Chapter 2 Set 1 Flashcards

Chapter 2 (Set 1) Flashcards Marcus is a real estate broker representing a seller. Jason, a buyer's broker, is attempting to do a deal with Marcus that would prevent other broker's from showing their clients Marcus' client's property. In this scenario, what may Jason and Marcus be liable of if they act on this agreement...?Group Boycotting Ely is a real estate broker who has entered into an agency relationship with Justin, a property owner looking to sell his house. Ely brings James, a prospective buyer, to Justin with an offer to purchase Justin's house. Which of the following statements is correct...?Ely is the Agent, Justin is the Principal, and James is the Customer According to the duties a principal owes to the agent, the principal commits to doing which of the following...?Compensate the agent for a successful transaction A person who on behalf of, or for the benefit of another, transacts business or handles money or property not the person's own is known as a...?Fiduciary In order to disclose confidential information, the agent must first obtain what from the client...?Written consent 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...?7245 Appointing one or more individual agents in a firm to represent only the interests of the seller, and one or more different individual agents in the firm to represent only the interests of the buyer, when a firm has an "in-house" dual agency situation, is known as...?Designated Sales Agent A property was sold for $525,600. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. If the buyer's broker's real estate agent was responsible for the sale of the property and receives a 65/35 split with his broker, how much commission is paid to the real estate agent...?

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The broker, as a franchisee of a national brokerage, is considered what to the national brokerage...?Sub-agent Representing both principals (seller and buyer) in a transaction is known as...?Dual Agency If the seller or buyer agrees to dual agency before it occurs, by indicating the same on the agency disclosure form, it is referred to as...?Advance Consent to Dual Agency

Which section of the New York State Real Property Law states that the broker may be liable for the salesperson's actions...?Section 442-C Which of the following fiduciary duties is conversely related to the duty of Confidentiality...?Disclosure If a principal or agent provides a customer with a material fact, which of the following must apply...?The fact must be true and accurate John is interested in purchasing a two bedroom house and enters into an agency relationship with Chris, a real estate broker, to help him find a house. According to the fiduciary duties Chris owes to John, which of the following is true...?According to the duty of Obedience, Chris should not show John one bedroom houses As an agent to a cooperative board, Mark has the authority to enter into contracts with 3rd party vendors to help service the building. This level of authority suggests that Mark is what type of agent...?General Agent An agent of a broker who is already acting as an agent of a principal is known as a...?Sub-agent Making an intentionally false statement to induce someone to contract is known as...?Misrepresentation 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...?12900 John, a real estate salesperson, has entered into an agency agreement with a client whose scope is limited to that described in the agreement. This level of authority suggests that John is what type of agent...?Special Agent The release of relevant information about a property that may influence the final sale, especially if it represents defects or problems is known as...?Disclosure Which of the following is NOT an example of an agency relationship...?Landlord - Tenant What acronym can be used to remember the six fiduciary duties of an agent...?

OLD CAR

A property was sold for $845,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. What is the amount of commission paid to the buyer's broker...?25350 The fiduciary duty that prohibits the agent from advancing any interests adverse to the principal's interest, or conducting the principal's business in such a way as to benefit a customer is known as...?Undivided Loyalty According to an agent's fiduciary duties, the agent must present all offers to his/her client. Which of the following fiduciary duties best reflects this...?Disclosure

According to this concept, the principal must act to defend the agent in the event the agent is sued while acting on behalf of the principal...?Indemnification According to an agent's fiduciary duties, the agent must act in accordance to his/her client's demands and instructions.Which of the following fiduciary duties best reflects this...?Obedience One who undertakes to transact some business or to manage some affair for another by authority of the latter is known as a...?Agent Lisa is a real estate broker who has entered into an agency relationship with Robert, a landlord looking to lease one of his apartments. Lisa brings Andrew, a prospective tenant, to Robert with an offer to rent Robert's apartment. Which of the following statements is correct...?Lisa is the Agent, Robert is the Principal, and Andrew is the Customer An agreement between members of a trade to refrain from competition in specific market areas is known as...?Market Allocation The broker's client is also referred to as the...?Principal There are generally two ways an agent is compensated for a transaction. One is a percentage of the sales price, while the other is...?Flat fee According to an agent's fiduciary duties, the agent must work in the best interests of his/her client. Which of the following fiduciary duties best reflects this...?Loyalty Which of the following is considered a principal in an agency relationship...?Owner The fiduciary relationship obligates the agent to act in good faith at all times, obeying the client's instructions in accordance with the contract is known as...?Obedience An agent that cooperates or is engaged by a listing agent or a buyer's agent to assist in locating a property to sell or buy is known as a...?Broker's Agent According to this doctrine, an agency relationship which is created after the fact when the principal agrees to be bound by the actions of the agent who was acting without authority, is known as...?Ratification A property was sold for $200,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. If the buyer's broker's real estate agent was responsible for the sale of the property and receives a 65/35 split with his broker, how much commission is paid to the real estate agent...?3900 The degree of caution and concern for the safety of himself/herself and others an ordinarily prudent and rational person would use in the circumstances is known as...?Reasonable Care

Town Realty and City Realty created an alliance in an attempt to prevent another brokerage firm from competing in the marketplace. What may Town Realty and City Realty be guilty of...?Group Boycotting A property was sold for $230,000. 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 60/40 split with his broker, how much commission is paid to the real estate agent...?4140 As a special agent in a transaction, a real estate salesperson is permitted to do which of the following on behalf of the client...?Show the property A property was sold for $220,000. The total commission for the transaction was 5%. The listing broker and buyer's broker agreed to split the commission 50/50. What is the amount of commission paid to the listing broker...?5500 A contract where one transaction depends upon another is known as a...?Tie-in Arrangement Mr. Smith's house was listed at $325,000. The property eventually sold for $365,000. The agreed upon commission was 5%. How much did Mr. Smith pay in commissions at the closing of the property...?18250 Which of the following may be considered a 3rd party to a transaction...?Customer The party the agent brings to the principal as seller or buyer of the property is known as the...?Customer In New York State, a referral fee may only be paid after this is obtained...?Informed consent of the client Which of the following is NOT an example of an agency relationship...?Agent - Appraiser As a special agent in a transaction, a real estate salesperson cannot do which of the following on behalf of the owner...?Negotiate the terms of the contract Andrew has accepted a new job in San Francisco and needs to sell his house quickly. Andrew hired a real estate agent to help with the transaction. If the agent reveals this information to a prospective buyer, it would be a breach of which fiduciary duty...?Confidentiality John, a real estate broker, and Chris, a property owner, have entered into an agency relationship. Soon after, a dispute arose in regards to how much commission should be paid to John if he finds a buyer for Chris' property. What should they do to resolve their dispute...?Refer back to the listing agreement, which states the agreed upon commission