Barney Fletcher Final Exam | 100 Questions with 100%
Correct Answers | Verified | Latest Update 2024
Question 1
A seller wants to list the property with a broker, but wants to avoid paying
any commission should the seller be fortunate enough to sell the property
himself. Which of the following should the seller avoid signing?
A) An exclusive agency listing
B) An exclusive right to sell listing
C) An open listing
D) All listings
Answer: B) An exclusive right to sell listing
Explanation: An exclusive right to sell listing means the broker is
entitled to a commission regardless of who sells the property,
including the seller. An exclusive agency listing allows the seller to
sell without paying a commission. An open listing allows the seller to
sell without paying a commission and also allows multiple brokers.
Question 2
Mr. Smith listed his farm with broker Bob. Although Smith did not tell him,
Bob knew he had to sell due to poor health. What should Bob tell potential
buyers?
A) Tell them of the illness only if they ask, but not the need to sell
,B) Tell them of the need to sell to insure a quick sale
C) Do not tell them even though it appears that Smith's death is imminent
D) In order to sell quickly, tell them that the seller is ill because death
would cancel the listing
Answer: C) Do not tell them even though it appears that Smith's
death is imminent
Explanation: The broker has a fiduciary duty of confidentiality to the
seller. Disclosing the seller's personal health information or
motivation to sell without permission would breach that duty.
Question 3
In a cooperative sale, where the listing broker and the selling broker
represent the seller, the selling broker has which of the following
relationships?
A) Agent of the listing broker
B) Sub agent of the listing broker
C) Agent of the seller
D) Sub agent of the buyer
Answer: A) Agent of the listing broker
Explanation: In a cooperative sale, the selling broker acts as an
agent of the listing broker, who in turn represents the seller. This is
known as subagency.
,Question 4
A broker had an exclusive right to sell agency listing. In order to collect
the commission, he must:
A) Prove he was the procuring agent
B) Prove he was licensed at the time of the sale
C) Prove he had a ready, willing, and able buyer that met the seller's
terms
D) All of the above
Answer: B) Prove he was licensed at the time of the sale
Explanation: To collect a commission, a broker must have been
licensed at the time of the sale. Under an exclusive right to sell
listing, the broker is entitled to a commission regardless of who
sells the property, so he does not need to prove he was the
procuring agent.
Question 5
A broker estimated the property lines by stating it ran between two trees
in the back yard. After closing, the buyer found it was over six feet off. Is
the broker liable?
A) No, he gave an estimate
B) No, the buyer should have gotten a survey
C) Yes, he made a statement which he realized could be false
D) Yes, the broker should have surveyed the property himself
, Answer: C) Yes, he made a statement which he realized could be
false
Explanation: A broker is liable for misrepresentation if they make a
statement they know or should know is false. Estimating property
lines without a survey is a form of misrepresentation.
Question 6
Smith has an exclusive listing with broker Jones for $220,000. Jones
finds a buyer who wants representation and Jones represents both Smith
and the buyer, verbally disclosing that he is now representing both as
clients. Has Jones violated license law?
A) Yes, because this is sub agency
B) Yes, because this is undisclosed dual agency
C) No, because he disclosed to all parties that neither had to consent to
dual agency
D) No, because he disclosed to all parties that his actions may be adverse
to
Answer: B) Yes, because this is undisclosed dual agency
Explanation: Dual agency requires written informed consent from
both parties. Verbal disclosure is not sufficient. Jones has violated
license law by not obtaining written consent.
Correct Answers | Verified | Latest Update 2024
Question 1
A seller wants to list the property with a broker, but wants to avoid paying
any commission should the seller be fortunate enough to sell the property
himself. Which of the following should the seller avoid signing?
A) An exclusive agency listing
B) An exclusive right to sell listing
C) An open listing
D) All listings
Answer: B) An exclusive right to sell listing
Explanation: An exclusive right to sell listing means the broker is
entitled to a commission regardless of who sells the property,
including the seller. An exclusive agency listing allows the seller to
sell without paying a commission. An open listing allows the seller to
sell without paying a commission and also allows multiple brokers.
Question 2
Mr. Smith listed his farm with broker Bob. Although Smith did not tell him,
Bob knew he had to sell due to poor health. What should Bob tell potential
buyers?
A) Tell them of the illness only if they ask, but not the need to sell
,B) Tell them of the need to sell to insure a quick sale
C) Do not tell them even though it appears that Smith's death is imminent
D) In order to sell quickly, tell them that the seller is ill because death
would cancel the listing
Answer: C) Do not tell them even though it appears that Smith's
death is imminent
Explanation: The broker has a fiduciary duty of confidentiality to the
seller. Disclosing the seller's personal health information or
motivation to sell without permission would breach that duty.
Question 3
In a cooperative sale, where the listing broker and the selling broker
represent the seller, the selling broker has which of the following
relationships?
A) Agent of the listing broker
B) Sub agent of the listing broker
C) Agent of the seller
D) Sub agent of the buyer
Answer: A) Agent of the listing broker
Explanation: In a cooperative sale, the selling broker acts as an
agent of the listing broker, who in turn represents the seller. This is
known as subagency.
,Question 4
A broker had an exclusive right to sell agency listing. In order to collect
the commission, he must:
A) Prove he was the procuring agent
B) Prove he was licensed at the time of the sale
C) Prove he had a ready, willing, and able buyer that met the seller's
terms
D) All of the above
Answer: B) Prove he was licensed at the time of the sale
Explanation: To collect a commission, a broker must have been
licensed at the time of the sale. Under an exclusive right to sell
listing, the broker is entitled to a commission regardless of who
sells the property, so he does not need to prove he was the
procuring agent.
Question 5
A broker estimated the property lines by stating it ran between two trees
in the back yard. After closing, the buyer found it was over six feet off. Is
the broker liable?
A) No, he gave an estimate
B) No, the buyer should have gotten a survey
C) Yes, he made a statement which he realized could be false
D) Yes, the broker should have surveyed the property himself
, Answer: C) Yes, he made a statement which he realized could be
false
Explanation: A broker is liable for misrepresentation if they make a
statement they know or should know is false. Estimating property
lines without a survey is a form of misrepresentation.
Question 6
Smith has an exclusive listing with broker Jones for $220,000. Jones
finds a buyer who wants representation and Jones represents both Smith
and the buyer, verbally disclosing that he is now representing both as
clients. Has Jones violated license law?
A) Yes, because this is sub agency
B) Yes, because this is undisclosed dual agency
C) No, because he disclosed to all parties that neither had to consent to
dual agency
D) No, because he disclosed to all parties that his actions may be adverse
to
Answer: B) Yes, because this is undisclosed dual agency
Explanation: Dual agency requires written informed consent from
both parties. Verbal disclosure is not sufficient. Jones has violated
license law by not obtaining written consent.
