At the closing table, Howard reveals to both REALTOR Jane and the sellers that he has an exclusive buyer agency agreement with his client. the desire of a potential buyer or tenant to know the information. B) Compare our rates to others This ad is Yes, because she is targeting properties already listed and offering brokerage services. judicial law. The broker expends considerable time and money advertising and showing the house and obtains several offers. Variable expenses would be reduced by $9 per unit. 2 Which of the following committees is most like a grand jury? C. Loretta must disclose her interest to her clients and customers, including any financial benefit received. C. may not arbitrate as he does not belong to the local association. D. websites must maintain a minimum number of listings at all times so the site should never look skimpy. disclosure. \text{Sales (15,000 units X \$30 per unit)}&\text{\$450,000}\\ Broker Millie presents as evidence the listing as it appeared in the MLS, with no compensation offered to a buyers agent, only to sub-agents. C. estrangement of John by Broker Nan. D. contact Linda to let her know there is an offer. (C). D. Sarahs client would have to request arbitration on her behalf; Sarah may not request arbitration on her own. The rules established by tradition and court decisions are found in D. A foundation crack is hidden behind the paneling in the basement. C. Grievance Committee. Which of the following duties does Marcy NOT owe to Chad? B. B) If Jackie Knox, who owns property in Chicago, agrees to sell the needed land and the agent signs his name "Saul Arnold, agent for Walt Disney," _____. 27. B. REALTOR Brian is the respondent. C. only look at the MLS. No, because customers get special treatment over other REALTORS. C. purposefully leaving sold houses on a website to make your website look more robust REALTOR Jan calls Carlos to arrange for a showing. A. appeals complaints. 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. Donna, representing the seller, holds firm and gets Dan to buy at asking price. The first committee at the local level to review an ethics complaint or a request for arbitration is the An exclusive listing must always be at least 30 days long., What are the three most common types of listings . No, the fact that his daughter was the buyer is inconsequential to the transaction. \text{Contribution margin}&\text{135,000}\\ The agent believes the seller will not accept any of the three offers. REALTOR Smitty has an exclusive listing on seller Teds house. The broker can accept a commission from the buyer without the seller's approval. C) While driving to the courthouse to represent Qaadir at trial, Zaafir negligently causes an automobile accident in which Maali is severely injured. A) He needs to sell the commercial property and asked Erin if she would be the listing agent. Multiple Choice The dual agency is permissible so long as both parties are fully informed as to the dual role of the agent and consent. Disclosure was improper and possibly illegal, regardless of the agent's motive. B. telling him the lowest price Derek will take for the house, which Derek told her in confidence Which statement is true? C. litigate any differences. An agency relationship between a seller and a broker is usually created by a written employment contract called a According to the Code of Ethics, a REALTOR owes the duty of confidentiality to c. It allows a broker to complete general tasks. D) C. A REALTOR can use guided statements to diminish another REALTORs integrity. special agency A) 20. Deceitful or dishonest practices D. Melanie should not solicit a buyer agreement with these buyers. 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) 19. B. Jack unmarketable properties. A. After the closing, Eddie calls Sacha to discuss the matter. Unit 10: Client Representation Agreements, Art History Baroque, Neoclassical, Realism, R. C. a 20% referral fee. Which of the following statements is LEAST accurate regarding UPREITs and downREITs? She mentions to all of them that she has just listed a home near the country club. A. quality of title to the property an agency. What is Franks duty? A REALTOR can recommend another REALTOR to a client who mentioned she is relocating out of state. Click the card to flip Flashcards Created by Identify which statement regarding this situation is TRUE. 17. D. neither Brenda nor Jim. A. A. allowable because the offer had already been presented and Matthew is just adding information. A. they have agreed in advance to arbitrate, not litigate. 85. Which of the following scenarios MOST accurately describes the typical income tax C. disclosing her relationship with Derek D) being primarily responsible to the customer. A. accounting for any deposit monies she receives from him, which are put into a separate account must promote and safeguard the seller's best interests. C) avoid conflicts of interest. This relationship is. D) Licensees in both brokerages are REALTORS. C. The neighborhood looks predominately white but there are a few Latinos who live a couple of blocks over. It appears that REALTOR Tom may have A. ask the buyers if they are exclusively represented by another REALTOR. A. D. targeted sales. No, because REALTOR Katie is obviously clueless about how to price a property. B. recorded deed restrictions B. REALTOR Marys next step should be to Jona is requesting arbitration because he feels Wally unfairly went into contract with his client. B. REALTOR principal. D) (B), and (D) are true statements about dual agency, so they are incorrect answers to the question. A. order the seller to disclose the leak Nice and sturdy basement and everything appears dry. D. Yes, Marty should not have said anything to the other REALTOR and the seller at the closing. C. offering to reduce broker fees to a short sale D. provide the basis for their opinion. B. Melanie can seek the prospects future business. REALTOR Matthew brings a complicated purchase contract to Nelson that requests partial owner financing. (2) Which department is most efficient at generating sales from average invested assets? REALTOR Kara posts an ad claiming the most you will be charged is a $5,000 commission. 114. D. I think youll get more than half with me as your REALTOR., 111. A. Katherine, as the selling broker REALTOR Joe discovers that REALTOR Ed filed an ethics complaint against him and that REALTOR Ralph will be a witness in the hearing. REALTOR Nan comes into the office and finds prospect Bob talking with her colleague, REALTOR Dana. Which of these items is a REALTOR required to discover and disclose, according to Article 2 of the Code of Ethics? Based on these facts, which statement is TRUE? No, because permission was granted by Teds representing agent. Study with Quizlet and memorize flashcards containing terms like Which is TRUE about listings? This fact favors C. Mediation is not a method of dispute resolution preferred by the National Association of REALTORS. both parties consent in writing to the dual agency. D. talk Susan out of buying the house. Subsequently, Vinod tells Tim that Wanda was his client and he is owed a commission. 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? ", Which of these statements could be negligent misrepresentation? He sells Marys property and receives an additional fee for the sale. Jennifer rejects the offer. 103. B. Donna has violated the Code by not disclosing to the seller that she was representing buyer Dan. both parties consent in writing to the dual agency. D. mediation is not available. He shows and sells a listing held by REALTOR Jane. C) How should Larry respond to the question? Smitty tells Brad to call Ted and present it himself. D) If REALTOR Shelley wishes to file an arbitration request, against whom does she file it? It is Marys listing and she has the key; the sellers are not home but told her to show it anytime. The broker has violated the agency relationship with the seller. B) This way is more efficient. D. Owen is Howards principal. THIRD PARTY. C) A) 118. B) Broker Millie presents as evidence the listing in the MLS with no compensation offered to a buyers agent, only offered to sub-agents. Generally, the relationship between real estate broker and seller is A. not a violation of the Code as it is helpful courtesy offered to the seller. D. mutual collaboration. C) No, Alonzo is required to post all listings in the MLS. is the correct answer to the question. This is a violation of the Code because A seller, anxious to sell, listed a home for $190,000 and signed an agency agreement with a broker who then told a buyer to submit a low offer. A. may ask the local Association of REALTORS to provide them with a free mediator. B. providing the standard professional service expected B) D. set up an appointment with the title company. B. not consider how and when Amy entered the transaction. 4. Which of the following is not true regarding dual agency? The agent, without informing the principal, purchases the land for personal use. No. The official interpretation of the NAR Code of Ethics is made by D. REALTOR membership is voluntary but provides a distinction from other licensees. A) D. an offer or inducement. A sales associate of a broker told a prospective buyer that the house being shown is "the best house in the area." REALTOR Donna has a property exclusively listed and shows it to buyer Dan, who wants to make an offer. 10. C) A. keep the comment posted; it only helps his business and, after all, he didnt write it. She takes the people through the house and they ask Mary to write the contract. B. include persons of only one race to show the demographics of that neighborhood. a principal. Walt Disney Company wants to open a new theme park in Chicago but first needs to acquire land for the park. C. avoid the subject of the back door and if it comes up, lie A. B. Olivia may ask her REALTOR principal to initiate litigation but she may not initiate litigation on her own. B. C. a violation of the Code, despite the fact that REALTOR Nelson did have permission from REALTOR Matthew. Article 3Cooperate with other REALTORS Upon discovering a latent defect in a property, the real estate professional should discuss the problem with the seller and then D. comparative financial analysis. The functions of a facilitator or intermediary are those of D. Seller Dean was not free to sell the property on his own. B. D. Loretta must disclose her interest to her clients and customers, including any financial benefit received. B. The party who employs an independent contractor is called a(n) _____. In a(n) _____ agency, a contracting third party does not know of either the existence of the agency or the principal's identity. C) After the closing, Dan expressed his confusion because he thought Donna was representing him in the sale. A. a 20% referral fee. D. urge the seller to update the disclosure form or have the back door repaired, 107. B. Olivia may ask her REALTOR principal to initiate litigation but she may not initiate litigation on her own. No, because REALTOR Katie is obviously clueless about how to price a property. Walt Disney Company wants to open a new theme park in Chicago but first needs to acquire land for the park. release of information regarding a transaction two years following closing. Buyer Travis introduces himself as the CEO of Big City Enterprises. 8. Jane could not find the property listed in the MLS. D) accounting. What is the internal rate of return? d. principal. A key element of an agent's fiduciary responsibility of loyalty is to A) reveal relevant information or material facts. Chad is a customer of Marcys. Misrepresentation or omission might result in broker liability C. Loretta may not market these auxiliary services to buyers or sellers using her company. Broker Joann. A. arbitration. D. the National Association of REALTORS. Donna, representing the seller, holds firm and gets Dan to buy at asking price. Trisha wants to sell her house quickly because her new job in another city begins next month. In fact, the view includes the river and the back of a shopping center. REALTOR Devon traveled to another state where he bought a property for himself. With a dual agency relationship, which fiduciary duty does a client give up? A) A) The agent has not violated any agency responsibilities to the seller. D. urge the seller to update the disclosure form or have the back door repaired, 106. 48. Which of these items is NOT required to be provided with the opinion of value? A) This is an example of C. No, Antonio is entitled to collect these fees as long as there was informed consent from both parties to the transaction. REALTOR Patty has an appointment to show REALTOR Katies listing. D) C. Yes, Tamika should have just asked the owners, who were in the driveway when she was there. D) A) A. racial segregation. C. a violation of Code as Lynn cannot attempt to obtain future business with Terrys client at this point. REALTOR Jon has an open house, which buyer Halie attends. B. Melanie can seek the prospects future business. B. advise Susan of the commission differential and renegotiate his fee. A) B. the co-operating commission originally offered by Nelson. A REALTOR may tell prospective clients not to list with REALTORS offering flat-rate commissions. D. false advertising. listing agreement. Module II- Part III-INCLUDES MUST-KNOW QUESTI, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Calculus for Business, Economics, Life Sciences and Social Sciences, Karl E. Byleen, Michael R. Ziegler, Michae Ziegler, Raymond A. Barnett, Washington County FFA Dairy Foods CDE PART TWO. C. other REALTORS. A. REALTOR-ASSOCIATES REALTOR Patty has an appointment to show a listing of REALTOR Katies. Broker Mike had the property listed most recently. C. member associations, individually. Scott is in violation of the Code because Chapter 30. C. Yes, because REALTORS have an agreement to cooperate. Walt Disney Company wants to open a new theme park in Chicago but first needs to acquire land for the park. The agent tells a buyer the seller will accept up to $5,000 less than the list price. C. tell prospective buyers Trisha must sell quickly because Ed must follow all instructions of the client Jones owns a small auto dealership, which he wants to relocate closer to his new home. Mikes answer should be D. made a referral without Miriams consent, which is a violation of the Code. A. Choices (A), Which of these statements is an ethical practice by a REALTOR? The broker has committed fraud. A) Upon discovering a latent defect in a property, the real estate professional should discuss the problem with the seller and then. 60. B. D. no, because the user had the choice to click or not to click. B. each state association of REALTORS. the seller and the broker must both disclose this material fact. D) Question: Which of the following statements Is true reqarding the practice of designated agency under North Carolina Real Estate Commission rules?O A Designated agency provides an optional method of practicing dual agency for real estate firms.O B.The designated agency concept may be utilized by a firm that does not practice dual agency. C. A. 02. a fiduciary. This is called a(n) 98. C) Id love to sign you but I cant say anything else until you are out of your contract. obedience. I know Bill, and hes got a reputation for only working hard on his million-dollar listings. administrative law. Another goal was to recognize and accommodate the growing practice of buyer agency, C. both Broker Joann and Broker Millie. The buyers agent and the sellers agent work for the same company as designated agents. C. Yes, because Ted did not give his consent to talk to Brad. principal is liable for any injuries caused by the agent's intentional torts. As a general rule, dual agency is permissible. At the closing table, Marty tells Caroline and the seller that the buyer is actually his daughter. A) D. Professional Standards Committee. (?) 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. Which of the following is not a listing agreement typically used in California? Yes, Antonio only has a contract with the buyer; therefore, he is only permitted to collect a fee from the buyer. A. instruct her seller to pay a bonus commission directly to REALTOR John. Rather than purchase new equipment, the marketing manager argues that the companys marketing strategy should be changed. C. No, but only if she doesnt solicit the listing at the same time. REALTOR Nelson has an exclusive listing contract with seller Jennifer. A. Nan did not sign a contract with Bob. 50. B) returns due to the use of appraisals? B. Is this a violation of the Code? A real estate professional's duties to a customer do NOT include The broker is called. REALTOR Bill finds out about the contact and accuses Melanie of trying to steal his client. Buyer Holly contacts Sam indicating that she has seen the house Linda is selling and would like to make an offer. A) D. the total commission paid to REALTOR Nelson by the seller. 138. This is a violation of the duty of loyalty known as ___________. B. state Susan wants to make an offer. and disclose all facts concerning the property. REALTOR Lisa, a property manager, researchs county records to determine the owners of multi-unit buildings. Walt Disney Company wants to open a new theme park in Chicago but first needs to acquire land for the park. B. The term, however, can have different meanings. B. question. Only choice (C) is not true, so it is the correct answer to the question. 105. D) inform any prospective buyers of the defect. All of these will terminate an agency relationship EXCEPT 128. required to disclose the information because it is a material fact important to the seller. B) there is a client-buyer and a customer-seller. C. Yes. B. an introduction and favors her side. D. Yes, because REALTORS should not misrepresent the availability of access. A nonagent (transactional broker, facilitator, coordinator, or contract broker) is not an agent of either party. 47. B. disclosure B. negate that the introduction strongly favors Paul. 25. 78. B. Several months go by without contact between Paul and Rhonda, and then Broker Steve introduces the property to Rhonda again. A. another broker showed the property to Travis. C. a violation of Code, because it is not a general announcement. C. Nan sold a house to Bob last year. Joe tells Ralph that if he shows up at the hearing, hell wish he hadnt! Buyer Bill acknowledges that he signed and understood an exclusive buyer agency contract with Broker Anne that provided that he would pay her a commission if he purchased a property within the time indicated by the contract, which he did. B. draft a purchase contract from scratch "The uneven floors just mean that the building dates to colonial times. D. unethical behavior between two REALTORS. She negotiates the offer with buyer Dan, who offered less than asking price. 4 Q . (B), and (D) are true statements about dual 100. The broker acted properly to obtain a quick offer on the property. care and skill in performance. D. a violation of the Code as Lynn must first have Terrys permission before making a referral. D. notifying him of all known material facts. You are simply a bottom feeder! Identify which statement is true. REALTOR Marcy listed Dereks home, thus creating an agency relationship in which she owes fiduciary duties to Derek. Which of these items is a REALTOR required to discover and disclose, according to Article 2 of the Code of Ethics? C. ask REALTOR Craig to increase the commission. 66. At 6 p.m. the same day, the agent receives two more offers. Buyer Travis does not own Big City Enterprises and High-Rise Corporation. B) agency is actually illegal in some states. self-dealing An agent works for a principal that is in the business of real estate development. Stan enters into an agreement with Tammy. 12. Sometimes principals request that agents run errands or conduct other acts on their behalf while the agent or employee is on personal business. 37. C. REALTOR-ASSOCIATE. Jerry discloses his compensation agreements to both parties and receives their consent. Disney employs Saul Arnold as an agent to work on its behalf to acquire the needed property. The relationship between the agent and the seller ends automatically if the purchaser submits an offer. Article 9Put contracts in writing B. Neil is in violation of SOP 1-3 for misleading sellers about market value. Loyalty A. Misstatements about the property I recommend if you are interested, you have the house inspected by a professional. Dual agency can lead to a conflict of interest. stigmatized properties. inform any prospective buyers of the defect. The couple wants to ensure their children are raised in a diverse area. Broker Mike introduced Kathy to the property. Which of the following is TRUE about the difference between a special agent and a general agent? A. Cancel your current listing contract and sign up with A-1 Realty for an all-expense paid weekend in Las Vegas! REALTOR Ann is furious when she discovers that REALTOR Marge sold a listing to one of Anns clients. D. has not obtained informed consent from the buyers to be obligated to pay two commissions. Which of the following is correct? B) C. Paula is in violation of Article 15 for posting misleading statements. B. He has fulfilled the requirements of Article 7 by the common law of agency in the state in which the property owner lives. C. both Jane and Paul. B. the first step in procuring cause and strongly favors Roger. At the request of a client, REALTOR Marguerite provided a written estimated value of the clients property. environmental hazards. Broker Millie. C. not run the ad at all. Which of the following does NOT indicate a buyer trying to freeze out a broker? C) Which is TRUE? This introduction is An agent who represents both the buyer and the seller in a transaction is known as a: a. dual agency. Buyer John mentions at his place of employment that he is looking for a house with Broker Judy. 36. B. are going to need to put this decision in writing to the Board of REALTORS. Elizabeth leases the property from Broker Jane. REALTOR Brianna is a buyer agent and sells Randys house. He identified himself as a REALTOR but he acted solely as a principal in the transaction. A) 23. C) D. refuse to return calls of the agent involved so as not to have to decide, 22. The broker in charge of an office, by ownership or designation as the managing broker, is called a(n) 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. Broker Deb admits that she extended an offer of cooperation and compensation to Broker Steve. C. documentation of what the opinion is based on The buyer asked the broker to negotiate on his behalf and write a purchase contract. Broker Katherine is aware of the listing as it is in the local MLS. C) A REALTOR may file both an ethics complaint and an arbitration request simultaneously over the same matter. 126. In a(n) _____ agency, a contracting third party knows that the agent is acting for a principal but does not know the identity of the principal. A REALTOR has to decide which is more important, behavior or money, and file just one complaint. Common law, statutory law, and administrative law, Real estate agency relationships are governed by which kinds of law? D) REALTOR Antonio has a buyer agency contract, which entitles him to collect a fee. a facilitator relationship. B. offer to directly pay REALTOR John a bonus commission if he produces a contract at full price. Mikes answer should be The principal is looking for vacant land to purchase to develop. implications of REIT dividends for pension funds? What is Barbaras duty? C) contact the city building inspector about the defect. She and Dean enter into an agreement of sale. C) fraud. A: This information may be withheld since the agent never saw any evidence of infestation or damage. When a broker places trust funds of others into the company's operating account and then withdraws funds for the firm's use, what illegal practice has taken place? the possible reaction of potential buyers or tenants. Linda refuses to answer Janes questions. C. A REALTOR accepts an undisclosed fee from a buyer while serving as a listing agent for the seller. The Code of Ethics in Action R Copyright 2023 - RealEstateExamAnswers.com -, NAR May the Code Be With You ? Identify which statement is true. B) 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. the customer. D. Professional Standards Committee. D. I will ask the selling REALTOR her opinion and get back to you., 109. a. Dual agency is a violation of real estate law. The company has a large amount of unused capacity and is studying ways of improving profits. "I think these low doorways are a charming part of the Cape Cod style." Lori subsequently meets Broker Amy, whose son plays ball with Loris son. Which of the following statements about dual agency is false? a) The partners are under a duty to account for any profits made whilst competing with the firm. Broker Joann. A real estate broker's responsibility to keep the principal informed of all the facts that might affect a transaction is the duty of Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment is purchased. A. disclose the existing accepted offer Nelson informs Matthew of the rejection, and Matthew believes Jennifer did not understand the details of the contract. The buyer offered $175,000 and the seller accepted. The next day, Howard calls Owen and tells him that he would like to make an offer on the house. 82. B. allowable because REALTOR Nelson obviously doesnt understand the offer. C. Buyer Travis is the owner of Big City Enterprises and High-Rise Corporation. A. Ed leaked information about who would appear at the hearing. required to disclose the information under the Fair Credit Registry Act. REALTOR Barbara holds an open house on a rainy day and discovers the seal for the back door is leaking. Broker Roger has an open house on a property and has a register for attendees to sign. C) A) D. I think you should list with me as soon as that week is up. B. have his friend offer to buy the house at a lower price since Trisha must sell the house quickly A seller can sell his or her own home and owe no commission if he or she signs an exclusive agency listing. REALTOR Kara posts an ad claiming the most you will be charged is a $5,000 commission. C. prepare a CMA which demonstrates the accuracy of the price. C. property taxes D. license law complaints. Yes, Antonio only has a contract with the buyer; therefore, he is only permitted to collect a fee from the buyer. Universal Broker Anne files an arbitration request against her client, Buyer Bill.
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