RE Principles CH 11 Flashcards

RE Principles CH 11 Flashcards Perry is listing his home with Extra Real Estate Company, a

brokerage. He wants the listing as follows: He must receive

$250,000 from the sale of the home, anything above that price is the broker's commission. Which type of listing agreement is Perry demanding?Exclusive AgencyOpen Listing AgreementExclusive Right to Sell with Automatic ExtenderNet Listing D The Lemps have been looking at new homes for weeks and have not found anything worthy of an offer. Mikel, their agent, has invested a large amount of time in showing homes with no luck. Today, he calls Mr. Lemp and says, "I have found you the perfect home! The home is amazing!The yard is perfect and lush. The school district is the best in the state. This home and area are the most prestigious in the city!" Are these types of statements legal?No, this is intentional misrepresentation and cannot be substantiated.Yes, this is legal as long as Mikel does not violate the Federal Fair Housing Laws. These statements are considered "Puffing" in the real estate world. "Puffing" can be unethical if the statements are not true, but it is not illegal.No, this is unintentional misrepresentation. By exaggerating, Mikel is making promises about the property and surrounding areas that are purely subjective.No, this is merely good salesmanship. Describing a home and the surrounding area in glowing terms is just that and nothing more.B Hassan is not happy with the listing agreement on his home through REE Realty Company. He has not been pleased with the showings without notice, the agents showing his home have been rude, and he doesn't feel the property has received the advertising or exposure promised when he signed the listing contract. What is his best option for terminating the listing with REE Realty Company?Hassan could wait for himself or the broker to pass away.Hassan could wait for the expiration of the agreement term to pass.Hassan could speak with the broker and possibly come to a mutual agreement that it is in both parties' best interest to cancel the listing.Hassan could cancel the agreement; however, since it is contractual, the broker could decide to sue for damages.C

What is the difference between commingling and conversion? Which, if either, is considered a more serious violation?Commingling is the practice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and use of a client's funds by a licensee. Commingling is the more serious of the two violations.Commingling is the unlawful misappropriation and use of a client's funds by a licensee. Conversion is the practice of mixing a client's money with the agent's personal funds. Conversion is the more serious of the two violations.Commingling is the practice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and use of a client's funds by a licensee. Neither violation is considered more serious than the other; they both have heavy criminal penalties.Commingling is the practice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and use of a client's funds by a licensee. Conversion is the more serious violation.D TBH Realty Company is handling the sale of the Lopez (seller) home to the Bright (buyer) family. The buyers give an earnest money deposit to the brokerage in the amount of $5,000. The money is then deposited into the broker's account at the bank on the seventh business day after receiving the funds. Has TBH Realty Company followed all trust account regulations with the earnest money?Yes, the money was received and deposited into the broker's account by the seventh business day after receiving the funds.No, the broker should have deposited the earnest money into the broker's account within three business days of receiving the funds.No, not only should the broker have deposited the earnest money within three business days of receipt of the funds, the money was to have been deposited into the broker's trust fund not the broker's account.No, the broker should have deposited the earnest money into the broker's trust fund not the broker's account within the seven days allotted after receipt of funds.C Howard wants to purchase a vacation property. He decides to use the expertise of a real estate professional. One of his business associates recommends Jose. Howard explains to Jose that he wants Jose to only represent his purchasing interest, and a contract is signed. Who is the agent? Who is the principal? What is their relationship?What is Jose's role?Jose is the agent; Howard is the principal; they have an agency relationship; Jose is a

special agent.Jose is the principal; Howard is the agent; they have a third party relationship; Jose is a broker.Jose is the agent; Howard is the principal; they have a fiduciary relationship; Jose is a special agent.Both A and C D RSS Real Estate Brokerage is the listing broker for the Pratte property. RSS delegates some of the responsibility of the listing to Helpful Real Estate Company. The two brokers cooperate on listings frequently and have a good working relationship. Unfortunately, RSS failed to get the principal's (Pratte's) agreement to the delegation. What is the relationship between RSS Real Estate Brokerage and

Helpful Real Estate Company?Helpful Real Estate Company becomes the agent of RSS Real Estate Brokerage due to the appointment without the consent of the principal.Helpful Real Estate Company is now the assigned agent of the listing broker, RSS Real Estate Brokerage.Helpful Real Estate Company becomes the cooperating agent to RSS Real Estate Brokerage's listing broker's ?representation of the Pratte property?.?Helpful Real Estate Company becomes the dual agent to RSS Real Estate Brokerage's listing broker's ?representation of the Pratte property?.?A Scott is trying to sell his home FSBO. The Bartells believe Scott's home could be their dream home, but they have been working with Melinda, a licensee, to find a new home.Melinda shows the Bartells the home, failing to disclose her status as an agent. They love Scott's home and want to buy it. Scott is not interested in any way, shape, or form in