D. false advertising. C) D. Donna has violated the Code by not making it clear to buyer Dan that she was representing the seller. all lawful instructions of the owner. When Kathy applies for a mortgage, the lender turns her down because she doesnt have a sufficient down payment. Patty prepares a CMA prior to the appointment, and then shows the property to her prospect, buyer Larry. Broker Paul later brings a sales agreement on the property from one of the attendees of the open house. A person who may be affected by the terms of an agreement, but who is not a party to the agreement is known as the: A. Dual agency is legal in all other states and Washington, D.C., though regulations vary by state in three key areas: When during a transaction agents must disclose dual agency Attend our First-Time Homebuyer Seminar and win a free TV! Patty prepares a CMA prior to the appointment, then shows the property to her prospect, buyer Larry. 115. B) there is a client-buyer and a customer-seller. C. member associations, individually. No. REALTOR Melanie has a listing, which REALTOR Bill sells. a) The partners are under a duty to account for any profits made whilst competing with the firm. C. tell prospective buyers Trisha must sell quickly because Ed must follow all instructions of the client B) C. Sarah may ask her REALTOR principal to request arbitration but Sarah may not request arbitration on her own. D. Yes, because she does not have permission from REALTOR Katie. B. draft a purchase contract from scratch A. each members conscience. A REALTOR may tell prospective clients not to list with REALTORS offering flat-rate commissions. only Disney is liable on the contract if Disney ratified the contract. C. are not allowed to litigate the matter. A factor that is indicative of bad faith and in Salvatores favor is whether 97. D. mediation is not available. A. B. Jack C. No, I have no experience selling commercial properties so it is illegal for me to do it. REALTOR Marcy listed Dereks home, thus creating an agency relationship in which she owes fiduciary duties to Derek. Another goal was to recognize and accommodate the growing practice of buyer agency, D) 135. \text{Variable expenses}&\underline{\text{\hspace{5pt}315,000}}\\ D. required by state law to be followed by all licensees. obedience. Broker Deb admits that she extended an offer of cooperation and compensation to Broker Steve. D. Melanie should not solicit a buyer agreement with these buyers. No, because REALTOR Katie is obviously clueless about how to price a property. REALTOR Betty is hosting an open house where she meets buyer Josie. REALTOR Lisa, a property manager, researchs county records to determine the owners of multi-unit buildings. B) Sacha does not want arbitration, and both agree to get lawyers and sue one another. the sales associate was guilty of fraud. C) Jona is requesting arbitration because he feels Wally unfairly went into contract with his client. 148. A) Jordan is a lawyer who has her own law firm and specializes in real estate law. Dylan, a real estate developer, hires Jordan to represent him in the purchase of land. REALTOR Pete b. must prove that the broker was the procuring cause to be able to collect a commission. environmental hazards. C. The sellers agent has authorized the buyers agent to speak to the seller. A. once it has been filed the destruction of the property. B. negate that the introduction strongly favors Paul. a designated agency. 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. \text{Electronics}&\text{\$\hspace{1pt}40,000,000}&\text{\$\hspace{1pt}2,880,000}&\text{\$\hspace{1pt}16,000,000}\\ D. honesty and integrity, 108. In a dual agency situation, if it is permitted by state law, a broker may represent both the seller and the buyer in the same transaction provided A) B. a client during and following the termination of the professional relationship between the client and the REALTOR. Show an Amount column, a Per Unit column, and a Percent column on each statement. All material facts known about the property from the seller, another agent, previous experience with the property, or researching public records. question. Every state now requires That same day, Jans buyer client calls Carlos directly and asks for an appointment to see the property and Carlos provides the showing. 134. Did Marty violate the Code? Marty makes arrangements with the listing agent, REALTOR Caroline, to show the property. returns due to the use of appraisals? The structure does not seem sound and I would not purchase this house. B. call the sellers directly to confirm the nature and expiration date of any listing agreement they have. D) The Minevik Group is a Swedish-based, high-technology engineering firm. A) When a consumer wishes to obtain specific information about a listing, he is instructed to click here. The click actually is consent for the consumer to enter into an exclusive, year-long buyer agency agreement with Nathan but this is not apparent. If REALTOR Shelley wishes to file an arbitration request, against whom does she file it? After the closing, REALTOR Edward, who represented the seller in the transaction, claimed that Devon owed him a buyers agent fee, and sought arbitration. D) Which of the following is considered dual agency? A. Ann cannot file both an ethics complaint and an arbitration request at the same time. B. comfortable home near the community recreation center the principal. A) 128. A broker performing as a property manager who deposits the rent into his operating account is an example of C) contact the city building inspector about the defect. B. Josie asks Betty her opinion. conditions that need not be disclosed. a. has no legal right to a commission. Broker Ken showed a property to buyer Lori. A. chosen to work hard for his new broker Ethan, which is not a violation of the Code. A. no, because Nathan is not responsible for how the website functions At the closing table, Marty tells Caroline and the seller that the buyer is actually his daughter. D. State Licensing Board of Directors. 62. At this point, what kind of relationship do Howard and Owen have? Unit 10: Client Representation Agreements, Art History Baroque, Neoclassical, Realism, R. The term, however, can have different meanings. The functions of a facilitator or intermediary are those of d. is subject to disciplinary action by the Real Estate Commissioner for negligence. Which of the following statements is TRUE regarding dual agency? C. large, four-bedroom on a quiet cul-de-sac lot 29. Generally, the relationship between real estate broker and seller is Later, a sales contract is entered into directly between Seller Keith and High-Rise Corporation. Yes, Antonio only has a contract with the buyer; therefore, he is only permitted to collect a fee from the buyer. 132. a. REALTOR Scott has several websites, each directed at various niches, such as first-time buyers, seniors, etc. A. has no business concerning himself with the other REALTORs contract; it is none of his business. C. really none of REALTOR Janes or her clients business. D. no, because the user had the choice to click or not to click. A. by establishing a new contract with Mr. Johnson before the previous one had expired. B. The National Association of REALTORS Code of Ethics is Broker Judy has been working actively with Buyer John for several months. A. gain consent to advertise Tricias property as having an anxious owner who wants an offer C) obedience. A broker helps a buyer and a seller with paperwork but does not represent either party. B. Paul. A. Compute the break-even point in dollar sales for the company under the new marketing strategy. Which of the following is not true regarding dual agency? B. telling him the lowest price Derek will take for the house, which Derek told her in confidence B) 81. the buyer and the seller are related by blood or marriage. Statements not known to be false at the time they are made are called _____ misrepresentations. Thus, profits vary considerably from year to year according to general economic conditions. D. has not obtained informed consent from the buyers to be obligated to pay two commissions. Which statement is correct? REALTOR Nelson owes REALTOR Dee REALTOR Marcy listed Dereks home, thus creating an agency relationship in which she owes fiduciary duties to Derek. personally arrange for the repairs. \textbf{Investment Center}&\textbf{Sales}&\textbf{Income}&\textbf{Average Invested Assets}\\[5pt] B. Nan has an exclusive, current, valid agreement with Bob. Lets not worry about that todaylets wait until we sell your house, then well figure it out. 64. C. are not allowed to litigate the matter. A. cannot arbitrate if he is a principal in the transaction. latent defects. As a general rule, dual agency is permissible. C) It is one of the rules of society enacted by legislatures and other governing bodies. Intentional torts include all but which of the following? All of these will terminate an agency relationship EXCEPT Upon discovering a latent defect in a property, the real estate professional should discuss the problem with the seller and then. 66. C. yes, because electronic contracts are not valid B. unethical. Several months go by without contact between Paul and Rhonda, and then Broker Steve introduces the property to Rhonda again. You are simply a bottom feeder! Identify which statement is true. b. innocent C) B. the co-operating commission originally offered by Nelson. Choices (A), What is the internal rate of return? B. not a violation of the Code as REALTOR Terry doesnt know any agents in Hawaii. Identify which of the following inducements is prohibited. A. dictatorial business. Broker Mike introduced Kathy to the property. Mikes answer should be Todds actions are considered Tamika calls Alonzo to find out if the property is exclusively listed and, if so, when it expires. A. Qaadir hires Zaafir, a lawyer and an independent contractor, to represent him in a court case. Compare our rates to others This ad is 1. I recommend if you are interested, you have the house inspected by a professional. D) release of information regarding a transaction two years following closing. Under the _____ rule, a principal is generally _____ for injuries caused by its agents and employees while they are on their way to or from work. Compare our rates to others This ad is B) Generally, a principal is liable for the torts of its independent contractors. The broker is guilty of intentional misrepresentation. The next day, Miriam gets a phone call from seller Katie who asks to be released from her exclusive agreement so that she can re-list her property with REALTOR Tom, who is now working for REALTOR Ethan. 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. B. Olivia may ask her REALTOR principal to initiate litigation but she may not initiate litigation on her own. REALTOR Mike is showing a property to his client Jean. C. not run the ad at all. B. C. maintain the confidentiality of the information since the seller is his client 5. A) The dual agency does not constitute a violation of the duty of loyalty so long as the agent acts fairly and equitably. 85. C. a violation of the Code, despite the fact that REALTOR Nelson did have permission from REALTOR Matthew. "The size of the bedrooms makes them wonderfully cozy and perfect for your children." D. urge the seller to update the disclosure form or have the back door repaired, 106. No, because REALTORS are entitled to collect some fees, which a non-member licensee is not. D) B. include persons of only one race to show the demographics of that neighborhood. An agent receives an offer. Which item is considered outside the scope of a real estate license, according to Article 2? c. accidental A. Identify which statement regarding this situation is TRUE. both parties are represented by attorneys. After Mikes listing contract expires, Dean sells the property to Kathy. Which of these statements is an ethical practice by a REALTOR? D. comparative financial analysis. 138. Sherry produces an agreement of sale, which is acceptable to Tim who sells the property to Wanda. It is part of a body of law established by tradition and court decisions. D) A. not practicing law Disney employs Saul Arnold as an agent to work on its behalf to acquire the needed property, with an express agreement that the agent will not disclose the existence of the agency to a third-party seller. C. the principal Which of the following is an INCORRECT statement regarding usurping an opportunity and the agent's duty of loyalty? Misrepresentation or omission might result in broker liability A. complete a pre-printed contract Identify which statement is true. B. opinion of value. B. property profiling. D) Walt Disney Company wants to open a new theme park in Chicago but first needs to acquire land for the park. REALTOR Marty has a daughter who is interested in a property. A) the codified law that is a legacy of French rule. Dual agency is a situation to describe when a real estate agent works with both the buyer and the seller. if they are only part of puffing. A. REALTOR Brian is the mediator. D. undivided loyalty. If two licensees, who are not REALTORS, have a monetary dispute, they REALTOR Barbara holds an open house on a rainy day and discovers the seal for the back door is leaking. D. A REALTOR may file a request for arbitration only after any ethics complaint about the same matter is resolved. An open listing is an exclusive contract. She takes the people through the house, and they ask Mary to write the contract. a federal registry of residential information on sex offenders. D. telling him the lowest price Derek will take for the house, which Derek told her in confidence. Open house in a beautiful tree-lined neighborhood this Saturday! REALTOR Kara posts an ad claiming the most you will be charged is a $5,000 commission. D. offer to pay REALTOR John directly at the time of closing. C. litigate any differences. a designated agency. 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. D) D. Broker Steve. D. Nan worked with Bob first. C. Yes, because REALTORS are not permitted to use county records for such purposes. The broker is obligated to render loyalty to the seller. D. contact Linda to let her know there is an offer. In a simple random sample of U.S. purchasing managers, 70 out of the 200 are females. C. Price reductions just made on this beautiful Victorian. D. A REALTOR accepts an undisclosed fee from a buyer while serving as a listing agent for the seller. To keep the websites from looking skimpy, Scott keeps several sold or expired listings on his site that appear to be available. A. ask the buyers if they are exclusively represented by another REALTOR. C) Loyalty This way is more efficient. Accidental or implied agency created excessive liability for both licensees and their brokers (and even consumers), and it opened the door to unintended and undisclosed dual agency. B. Before leaving, REALTOR Patty takes the seller aside and tells her the property wont sell because it is overpriced and shows the seller her comps. universal agency. A. local If REALTOR Shelley wishes to file an arbitration request, against whom does she file it? a. Dual agency is a violation of real estate law. REALTOR Patty has an appointment to show REALTOR Katies listing. 8. Broker Nathan has a property listed for sale. Marty later writes a contract and a sale is made. 9. B. Nathan, as the listing broker. Compute profit margin and investment turnover for each department. 21. D. urge the seller to update the disclosure form or have the back door repaired, 107. premisesthe C) B. arbitration complaints. C) A. proof of clear title on the property implications of REIT dividends for pension funds? any relevant state laws. A) Which of these advertisements is an example of inducement? REALTOR Jeffrey is preparing a new advertisement for the Sunday paper that will have pictures of people enjoying the neighborhood community pool. First twenty people through the door receive a gift card to Chipotle! Do you agree with the marketing managers proposal? Buyer Bill. Which of the following does NOT indicate a buyer trying to freeze out a broker? A) The broker has violated the agency relationship with the seller. B. have two brokers sign off on it. B. C) The local association of REALTORS must offer mediation to both parties before an arbitration hearing is held. Buyer Kathy contacts Seller Dean about buying his property. B) agency, so they are incorrect answers to the REALTOR Jack notices the following comment posted under one of his listings on his website. At 6 p.m. the same day, the agent receives two more offers. According to the Code of Ethics, who owns the listing agreements for a firm? B. a minimum number of listings. A. D. Yes. A) 141. 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. Broker Millie presents as evidence the listing in the MLS with no compensation offered to a buyers agent, only offered to sub-agents. Im certain I could sell your house., 89. He shows and sells a listing held by REALTOR Jane. 47. Under the _____ test, if the agent's motivation for committing an intentional tort is to promote the _____ business, the principal is liable for any injury caused by the tort. REALTOR Jane notices a home in her market area listed with REALTOR Lindas name on it. A statement that the disclosed dual agent may disclose any information to one party that the disclosed dual agent gains from the other party if that information is relevant to the transaction, except: (1) The willingness or ability of the seller to accept less than the asking price; A. Loretta may insist that all buyers and sellers use the auxiliary services provided by her company. 35. Which of the following is NOT a common type of breach of the agent's duty of loyalty to the principal? REALTOR Eddie believes that REALTOR Sacha sold his client a house. D. REALTOR Clarence is the respondent. D. made a referral without Miriams consent, which is a violation of the Code. Acting for more than one party in a transaction is within the law c. Failure to disclose dual agency is a violation of the law d. A real estate license may be revoked or suspended for failure to disclose dual agency a. This is called a(n) A. fiduciary duties. Yes, because she is targeting properties already listed and offering brokerage services. Neither the offer nor the escrow instructions mentioned: (a) the broker as the agent, or (b) terms for payment of a commission. A real estate professional's duties to a customer do NOT include D. only consider who wrote the successful contract on the property. A house built years ago over a ditch covered with decaying timber or a house with ceilings that were improperly attached to the support beams are examples of general agency One day, she is showing REALTOR Terrys listing. Walt Disney Company wants to open a new theme park in Chicago but first needs to acquire land for the park. D. neither Broker Joann nor Broker Millie. C) A. C. documentation of what the opinion is based on C. both Buyer Bill and Broker Anne. I have no experience selling commercial properties but I would be happy to take on the challenge. Which of the following is an INCORRECT statement regarding agent self-dealing? 3 The last group at the local level to review an ethics complaint is the not required to disclose the information because the seller might reject the offer. C. half of the commission REALTOR Nelson actually received from the seller, after he negotiated with the seller to reduce his commission. A. ASSOCIATE-BROKER. She stipulates that her client, Buyer Jack, will pay her fee. REALTOR Jan calls Carlos to arrange for a showing. C. ask REALTOR Craig to increase the commission. Disney tell Saul that the maximum it will pay for a 1-acre lot is $1 million. C. Melanie must confirm that the agency relationship between the buyers and REALTOR Bill has terminated. At the request of a client, REALTOR Marguerite provided a written estimated value of the clients property. Chad is a customer of Marcys. C. You really need to consult with your attorney with questions of that nature. D. comparative financial analysis. B) C) Which of the following statements about dual agency is false? D. tell a client that a contract is valid, void, or voidable, 41. No, because of the right of free speech, Brad can call Ted any time he wants regarding any offers. 68. D. talk Susan out of buying the house. Chad is a customer of Marcys. Which of the following duties does Marcy NOT owe to Chad? A. 127. Disney employs Saul Arnold as an agent to work on its behalf to acquire the needed property. In the common law of agency, an agent owes the principal all of the following EXCEPT a disclosed dual agency. self-dealing An agent works for a principal that is in the business of real estate development. D) C. litigate any differences. The structure looks good. B. Agents are generally allowed to self-deal with the principal, especially if the self-dealing is undisclosed. A. may ask the local Association of REALTORS to provide them with a free mediator. C. Loretta may not market these auxiliary services to buyers or sellers using her company. C. obedience to the inspector. B. Ann cannot file multiple complaints against Marge over this one event. Dual agency can lead to a conflict of interest. A) C. offering to reduce broker fees to a short sale D. do not have the option of arbitration through the local Association of REALTORS. B. contact the sellers and write the contract. Is this a violation of the Code? 142. D. include persons of several races in order to avoid exclusivity in advertising. 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. 19. 76. A. REALTOR-ASSOCIATES A method of resolving a dispute in which the parties involved discuss the situation and resolve it themselves is called A REALTOR principal receives an offer on one of her listings. Dual agency must be disclosed to both parties in a real estate sale Show Result The party who employs an independent contractor is called a(n) _____. whether the worker is paid by way of direct deposit or check. A) B. pay both Sherry and Vinod a full commission. the customer. C. explaining to a customer why a contract cant be enforced C. Nan sold a house to Bob last year. The agent tells a buyer the seller will accept up to $10,000 less than the list price. A nonagents job is simply to help both the buyer and the seller with the necessary paperwork and formalities involved in transferring ownership of real property. C. both Brenda and Jim. It is part of a body of law established by tradition and court decisions. Sacha does not want arbitration, and both agree to get lawyers and sue one another. 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. She leases it. What is Franks duty? never. Ethics Committee. an agency. A) D. use the comment in other places on his website to help drum up new business. Jones owns a small auto dealership, which he wants to relocate closer to his new home. express information of facts about a property or client's circumstances. Broker Jim introduces buyer Ken to a property and keeps in touch with him. However, listings are currently thin in his market. Only choice (C) is not true, so it C. Olivia may ask her REALTOR principal to request arbitration but she may not request arbitration on her own. After the closing, Eddie calls Sacha to discuss the matter. both parties consent in writing to the dual agency. 125. REALTOR Joe discovers that REALTOR Ed filed an ethics complaint against him and that REALTOR Ralph will be a witness in the hearing. REALTOR Barbara holds an open house on a rainy day and discovers the seal for the back door is leaking. Any broker is authorized to encourage such bids for the property. This is called a(n) How would a histogram of US REIT returns over the last twenty years be described? This fact favors 90. C. just by talking to Mr. Johnson before his listing contract expired. even if they are considered a "harmless white lie." She tells REALTOR Ed, in confidence, to do whatever it takes to sell her house. No, the fact that his daughter was the buyer is inconsequential to the transaction. In dual agency, an agent's actual knowledge pertains to. (ANSWERS will be revealed with subscription). 119. What is the carrying value of Mineviks total inventory as of December 31, 2013? 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. Article 1Be honest The couple wants to ensure their children are raised in a diverse area. A. completely unlike state licensing laws. B. his client. 83. administrative law. Subsequently, REALTOR Nelson sells the property to the buyer REALTOR Dee introduced to the property. B. C. panic selling. Subsequently, REALTOR Nelson sells the property to the buyer that REALTOR Dee introduced to the property. Jane could not find the property listed in the MLS. No, Martys daughter and the seller were in mutual agreement with the stipulations of the sale. A. The relationship between the agent and the seller ends automatically if the purchaser submits an offer. A) Several buyers enter REALTOR Petes office and ask about one of the companys listings. B. broker Jim. C. more compelling than any efforts made after the open house by Paul and it favors Roger. an undisclosed dual agency. B) a nonagency. Which of the following is correct? What is Barbaras duty? A. A. Twenty years ago, a former occupant of the house committed suicide in the house. obedience to all instructions of the principal. 116. B. Sarah may ask her REALTOR principal to initiate litigation but Sarah may not initiate litigation on her own. Before leaving, REALTOR Patty takes the seller aside and tells her the property wont sell because it is overpriced and shows the seller her comps. B. may ask the local Association of REALTORS to arbitrate it. B. Jon did not represent his seller as required. A. Melanie can only talk to these buyers if they contact her. Most people familiar with the housing market know that a buyer's agent . A. ask the buyers if they are exclusively represented by another REALTOR. A. C) b. broker. D) How should Larry respond to the question? A licensed broker obtained an exclusive right-to-sell listing from an owner. Which of the following is correct? This is REALTOR Marys next step should be to C. The neighborhood looks predominately white but there are a few Latinos who live a couple of blocks over. REALTOR Brian has filed an ethics complaint against REALTOR Clarence. D. include persons of several races in order to avoid exclusivity in advertising. C) REALTOR Donna has a property exclusively listed and shows it to buyer Dan, who wants to make an offer. Which statement is TRUE of a real estate broker acting as the agent of the seller? Which of the following is correct? Which of these items is a REALTOR required to discover and disclose, according to Article 2 of the Code of Ethics? 87. D) In dual agency, the real estate professional represents two principals in the same transaction. The broker was unethical, but the seller did get to sell the property.