Real estate final exam with complete Question and Answers

Real estate final exam with complete Question and Answers Which of the following events would NOT result in the termination of a listing agreement? Fulfillment of purpose Exercise of eminent domain of the property Death of the sales associate Death of the seller An agency agreement is between the broker and the client; therefore, if a sales associate died, the broker would merely need to reassign another sponsored licensee to the client. Anna is looking for a real estate salesperson who will treat her honestly and fairly, and will be willing to point out any known issues with the homes they look at. She does not want any help in negotiating, determining her offer price, or in dealing with due diligence. Anna is not even looking for limited representation in her relationship with the salesperson. What form of authorized Florida brokerage relationship is being described here? Transaction broker relationship Single agent relationship No brokerage relationship Designated sales associates relationship A transaction broker provides limited representation to one or more clients in a transaction. A no brokerage relationship provides no representation at all. Joanie walks into a brokerage in Cocoa Beach, expresses interest in buying a condo close to the ocean, and asks if anyone there would be available to drive her around to look at properties that very afternoon. The employing broker enlists one of his sponsored sales associates to do just that — even though no written brokerage agreement has been signed. Based on this scenario, what type of agency do you believe has been established? Joanie and the broker are operating under a "no brokerage" or nonrepresentation relationship. Per Florida statute, Joanie and the broker are presumed to be in a transaction brokerage relationship since no other brokerage relationship has been clearly established. Based on the limited information given, you cannot assume any form of authorized brokerage relationship has been established. A single-agent brokerage relationship has been established verbally between Joanie and the broker. Joanie has expressed interest in buying a condo and has requested assistance from the brokerage. According to Florida statute, there is a presumption of a transaction brokerage relationship unless another form of authorized brokerage relationship is clearly established. The broker would be best served to clarify the type of representation desired. Broker Enrique and Broker Carl are overseeing in-house transactions. Broker Enrique's transaction has to do with a strip mall sale while Carl's is a condo sale. What form of authorized brokerage relationship might be available to Enrique that is not an option for Carl? None. Enrique is limited to the same authorized brokerage relationship choices as Carl. Because this is an in-house nonresidential transaction, Enrique has the option of appointing a designated sales associate to each party regardless of the value of the assets owned by the parties. In an in-house nonresidential transaction, Enrique has the option of appointing a designated sales associate to each party — even without their consent. As long as both parties have assets in excess of one million dollars, Enrique has the option of appointing a designated sales associate to each party. Enrique has this option only if both parties are able to sign a disclosure notice stating that they have assets in excess of one million dollars. When Buyer Joey expresses interest in looking at a particular property, Sales Associate Bill told Joey that if he wanted Bill to continue to represent him, they would need to transition from a single agent relationship to a transaction broker relationship. What is the most likely reason Bill said this? Bill's sponsoring broker has a policy of transaction brokerage only. Bill knew that this relationship would be for the one transaction only. Bill was concerned that there were too many unknowns to commit to a greater degree of representation at that time. The seller is represented by Bill's brokerage; therefore, this would have to be handled as an in-house transaction. Since Bill used the term "represent," there are only two authorized brokerage relationships he could have been talking about: transaction broker or single agent. (No brokerage relationships are relationships of nonrepresentation.) And since Bill said he would "need" to operate as a transaction broker that meant that a single agent relationship was not possible with respect to that particular property. From all of this, you can deduce that the seller is represented by Bill's brokerage and this must be handled as an in-house transaction. If both parties are to an in-house transaction are to be represented, they will be in transaction broker relationships. Mutual agreement, revocation, renunciation, and breach of agreement are all causes for termination of agency due to: Statutory acts Contractual operation Operation of law Acts of the parties Mutual agreement, revocation, renunciation, and breach of agreement are all causes for termination of agency due to what are known as acts of the parties. Two of the three authorized relationships in Florida residential real estate require a written brokerage relationship disclosure notice. One does not. What is the relationship that does NOT require disclosure, and why is the disclosure not required? Because dual agency is the presumed relationship in Florida, there is no need to disclose it. Because single agency is the presumed relationship in Florida, there is no need to disclose it. Because no brokerage is the presumed relationship in Florida, there is no need to disclose it. Because transaction brokerage is the presumed broker relationship in Florida, there is no need to disclose it. Single agency is NOT presumed, so it must be disclosed. Because transaction brokerage is the presumed broker relationship in Florida, there is no need to disclose it. Jim and Bob are licensees who have just acquired new clients on behalf of their sponsoring broker. Jim did so by verbally agreeing to represent Buyer Valerie while Bob signed a listing agreement with Seller Dara. Given these facts, which of the following is true? Only Bob has entered into an express agency agreement, and for that reason, is the only one of the two that can expect to collect any earned commission. Since Jim did not get his agency agreement in writing, it is not valid, and for that reason, cannot expect to collect any earned commission. Jim and Bob have both entered into express agency agreements and have equal protection regarding the collection of earned commission. While both Jim and Bob have entered into express agency agreements, Bob has more protection regarding the collection of earned commission. Oral agreements, while valid, are harder to enforce than written agreements — including the payment of commission. While both Jim and Bob have entered into express agency agreements, Bob has more protection regarding the collection of earned commission. Peter, Paul, and Mary are brokers in authorized brokerage relationships with clients in Orlando. Peter is operating as a single agent, Paul is operating as a transaction broker, and Mary is operating under a nonrepresentation relationship. Who of this group is in a brokerage relationship with a client requiring agency disclosure