PERRY REAL ESTATE SET EXAMINER QUESTIONS
AND ANSWERS SET A+
✔✔Exclusive agency - ✔✔owner sold home herself and didn't owe a commission
✔✔Seller's decision - ✔✔Listed price of a property is always
✔✔Breached duty of loyalty - ✔✔Showing a buyer homes outside their price range
Agent is interested in a property they are showing a buyer and they make an offer on it
"self dealing"
✔✔Undisclosed dual agency - ✔✔repping buyer and seller without full and complete
disclosure
✔✔Broker - ✔✔Commission that is paid to a salesperson is determined by mutual
agreement with
✔✔Transaction broker - ✔✔not representing either party but helping a buyer/seller fill
out a sales contract
✔✔Customer - ✔✔someone who refused buyer representation
a FSBO seller
✔✔Fee for services - ✔✔unbundling of services
✔✔Exclusive right to sell listing - ✔✔commission regardless if the broker aids
✔✔Care violation - ✔✔Switching from residential to industrial prep w/ no experience
,✔✔Agency coupled with an interest - ✔✔Broker agrees to provide financing for condo
being constructed with exclusive right to sell the units
✔✔fee-for-service - ✔✔offering real estate services in a piecemeal fashion
✔✔Patent defect - ✔✔one that can be seen with the naked eye
✔✔Exclusive buyer agency agreement - ✔✔contract signed between purchaser and a
broker
✔✔fraud - ✔✔net listings are prohibited because they could lead to
✔✔dual agent - ✔✔Principal broker appoints you to rep the buyer in designated agency
✔✔Latent defect - ✔✔One that you can't see under ordinary inspection
✔✔CMA - ✔✔Way to ensure a buyer doesn't overpay
✔✔Retainer fee - ✔✔A small fee paid by the client upon creation of a buyer agency
relationship as an advance partial compensation for services
✔✔Exclusive right to sell - ✔✔most protection for a broker
✔✔Ratification - ✔✔can be expressed in writing or orally accepting the acts or by
principal taking the benefits
✔✔Honesty and fair dealing - ✔✔If a buyer is unrepresented, listing agent still owes the
buyer the duty of
✔✔Open listing - ✔✔Listing given to any number of brokers; only selling broker is paid
✔✔caveat emptor - ✔✔buyer beware
✔✔Duty of Disclosure - ✔✔Letting the buyer know a home has a serious foundation
issue
✔✔Honesty - ✔✔Not a fiduciary duty owed to a client
✔✔Buyers agency - ✔✔Exists when an agent represents the buyer only
Example of single agency
✔✔contingent fee - ✔✔A fee that is only received upon a successful closing
, ✔✔Designated agency - ✔✔A process that accommodates an in-house sale in which
two different agents are involved. The broker designates one agent to represent the
seller and one agent to represent the buyer.
✔✔Implied agency - ✔✔May create an undisclosed dual agency unintentionally,
inadvertently or accidentally
✔✔Real estate fees - ✔✔Always established by the brokers in the area
✔✔Principal - ✔✔In a typical listing agreement, the seller is the
✔✔Common law - ✔✔an agent is a fiduciary of the principal
✔✔Tenant at sufferance - ✔✔A tenant who remains in the property after the lease
expires without the landlord's consent
✔✔Liquidated damages - ✔✔Parties agree in advance that certain damages will be
available if contract is breached
✔✔Consideration - ✔✔Love and affection in a contract
✔✔Environmental concerns - ✔✔Asbestos, SBS, and lead paint are all examples that a
property manager may want to address
✔✔Profit and loss statement - ✔✔A semiannual statement sent to an owner that doesn't
reflect the entire debt service as an expense
✔✔Tenancy for years - ✔✔leasehold interest for a specific period of time
✔✔Periodic tenancy - ✔✔has no specified time but rent is due at specified intervals
it automatically renews itself without a notice of termination
✔✔Constructive eviction - ✔✔Premises are not liveable for a tenant
✔✔Assignment - ✔✔A transfer of contract rights to a third party
✔✔Buyers agent gives - ✔✔seller disclosure form, signed purchase contract, and
agency disclosure form to buyer
✔✔Statute of frauds - ✔✔Law requires a contract for the purpose of real estate to be in
writing
AND ANSWERS SET A+
✔✔Exclusive agency - ✔✔owner sold home herself and didn't owe a commission
✔✔Seller's decision - ✔✔Listed price of a property is always
✔✔Breached duty of loyalty - ✔✔Showing a buyer homes outside their price range
Agent is interested in a property they are showing a buyer and they make an offer on it
"self dealing"
✔✔Undisclosed dual agency - ✔✔repping buyer and seller without full and complete
disclosure
✔✔Broker - ✔✔Commission that is paid to a salesperson is determined by mutual
agreement with
✔✔Transaction broker - ✔✔not representing either party but helping a buyer/seller fill
out a sales contract
✔✔Customer - ✔✔someone who refused buyer representation
a FSBO seller
✔✔Fee for services - ✔✔unbundling of services
✔✔Exclusive right to sell listing - ✔✔commission regardless if the broker aids
✔✔Care violation - ✔✔Switching from residential to industrial prep w/ no experience
,✔✔Agency coupled with an interest - ✔✔Broker agrees to provide financing for condo
being constructed with exclusive right to sell the units
✔✔fee-for-service - ✔✔offering real estate services in a piecemeal fashion
✔✔Patent defect - ✔✔one that can be seen with the naked eye
✔✔Exclusive buyer agency agreement - ✔✔contract signed between purchaser and a
broker
✔✔fraud - ✔✔net listings are prohibited because they could lead to
✔✔dual agent - ✔✔Principal broker appoints you to rep the buyer in designated agency
✔✔Latent defect - ✔✔One that you can't see under ordinary inspection
✔✔CMA - ✔✔Way to ensure a buyer doesn't overpay
✔✔Retainer fee - ✔✔A small fee paid by the client upon creation of a buyer agency
relationship as an advance partial compensation for services
✔✔Exclusive right to sell - ✔✔most protection for a broker
✔✔Ratification - ✔✔can be expressed in writing or orally accepting the acts or by
principal taking the benefits
✔✔Honesty and fair dealing - ✔✔If a buyer is unrepresented, listing agent still owes the
buyer the duty of
✔✔Open listing - ✔✔Listing given to any number of brokers; only selling broker is paid
✔✔caveat emptor - ✔✔buyer beware
✔✔Duty of Disclosure - ✔✔Letting the buyer know a home has a serious foundation
issue
✔✔Honesty - ✔✔Not a fiduciary duty owed to a client
✔✔Buyers agency - ✔✔Exists when an agent represents the buyer only
Example of single agency
✔✔contingent fee - ✔✔A fee that is only received upon a successful closing
, ✔✔Designated agency - ✔✔A process that accommodates an in-house sale in which
two different agents are involved. The broker designates one agent to represent the
seller and one agent to represent the buyer.
✔✔Implied agency - ✔✔May create an undisclosed dual agency unintentionally,
inadvertently or accidentally
✔✔Real estate fees - ✔✔Always established by the brokers in the area
✔✔Principal - ✔✔In a typical listing agreement, the seller is the
✔✔Common law - ✔✔an agent is a fiduciary of the principal
✔✔Tenant at sufferance - ✔✔A tenant who remains in the property after the lease
expires without the landlord's consent
✔✔Liquidated damages - ✔✔Parties agree in advance that certain damages will be
available if contract is breached
✔✔Consideration - ✔✔Love and affection in a contract
✔✔Environmental concerns - ✔✔Asbestos, SBS, and lead paint are all examples that a
property manager may want to address
✔✔Profit and loss statement - ✔✔A semiannual statement sent to an owner that doesn't
reflect the entire debt service as an expense
✔✔Tenancy for years - ✔✔leasehold interest for a specific period of time
✔✔Periodic tenancy - ✔✔has no specified time but rent is due at specified intervals
it automatically renews itself without a notice of termination
✔✔Constructive eviction - ✔✔Premises are not liveable for a tenant
✔✔Assignment - ✔✔A transfer of contract rights to a third party
✔✔Buyers agent gives - ✔✔seller disclosure form, signed purchase contract, and
agency disclosure form to buyer
✔✔Statute of frauds - ✔✔Law requires a contract for the purpose of real estate to be in
writing
