Yha - Unit 02 Quiz (Chapters 4, 5 & 6)

50 Questions | Total Attempts: 10075

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Course Quizzes & Trivia

90-Hour Broker Pre-License Course Quizzes


Questions and Answers
  • 1. 
    The 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. 

      The sponsored licensee acting for both the buyer and the seller in the same transaction

    • B. 

      Brokers cooperating with each other

    • C. 

      The broker representing diffferent principals

    • D. 

      The brokerage firm listing and selling the same property

  • 3. 
    The relationship of a broker to the broker's client is that of
    • A. 

      A trustee.

    • B. 

      A subagent.

    • C. 

      A fiduciary.

    • D. 

      An attorney-in-fact.

  • 4. 
    A licensee is permitteed to represent both the seller and the buyer in the same transaction when
    • A. 

      The principals are not aware of such action.

    • B. 

      The broker is a subagent rather than the agent of the seller.

    • C. 

      Commissions are collected from both parties.

    • D. 

      Both parties have been informed in writing and have agreed to the dual representation.

  • 5. 
    Which statement is TRUE regarding the duties of a real estate broker who is acting as the agent of the seller?
    • A. 

      The broker is obligated to render faithful service to the principal.

    • B. 

      It is acceptable for the broker to disclose the seller's minimum price.

    • C. 

      The broker should present to the seller only the highest offer for the property.

    • D. 

      The broker can accept an offer on behalf of the seller.

  • 6. 
    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 property from a prospective buyer.

    • C. 

      Advise a prospective buyer of the best manner of taking title to the property.

    • D. 

      Change the terms of the listing contract on behalf of the seller.

  • 7. 
    A seller has listed her home with a broker for $290,000, and the broker tells a prospective buyer to submit a low offer because the seller is desperate to sell. The buyer offers $285,000 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 sell 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.

  • 8. 
    A listing broker was told by his principal not to advertise her property in a newspaper that was out of the area, The broker complied because he
    • A. 

      Had never advertised in this newspaper anyway.

    • B. 

      Must obey the lawful instructions of his principal.

    • C. 

      Was not intending to advertise the property at all.

    • D. 

      Is allowed to advertise only in local newspapers.

  • 9. 
    It is the duty of an agent to disclose to the principal every 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.

  • 10. 
    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.

  • 11. 
    Which phrase best defines the traditional (Common) "law of agency?"
    • A. 

      The selling of another's property by an authorized agent

    • B. 

      The rules of the state's regulatory body

    • C. 

      The principles that govern one's conduct in business

    • D. 

      The rules of law that define the responsibilities of an agent to the principal.

  • 12. 
    In Illinois, a licensee working with a buyer sells a property listed by another brokerage firm in the MLS. The licensee has been working with the buyer for many months but does not have a written agency contract with the buyer. This licensee has created an implied agency with
    • A. 

      Neither party.

    • B. 

      The buyer.

    • C. 

      The seller.

    • D. 

      The public.

  • 13. 
    A buyer who is shown properties listed for rent by a co-op broker is the broker's
    • A. 

      Customer.

    • B. 

      Tenant.

    • C. 

      Client.

    • D. 

      Agent.

  • 14. 
    A property manager is hired to manage a property while the owner is overseas for two years. The property manager is
    • A. 

      A general agent.

    • B. 

      A special agent.

    • C. 

      A universal agent.

    • D. 

      An attorney-in-fact

  • 15. 
    Acts a licensee may perform for a consumer that are informative only are referred to under Illinois law as
    • A. 

      Representational.

    • B. 

      Reasonable.

    • C. 

      Ministerial.

    • D. 

      Informational.

  • 16. 
    Illinois law required brokers to deliver true copies of all documents to the parties within how many hours of their signing?
    • A. 

      8

    • B. 

      12

    • C. 

      24

    • D. 

      48

  • 17. 
    A broker who represents a seller under an exclusive listing agreement receives two offers for the property at the same time, one from an agent in his office, and one from an agent with a cooperating broker. What should the broker do?
    • A. 

      Submit the offer from the agent in his office first

    • B. 

      Submit both offers at the same time

    • C. 

      Submit the higher offer first

    • D. 

      Submit the offer from the other agent first

  • 18. 
    The amount of commission due to a sponsored licensee is determined by
    • A. 

      State law.

    • B. 

      The local real estate board.

    • C. 

      Negotiations with the sponsoring broker.

    • D. 

      Court decree.

  • 19. 
    A real estate broker was responsible for a chain of events that resulted in the sale of one client's properties. This is referred to as a
    • A. 

      Pro forma.

    • B. 

      Procuring cause.

    • C. 

      Private offering.

    • D. 

      Proffered offer.

  • 20. 
    A sponsored license may advertise a property for sale only if the licensee
    • 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.

  • 21. 
    A real estate licensee 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 transactions.

  • 22. 
    In a typical agency relationship between the broker and the client, the broker's commision is determined by
    • A. 

      State law.

    • B. 

      The local real estate board.

    • C. 

      Mutual agreement.

    • D. 

      Minimums based on the property type.

  • 23. 
    A licensee working for a sponsoring broker sells a $150,000 home listed by the broker's office. The listed commission is 6.5 percent of the seling price. The licensee and sponsoring broker agreed that that licensee would receive 55 percent of any commission that the licensee generated for the office. The licensee is entitled to receive
    • A. 

      $2,632.50

    • B. 

      $5,362.50

    • C. 

      $3,412.50

    • D. 

      $5,850.00

  • 24. 
    A landowner subdivides his acerage and offers the lots for sale. A broker tells the landowner that she can sell the lots for a fee and the seller tells her to go ahead. After the broker sells some of the lots, the landowner refuses to pay her a commission. The broker can
    • A. 

      Report the landowner to the real estate licensing authorities.

    • B. 

      File a lien against the landowner's remaining lots.

    • C. 

      Do nothing.

    • D. 

      Sue the seller based on an open listing.

  • 25. 
    A sponsored licensee lists a unit for sale in a condominium building. The sponsored licensee in this transaction
    • A. 

      Has a direct contractual relationship with the owners of the unit.

    • B. 

      Acts on behalf of the sponsoring broker.

    • C. 

      Acts on behalf of the condominium association.

    • D. 

      Must find a buyer for the unit to obtain a share of the commission.

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