NSAR: Unit 4 Questions with Correct Answers
True or False: if a brokerage license is revoked, a seller agency
agreement between that brokerage and a seller remains in effect until the
listing expires. Correct Answer-False - it would end as soon as the
brokerages license is revoked.
True or False: If a property listed for sale is subsequently foreclosed and
the listing is cancelled as a consequence, the agency relationship is said
to be terminated by impossibility. Correct Answer-True
A salesperson is meeting with a perspective seller regarding his auto
repair/wrecking business. During the initial conversation, the
salesperson asks if all relevant permits are in order concerning the
property. The seller confirms that he obtained the appropriate permits
when opening and has has no problems. However, during a visual
inspection, the salesperson notes a fenced portion of the rear yard
containing car parts, batteries, tires and oil drums. At this juncture, what
is the most reasonable approach for the salesperson to take?
A. Decline the listing, as clearly the seller has not provided a truthful
answer.
B. Disclose to any potential buyer that the property has problems
regarding storing hazardous materials.
C. Probe further, advise the seller that any problems relating to the back
lot ares should be addressed, and inform him that any material latent
defects must be disclosed.
D. Accept the seller's rep Correct Answer-C
,True or False: An agency relationship must be in writing to be legally
binding. Correct Answer-False - it could be verbal, or implied agency.
Meaning the other person thought they were in an agency relationship.
But, you should always get it in writing.
True or False: A facilitator must be impartial when providing services
under a transaction brokerage agreement. Correct Answer-True
Identify which of the following would be considered a facilitation
service provided under transaction brokerage.
A. A salesperson prepares an offer including a conditional clause
requested by the buyer.
B. A salesperson prepares an offer instructed by the buyer, but makes
certain corrections to clauses based on the broker's input to ensure that
the offer meets the brokerages standards for all agreements of purchase
and sale.
C. The buyer is submitting an offer on a rural property and asks for a
water quality test. The salesperson provides a list of companies that offer
this service and includes, at the buyers request, a suitable clause in the
offer.
D. All of the above. Correct Answer-D - the buyer can tell you what to
write and you can give basic advice, but you cannot coach them or give
feedback.
True or False: An agency relationship created by agreement can either
be expressed or implied. Correct Answer-True
, A buyer's salesperson is unaware of potential water problems within a
particular neighbourhood, but accidentally overhears the seller customer
discussing his problems both with water quality and an adequate supply.
The listing brokerage has made no mention of this matter. The
prospective buyer client is keenly interested in the home. After leaving
the property, the salesperson informs the buyer regarding what he
overheard. This scenario is best described by which of the following
general obligations owed by the brokerage to a buyer client.
A. Obedience
B. Disclosure
C. Negotiate Favourable Terms
D. Confidentiality Correct Answer-B - Disclosure: Obey the lawful
instructions of the client.
In this case the salesperson owes this to their client as they're the one
they're required to be loyal to, they should disclose what they heard to
their client.
True or False: A transaction facilitator must disclose all known material
latent defects about the seller's property to the buyer. Correct Answer-
True - material latent defects must be disclosed as they could potentially
cause harm to the individual.
True or False: If a designed agent for the seller subsequently becomes a
designated agent for the buyer and the buyer expresses interest on the
sellers client's property, the designated agent must treat the buyer as a
customer in any subsequent negotiations. Correct Answer-False -
whoever has signed with you first, is the client you must keep as the
client status. So in this case, the seller came into an agency agreement
True or False: if a brokerage license is revoked, a seller agency
agreement between that brokerage and a seller remains in effect until the
listing expires. Correct Answer-False - it would end as soon as the
brokerages license is revoked.
True or False: If a property listed for sale is subsequently foreclosed and
the listing is cancelled as a consequence, the agency relationship is said
to be terminated by impossibility. Correct Answer-True
A salesperson is meeting with a perspective seller regarding his auto
repair/wrecking business. During the initial conversation, the
salesperson asks if all relevant permits are in order concerning the
property. The seller confirms that he obtained the appropriate permits
when opening and has has no problems. However, during a visual
inspection, the salesperson notes a fenced portion of the rear yard
containing car parts, batteries, tires and oil drums. At this juncture, what
is the most reasonable approach for the salesperson to take?
A. Decline the listing, as clearly the seller has not provided a truthful
answer.
B. Disclose to any potential buyer that the property has problems
regarding storing hazardous materials.
C. Probe further, advise the seller that any problems relating to the back
lot ares should be addressed, and inform him that any material latent
defects must be disclosed.
D. Accept the seller's rep Correct Answer-C
,True or False: An agency relationship must be in writing to be legally
binding. Correct Answer-False - it could be verbal, or implied agency.
Meaning the other person thought they were in an agency relationship.
But, you should always get it in writing.
True or False: A facilitator must be impartial when providing services
under a transaction brokerage agreement. Correct Answer-True
Identify which of the following would be considered a facilitation
service provided under transaction brokerage.
A. A salesperson prepares an offer including a conditional clause
requested by the buyer.
B. A salesperson prepares an offer instructed by the buyer, but makes
certain corrections to clauses based on the broker's input to ensure that
the offer meets the brokerages standards for all agreements of purchase
and sale.
C. The buyer is submitting an offer on a rural property and asks for a
water quality test. The salesperson provides a list of companies that offer
this service and includes, at the buyers request, a suitable clause in the
offer.
D. All of the above. Correct Answer-D - the buyer can tell you what to
write and you can give basic advice, but you cannot coach them or give
feedback.
True or False: An agency relationship created by agreement can either
be expressed or implied. Correct Answer-True
, A buyer's salesperson is unaware of potential water problems within a
particular neighbourhood, but accidentally overhears the seller customer
discussing his problems both with water quality and an adequate supply.
The listing brokerage has made no mention of this matter. The
prospective buyer client is keenly interested in the home. After leaving
the property, the salesperson informs the buyer regarding what he
overheard. This scenario is best described by which of the following
general obligations owed by the brokerage to a buyer client.
A. Obedience
B. Disclosure
C. Negotiate Favourable Terms
D. Confidentiality Correct Answer-B - Disclosure: Obey the lawful
instructions of the client.
In this case the salesperson owes this to their client as they're the one
they're required to be loyal to, they should disclose what they heard to
their client.
True or False: A transaction facilitator must disclose all known material
latent defects about the seller's property to the buyer. Correct Answer-
True - material latent defects must be disclosed as they could potentially
cause harm to the individual.
True or False: If a designed agent for the seller subsequently becomes a
designated agent for the buyer and the buyer expresses interest on the
sellers client's property, the designated agent must treat the buyer as a
customer in any subsequent negotiations. Correct Answer-False -
whoever has signed with you first, is the client you must keep as the
client status. So in this case, the seller came into an agency agreement
