Real estate Chapter 2 test Flashcards

Real estate Chapter 2 test Flashcards Premium Property Management represents land-lords by selecting the tenants, preparing leases,collecting rents, and resolving repair issues. Assuch they act in what sort of relationship withtheir landlord clients?

• General agents.

Ramon is acting under a power of attorney to signthe HUD-1 at settlement on behalf of his friendStella. Just before settlement, Ramon gets thephone call with the bad news of Stella's death.What should he do?Refrain from signing anything on Stella'sbehalf.If Philomena is a salesperson with the DannyAgency, where Danny Murphy is broker, and Phi-lomena gets new listing, what agency does Philo-mena have?Danny is her principal and she is the seller'ssubagent.A person having a notarized document from a sellerauthorizing that person to sign a document at clos-ing

because the seller is unable to attend is called:

An attorney in fact.Amy just listed 9 Elm Court and the next day alady named Freda calls to say she just saw Amy'ssign in front of the house. She asks Amy the listprice, how soon the seller could settle and whatcurrent mortgage rates were. Amy asks if she isworking with another real estate agent, and Fredareplies that she is not. Amy agrees to show Fredathe house that day at 6pm and meanwhile asks ifshe could have her preferred loan officer call topre-qualify her. Freda

agrees, and the call ends.With respect to agency law:

All of the above.Jeff is a seller's agent and Sam is a buyer's agentand they both work for the same brokerage. Threeweeks before settlement, Sam says to Jeff, "CanI tell you something in complete confidence? Mybuyer told me today he and his wife are splittingup. He needed her income to qualify for the mort-gage, but the good news is, the girlfriend he hashad on the side for six months is going to move inwith him and she makes even more than his wife."All the following are

true EXCEPT:

Jeff has an obligation not to tell his seller, be-cause he gave his word to Sam that he wouldkeep the discussion secret.

An agency relationship can be terminated by: D. All of the above.

• Blair resigns from ABC Realty and advises the

brokerhe is joining DEF Realty. What must happen next?The ABC broker must electronically terminateBlair's license with the Commission within fivebusiness days, copying Blair on the notification.REALTOR® David has a buyer agency agreementwith George which calls for a $2,000 flat-fee buyer commission when they find a suitable home forGeorge and go to settlement. George decided tobuy 39 Hawthorne Drive and goes under contract.When David sees that the buyer-side

commissionon the listing is 4%, he tells George, "I'm going tocut my buyer commission on this one. You will onlyhave to pay me $1,000 commission at settlement,not the $2,000 on which we agreed." George isnot aware that David is earning commission fromthe seller, but is thrilled at having saved $1,000.David is acting illegally by accepting compen-sation from both parties for the same transac-tion without the buyer & seller's knowledge.If Jane is the listing agent for Marion and John isthe buyer's agent for Tim, what is Tim to Jane?None of the above.

Which of the following would not be an agent's duty?Buyer's agent telling her client the houseonce had a murder-suicide.When a licensee joins Acme REALTORS® all the

fol-lowing are true EXCEPT:

He has the option to join the National Associ-ation of

REALTORS®

The standard New Jersey buyer agency agreement: Can be cancelled with three days' notice.

18 Buyer commission rebates are determined by: C. The broker.

A broker must pay any commissions earned by itsagents:Within 10 business days of the broker'sreceipt of the gross commission check.Fred Flip buys several houses each year and isvery familiar with settlement procedures. Heis at the settlement table with Joanne, who isboth the listing agent and who represents Fredas a buyer. Fred asks Joanne to step outside theroom. "I just noticed how much commission youare making," he said. "I could have asked anyagent in town to represent me as a buyer andyou would then have only received the seller'sside of the commission. But I didn't. So, I wantyou to rebate $2,000 of your commission to me."What should Joanne do?Tell him no, because commission rebatesmust be agreed-to and put in writing at theoutset of their relationship.When a real estate agent lists a client's home forsale, the

seller has given that broker:

Special agency.Mary's grandmother Martha is leaving for a two-month cruise. She wants Mary to house-sit whileshe is away, and she tells Mary that she has au-thority to do whatever may be necessary if thereis a problem, such as a plumbing leak,

sewer back-up, etc. Martha is giving Mary:

• Universal agency.

In real estate parlance:The client is the person an agent works"for" and the customer is the person heworks "with." Which of the following does not terminate a list-ing agreement?

• Death of the salesperson.

A licensee owes the customer all of the followingEXCEPT:B. Confidentiality.

• A real estate practitioner who facilitates the saleof a

property but who has no fiduciary duty to ei-ther buyer or

seller is called:

• A transaction broker.
• New agent Margie is filling out a listing agree-ment

when the seller says, "Oh, I forgot to askyou: what is your

commission?" Margie responds,"Five-point-five percent." The seller looks stunned."That's ridiculous," he says. "I know all commis-sions are negotiable, and I won't pay one dimemore than four percent." What should Margie do?Call her broker for advice.

Each of the following has a fiduciary duty EXCEPT:A. Clients.

The time to ask the buyer to sign the ConsumerInformation

Statement is:

At the first meeting when they have a sub-stantive conversation regarding real estate.