LAWS OF AGENCY BEST RATED A+
EXAM GUARANTEED SUCCESS LATEST
UPDATE.
⩥ which of the following actions would be a violation of anti trust laws?
1. two brokers agree to only market their services in specific areas of the
community
2. jim, a broker, advertises that his firm will only represent buyers
3. an independent broker refuses to join the local association of realtors
4. a firm has some salespersons working as independent contractors and
others working as employees. Answer: two brokers agree to only market
their services in specific areas of the community
⩥ dan and daisy enter into a buyer broker agreement. dan believes that
daisy is in breach. may dan terminate the contract?
1. yes, but dan waives his right to specific performance
2. no, unless there is a mutual agreement between dan and daisy
3. yes, but dan risks causing a breach himself
4. no, so long as daisy is willing and able to perform. Answer: yes, but dan
risks causing a breach himself
⩥ the relationship that generally exists between a salesperson and a seller
is a:
,1. universal agency
2. special agency
3. general agency
4. none of the above. Answer: none of the above
⩥ when must a licensee disclose agency relationships?
1. when a prospective buyer asks for info about a particular property
2. as soon as a prospective buyer enters the brokers office
3. any time prior to preparing an offer to purchase
4. when the licensee has substantive discussions about specific property.
Answer: when the licensee has substantive discussions about specific
property
⩥ the listing broker discovers that a property's value has been adversely
affected by proposed construction of a new plant. she must:
1. inform the seller
2. inform the buyer
3. inform the lender
4. both 1 & 2. Answer: both 1 & 2
⩥ a listing agreement must contain all of the following pieces of info except:
1. the signature of the owner of the property
2. the percentage of commission or fee
3. an expiration date
,4. the proceeds due to the seller from the sale. Answer: the proceeds due to
the seller from the sale
⩥ in which type of listing is the commission least likely to be expressed in
terms of a percentage?
1. open
2. exclusive agency
3. exclusive right to sell
4. net. Answer: net
⩥ an agency relationship between seller and broker may be terminated by:
1. mutual consent
2. renunciation of the agreement by the broker
3. expiration of the agreement
4. any of the above. Answer: any of the above
⩥ when does a broker earn commission?
1. when the listing is taken
2. when the purchaser signs the title insurance policy
3. when closing it is complete and the title passes
4. when the offer to purchase has been signed and accepted by the seller.
Answer: when the offer to purchase has been signed and accepted by the
seller
⩥ in order for a dual agency to be legal, it must be:
, 1. disclosed orally prior to negotiations
2. disclosed in writing and agreed upon prior to negotiations
3. disclosed in writing after negotiations
4. none of the above. Answer: disclosed in writing and agreed upon prior to
negotiations
⩥ A listing broker is showing property near a toxic waste dump. The broker
does not tell a prospective buyer about the dump. By withholding this
information, the broker is negligent in his fiduciary duty of:
Select one:
1. obedience
2. loyalty
3. accounting
4. none of the above. Answer: none of the above
⩥ Broker Lynch has an exclusive listing to sell Jones' hardware store for a
$4,500 commission. He took another exclusive listing to sell Brown's grocery
store for a $5,000 commission. With the consent of Jones and Brown, Lynch
arranges an exchange of these two stores. How much will Lynch make from
this exchange?
1. 4500
2. 5000
3. 9500
4. no commission, because an exchange is not a sale. Answer: 9500
EXAM GUARANTEED SUCCESS LATEST
UPDATE.
⩥ which of the following actions would be a violation of anti trust laws?
1. two brokers agree to only market their services in specific areas of the
community
2. jim, a broker, advertises that his firm will only represent buyers
3. an independent broker refuses to join the local association of realtors
4. a firm has some salespersons working as independent contractors and
others working as employees. Answer: two brokers agree to only market
their services in specific areas of the community
⩥ dan and daisy enter into a buyer broker agreement. dan believes that
daisy is in breach. may dan terminate the contract?
1. yes, but dan waives his right to specific performance
2. no, unless there is a mutual agreement between dan and daisy
3. yes, but dan risks causing a breach himself
4. no, so long as daisy is willing and able to perform. Answer: yes, but dan
risks causing a breach himself
⩥ the relationship that generally exists between a salesperson and a seller
is a:
,1. universal agency
2. special agency
3. general agency
4. none of the above. Answer: none of the above
⩥ when must a licensee disclose agency relationships?
1. when a prospective buyer asks for info about a particular property
2. as soon as a prospective buyer enters the brokers office
3. any time prior to preparing an offer to purchase
4. when the licensee has substantive discussions about specific property.
Answer: when the licensee has substantive discussions about specific
property
⩥ the listing broker discovers that a property's value has been adversely
affected by proposed construction of a new plant. she must:
1. inform the seller
2. inform the buyer
3. inform the lender
4. both 1 & 2. Answer: both 1 & 2
⩥ a listing agreement must contain all of the following pieces of info except:
1. the signature of the owner of the property
2. the percentage of commission or fee
3. an expiration date
,4. the proceeds due to the seller from the sale. Answer: the proceeds due to
the seller from the sale
⩥ in which type of listing is the commission least likely to be expressed in
terms of a percentage?
1. open
2. exclusive agency
3. exclusive right to sell
4. net. Answer: net
⩥ an agency relationship between seller and broker may be terminated by:
1. mutual consent
2. renunciation of the agreement by the broker
3. expiration of the agreement
4. any of the above. Answer: any of the above
⩥ when does a broker earn commission?
1. when the listing is taken
2. when the purchaser signs the title insurance policy
3. when closing it is complete and the title passes
4. when the offer to purchase has been signed and accepted by the seller.
Answer: when the offer to purchase has been signed and accepted by the
seller
⩥ in order for a dual agency to be legal, it must be:
, 1. disclosed orally prior to negotiations
2. disclosed in writing and agreed upon prior to negotiations
3. disclosed in writing after negotiations
4. none of the above. Answer: disclosed in writing and agreed upon prior to
negotiations
⩥ A listing broker is showing property near a toxic waste dump. The broker
does not tell a prospective buyer about the dump. By withholding this
information, the broker is negligent in his fiduciary duty of:
Select one:
1. obedience
2. loyalty
3. accounting
4. none of the above. Answer: none of the above
⩥ Broker Lynch has an exclusive listing to sell Jones' hardware store for a
$4,500 commission. He took another exclusive listing to sell Brown's grocery
store for a $5,000 commission. With the consent of Jones and Brown, Lynch
arranges an exchange of these two stores. How much will Lynch make from
this exchange?
1. 4500
2. 5000
3. 9500
4. no commission, because an exchange is not a sale. Answer: 9500
