Chapter 2 Questions Flashcards

Chapter 2 Questions Flashcards An agent's duty to safeguard his/her principal's lawful confidences and secrets is known as...?A. ConfidentialityB.ObedienceC. LoyaltyD. Accountability A According to an agent's fiduciary duties, the agent must be competent and not act in a negligent manner. Which of the following fiduciary duties best reflects this...?A. Reasonable CareB. LoyaltyC. AccountabilityD. Obedience A An agreement of employment by a broker under which the exclusive right to sell for a specified period is granted to the broker is known as...?A. Exclusive Right to SellB. Advance Consent to Dual AgencyC. Expressed AgencyD. Implied Agency A According to the duties a principal owes to the agent, the principal commits to doing which of the following...?A.Compensate the agent for a successful transactionB.Provide advice to the agentC. Provide future exclusive listings for the agentD. Provide the agent with a minimum salary for hours worked in the transaction A Which of the following is a primary duty of the principal to the agent...?A. Cooperate with the agentB. Give advice to the agentC. Disclose all non-material facts to the agentD.Micro-manage the agent A The salesperson must act in accordance to the client's demands and instructions. This is known as___A.AccountabilityB. ObedienceC. Disclosure of InformationD.LoyaltyE. Reasonable Care B There are generally two ways an agent is compensated for a transaction. One is a percentage of the sales price, while the other is...?A. Flat feeB. Any amount above the listing priceC. Hourly wageD. Donation A Conspiring to establish fixed fees or prices for services or products is known as...?A. Price FixingB. Tie-in ArrangementC. Group BoycottD. Misrepresentation A Mr. and Mrs. Smith are seeking to sell their two bedroom house. Mark is a real estate broker and a family friend of the Smiths. The Smiths allowed Mark to show their house to prospective buyers but did not actually sign an agency agreement. Under this scenario, what type of agency relationship may arise...?A. Implied AgencyB. Expressed AgencyC. Inherent AgencyD. Trust Agency A

The 'D' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...?A. DisclosureB. DeterminedC.Dual AgentD. Director A A selling agent or participating agent is referred to as the...?A. Cooperating AgentB. Exclusive AgentC. Buyer AgentD. Designate Sales Agent A Justin, a real estate salesperson, would like to offer his colleague a referral fee for referring him a new client.Before offering the referral fee, however, Justin obtained informed consent from the client. Justin's actions are an example of what policy...?A. Full disclosureB. Dual agencyC. EstoppelD. Expressed agency A Mark, a property owner, signed an agency agreement with Andrew, a real estate broker, to sell his house. What type of agency was created between Mark and Andrew...?A.Expressed AgencyB. Implied AgencyC. Inherit AgencyD.Written Agency A An agent of a broker who is already acting as an agent of a principal is known as a...?A. Sub-agentB. Tenant's AgentC.Buyer AgentD. Seller Agent A A real estate salesperson is typically what type of agent...?A. Special AgentB. General AgentC. Legal AgentD. Trust Agent A According to which fiduciary duty is an agent prohibited from forcing on his or her client a sale, lease or opportunity to buy...?A. LoyaltyB. Reasonable CareC. DisclosureD.Accountability A According to an agent's fiduciary duties, the agent must not change or modify the financial terms of a deal. Which of the following fiduciary duties best reflects this...?A.AccountabilityB. LoyaltyC. Reasonable CareD. Obedience A A mortgage broker offers to give you a referral fee if you refer your buyer to them to obtain a mortgage. This fiduciary duty requires that you disclose the referral fee to the buyer as there can be no hidden profits in the deal ___A. LoyaltyB. ConfidentialityC. Reasonable CareD.ObedienceE. Accountability E A property was sold for $345,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. If the listing broker's real estate agent was responsible for the sale of the property and receives a 70/30 split with his broker, how much commission is paid to the real estate agent...?A.

7245B. 14500C. 10350D. 5175

A

Sandy is a real estate agent who has entered into an agency relationship with Jim, a homeowner, to sell Jim's house. They agreed upon a flat fee for Sandy as compensation for a successful transaction. What other means of compensation may be agreed upon between the two...?A. Percentage of the sales priceB. Percentage of the listing priceC. The difference between the sales price and the listing priceD. Percentage of the appraised value A Chris, a real estate broker, has entered into an agreement to lease one of John's apartments. Who is the customer in the transaction...?A. The TenantB. The BuyerC. The AgentD. The Landlord A Which of the following is NOT an example of an agency relationship...?A. Agent - AppraiserB. Agent - OwnerC.Tenant - AgentD. Broker - Agent A An agent's duty to place the client's interest above those of all others, including the agent's own self-interest, is known as...?A. LoyaltyB. ObedienceC. Reasonable CareD.Confidentiality A The employer of an agent or broker is known as a...?A.PrincipalB. CustomerC. CompanyD. Corporation A The first contact or meeting by a licensee when some detail and information about the property is shared with parties who express some interest in the real estate transaction is known as...?A. First Substantive ContactB. Meet and GreetC. ConnectionD. Notice A The salesperson must safeguard any money or property held on behalf of the client. This is known as___A.AccountabilityB. ObedienceC. Disclosure of InformationD.LoyaltyE. Reasonable Care A According to which fiduciary duty is an agent prohibited from not showing a lower offer to the seller in an effort to obtain a higher commission...?A. LoyaltyB. DisclosureC.ConfidentialityD. Obedience A An agent with the full authority over one property of the principal, such as a property manager, is considered a...?A.General AgentB. Specific AgentC. Buyer's AgentD. Seller's Agent A The release of relevant information about a property that may influence the final sale, especially if it represents defects or problems is known as...?A. DisclosureB.EstoppelC. Reasonable CareD. Self Dealing A The broker, as a franchisee of a national brokerage, is considered what to the national brokerage...?A.Sub-agentB. Associate BrokerC. AgentD. Principal A

Which of the following may be considered a 3rd party to a transaction...?A. CustomerB. ClientC. PrincipalD. Broker A The party the agent brings to the principal as seller or buyer of the property is known as the...?A. CustomerB.ClientC. BrokerD. Employee A Your expertise as a salesperson lies in residential rentals.According to this fiduciary duty, you may have to pass on a deal if a client comes to you looking to lease a new 50,000 sq.ft. office space ___A. LoyaltyB. ConfidentialityC.Reasonable CareD. ObedienceE. Accountability C In New York State, a referral fee may only be paid after this is obtained...?A. Informed consent of the clientB. An agreement between the two agentsC. An agreement between the agent and his/her sponsoring brokerD.Informed consent of the broker A As a general rule of thumb, compensation in New York State is set at what percentage of the sales price...?A. 6 (Percent %)B. 3 (Percent %)C. 4 (Percent %)D. 5 (Percent %) A In a typical transaction, who directly pays the real estate salesperson his/her commission...?A. BrokerB. PrincipalC.ClientD. Customer A Ely's house was listed for $225,000. The property eventually sold for $215,000. The agreed upon commission was 6%. How much did Ely pay in commissions at the closing of the property...?A. 12900B. 13500C. 11900D.13900 A The 'A' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...?A. AccountabilityB.AccountingC. AgentD. Appropriation A An agent with limited authority to act on behalf of the principal, such as created by a listing agreement, is known as a...?A. Special AgentB. Limited AgentC. General AgentD. Principal Agent A The one by whom a broker is employed is known as a...?A.PrincipalB. AgentC. AttorneyD. Customer A In a typical agency structure, a real estate salesperson is a sub-agent to whom...?A. BrokerB. ClientC. CustomerD.Principal A Which of the following fiduciary duties is conversely related to the duty of Disclosure...?A. ConfidentialityB. LoyaltyC.Reasonable CareD. Obedience A If a union of brokers in New York State bound together and agreed to only accept commissions of 9% or higher, far more than the typical 6% in a transaction, what may they