Chapter 4 Gold Coast Real Estate Homework Complete Questions and Correct Answers

Chapter 4 Gold Coast Real Estate Homework Complete Questions and Correct Answers Who owes fiduciary duties in a single agency relationship? (a) The broker only (b) The principal only (c) Both parties (d) Neither party (a) The broker only All of the following activities are exempt from the requirement to provide disclosures under the Brokerage Relationship Disclosure Act, EXCEPT: (a) Sales staff at a new development center (b) Showing property to a party that is not being represented (c) A bona fide open house or model home showing that does not involve eliciting confidential information, the execution of a contractual offer or an agreement for representation, or negotiations concerning price terms, or conditions of a potential sale (d) Responding to general factual questions from a potential buyer or seller concerning properties that have been advertised for sale (b) Showing property to a party that is not being represented As an agent, a broker is employed by and acts on behalf of whom? (a) A buyer (b) A seller (c) A customer (d) A principal (d) A principal In which of the following situations does a general agency relationship exist? (a) When a broker is employed to market a property (b) When a sales associate is working with a customer (c) When a sales associate is employed by a broker (d) When a broker is employed by a buyer (c) When a sales associate is employed by a broker Broker Joan just received an oral offer to purchase a listed property. No earnest money accompanied the oral offer. Which of the following statements is correct? (a) Joan must present the offer. (b) Joan should not present the offer since no earnest money deposit was received. (c) Joan must advise the customer that an earnest money deposit is required to make an offer valid. (d) Joan should reject the offer on behalf of the seller. (a) Joan must present the offer. Which of the following statements best describes a transaction broker? (a) A transaction broker is an agent of both parties. (b) A transaction broker has fiduciary duties to the seller. (c) A transaction broker has fiduciary duties to the buyer. (d) A transaction broker provides limited representation to both parties. (d) A transaction broker provides limited representation to both parties. An agent failed to advise a principal regarding the value of the owner's property prior to accepting a listing. Which fiduciary duty did the agent breach? (a) Loyalty (b) Disclosure (c) Accounting (d) Obedience (b) Disclosure Broker Tom sold a property which was listed with broker Alice. Tom was unable to attend the closing, so Alice collected the entire commission. Alice refused to pay Tom his share of the commission. What could Alice be charged with? (a) Failure to account (b) Collecting an overage (c) Commingling (d) Fraud (a) Failure to account Mary, an Ohio broker, accompanied a customer to Florida and met with broker Stan in his office in Miami. While Stan showed the customer property and obtained a binding contract for the purchase of a condominium, Mary took some time off and went to the beach. When Mary returned to Stan's office, she discovered that Stan had written a contract and demanded a share of the commission. Which statement is correct? (a) Stan may share the commission with Mary. (b) Mary violated the real estate license law by accompanying the customer to Florida. (c) If Stan pays Mary a share of the commission, Stan will be in violation of the license law. (d) If Stan pays Mary a share of the commission, both Stan and Mary will be in violation of the license law. (a) Stan may share the commission with Mary. What is an agent required to do in an agency relationship? (a) Obtain the highest price possible. (b) Attempt to obtain the most favorable price and terms on behalf of the principal. (c) Obtain the lowest price possible. (d) Negotiate the transaction to receive the highest possible commission. (b) Attempt to obtain the most favorable price and terms on behalf of the principal. When can an agent disclose confidential or harmful information about a principal? (a) At any time (b) During the fiduciary relationship period only (c) After the transaction is completed and the fiduciary relationship is over (d) Never (d) Never Each of the following is contained in the definition of a residential transaction, EXCEPT: (a) Unimproved property intended for four units or fewer (b) Agricultural properties of ten acres or less (c) Leases with options to purchase all or a portion of improved property of four or fewer residential units (d) Dispositions of business interests involving property of five or more residential units (d) Dispositions of business interests involving property of five or more residential units When can both parties in a transaction pay a broker a commission? (a) When the broker has performed. (b) When both parties are aware of the dual commission. (c) When both parties are being represented by the broker. (d) When both parties agree to the dual commission. (d) When both parties agree to the dual commission. All of the following provide control of agency relationships in real estate, EXCEPT: (a) F.S. 475 (b) Common law (c) The Brokerage Relationship Disclosure Act (d) The Department of Financial Services (d) The Department of Financial Services Which of the following statements best describes policy and procedure manuals? (a) Policy and procedure manuals are maintained by all real estate offices. (b) Policy and procedure manuals are required by law. (c) Policy and procedure manuals are a major cause of arguments. (d) Policy and procedure manuals are useful in maintaining good relations within a brokerage office. (d) Policy and procedure manuals are useful in maintaining good relations within a brokerage office. A broker has appointed two sales associates to act as agents in a nonresidential transaction, one for the seller and one for the buyer. Which statement is correct? (a) This is an illegal dual agency. (b) The sales associates are referred to as designated sales associates. (c) Buyer and seller must have combined assets of $1 million. (d) The FREC will revoke the licenses of the broker and both sales associates. (b) The sales associates are referred to as designated sales associates. Each of the following relationships is adversarial, EXCEPT: (a) Arm's length (b) Buyer beware (c) Caveat emptor (d) Fiduciary