c. fiduciary. A. not practicing law 150. All information about material defects that the agent knows or should know Identify which statement regarding this situation is TRUE. A. Loretta may insist that all buyers and sellers use the auxiliary services provided by her company. A) C. tell the Byers they cannot talk to Sam dual-purpose mission; both the principal and the agent. B. Yes, because she is targeting properties already listed and offering brokerage services. C. Paula is in violation of Article 15 for posting misleading statements. A) A. allowable because the offer had already been presented and Matthew is just adding information. D) This fact favors ch 30 quiz Flashcards | Quizlet 91. REALTOR Marty has a daughter who is interested in a property. In an arbitration dispute, the fact that Jim initially introduced Ken to the property favors A. B) 17. A. The seller, Morgan, contacts Buyer Valerie independently and informs her that the property is for sale. At the closing table, Marty tells Caroline and the seller that the buyer is actually his daughter. a fiduciary. In a real estate transaction the agent is the: Seller Jordan signs a memorandum for an open listing with a broker authorizing the sale of her house for $65,000. A. apparently limited to the open house and does not favor Roger. D. request arbitration services from the National Association of REALTORS if both Jona and Wally agree. B. Melanie can seek the prospects future business. 32. Howard walks through a home listed by Owens agency during an open house. A) A. keep the comment posted; it only helps his business and, after all, he didnt write it. A. accounting for any deposit monies she receives from him, which are put into a separate account B) of the following aspects of REITs as a diversifier? B) It is a legal doctrine that is not unusual. 148. After Bob leaves, Nan says to Dana, That is my client! This statement is true if C. demand that Sherry split the commission with Vinod. B. A) latent defects. B. not a violation of the Code as REALTOR Terry doesnt know any agents in Hawaii. disclosure of material facts that the agent knows. This is After the closing, Dan expressed his confusion because he thought Donna was representing him in the sale. B. disclose the existing offer only if the seller gives permission Under the _____ test, if an agent commits an intentional tort within a work-related time or The agent has not violated any agency responsibilities to the seller. D. Seller Keith had no knowledge of Salvatores efforts with Travis. D. Yes, Marty should not have said anything to the other REALTOR and the seller at the closing. The individual who is authorized and consents to represent the interests of another person is, The relationship in which the agent is held in a position of special trust and confidence by the principal is, Buyers hire an agent to help them purchase a home and want seller financing because they filed for bankruptcy two years ago. Did Pattys actions violate the Code? 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. A. ethical. "I think these low doorways are a charming part of the Cape Cod style." In a simple random sample of U.S. purchasing managers, 70 out of the 200 are females. Which event will terminate an agency in a broker-seller relationship? D. Randy, 84. A. D. comparative financial analysis. A real estate professional's duties to a customer do NOT include ", Which of these statements could be negligent misrepresentation? A. Ed leaked information about who would appear at the hearing. the sales associate is guilty of fraud only if the buyer purchases the house. C. documentation of what the opinion is based on general agency A. Randy both parties are represented by attorneys. Board of Directors 82. What Is Dual Agency? When Agent Reps Both Buyer and Seller - Realtor.com B. have an arbitration hearing at Wallys association, if Jona agrees. D. Yes, because REALTORS are prohibited from receiving compensation from more than one party. Nice and sturdy basement and everything appears dry. A broker engaged by a buyer has the responsibility to. Only information about material defects the seller has provided the agent. buyer representation agreement. C. Donna has violated the Code by not getting informed consent from both buyer and seller to be a dual agent. A. it is prohibited to target solicitations to first-time buyers because of their lack of experience. A. no, because Nathan is not responsible for how the website functions both parties consent in writing to the dual agency. A. advising customers or clients on how to get a house show ready 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. must arbitrate as he and Edward are both REALTORS. Broker Deb. 144. a. third party. Did Lisa violate the Code? The National Association of REALTORS Code of Ethics is When a REALTOR only has a contract with a buyer; he is only permitted to collect a fee from the buyer. The buyer asked the broker to negotiate on his behalf and write a purchase contract. The rules established by tradition and court decisions are found in stigmatized properties. legislative law. What is the probability that fatality resulted from this cause? B. The marketing manager claims this new approach would increase unit sales by 30% without any change in selling price; the companys new monthly fixed expenses would be $180,000; and its net operating income would increase by 20%. Nelson informs Matthew of the rejection, and Matthew believes Jennifer did not understand the details of the contract. A. B) The agent gives the offer to the seller, who asks to consider it for 24 hours. Choices (A), B) Is this a violation of the Code? The agent's job is to sell the principal's automotive parts to auto repair shops and other purchasers. C. induced Miriams client to cancel her agreement, which is a violation of the Code. C. disclosing her relationship with Derek A) B. once it has been reviewed by the Grievance committee 143. Study with Quizlet and memorize flashcards containing terms like Which is TRUE about listings? B. an introduction and favors her side. a state registries of residential information on sex offenders. C) 104. the customer. B. Neil is in violation of SOP 1-3 for misleading sellers about market value. Unit 4 (complete) Flashcards | Chegg.com disclosure agreement. 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. D) What is the best action for Dennis to take? 120. 97. Broker Pauls efforts favor REALTOR Marcy has listed Dereks home, thus creating an agency relationship in which she owes fiduciary duties to Derek. D) Obedience. A seller tells his agent in confidence that he must sell fast and may accept less than the list price. Arbitration deals with monetary disputes only and could also be initiated by or made against a customer, client, or non-member broker. 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. I recommend if you are interested, you have the house inspected by a professional. Unit 6 Test Flashcards | Chegg.com 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. A. keep the comment posted; it only helps his business and, after all, he didnt write it. REALTOR Antonio has been asked by a listing client to prepare an opinion of value on his property. A buyer's agent, upon learning that the home being purchased is to house a dog-grooming business, didn't check zoning. D. REALTOR who is the procuring cause of the sale, 40. Unit 5: Agency Relationships Flashcards | Quizlet D) B. respond to the author of the comment and request the author remove the comment. C) No, because the selling agent can change his mind. A person who authorizes another to act in his or her place in regard to relations with third persons is the: A real estate broker acting as the agent of the seller A) Custom designers are available in person this Friday from noon until 4 PM! Susan wants to make an offer. D. I think youll get more than half with me as your REALTOR., 111. Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center). Buyer John mentions at his place of employment that he is looking for a house with Broker Judy. The buyer brokerage receives compensation from the listing brokerage and from the buyer at close of escrow. B. offer to directly pay REALTOR John a bonus commission if he produces a contract at full price. personally arrange for the repairs. The agent should have disclosed this information, regardless of its accuracy. This relationship is 77. 30. Buyer Bill. c. It allows a broker to complete general tasks. A. find out if Holly is in an exclusive relationship with a REALTOR and explain to Holly that Sam represents only Linda in this transaction A. Sarah can take no action as Thomas is the principal broker at his agency; his title gives him seniority in this case. The broker can agree to a change in price without the seller's approval. Misrepresentation or omission might result in broker liability A) 58. D) 118. D. made a referral without Miriams consent, which is a violation of the Code. The buyers agent and the sellers agent work for the same company as designated agents. Past correlation of US REIT returns (over the last 20+ years) tends to indicate which B. negate that the introduction strongly favors Paul. 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. returns due to the use of appraisals? c. is 90 days after the listing agreement is signed. Broker Deb. 52. B. allowable because REALTOR Nelson obviously doesnt understand the offer. 116. 133. D) C. member associations, individually. Dual agency exists when a real estate broker represents both parties in a transaction in a fiduciary capacity. While reviewing the MLS data sheet, Kevin notices that the cooperative broker compensation offered in the MLS listing is less than the fee he negotiated with Susan with his buyer broker agreement. 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. both Saul and Disney are liable on the contract, Walt Disney Company wants to open a new theme park in Chicago but first needs to acquire land for the park. C. are not allowed to litigate the matter. A. his agency. D. Paula is simply expressing her personal opinion, which she is entitled to do. 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 C. really none of REALTOR Janes or her clients business. D. statement that the opinion of value is not the same as an appraisal. C. The price that the sellers told the agent is their minimum selling price. D) D. A foundation crack is hidden behind the paneling in the basement. C. a violation of the Code, despite the fact that REALTOR Nelson did have permission from REALTOR Matthew. The individual who is authorized and consents to represent the interests of another person in dealings with a third person is B. Jack Broker Joann, buyers agent, is seeking arbitration against Broker Millie, sellers agent. 119. D) B. Paul. C. really none of REALTOR Janes or her clients business. Which of the following is not a listing agreement typically used in California? D. are not allowed to sue each other because they are both REALTORS. B) A. After the closing, REALTOR Edward, who represented the seller in the transaction, claimed that Devon owed him a buyers agent fee, and sought arbitration. 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 can help her buy the property. REALTOR Antonio has a buyer agency contract, which entitles him to collect a fee. B. Nathan, as the listing broker. B. This is Which of these is an example of panic selling? D. neither Brenda nor Jim. depositing money in an interest-bearing trust account. A. consider how and when Amy entered the transaction. How is the NCREIF Property Index calculated? A. Twenty years ago, a former occupant of the house committed suicide in the house. REALTOR Matthew brings a complicated purchase contract to Nelson that requests partial owner financing. Elizabeth leases the property from Broker Jane. 67. D. I think you should list with me as soon as that week is up. No, because her client, Larry, has no interest in the property. D. false advertising. A. Loretta may insist that all buyers and sellers use the auxiliary services provided by her company. Which of the following is true of a listing agreement? A REALTOR can use guided statements to diminish another REALTORs integrity. A) the agent. D. all parties in a transaction, whether they are clients or customers. 141. the seller and the listing broker do not have to disclose anything. 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. gain consent to advertise Tricias property as having an anxious owner who wants an offer B. the seller and the broker must both disclose this material fact. B. include persons of only one race to show the demographics of that neighborhood. The company has a large amount of unused capacity and is studying ways of improving profits. A. Ann cannot file both an ethics complaint and an arbitration request at the same time. Broker Paul introduces tenant Rhonda to a property. In real estate transactions, agency is often formed without the signature of the client, so it is up to the real estate professional to keep track of your disclosure. B. drafting advertisements for general mailing a fiduciary. A. local unless it was considered puffing. He should C) The structure looks good. This is an example of B. comfortable home near the community recreation center C. Nan sold a house to Bob last year. Disclosure of material facts that the agents knows. 142. However, Jordan rejects the offers and instead sells the house to a friend. B. are going to need to put this decision in writing to the Board of REALTORS. C. REALTOR Clarence is the complainant. C. arbitrating disputes 79. Which of the following statements is NOT true about dual agency 7. No, because REALTOR Katie is obviously clueless about how to price a property. She files a request for arbitration and an ethics complaint. What is Barbaras duty? B) not required to disclose the information because the seller might reject the offer. REALTORS are prohibited from receiving compensation from more than one party in a transaction. The real estate broker's fiduciary responsibility to keep the principal informed of all facts, including property condition and issues that affect a seller's willingness to sell and a buyer's willingness to buy, is the duty of: A. skill, care and diligence B. disclosure C. obedience D. accounting disclosure 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; B. Donna has violated the Code by not disclosing to the seller that she was representing buyer Dan. Which statement is true? all lawful instructions of the owner. C. property taxes fraudulent misrepresentation. C. notifying him of all known material facts A) A) B. property profiling. D) A. complete a pre-printed contract Browse over 1 million classes created by top students, professors, publishers, and experts. can disclose the seller's minimum price. D) 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. D. Article 14Arbitrate disputes. B) stigmatized properties. B. B. the sales associate was practicing puffing. a licensed personal assistant of a sales associate is the agent of the sales associate. an agent. honest and fair dealing. Cancel your current listing contract and sign up with A-1 Realty for an all-expense paid weekend in Las Vegas! A. Jane. Mikes answer should be A. REALTOR Brian is the mediator. This is a violation of the Code because With a dual agency relationship, which fiduciary duty does a client give up? when, how, and to whom agents must reveal for whom they provide client-based services. B. yes, because the nature and the terms of the contract were not made clear When, how and to whom agents must reveal for whom they provide client based services. REALTOR Carlos has a listing. Conflict of interest is inherent in a dual agency arrangement. REALTOR Bill finds out about the contact and accuses Melanie of trying to steal his client. The broker is guilty of negligent misrepresentation. C) (ANSWERS will be revealed with subscription). B) C. litigate any differences. 45. C) B. A key fact is Jean asks Mike his opinion about the structure of the property. D. only if he initiated the contact with Mr. Johnson. Which of the following choices addresses standards designed around duties to the client, not the public? Loyalty care and skill in performance. B) The agents fiduciary relationship of trust and confidence with the principal means that the broker owes the principal certain specific duties. One day, she is showing REALTOR Terrys listing. D. use the comment in other places on his website to help drum up new business. 34. At 6 p.m. the same day, the agent receives two more offers. C. The dual agent must have the written consent of both parties. C. state law requires it. If two licensees, who are not REALTORS, have a monetary dispute, they 5. A) the buyer and the seller are represented by the same company. C. Donna has violated the Code by not getting informed consent from both buyer and seller to be a dual agent. Disney tell Saul that the maximum it will pay for a 1-acre lot is $1 million. D. providing little to no information about known issues with a house. the buyer and the seller are related by blood or marriage. B. recorded deed restrictions 54. The structure does not seem sound and I would not purchase this house. A net listing is illegal in all states. D) REALTOR Marys next step should be to C. No, but only if she doesnt solicit the listing at the same time. B. REALTORS seek arbitration over monetary disputes with another REALTOR because 61. Which of the following scenarios MOST accurately describes the typical income tax Walt Disney Company wants to open a new theme park in Chicago but first needs to acquire land for the park. D) A The statement is TRUE. InvestmentCenterSalesIncomeAverageInvestedAssetsElectronics$40,000,000$2,880,000$16,000,000SportingGoods20,000,0002,040,00012,000,000\begin{array}{lccc} B. the first step in procuring cause and strongly favors Roger. A. chosen to work hard for his new broker Ethan, which is not a violation of the Code. Seller George paid for a home inspection on his house for a prospective buyer. In most states, a REALTOR is not required to have a license to sell real estate. Absolutelythis is a community property state. The seller didnt mention this before the open house. REALTOR Crystal went door-to-door in a particular subdivision asking homeowners if they were interested in selling because the ethnic make-up of the neighborhood is changing. B. 129. A. The broker in charge of an office, by ownership or designation as the managing broker, is called a(n) should present to the seller only the highest offer for the property. Carlos tells Jan that the property is not available for showing today but will be available in a week. Agents are prohibited from using general information, knowledge, or experience acquired during the course of an agency in later employment. Questions Only B. Walt Disney Company wants to open a new theme park in Chicago but first needs to acquire land for the park. Patty prepares a CMA prior to the appointment, and then shows the property to her prospect, buyer Larry. This is According to the Code of Ethics, a REALTOR owes the duty of confidentiality to Later, Ben, who was seated at the same table with Linda, buys the house from Broker Andrew. D. Owen is Howards principal. REALTOR Loretta owns a large brokerage, which includes an in-house mortgage lender, an in-house title company, and a home warranty company. the principal to whom the agent gives advice and counsel. After the closing, Melanie visits the buyers in their home and asks if they have any questions or need any information about the community. D. are not allowed to sue each other because they are both REALTORS. A. Nan did not sign a contract with Bob. C. websites must be maintained and updated frequently. 105. 64. Matthew calls Jennifer to explain the details. A. A. they have agreed in advance to arbitrate, not litigate. D. only consider who wrote the successful contract on the property. D. putting contracts in writing. Her letter offers both her property management services and her brokerage services. the desire of a potential buyer or tenant to know the information. She stipulates that her client, buyer Jack, will pay her fee. Keeping both paper and digital copies of important documents is always a safe idea! Donna, representing the seller, holds firm and gets Dan to buy at asking price. C. prepare a CMA which demonstrates the accuracy of the price. D. Melanie should not solicit a buyer agreement with these buyers. It is part of a body of law established by tradition and court decisions. A. \textbf{Investment Center}&\textbf{Sales}&\textbf{Income}&\textbf{Average Invested Assets}\\[5pt] D. A REALTOR may file a request for arbitration only after any ethics complaint about the same matter is resolved. D. once it has been reviewed by the Board of Directors. D. all parties to a transaction. C. avoid the subject of the back door and if it comes up, lie B) B. D. Joe should not talk to Ralph until after the hearing. 57. A) local registries of residential information on sex offenders. 99. General D. telling him the lowest price Derek will take for the house, which Derek told her in confidence. 70. Which of the following statements is TRUE? The federal legislation known as Megan's Law has promoted the establishment of Did Marty violate the Code? B) 10. C) C) B. a monetary dispute between two REALTORS. casual statement - a licensee might unwittingly become a consumer's agent. Chapter 7 Review Quiz Questions Flashcards | Chegg.com The broker: a. is not entitled to a commission because of the open listing. D) B. extended an offer of cooperation to another broker, which is not a violation of the Code. In the common law of agency, an agent owes the principal all of the following EXCEPT Exclusive neighborhood community with a Tier 1 golf club He needs to sell the commercial property and asked Erin if she would be the listing agent. Buyer Kathy contacts Seller Dean about buying his property. Sacha does not want arbitration, and both agree to get lawyers and sue one another. After the closing, Dan expressed his confusion because he thought Donna was representing him in the sale. Josie tells Betty she isnt happy with the small number of showings Bills had on her house and she is thinking of finding a new REALTOR. (?) Sometimes principals request that agents run errands or conduct other acts on their behalf while the agent or employee is on personal business.