RE Chapter 2 Flashcards

RE Chapter 2 Flashcards 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...?A. Price FixingB. Vicarious LiabilityC. Self DealingD. Group Boycotting D DAn actual agency created by written or oral agreement between the principal and the broker is known as...?A.Expressed AgencyB. General AgencyC. Implied AgencyD.Dual Agency 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. DonationC. Hourly wageD. Any amount above the listing price A You have a client who is looking for a 2 bedroom rental apartment in a desirable neighborhood. You find an apartment that matches your client's criteria but the apartment is listed well below market value. Although you personally may want the apartment for yourself, this fiduciary duty requires that you present the apartment to your client first ___A. LoyaltyB. ConfidentialityC.Reasonable CareD. ObedienceE. Accountability A 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...?A. LoyaltyB. ObedienceC.Reasonable CareD. Confidentiality D 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 DThe one by whom a broker is employed is known as a...?A.CustomerB. AgentC. PrincipalD. Attorney AAccording to which fiduciary duty is an agent prohibited from forcing on his or her client a sale, lease or opportunity to buy...?A. DisclosureB. Reasonable CareC.AccountabilityD. Loyalty As a general rule of thumb, compensation in New York State is set at what percentage of the sales price...?A. 5 (Percent %)B. 4 (Percent %)C. 6 (Percent %)D. 3 (Percent %) C

An agent and the principal enter into an agency relationship through what document...?A. Letter of IntentB. Lease AgreementC. Listing AgreementD. Sales Contract A An agreement to do something or to allow something to happen only after all the relevant facts are disclosed is known as...?A. Exclusive Right to SellB. EstoppelC.Informed ConsentD. Confidentiality C 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. Why must Justin obtain consent from the client...?A. Justin has a fiduciary duty to the clientB. The client may like to know how the commission is being distributedC. Federal law requires consentD. None of the above A 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...?A.TenacityB. DiligenceC. DisclosureD. Reasonable Care D The salesperson must be competent and not act in a negligent manner. This is known as___A. AccountabilityB.ObedienceC. Disclosure of InformationD. LoyaltyE.Reasonable Care E DA written explanation, to be signed by a prospective buyer or seller of real estate, explaining to the client the role that the broker plays in the transaction is described on the...?A.Agency Disclosure FormB. Express Agency FormC.Exclusive Agency FormD. Advance Consent to Dual Agency Form An agent has become aware of information that may affect the value of his client's property. If the agent reveals this information to a prospective buyer, he will be in breach of which fiduciary duty...?A. ObedienceB. ConfidentialityC.Reasonable CareD. Accountability B AThe 'D' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...?A. DeterminedB. DirectorC.DisclosureD. Dual Agent 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 An agent with the full authority over one property of the principal, such as a property manager, is considered a...?A.General AgentB. Buyer's AgentC. Seller's AgentD. Specific Agent A

The salesperson must work in the best interest of the client.This is known as___A. AccountabilityB. ObedienceC.Disclosure of InformationD. LoyaltyE. Reasonable Care D 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...?A. DisclosureB. ImplicationC.RatificationD. Estoppel C Your client is going through a divorce and must quickly sell their house. This fiduciary duty requires that this information remain private, as it may affect a buyer's offer price ___A. LoyaltyB. ConfidentialityC. Reasonable CareD.ObedienceE. Accountability B DMaking an intentionally false statement to induce someone to contract is known as...?A. MisrepresentationB. Price FixingC. Tie-in ArrangementD. Self Dealing DThe 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. ConnectionB. NoticeC. Meet and GreetD.First Substantive Contact 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 listing priceB. Percentage of the sales priceC. Percentage of the appraised valueD. The difference between the sales price and the listing price B An agent of a broker who is already acting as an agent of a principal is known as a...?A. Sub-agentB. Buyer AgentC.Tenant's AgentD. Seller Agent A AIn New York State, a referral fee may only be paid after this is obtained...?A. An agreement between the two agentsB.An agreement between the agent and his/her sponsoring brokerC. Informed consent of the brokerD. Informed consent of the client An agreement between members of a trade to refrain from competition in specific market areas is known as...?A.Market AllocationB. BuyoutC. Group BoycottD. Price Fixing A DWhich of the following may be considered a 3rd party to a transaction...?A. ClientB. PrincipalC. BrokerD. Customer The legal duty of a fiduciary to act in the best interests of the beneficiary is known as...?A. Fiduciary DutyB.ObedienceC. ConfidentialityD. Loyalty 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 The salesperson must communicate with the client and present all offers. This is known as___A. AccountabilityB.ObedienceC. Disclosure of InformationD. LoyaltyE.Reasonable Care C Which of the following is NOT considered one of the six fiduciary duties an agent owes to his/her client...?A.EmployeeB. Reasonable CareC. ObedienceD. Loyalty A AYou may be breaching the fiduciary duties you owe to your principal if you do not do which of the following...?A.Exercise reasonable careB. Refer a home inspectorC.Provide legal adviceD. Refer a mortgage broker 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. Reasonable CareB.EstoppelC. DisclosureD. Self Dealing C 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.

5175B. 10350C. 14500D. 7245

Which of the following is an example of obedience, one of the six fiduciary duties an agent owes his/her client...?A.Not disclosing the maximum offer price to the sellerB.Acting in the best interest of the clientC. Only working with property types that the agent is competent withD. Only showing the type/size of house the client is looking for 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 Your client demands that you list her property below market value as she wants to sell the property quickly. Although you can earn a higher commission if the property were sold at market value, this fiduciary duty requires you to follow through with your client's listing price ___A. LoyaltyB.ConfidentialityC. Reasonable CareD. ObedienceE.Accountability D If two brokerage firms create an alliance in an attempt to prevent another brokerage firm from competing in the marketplace, what may the two firms be liable of...?A.Group BoycottingB. Self DealingC. Vicarious LiabilityD.Price Fixing A