Perry Real estate Module 2 Approved Test Exam 2026/2027 with Verified Solutions Already Graded A+

Real Estate Real Estate Perry Real estate Module 2 Approved Test Exam 2026/2027 with Verified Solutions Already Graded A+ In assessing the buyer's wants and needs, the buyer's agent should inquire about all of the following EXCEPT: - Correct Answer-Criminal history (income, credit, and location in which you want to live) True or false: REALTORS, when acting as principals in a real estate transaction, remain obligated by the duties imposed by the Code of Ethics. - Correct Answer-True ________ may create an undisclosed dual agency unintentionally, inadvertently or accidentally. - Correct Answer-Implied agency A buyer's agent should pre-screen the buyer to determine what areas of town the buyer is interested in seeing. If the agent does not show the buyer properties in this area, the agent has breached the duty of ______. - Correct Answer-Obedience of lawful instructions Within what discipline is the study of ethics? - Correct Answer-Philosophy (within the discipline of philosophy, the study of ethics examine right and wrong moral behavior) The principle of caveat emptor has largely been superseded by what? - Correct Answer Seller disclosure laws The concept of ethics was derived from the ___ word "ethos", which means character, habit, disposition or custom. - Correct Answer-Greek The salesperson received $2,800 commission on her 35 percent share of the total commission of the sale of the property that sold for $160,000. What was the commission rate? - Correct Answer-5 percent ($2,800 divided by .35= $8,000 is the total commission before the agent split. $8,000 divided by $160,000 = .05% is the commission rate.) Some states require agents to provide minimum services on listings. These services include all of the following except: - Correct Answer-Showing the property* (Assisting in negotiating counteroffers, presenting offers, showing the property, answering questions) Real Estate Real Estate In real estate, the ______ of the firm is the agent. - Correct Answer-Principal broker* A buyer's agent finds out that her client has bad credit and will not be able to pay the price offered in a purchase contract. The buyer's agent does not disclose this information to the seller, who is unrepresented on the sale. The buyer's agent is: - Correct Answer-Must treat an unrepresented seller with honesty and fair dealing* A buyer makes an offer on 100 East Main Street through her agent, Sara Smith. Ms. Smith finds out that the roof on the property has leaked several times in the past, but she does not pass this information on to the buyer. Ms. Smith has breached the duty of - Correct Answer-Disclosure A buyer's agent should ensure that a buyer receives: - Correct Answer-ALL the above (A seller disclosure form, a signed purchase contract, an agency disclosure form) Socrates is the founder of what? - Correct Answer-science of ethics* If a listing agent begins to speak to a buyer about her finances but does not represent the buyer, the agent could be creating what? - Correct Answer-Undisclosed dual agency* If a seller has her property listed with a broker and the buyer is unrepresented, the buyer is a _____ of the broker. - Correct Answer-None of these above (client, customer, principal)* Sue Simms is a buy's agent. She shows the property located at 500 Main Street to her buyer-client, Sandy Smith. During the showing, Sue realizes that she would like to make an offer on the property. Sandy wanted make an offer on the property. If Sue makes an offer while representing Sandy, she could be in violation of which fiduciary duty? - Correct Answer-Loyalty All the following forms are typically needed to complete an agency agreement with a buyer except - Correct Answer-(Agency disclosure form, Seller property disclosure, Closing HUD-1 form, and Buyer representation) Closing HUD-1 form An agent shows a property to a buyer. The buyer wants to purchase the property, but the agent is also interested in purchasing the property. The agent should not make an offer under what duty? - Correct Answer-Loyalty A buyer agency relationship is created when - Correct Answer-A buyer principal agrees for an agent to act on their behalf Real Estate Real Estate License laws are designed to protect - Correct Answer-Sellers, buyers, and owners (All the above) A salesperson who is employed by a broker told a prospective buyer that the house she was looking at is "the best house in the area." Because of this statement, - Correct Answer-The salesperson was practicing puffing (Puffing is an expression for opinion, not fact, about a property.) If a seller asks his agent not to disclose that the roof leaks, the agent must: - Correct Answer-Withdraw from the agency (agents may not be involved in misrepresentation) A buyer's agent must deposit the buyer's earnest money into the office escrow account. This is an example of the duty of - Correct Answer-Accounting (anytime a client's money is involved) Past acts can be____ by a principal bringing them into the agency purview even if the acts were not necessarily authorized at the time they took place. - Correct Answer Ratified A buyer's agent had previously listed the property located at 310 Main Street in Anytown, USA. After the listing expires, the agent has a buyer interested in seeing the property. The agent knows that the property has a serious foundation issue. The buyer's agent must inform the buyer of this fact under what duty? - Correct Answer-Disclosure A parcel of vacant land 80 feet wide and 200 feet deep was sold for $200 per front foot. How much money would a salesperson receive for her 60 percent share in the 10 percent commission? - Correct Answer-$960 Multiply 80 by $200. Then take $16,000 and multiply by 10% for $1,600. Then multiply $1,600 by 6. The total is $960. Normally, agency can be created by an express agreement between the parties, and____. - Correct Answer-All the above (Ratification, estoppel, and implication) If an agent tries to represent both the buyer and the seller without full and complete disclosure, this is called. - Correct Answer-Undisclosed dual agency Danny holds an open house for his seller, Larry. While there, an interested buyer comes to view the property. The buyer decides to make and offer but wants buyer representation. Danny refuses, stating that he is a dual agent on the sale. IS this correct? - Correct Answer-No because dual agent requires knowledge and consent A buyer's agency agreement can be: - Correct Answer-All the above A buyer's agent can be paid - Correct Answer-A commission, a flat fee, or an hourly rate (All the above) Real Estate The NAR rewrote their bylaws and code for ethics to recognize all agency relationship except - Correct Answer-It recognizes all the above (The seller agency, buyer agency, and disclosed dual agency) Patricia is helping Howard handle the paperwork for the sale of his farm. She is only acting as a transaction broker, not an agent. Is Patricia bound by the Code of Ethics? - Correct Answer- Once an agency relationship is established, it can only be terminated if - Correct Answer-completion of performance of the agreement occurs Betty Buyers tells her agent that she makes $100,000 per year and wants to buy a property in the $300,000 range. Betty asks her agent not to repeat this information. Nevertheless, her agent repeats this information at a cocktail party. Her agent has violated which of the following? - Correct Answer-Confidentiality This can be accomplished expressly in writing or orally accepting the acts or by the principal taking the benefits of the past acts. - Correct Answer-Ratification Joan tells agent Fred that she wants to sell her home. Fred calls his potential buyer clients to see if they are interested. Even though Joan and Fred do not have a signed agreement, these actions could create: - Correct Answer-Implied agency Most agree that the most influential thinker in modern ethics is who? - Correct Answer Immanuel KANT This is the individual who hires and delegates to the agent the responsibility of representing his or her interests. - Correct Answer-Principal Real Estate