house in the area". Because of this statement.
- A.
The salesperson was guilty of fraud
- B.
The broker was guilty of fraud because the employing broker is responsible for the actions of the salesperson.
- C.
The salesperson was practicing puffing
- D.
The salesperson would be guilty of fraud only if the buyer purchased the house
- 15.Which of the follwing best defines the law of agency?
- A.
The selling of another's property by a properly lincensed brokerage company
- B.
The rules of law that apply to the respnsibilities of a person who acts as agent for another
- C.
The principles that govern one's conduct in business
- D.
The rules and regulations of the state's licensing agency
- 16.A broker who is the agent of the buyer should do which of the following?
- A.
Disclose to the seller that the buyer is a minority person
- B.
Disclose to the seller the maximum price the buyer is willing to pay
- C.
Present to the seller only offers that are acceptable
- D.
Advise the buyer if the listing price of the seller's house is unrealistic
- 17.A salesperson sells buyer Fred property listed by another brokerage firm in the Multiple Listing System. The salesperson has been working with Fred for many months but does not have an agency contract with him. This salesperson has fiduciary obligations to
- A.
The seller.
- B.
The buyer.
- C.
No one.
- D.
The public.
- 18.Broker Joan shows properties listed for sale with her company to prospect Karl. Karl has refused buyer representation. Karl is Joan's
- A.
Client.
- B.
Principal.
- C.
Customer.
- D.
Fiduciary.
- 19.Mr. Moles's house has been listed for sale for more than one year and he is very anxious to move into a retirement community. Salesperson Rachel, who is a subagent of the seller, tells a prospective buyer to make a low offer because she is sure that the seller will accept it. Regarding Rachel's conduct, all of the following would be true Except?
- A.
She acted appropriately to get the seller's property sold.
- B.
She violated her fiduciary duty to mr. mole.
- C.
Her conduct implies she is representing the buyer.
- D.
She should not assume that an anxious seller will accept a lower offer.
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