Chapter 12 Flashcards

Chapter 12 Flashcards Obligations of a principal to a fiduciary is to be ____, ____, and ____ to the fiduciary.open.honest.fair.An owner wants to receive a net amount from sale of a property of $200,000. the broker commission is 6 percent of the gross sale price. The gross price necessary (to the nearest hundred dollars) to achieve this will be ____.$212,800 (212800, or 212766) Dual agency is viewed as troublesome by many observers.It has been questioned whether a single broker can "stand in the ____" of both buyer and seller.shoes Typical required qualifications for a real estate license

include:

minimum age (18 - 21).pass a state licensing exam.good reputation, sometimes references.prelicensing classroom education, typically 70 hours.high school diploma or GED.In international real estate brokerage, most U.S. brokers work through ____ arrangements with a local broker when working in a non-English speaking country.cooperative (or joint) A real estate salesperson can perform virtually all of the business functions of brokerage, but must do so in the name of their ____.broker Persons who deal with real estate for others but are

exempt from licensure include:

attorneys.trustees and executors.on-site residential managers.government employees dealing with real estate as part of their work.those with power of attorney.In a listing agreement, issues that the owner-principal

needs to require include:

that the agreement is limited to a reasonable time.that the broker will provide regular progress reports.that the property will be placed in the local MLS.that the brokerage firm will use diligent efforts to market the property.Real estate brokers, recognizing market segmentation, frequently specialize in submarkets. These submarkets

commonly are distinguished by some combination of:

geography.property type or size.Among MLS members, a broker selling a listing of another broker traditionally became a ____ of the listing broker which implies ____ duties to the seller of the property.subagentfiduciary (or agency).The implementing of state laws concerning real estate licenses is a matter of writing specific rules and regulations and overseeing their implementation. This task generally is

the responsibility of:

a state real estate commission Reasons why the exclusive right of sale listing contract is

the most widely used listing contract include:

in a MLS context, for an owner to be able sell an MLS property and preempt the commission could undermine the MLS system.a broker who is sure of capturing the benefits of a marketing program is likely to work harder at it.the broker needs to avoid the risk of being "scooped" after making substantial effort and investment in marketing a

property.The most widely used arrangement to avoid dual agency is to change the listing relationship from the traditional fiduciary relationship to what is most commonly called a ____ broker.transaction

The Fair Housing Act (Title VIII of the Civil Rights Act of

1968) prohibits discrimination in housing on the basis of:

race and color.handicap.religion.national origin.sex.familial status.In a ____ agency agreement, the broker agrees to use his or her best efforts to find properties meeting the requirements of a person seeking a property. Commonly this broker, if successful, will share a commission with the ____ broker.buyer.listing (seller's, or selling).An agent who is empowered to act on behalf of a person or firm for one specific event or transaction is a ____ agent.special

An old saying in the residential brokerage community is: "If

you don't list, you don't last." The flaw in this view is that it ignores how a broker gets listings, and another view is that the primary factor in obtaining listings is a reputation for good ____.service

Traditional duties of a fiduciary include: disclosure.loyalty.skill and

care.confidentiality.accounting.obedience.An agent who is empowered to make commitments or contracts obligating a person of firm within a specific sphere of activity is a ____ agent.general Among the misdeeds for which license law prescribes

punishment or penalties are:

mishandling trust money.paying commissions to unlicensed persons.improper business practices, such as failing to present all offers to a seller.failure to provide required information in a timely manner, such as closing costs.What do zillow.com, Redfin.com and trulia.com have on

common? They all are:

on-line residential brokers.national in scope.The traditional agency relationship in real estate brokerage has come to be called a ____ agency relationship (whether with buyer or seller) to distinguish it from more recent forms of broker agreements.single Survey data from about a decade ago indicates that most potential home buyers working with a real estate agent still believe that the agent represents them, despite years of efforts to inform persons otherwise. If the real estate sales person is, in fact, an agent, he probably has violate fiduciary duties to whom?The seller, violating duty of loyalty.The buyer, violating duty of disclosure.The problem of dual agency can arise within a single brokerage firm if a transaction involves both a listing and a buyer's agency within that firm. One solution that has been attempted is to appoint a separate ____ agent for each party who are to work at "arms length." designated Three ways that a listing agreement will terminate include:sale of the property.abrogation of the agreement.expiration of the agreement term.Innovation in real estate brokerage since about 2000 has

included:

Internet based services designed for owner-sellers.administrative and document services for owner-sellers for a fixed fee.discount brokerage.

About half of states have adopted a weakened form of broker relationship known as transaction broker. Other

names for the concept are:

intermediary brokerfacilitating broker A well-prepared broker has knowledge in numerous

valuable areas, including:

prospective buyers and their needs.price and terms of recent market transactions.most effective marketing procedures.properties available and their features and terms.legal obligations of buyer and seller.In dual agency, the broker is an agent to both the ____ and the ____.seller.buyer.In a traditional listing placed in MLS the buyer is not a ____ but a ____ of the selling broker.client (or principal).customer.Specific actions that generally violate state real estate

broker and sales person license law include:

offering property on terms other than those specified by the client.paying a commission to an unlicensed person.failure to provide contracts to all parties of a sales agreement.Commingling deposits with personal funds.Several events have spawned an active recent period of

innovation in real estate brokerage, including:

legislation revising the traditional law of agency compelled new procedures and brokerage arrangements.the internet explosion opened dramatic new possibilities for marketing.rapid rise in home values created extraordinarily high brokerage commissions.The term "commercial" is used to include which of these types of properties?Rental apartments.Warehouses.Offices.Virtually every active real estate licensee will affiliate with a local Association of Realtors as a ____ of professionalism and as a business resource.signal Internet marketing of housing is now central to real estate brokerage. For example, the National Association of Realtors offers lisitngs of ____ all across the country on www.realtor.com.residences (houses, or properties) If a broker recommended a price for a listing that the broker believed was below market in order to get a quick sale, and was not candid about it, this would violate the fiduciary duty

of:

loyalty An agent who is empowered to act in all matters for a person, personal and financial, is called a ____ agent.universal When a real estate broker builds a business focusing on a particular type of property - selected office, industrial, retail, residential - or a zone of a city, or a highly specialized type of property such as resorts, the broker is recognizing market ____.segmentation Real estate brokers are market facilitators, bringing buyers and sellers together both ____ and ____.physically.emotionally.The websites ccim.net, costar.com, and loopnet.com all offer vast amounts of information about ____ properties across the nation.commercial (income, or investment)