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WorksheetsNATIONAL-AGENCY-ETHICS-(86Q)-8-7-21
Total questions: 84
Worksheet time: 1hrs 24mins
Name
Class
Date
1.
The responsibilities of a real estate sales agent in a listing agency relationship do NOT include
a)
exercise of due care.
b)
accountability.
c)
obedience.
d)
repair of defects.
2.
After showing a property a number of times and not securing an acceptable offer, the broker decides to buy the property himself. He must
a)
wait until the listing expires and then make an offer to purchase.
b)
make his true position known to the seller.
c)
wait until he receives an offer and then offer a higher price.
d)
wait for at least 30 days and then offer the full asking price.
3.
The listing broker owes a direct fiduciary responsibility to the
a)
listing salesperson.
b)
buyer.
c)
buyer's broker.
d)
seller.
4.
A subagent of a seller would BEST be described as a
a)
Special agent.
b)
general agent.
c)
buyer's broker.
d)
universal agent.
5.
The BEST description of a special agent would be a person who
a)
is an attorney.
b)
is a property manager.
c)
has limited authority.
d)
has universal authority.
6.
Which of the following is NOT a fiduciary?
a)
The principal
b)
The trustee
c)
The guardian
d)
The receiver
7.
A salesperson employed by a real estate broker to show and sell property listed with the broker is BEST described as
a)
an agent of the broker, who is an agent for the principal.
b)
an agent for the principal.
c)
a principal party to the transaction.
d)
an independent contractor, not an agent.
8.
An agency agreement to sell a specific piece of real property will NOT be terminated by
a)
the death of the broker.
b)
bankruptcy of the seller.
c)
revocation of the listing salesperson's license.
d)
insanity of the broker.
9.
When a salesperson makes a misrepresentation of a fact, the salesperson is liable only
a)
when the statement was made with mailcious intent.
b)
if the salesperson is licensed.
c)
when the statement is a material fact.
d)
if the salesperson has a listing agreement.
10.
An owner requests that a broker list a property for sale at $70,000. On inspection, the broker believes the property is worth $80,000. The broker should
a)
get a listing for the property at $70,000.
b)
buy the property for $70,000.
c)
suggest that the owner list the property for $75,000, so there will be room for bargaining.
d)
inform the seller that the property is worth $80,000.
11.
The broker's responsibilities in presenting to the seller a written offer to purchase do NOT include
a)
making known to the seller all written offers before the seller accepts an offer.
b)
making. known the ramifications and practical effects of an offer.
c)
presenting only the offers that are within 10% of the asking price.
d)
presenting all offers as rapidly as they are received.
12.
When a property is advertised "principals only," which group is excluded?
a)
Agents
b)
People who are willing and able
c)
Persons wanting to live on the property
d)
Financially capable brokers interested as buyers
13.
The position of trust assumed by the broker as an agent for the principal is described MOST accurately as a
a)
trustee relationship.
b)
trustor relationship.
c)
confidential relationship.
d)
fiduciary relationship.
14.
As agent of the seller, a real estate broker is usually NOT authorized to
a)
bind the principal under a sales contract.
b)
advertise the listed property.
c)
place a For Sale sign on the listed property.
d)
cooperate with other brokers to effect a sale.
15.
A seller tells her broker that termites have destroyed the floor and that the swimming pool is in violation of the city setback requirements. What must the broker's salesperson disclose to a prospective buyer?
a)
The condition of the floor only
b)
The pool violation only
c)
Both
d)
Neither, if the seller asks that it be done that way
16.
In handling a real estate transaction, a broker should
a)
provide the client with a statement of the receipts and disbursements of the client's money.
b)
not reveal building code violations to the client.
c)
reveal only those things that are part of the public record.
d)
reveal only the items requested by the seller.
17.
A fiduciary relationship usually exists between a principal and all of the following EXCEPT
a)
a trustee.
b)
an administrator.
c)
an appraiser.
d)
a receiver.
18.
Regarding financial agreements made by the client, the broker
a)
need not see that those agreements are put in writing.
b)
is limited to setting the sales price and brokerage fee.
c)
may delegate this responsibility to the sales manager.
d)
is ethically bound to see that all contracts express the specific written agreement of parties concerning the details of the transaction.
19.
A broker usually pays a salesperson a share of the commission received by the broker from a sale when
a)
the salesperson submits a sufficient earnest money deposit to the broker.
b)
the sale is consummated and title is transferred to the purchaser.
c)
there is a valid and binding offer and acceptance.
d)
the contract and earnest money are placed in escrow.
20.
A fiduciary
a)
is a disinterested third party.
b)
looks after the principal's best interests.
c)
must be an employee of the broker.
d)
must be paid a fee.
21.
According to the laws of agency,
a)
a broker must always charge a commission and put the amount on the listing form.
b)
a broker may sue and collect a commission even though he had a forfeited license when the commission was earned.
c)
the commission will be based on the listed price.
d)
the principal and the client are the same person.
22.
A salesperson works for a listing broker. The salesperson lists a seller's house. What is the BEST way to classify the salesperson's agency relationship?
a)
Agent of the listing broker
b)
Agent of the seller
c)
Subagent of cooperating broker
d)
Independent contractor
23.
The seller's broker negotiating a difficult sales contract between an experienced seller of real estate and a novice purchaser should
a)
not be concerned about the buyer's lack of experience.
b)
refuse to continue negotiating with the purchaser.
c)
insist that the purchaser employ an attorney.
d)
suggest that the purchaser consider employing another broker or an attorney.
24.
An agent will usually be entitled to receive a commission if the agent
a)
presents a written offer to purchase during the term of a valid listing.
b)
is the procuring cause of the sale.
c)
has an open listing and the property is sold by another broker with an open listing.
d)
holds an exclusive-agency listing contract and the property is sold by the seller.
25.
The commission rate for the sale of real estate is determined by
a)
silent agreement among brokers in a local area.
b)
fixed schedules approved by the state licensing commission.
c)
scarcity of real estate for sale.
d)
negotiation between the broker and the seller.
26.
The relationship between property owner and broker is that of
a)
seller and purchaser.
b)
attorney and client.
c)
principal and agent.
d)
optionor and optionee.
27.
A salesperson responds to an ad in the paper of a "For Sale by Owner." The owner gives the salesperson a key in order to allow viewing of the property being sold. What type of agency is MOST likely created?
a)
Fiduciary
b)
Implied agency
c)
Contractual
d)
No agency
28.
Besides delegated authority, what else is required to create an agency relationship?
a)
An agreed commission
b)
Consent to act
c)
A written agreement
d)
Power of attorney
29.
A broker who signs a contract to manage an owner's property becomes a
a)
lessor.
b)
trustee.
c)
receiver.
d)
fiduciary.
30.
Salespeople may accept compensation of their predetermined share of the commission from
a)
the multiple listing service.
b)
the owner of the property.
c)
their employing broker.
d)
a cooperating broker.
31.
It is an unethical practice for a broker representing a seller to ·
a)
advise the seller of the highest price a prospective purchaser may be willing to pay.
b)
advise a prospective purchaser of the lowest price the seller is willing to accept.
c)
suggest to the buyer that the full asking price is an appropriate offer.
d)
encourage a broker from another company to try to sell the property.
32.
An attorney-in fact, in executing the powers given to her under the provisions of a general power of attorney, usually does NOT have the right to
a)
encumber the principal's property with the attorney-in-fact as beneficiary.
b)
sign the principal's name.
c)
record the power of attorney in the county where the principal's property is located.
d)
collect money for the principal.
33.
In which situation may a real estate broker NOT recover a commission?
a)
Charging a 13% commission on raw land
b)
Failing to give the owner a copy of the listing at the time it is signed
c)
Charging more than 6% commission on residential land
d)
While holding an inactive license
34.
With respect to the property owner, a licensee who holds a bona fide option to buy a property is NOT
a)
a principal.
b)
an agent.
c)
an optionee.
d)
a prospective buyer.
35.
An agent with a valid listing is generally considered to have earned a commission
a)
only if title is transferred
b)
when an offer has been secured from a prospective buyer.
c)
when a ready, willing, and able buyer who offers to buy on the principal's listing terms has been produced.
d)
only when the principal signs a contract of sale.
36.
Any person, partnership, association, or corporation who authorizes or employs another, called the agent, to perform certain acts on his, her, or its behalf is BEST called the
a)
seller.
b)
broker.
c)
principal.
d)
assignor.
37.
A real estate salesperson might lawfully accept an extra commission in a difficult sale from
a)
an appreciative seller.
b)
a thankful buyer.
c)
a broker-employer.
d)
a mortgage lender.
38.
A broker must open a separate account
a)
for each condominium project handled.
b)
for each separate earnest money deposit handled.
c)
into which he may place both the client's money and his personal money.
d)
into which he may place all clients' monies and nothing more.
39.
Which of the following will NOT terminate an agency relationship?
a)
The destruction of the subject matter
b)
Making an offer
c)
Death of the owner
d)
Bankruptcy of the principal broker
40.
One who has the right to sign the name of the principal to a contract of sale is
a)
a real estate broker.
b)
a special agent.
c)
an attorney-in-fact.
d)
a paralegal.
41.
When money is deposited in a client trust account, part of which will be used to pay the broker's commission,
a)
the broker can withdraw her rightful share of the money before the real estate transaction is consummated or terminated.
b)
accurate records must be kept on the account.
c)
all interest belongs to the broker.
d)
the broker can recover the advertising expenses of the sale out of this account before closing.
42.
An agency has been breached. The court may NOT declare the remedy to be
a)
rescission.
b)
damages.
c)
specific performance.
d)
forfeiture.
43.
The prime obligation of an agent to the principal is
a)
mutual trust.
b)
reverence.
c)
loyalty.
d)
thrift.
44.
Which of the following does NOT describe a fiduciary relationship?
a)
Lawyer to a client
b)
Trustor to beneficiary
c)
Listing broker to seller
d)
Property manager to owner
45.
If a salesperson uses undue influence in a real estate transaction, which of the following is FALSE?
a)
His license could be subject to suspension.
b)
His license could be subject to revocation.
c)
The broker of the salesperson would automatically lose her license.
d)
The contract could be voidable.
46.
Which of the following does NOT describe a fiduciary relationship?
a)
Agent to seller
b)
Mortgagor to mortgagee
c)
Attorney to client
d)
Attorney-in-fact to principal
47.
Which fact about a listed property can a broker conceal?
a)
That the property is located within a 100-year floodplain zone
b)
That the family den was built without a building permit
c)
The type of neighbors who live in the surrounding area
d)
The results of an engineer's report regarding the environmental hazards
48.
As a broker for a 30-unit condominium project, you discover that the exterior walls are 13.5 inches from where they should be according to the building plans. You should
a)
disregard it as being insignificant.
b)
seek an amendment to the plans.
c)
retain an architect.
d)
inform the client.
49.
A real estate broker who has entered into an agency contract with a seller may delegate responsibilities under the contract to one or more salespeople because
a)
all agency contracts are assignable.
b)
the contract always contains this specific authority.
c)
this is an implied authority arising out of custom.
d)
the real estate licensing agency permits this.
50.
A broker inspected the seller's house and discovered it was 600 square feet larger than the tax records had indicated. The extra area is an addition built without a building permit. The broker should NOT tell the client that the
a)
government could force the seller to remove the 600-square-foot addition.
b)
seller should disclose this fact to any prospective buyer to avoid any claim of misrepresentation.
c)
addition is no longer relevant, because it has already been completed.
d)
new buyers should be informed that they could be forced to tear down the illegal improvement.
51.
The owner wants to sell property without the aid of a real estate broker. The owner may NOT legally
a)
evaluate the purchasing power of the buyer.
b)
write up the sales contract between seller and buyer.
c)
require that the buyer assume the present mortgage.
d)
state a preference for a buyer of the same race.
52.
When a buyer is about to buy a property, which statement is TRUE?
a)
The listing broker can request that the earnest money check be made payable to her.
b)
The salesperson can request the check be made payable to him.
c)
The salesperson should accept only cash for earnest money.
d)
It is mandatory for the validity of a contract to take earnest money.
53.
A power of attorney for a real estate sales contract is effective when
a)
it is not in writing .
b)
either party dies.
c)
it is signed by the principal.
d)
it is signed only by the attorney-in-fact.
54.
A real estate office has a listing for $90,000. A buyer makes an offer for $105,000. Without the knowledge of the seller, the listing office can
a)
offer to buy the property through a nominee for $90,000.
b)
suggest that the broker reduce the offer to $90,000.
c)
buy directly from the seller for $95,000 and the next day resell to that original buyer for $105.,000.
d)
present the $105,000 offer to the seller.
55.
Which of the following does NOT describe a special agent?
a)
One who has authority to find a buyer for a seller
b)
One who has power of attorney to sell a property
c)
One who has authority to represent a principal in all matters
d)
One who has authority to represent a buyer to find a property
56.
The broker for the seller owes an obligation to
a)
divide the commission with another broker chosen or preferred by the buyer.
b)
divulge to the buyer the lowest price at which the seller will sell.
c)
present to the principal all written offers the broker receives, including all of the terms and conditions of each offer signed by a prospective buyer.
d)
keep the property in top condition.
57.
As commission for negotiating the sale of a $1 million hotel, a broker received title to a parcel of land valued at $30,000. The same day that the escrow on the hotel closed, the broker sold the land for $40.000. Which statement is TRUE about the broker's actions in selling the land?
a)
Such action violates the licensing law because of the secret profit.
b)
Such action violates the licensing law if the broker does not give written notice to the hotel client of the sale.
c)
It is illegal to receive land as a commission.
d)
It is proper behavior, because the broker did not resell the land until after title to it was received.
58.
The relationship between a real estate agent and a principal is MOST similar to that of
a)
optionee and optionor.
b)
vendee and vendor.
c)
trustee and beneficiary.
d)
mortgagee and mortgagor.
59.
Which of these actions by a real estate agent is NOT considered fraud?
a)
Not disclosing that a septic tank over flows into the stream and the county has issued a citation
b)
Telling the buyer that this is one of the best town houses in the county
c)
Providing estimates of income potential based on past figures much higher than actual income
d)
Concealing a cracked foundation with spray paint
60.
If a seller wrongfully refuses to pay an earned commission, the broker should file
a)
an attachment.
b)
a lawsuit.
c)
a lien against the property.
d)
a lis pendens.
61.
Which of the following is NOT a proper responsibility of a real estate agent?
a)
Loyalty
b)
Skill
c)
Financing
d)
Accountability
62.
Under which circumstances might a broker be liable for misrepresentation for negotiations with a prospective buyer?
a)
The broker states the land area is approximately one acre, when it is actually 44,000 square feet.
b)
The broker fails to mention that a structurally unsound grocery store is a nonconforming use.
c)
The broker passes on accurate information to the buyer that was given to him by the seller.
d)
The broker fails to disclose the height of the building.
63.
Which statement is TRUE?
a)
A listing broker can tell a prospective buyer that the seller will accept less than the asking price if the seller will, in fact, accept the lower figure.
b)
A listing broker can refuse to transmit an offer to the seller if she thinks it is too low.
c)
The broker should present the first offer, then wait until that is accepted or rejected before presenting the next one.
d)
The broker must present all offers as soon as she receives them.
64.
Which of these statements concerning the principal-agent disclosure is FALSE?
a)
As long as a broker discloses that he is acting for a named principal, the broker usually is not liable if the principal defaults.
b)
A broker is personally liable for the principal's default on a contract that the broker negotiated without naming the principal.
c)
The broker may work for either the buyer or seller, but not for both.
d)
The broker can act for both the buyer and seller in the same transaction as long as his position is disclosed and agreed to in writing by both of the parties.
65.
To establish a firm legal contract between a broker and a seller, the prudent broker should
a)
obtain an oral listing agreement from the seller.
b)
file a suit in a court of law.
c)
wait until a buyer is found and then seek to put the listing in written form.
d)
have her employment contract (the listing) in writing.
66.
A real estate broker may lose the right to a commission in all cases, EXCEPT if she
a)
is guilty of a misstatement of known facts.
b)
is not licensed when hired as an agent.
c)
can show she had a written exclusive right-to-sell contract in force at the time of the sale.
d)
quotes information to a buyer not authorized by a seller.
67.
A listing broker receives an offer that fully matches the listing terms. Before presenting the offer, the broker receives two more offers, one for less than the listing price but for cash and one for more than the listing price but where the seller has to take back a mortgage. What is the BEST approach for the listing broker?
a)
Present the offer for the highest price
b)
Present all offers at the same time
c)
Present the cash offer first
d)
Present the offers in the order received, one at a time
68.
A real estate licensee should advise the use of legal counsel in
a)
determining the value of a property before taking a listing.
b)
comparing interest rates and discounts offered by several lenders.
c)
determining the effect of a due-on-sale clause.
d)
presenting an offer from a potential purchaser.
69.
Before obtaining a listing on a property that shares a driveway with the adjacent house, the owner insists that the broker not mention this fact to any prospective purchaser. Regarding this problem, the broker should
a)
inform a prospective buyer in spite of the seller's insistence.
b)
not mention this fact unless a buyer asks.
c)
refuse the listing if he can't persuade the owner to disclose.
d)
do as the seller asks
70.
A broker has a listing on a house that contains a provision that the house is to be sold in an "as is" condition. The broker learns of a major hidden defect in the property. When showing the house to a prospective purchaser, the broker should
a)
advise the buyer of the defect.
b)
point out only that the house will be sold in an "as is" condition.
c)
mention the defect to the buyer only if asked.
d)
inform the buyer that the seller has disclosed no defects.
71.
Concerning a sale between a buyer and seller, the real estate licensee should
a)
advise them to have the title searched.
b)
tell them the legal effect of the liens contained in the title commitment.
c)
recommend the method of holding title.
d)
advise the buyer against the use of a buyer's agent.
72.
When can a broker accept commissions from both the buyer and the seller?
a)
Only if there is a written listing from both
b)
Under no circumstances
c)
Only if both consent after full disclosure
d)
Only if the total amount is under $10000
73.
Which of the following is MOST likely treated as an independent contractor?
a)
Principal broker
b)
Salesperson
c)
Broker in charge
d)
Secretary
74.
Because the broker is in a hurry, she persuades the seller to sign a blank listing agreement so she can fill it out in a few days. This is a
a)
violation of the labor laws.
b)
commonly accepted business practice.
c)
highly unprofessional business practice.
d)
valid contract.
75.
The fiduciary relationship between real estate broker and seller is MOST likely terminated at which point?
a)
On listing the property in the MLS
b)
On finding a ready, willing, and able buyer
c)
On close of escrow (settlement)
d)
When the seller retains an attorney to handle the closing
76.
A power of attorney that is effective even after the principal's subsequent disability or incapacity is called
a)
unilateral.
b)
durable.
c)
continuous.
d)
fixed.
77.
Which of the following constitutes "best practices" for the use of social media in real estate marketing?
a)
Use social media to advertise a particular property only with your client's knowledge and consent.
b)
Keep in mind that what you post is public and may be retained indefinitely
c)
On any blog or social networking site, take care that all of your posts are legal, truthful, and ethical.
d)
All of these are best practices.
78.
A buyer client asks the broker about the value of a particular property. The broker should
a)
provide an appraisal estimate of the property value based on comparable sales in the neighborhood.
b)
indicate that she is not an appraiser but can provide information on prices that other properties have sold for recently.
c)
provide an appraisal estimate based on a statistical analysis of MLS listing prices.
d)
provide an appraisal estimate of the property value based on her best judgment.
79.
A licensed broker who represents both the buyer and the seller as clients in the same transaction is MOST commonly called a
a)
cooperating broker.
b)
designated agent.
c)
middleman.
d)
consensual dual agent.
80.
A broker listed a home and a cooperating broker learned about the MLS listing and showed it to a prospective buyer. Who does the cooperating broker represent?
a)
Seller as an agent
b)
Seller as a subagent
c)
Buyer as an agent
d)
Buyer as a subagent
81.
If a salesperson acts solely on behalf of a seller, to the exclusion of everyone else in the agent's office, what type of agency exists between the agent and the seller?
a)
Subagency
b)
Consensual dual agency
c)
Appointed agency
d)
Delegated agency
82.
A listing agreement expired and the seller listed with a new brokerage firm. After listing with the new brokerage firm, the former listing agent finds a prospective buyer for the property. Which statement is TRUE concerning the original listing agent in this scenario?
a)
The agent must consider the buyer a non-client.
b)
The agent is a dual agent.
c)
The agent cannot disclose offers received on the seller's property while it was listed with the agent.
d)
The agent cannot disclose information regarding any hidden defects learned about the property during the listed period.
83.
A seller told an agent that he was thinking about selling, so the agent acted on their conversation and brought an offer for the seller to accept. If no conversation regarding agency transpired between the two, what is their agency relationship?
a)
Consensual dual
b)
Appointed
c)
Ostensible
d)
Non-client
84.
A broker listed a property and submitted to it the MLS. Which item would the broker not extend to the other members of the MLS?
a)
Cooperation
b)
Subagency
c)
Compensation
d)
Showing instructions
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