What is an example of a latent defect? A malfunctioning septic system cant see it

Unit 3- Multiple Choice Flashcards What is an example of a latent defect?A malfunctioning septic system (cant see it) When does negligent misrepresentation occur? When the speaker should know the statement was false What is the type of agency when the listing agent also represents the buyer?Dual agency The buyer makes an offer to buy a home, part of the offer includes earnest money. What should the buyers agent do with the buyers earnest money?Turn it over to the broker as soon as possible ASAP Who sets commission rates?By agreement between seller and broker Which of the following is considered a dual agency?A broker represents both they buyer and the seller in the same transaction At a booth in the neighborhood coffee shop a broker is seated with a friendly rival. The rival asks, "Did you hear about the firm thats changing a flat fee for selling property?Do you think they/ll make it?" What is the proper response?Point out to the rival that it is a violation of federal antitrust law for competing brokers to discuss any aspect of commission rates Which of the following situations terminates a listing?Either the broker or the seller files for bankruptcy When is a consumer information statement (CIS) required?Only when listing one-four family homes What are buyers who ask to see the owners Comprehensive Loss Underwriting Exchange looking for?Insurance claims for the past seven years When is "procuring cause of a sale" important in a real estate transaction?To determine who receives the commission for the sale When is a broker permitted to represent both the seller and the buyer in the same transaction?Both parties have been informed and agree to the dual representation Which is a characteristic regarding working as an independent contractor?Income is based on a percentage of generated income How should the listing broker respond when the buyer confides about financial problems in completing the purchase?Inform the seller immediately What duty does the listing broker owe a prospective buyer?Honest treatment In NJ who is responsible for disclosure about the presence of a convicted sex offender in the neighborhood?NO one A seller is unhappy with the marketing activities of the real estate broker. How can the seller terminate the agency relationship?Revoke the listing agreement The seller lists his house with a broker offering a bonus commission of $500 to the agent who brings a good buyer before thanksgiving and an agent with a cooperating firm effects the sale of Nov. 1. From whom can the buyers agent collect that bonus?Directly from the selling broker What is an example of a violation of duty of accounting?Holding an earnest money check for a few days until the buyer makes a deposit

When is a commission earned?When the seller accepts the buyers offer without conditions How should a buyers broker respond when the buyer confides about financial problems in completing the purchase?The buyers broker should explain to the buyer that not revealing the problem to the seller may constitute concealment of a material defect How does a real estate salesperson who is an independent contractor receive compensation?from time to time based on negotiated commissions on transactions What should a buyers broker disclose to the seller?The written offer made by the buyer For how long is a power of attorney effective? When revoked by the principal (client) What duty require that a real estate broker is responsible for keeping the principal informed of all of the facts that could affect a transaction?Disclosure The broker salesperson told a prospective buyer that the house she was looking at is the best house in the are, What is that an example of?An example of puffing What information is the seller permitted to remain quiet about?Previous owners suicide Under the duty of loyalty what should NOT be don by the sellers broker?Suggest an offer under the listed price Who may use the term REALTOR?All members of a private organization When does the salesperson receive the commission on a real estate transaction?Within 10 days after the broker is paid for the transaction When is a licensed agent entitled to collect a commission on a real estate transaction?The agent was the procuring cause of the transaction When does the listing broker typically receive the sales commission?At the time the transaction is closed Which of the following is an essential element of a fiduciary relationship?Puts the principals (clients) interests above all others How is an independent contactor paid?Commission on sales A seller cannot be present for the closing. What document will allow her parent to sign on her behlaf?A power of attorney To what situation if any doe NJ/s consumer fraud act apply?The act allows exemption from liability in some circumstances What is a possible outcome if a seller wants to cancel a listing agreement in NJ?The seller may be held liable for money and time expended by the broker (pay the broker) Under what condition may a broker collect a commission when the proposed transaction does not go through The seller simply backed out The buyers discovered a sewage problem after closing, and they feel that their buyers agent should have told them about it. What is one action that lessens the agents possible liability?Salesperson had advised the buyers to hire a home inspector What type of legal relationship is generally found between a real estate broker and a seller of real estate?Special agency What is the MOST accurate meaning of the statement "A broker must be employed to recover a commission for his or her services"?Someone must have agreed to pay a commission to the broker for selling the property

What information is a dual agent prohibited from disclosing?The right price to accept Which of the following best describes the fiduciary relationship between an agent and the agents principal?Trust and confidence Who does the transaction broker represent? No one