Real Estate Brokerage Review Questions with Complete Answers Latest Update Graded A+
A - Answers Bethany has several clients who've used Jerrica, a local mortgage broker, for their mortgage
loans. Jerrica recently had an opportunity to return the favor, and she referred a buyer client to
Bethany. Through her broker, Bethany sent Jerrica a $200 gift card as a referral fee. Which of these
statements best
represents this transaction?
A. Because Jerrica holds a mortgage broker's license, Bethany can pay her a referral fee.
B. Because she paid the referral fee through her broker, Bethany didn't violate any laws.
C. Bethany and her broker violated federal (and perhaps state) laws prohibiting referral fees to certain
third-party vendors.
D. Bethany should have sent the referral fee directly to Jerrica to avoid violating RESPA.
A - Answers Jennifer, an experienced salesperson, hires an unlicensed assistant, Suzanne. Jennifer's on
vacation, and in her absence, Suzanne discussed some contract terms with one of Jennifer's clients.
Who's responsible for Suzanne's behavior?
A. Both Jennifer and her broker are responsible for supervising Suzanne, and both could be disciplined.
B. Jennifer is, because she hired Suzanne.
C. Jennifer's broker is, because the broker has ultimate responsibility for all brokerage staff.
D. Suzanne is, because she knew she was performing tasks that required a license.
, B - Answers What is the relationship between a policies and procedures manual and the broker's
obligation to supervise agents?
A. Brokers who can prove that all agents have access to the PPM won't be cited for failure to adequately
supervise agents.
B. Brokers who enforce policies and procedures outlined in an effective PPM have proof of
efforts to properly train and supervise agents.
C. The PPM may be used in place of face-to-face orientation training for new licensees.
D. The PPM outlines the broker's responsibility to supervise and provides detailed proof of scheduled
one-on-one meetings and group training sessions.
A - Answers Which of the following is a benefit of legal counsel as a preventive measure?
A. They can review policies, procedures, practices, documents, etc., and identify risk areas.
B. They can usually handle all risk issues in an annual meeting.
C. They're inexpensive consultants.
D. You don't have to meet with them regularly.
D - Answers Harriet, an out-of-state licensee, is friends with Tonya, a licensee with Perfectly at Home.
Harriet referred one of her buyer friends to Tonya, so
Tonya plans to pay Harriet a referral fee. Which statement about this fee is true?
A. It's illegal for Tonya to pay an out-of-state licensee a referral fee.
A - Answers Bethany has several clients who've used Jerrica, a local mortgage broker, for their mortgage
loans. Jerrica recently had an opportunity to return the favor, and she referred a buyer client to
Bethany. Through her broker, Bethany sent Jerrica a $200 gift card as a referral fee. Which of these
statements best
represents this transaction?
A. Because Jerrica holds a mortgage broker's license, Bethany can pay her a referral fee.
B. Because she paid the referral fee through her broker, Bethany didn't violate any laws.
C. Bethany and her broker violated federal (and perhaps state) laws prohibiting referral fees to certain
third-party vendors.
D. Bethany should have sent the referral fee directly to Jerrica to avoid violating RESPA.
A - Answers Jennifer, an experienced salesperson, hires an unlicensed assistant, Suzanne. Jennifer's on
vacation, and in her absence, Suzanne discussed some contract terms with one of Jennifer's clients.
Who's responsible for Suzanne's behavior?
A. Both Jennifer and her broker are responsible for supervising Suzanne, and both could be disciplined.
B. Jennifer is, because she hired Suzanne.
C. Jennifer's broker is, because the broker has ultimate responsibility for all brokerage staff.
D. Suzanne is, because she knew she was performing tasks that required a license.
, B - Answers What is the relationship between a policies and procedures manual and the broker's
obligation to supervise agents?
A. Brokers who can prove that all agents have access to the PPM won't be cited for failure to adequately
supervise agents.
B. Brokers who enforce policies and procedures outlined in an effective PPM have proof of
efforts to properly train and supervise agents.
C. The PPM may be used in place of face-to-face orientation training for new licensees.
D. The PPM outlines the broker's responsibility to supervise and provides detailed proof of scheduled
one-on-one meetings and group training sessions.
A - Answers Which of the following is a benefit of legal counsel as a preventive measure?
A. They can review policies, procedures, practices, documents, etc., and identify risk areas.
B. They can usually handle all risk issues in an annual meeting.
C. They're inexpensive consultants.
D. You don't have to meet with them regularly.
D - Answers Harriet, an out-of-state licensee, is friends with Tonya, a licensee with Perfectly at Home.
Harriet referred one of her buyer friends to Tonya, so
Tonya plans to pay Harriet a referral fee. Which statement about this fee is true?
A. It's illegal for Tonya to pay an out-of-state licensee a referral fee.
