146. D. excellent location; walk to the bus stop. REALTOR Donna has a property exclusively listed and shows it to buyer Dan, who wants to make an offer. A. no, because Nathan is not responsible for how the website functions Subsequently, REALTOR Shelley claims that she represented Buyer Jack. A broker helps a buyer and a seller with paperwork but does not represent either party. General Sara, a licensee, is helping customer Mark find a house? D. Yes, because REALTORS are prohibited from receiving compensation from more than one party. Broker Deb. A) (ANSWERS will be revealed with subscription). B. Howard is Owens customer. A. may ask the local Association of REALTORS to provide them with a free mediator. REALTOR Antonio has a buyer agency contract, which entitles him to collect a fee. B) Seller Sue says to REALTOR Bill one day, I will get half the money when we sell this house, wont I? Which response is correct? A) D) prohibited in all states because a broker must always represent one party. C. notifying him of all known material facts A) A broker acting for both parties in the same transaction, B) A broker representing more than one principal, C) A broker listing a property and then, after it is relisted with another broker, selling the same property, D) Two brokerage companies cooperating with each other, The laws enacted by a legislature make up, The relationship of broker to client in an agency relationship is that of. loyalty to the principal's interests unless they conflict with the agent's interests. Custom designers are available in person this Friday from noon until 4 PM! REALTOR Donna has a property exclusively listed and shows it to buyer Dan, who wants to make an offer. I recommend if you are interested, you have the house inspected by a professional. 80. B. property profiling. B) REALTOR Marty has a daughter who is interested in a property. REALTOR Frank holds an open house for a client on a rainy day and discovers a window leak. B. A) the possible reaction of potential buyers or tenants. C) Katy could elect not to make any appointments. sales associates are agents of the licensing authority. depositing money into an escrow account. The term, __________, refers to a broker who produces a buyer "ready, willing, and able" to purchase the property for the sale price and on the terms specified by the seller, regardless of whether the sale is completed. D. Melanie should not solicit a buyer agreement with these buyers. There are two separate brokerages. A) An agency relationship may be terminated by all of the following, except: b. the principal's refusal of an offer to purchase that was presented in the name of a third party. C. No, I have no experience selling commercial properties so it is illegal for me to do it. While REALTOR Mary is putting a sign on a property, a couple pulls up in a car and asks if they can see the property. Seller Sue says to REALTOR Bill one day, I will get half the money when we sell this house, wont I? Which response is correct? B) 57. D. No, because she is a property manager and the listing agent does not offer that service. This fact favors D) There are four elements of a cause of action for fraud: (1) the licensee made a misstatement or failed to disclose a material fact; (2) the licensee either knew or should have known that the statement was not accurate or that the undisclosed information should have been disclosed; (3) the buyer relied on the misstatement; and (4) the buyer was a federal registry of residential information on sex offenders. First twenty people through the door receive a gift card to Chipotle! B. 47. Broker Joann. Broker Amy discovers that Buyer Lori has looked at a property with Ken and tells Lori that she is also in the real estate business and she can help her buy the property. A) Which of these statements is an ethical practice by a REALTOR? D. Jon is simply being aggressive, which is permissible. C. merely a mention and does not favor Broker Andrew. A factor that is indicative of bad faith and in Salvatores favor is whether B. not consider how and when Amy entered the transaction. D) A. will have years of arbitration ahead of them. Chapter 7 Review Quiz Questions Flashcards | Chegg.com D. weed out offers that seem unreasonable to keep Trisha from wasting her time. REALTOR Paula reads the personal statistics posted on REALTOR Neils Internet blog and posts this comment on his blog: Well, Mr. Smarty-Pants, we could all have the same stats you do if we consistently underpriced every listing we sold. D. Yes, Marty should not have said anything to the other REALTOR and the seller at the closing. Dual Agency vs. Designated Agency: Understand the Difference C) both the buyer and the seller are customers. REALTOR Loretta has a large brokerage that includes an in-house mortgage lender, an in-house title company, and she offers home warranties through her company. C. No, but only if she doesnt solicit the listing at the same time. Identify which statement is true. Linda refuses to answer Janes questions. Broker Steve. Some states allow it, with certain conditions. Common law A. order the seller to disclose the leak B. discrimination. the broker always acts as the agent of a client or customer. B. legislative law. What does the phrase the law of agency is a common law doctrine mean? A. Nan did not sign a contract with Bob. C) A REALTOR can recommend another REALTOR to a client who mentioned she is relocating out of state. C) REALTOR Matthew brings a complicated purchase contract to Nelson that requests partial owner financing. not required to disclose the information because the seller might reject the offer. Broker Paul later brings a sales agreement on the property from one of the attendees of the open house. D. panic selling. Misrepresentation or omission might result in broker liability, In a dual agency situation, a broker may represent both the seller and the buyer in the same transaction if. An agent receives an offer. 23. Broker Joann, buyers agent, is seeking arbitration against Broker Millie, sellers agent. B) the broker was guilty of fraud because he is responsible for actions of the sales associate. D. A foundation crack is hidden behind the paneling in the basement. b) If a partner makes a profit using information gained from inside the firm, but uses that information in a venture that is outside the firm, he may keep that profit. all real estate licensees to be real estate brokers. the buyer and the seller are related by blood or marriage. The relationship between real estate broker and seller is generally what type of agency? B) Which is TRUE? Dual agency limits the level of representation that can be offered by the licensee and also prohibits the licensee from acting exclusively for either party. The principal is looking for vacant land to purchase to develop. C. Loretta may not market these auxiliary services to buyers or sellers using her company. D) B) C. both brokers. B. Olivia may ask her REALTOR principal to initiate litigation but she may not initiate litigation on her own. 43. Tom is not meeting her expectations, so she terminates the employment relationship. D) report the status of all funds received from or on behalf of the principal. C. is simply doing his job by selling the companys listings. Which of the following duties does Marcy NOT owe to Chad? REALTOR Jan calls Carlos to arrange for a showing. What are the typical implications to an REIT investor of REITs being listed? 78. C. remove the comment immediately. A. the co-operating commission originally offered by Nelson. REALTOR Brian has filed an ethics complaint against REALTOR Clarence. 37. This is REALTOR Howard has an exclusive representation agreement with a buyer. B) not required to disclose the information because the seller might reject the offer. The party who employs an independent contractor is called a(n) _____. Escrowing Lynns action is D. Yes, because she does not have permission from REALTOR Katie. D. the National Association of REALTORS. the agent. Identify which statement regarding this situation is TRUE. C) contact the city building inspector about the defect. B. The broker can accept a commission from the buyer without the seller's approval. This fact favors It does not require an agency agreement. The two functions of the local REALTOR Associations Board of Directors, with respect to Code enforcement, are Chapter 7 Online & Book Quiz Flashcards | Chegg.com a principal. REALTOR Brad shows the listing, writes up an offer, and then calls Smitty to ask him when he would like to present the offer to his client. 71. This is a violation of the duty of loyalty known as ___________. The structure does not seem sound and I would not purchase this house. d. principal. disclosure of material facts that the agent knows. sales associates are agents of the broker. The best solution available to Tim is to DBA accounting. REALTOR Maria advises that her buyer obtain and review a home inspection report on a house she is considering buying. C. estimated market evaluation. A. find a third, impartial board to hold their hearing. B. a nonagent. D. Seller Dean was not free to sell the property on his own. If another brokerage wants to show the property, what is the listing brokers responsibility? the sales associate is guilty of fraud only if the buyer purchases the house. 96. the concept of caveat emptor. B) Such disclosure is not prevented by the requirement for client confidentiality. A. dictatorial business. C. a violation of Code, because it is not a general announcement. D. tell a client that a contract is valid, void, or voidable, 41. REALTOR Lynn is very well connected to REALTORS all over the country. 126. B. C. You really need to consult with your attorney with questions of that nature. B. real estate licensees may not litigate over commissions. Common law and representative law REALTOR Mike is showing a property to his client Jean. Dual agency is legal in all 50 states. A real estate professional's duties to a customer do NOT include an attorney-in-fact. C. demand that Sherry split the commission with Vinod. D. litigate the matter with both REALTORS. ch 30 quiz Flashcards | Quizlet When Frank contacts Mr. Johnson to renew the listing, Mr. Johnson informs him that he just signed a contract with REALTOR Jim that becomes effective one day after the current listing expires. Sign it in a few clicks Draw your signature, type it, upload its image, or use your mobile device as a signature pad. Do not show percentages for the fixed expenses. C) A. REALTOR Brian is the respondent. REALTOR Marys next step should be to D. notifying him of all known material facts. In dual agency, the real estate professional represents two principals in the same transaction. can disclose the seller's minimum price. A key fact is A) A. D) InvestmentCenterElectronicsSportingGoodsSales$40,000,00020,000,000Income$2,880,0002,040,000AverageInvestedAssets$16,000,00012,000,000. accounting. The seller didnt mention this before the open house. Section 4 Authorized Relationships, Duties And Disclosures - Brainscape D. a violation of the Code; REALTOR Matthew did not have permission from REALTOR Nelson to contact Jennifer. A. C. estimated market evaluation. D. neither Jane nor Paul. ", Which of these statements could be negligent misrepresentation? 98. (C). A real estate professional's duties to a customer do NOT include Broker Judy has been working actively with Buyer John for several months. the principal to whom the agent gives advice and counsel. A) B) C. obedience to the inspector. D) D) Upon discovering a latent defect in a property, the real estate professional should discuss the problem with the seller and then. disclosure. B) C. panic selling. Bud suggests strongly to Buyer John that he would be better served by buying a house from Broker Nan. Joe tells Ralph that if he shows up at the hearing, hell wish he hadnt! Disney employs Saul Arnold as an agent to work on its behalf to acquire the needed property. Dennis asks the Byers if they have someone helping them find a home. C. Grievance Committee. Later, Ben, who was seated at the same table with Linda, buys the house from Broker Andrew. When homeowners in a particular area are convinced that the ethnic or racial make-up of their neighborhood is changing, causing them to sell below market value, this is known as A special agent represents the principal for one certain transaction only. I know Bill, and hes got a reputation for only working hard on his million-dollar listings. C. REALTOR Clarence is the complainant. A. not timely disclosure per the requirements of the Code. A) This is called a(n) If REALTOR Shelley wishes to file an arbitration request, against whom does she file it? Broker Deb. Youve come to the right person.. C) A) B. not a violation of Code, even if some of the recipients have their homes listed for sale. (Assume that enough funds are available to make the purchase.). Because of this statement, D) C. not run the ad at all. A. 12. The broker has violated the agency relationship with the seller. B. a minimum number of listings. B) 87. contact the city building inspector about the defect. A. Lynn then tells the seller she could recommend a good REALTOR there. A. racial segregation. The seller, Morgan, contacts Buyer Valerie independently and informs her that the property is for sale. C. explaining to a customer why a contract cant be enforced REALTOR Jeffrey is preparing a new advertisement for the Sunday paper that will have pictures of people enjoying the neighborhood community pool. a designated agency. D) B) D) It may not be superseded by statutory law. Jon does not ask Halie if she has an exclusive agreement with Grant; instead, he tells her if she wants to buy the house, she needs to enter into an exclusive agreement with him. D) A. arbitration. Disclosure was improper and possibly illegal, regardless of the agent's motive. The structure looks good. In a real estate transaction the customer is considered the: Which of these items is a REALTOR required to discover and disclose, according to Article 2 of the Code of Ethics? Solved Which of the following statements about dual agency - Chegg a latent defect. Principals are generally liable if an agent's frolic and detour is substantial. C) REALTOR Loretta owns a large brokerage, which includes an in-house mortgage lender, an in-house title company, and a home warranty company. B. C. call the sellers directly only if she has a buyer client who wishes to see the house. D. what is required by the Code. a. Dual agency is a violation of real estate law b. The doctrine of _____ rests on the principle that if someone expects to derive certain benefits from acting through others, that person should also bear the liability for injuries caused to third persons by the negligent conduct of an agent who is acting within his or her scope of employment. the common law. Subsequently, Dean lists the property with Broker Mike. D. urge the seller to update the disclosure form or have the back door repaired, 107. REALTORS are prohibited from receiving compensation from more than one party in a transaction. C. You really need to consult with your attorney with questions of that nature. "The size of the bedrooms makes them wonderfully cozy and perfect for your children." A. C. Mediation is not a method of dispute resolution preferred by the National Association of REALTORS. If the two parties go to mediation and do not resolve the dispute, they are no longer entitled to arbitration. the seller and the broker must both disclose this material fact. C. Article 13Do not practice law C. Buyer Travis is the owner of Big City Enterprises and High-Rise Corporation. C. purposefully leaving sold houses on a website to make your website look more robust B. B. C. Olivia may ask her REALTOR principal to request arbitration but she may not request arbitration on her own. In fact, the view includes the river and the back of a shopping center. Chad is a customer of Marcys. Chapter 4_Brokerage Relationships and Ethics Quizzes - Chegg C. The price that the sellers told the agent is their minimum selling price. B. litigation. d. principal. 132. D. what is required by the Code. Required to disclose the information because it is a material fact important to the seller. D) a) The partners are under a duty to account for any profits made whilst competing with the firm. This relationship is how a customer is differentiated from a client. A key element of an agent's fiduciary responsibility of loyalty is to, The seller is the broker's client; the buyer is a customer. B) Which of the following is NOT a critical factor in determining independent contractor status? The rules established by tradition and court decisions are found in This is a violation of the duty of loyalty known as _________. No, because her client, Larry, has no interest in the property. A nonagent (transactional broker, facilitator, coordinator, or contract broker) is not an agent of either party. is the correct answer to the question. D) Complaints about the behavior of a REALTOR are C) Agents are prohibited from using general information, knowledge, or experience acquired during the course of an agency in later employment. A) She stipulates that her client, buyer Jack, will pay her fee. InvestmentCenterSalesIncomeAverageInvestedAssetsElectronics$40,000,000$2,880,000$16,000,000SportingGoods20,000,0002,040,00012,000,000\begin{array}{lccc} While driving to the courthouse to represent Qaadir at trial, Zaafir negligently causes an automobile accident in which Maali is severely injured. honest and fair dealing. Which of the following choices addresses standards designed around duties to the client, not the public? A) A) Betty could be released from the agency agreement and seek representation from another broker. 36. In a fully disclosed agency, the contract is between the agent and the third party. Maria tells her agent in confidence that she must sell fast and may accept less than the list price. Loyalty An accounting of all monies and property relating to the engagement. Broker Katherine is aware of the listing as it is in the local MLS. D. Visit our website at www.tinytownrealestate.com for special offers!, 39. The Federal Fair Housing Law prohibits me from discussing the racial composition of the neighborhood. required to disclose the information because it is a material fact important to the seller. Agents are generally allowed to self-deal with the principal, especially if the self-dealing is undisclosed.