Page | 1
NSAR: Unit 4 Questions with Detailed
Verified Answers
Question: True or False: if a brokerage license is revoked, a seller agency
agreement between that brokerage and a seller remains in effect until the
listing expires.
Answer: False - it would end as soon as the brokerages license is revoked.
Question:
True or False: If a property listed for sale is subsequently foreclosed and the
listing is cancelled as a consequence, the agency relationship is said to be
terminated by impossibility.
Answer: True
Question:
A salesperson is meeting with a perspective seller regarding his auto
repair/wrecking business. During the initial conversation, the salesperson asks
if all relevant permits are in order concerning the property. The seller confirms
that he obtained the appropriate permits when opening and has has no
problems. However, during a visual inspection, the salesperson notes a fenced
portion of the rear yard containing car parts, batteries, tires and oil drums. At
this juncture, what is the most reasonable approach for the salesperson to
take?
A. Decline the listing, as clearly the seller has not provided a truthful answer.
B. Disclose to any potential buyer that the property has problems regarding
storing hazardous materials.
, Page | 2
C. Probe further, advise the seller that any problems relating to the back lot
ares should be addressed, and inform him that any material latent defects
must be disclosed.
D. Accept the seller's rep
Answer: C
Question:
True or False: An agency relationship must be in writing to be legally binding.
Answer: False - it could be verbal, or implied agency. Meaning the other
person thought they were in an agency relationship. But, you should always
get it in writing.
Question:
True or False: A facilitator must be impartial when providing services under a
transaction brokerage agreement.
Answer: True
Question:
Identify which of the following would be considered a facilitation service
provided under transaction brokerage.
A. A salesperson prepares an offer including a conditional clause requested by
the buyer.
B. A salesperson prepares an offer instructed by the buyer, but makes certain
corrections to clauses based on the broker's input to ensure that the offer
meets the brokerages standards for all agreements of purchase and sale.
, Page | 3
C. The buyer is submitting an offer on a rural property and asks for a water
quality test. The salesperson provides a list of companies that offer this service
and includes, at the buyers request, a suitable clause in the offer.
D. All of the above.
Answer: D - the buyer can tell you what to write and you can give basic
advice, but you cannot coach them or give feedback.
Question:
True or False: An agency relationship created by agreement can either be
expressed or implied.
Answer: True
Question:
A buyer's salesperson is unaware of potential water problems within a
particular neighbourhood, but accidentally overhears the seller customer
discussing his problems both with water quality and an adequate supply. The
listing brokerage has made no mention of this matter. The prospective buyer
client is keenly interested in the home. After leaving the property, the
salesperson informs the buyer regarding what he overheard. This scenario is
best described by which of the following general obligations owed by the
brokerage to a buyer client.
A. Obedience
B. Disclosure
C. Negotiate Favourable Terms
D. Confidentiality
NSAR: Unit 4 Questions with Detailed
Verified Answers
Question: True or False: if a brokerage license is revoked, a seller agency
agreement between that brokerage and a seller remains in effect until the
listing expires.
Answer: False - it would end as soon as the brokerages license is revoked.
Question:
True or False: If a property listed for sale is subsequently foreclosed and the
listing is cancelled as a consequence, the agency relationship is said to be
terminated by impossibility.
Answer: True
Question:
A salesperson is meeting with a perspective seller regarding his auto
repair/wrecking business. During the initial conversation, the salesperson asks
if all relevant permits are in order concerning the property. The seller confirms
that he obtained the appropriate permits when opening and has has no
problems. However, during a visual inspection, the salesperson notes a fenced
portion of the rear yard containing car parts, batteries, tires and oil drums. At
this juncture, what is the most reasonable approach for the salesperson to
take?
A. Decline the listing, as clearly the seller has not provided a truthful answer.
B. Disclose to any potential buyer that the property has problems regarding
storing hazardous materials.
, Page | 2
C. Probe further, advise the seller that any problems relating to the back lot
ares should be addressed, and inform him that any material latent defects
must be disclosed.
D. Accept the seller's rep
Answer: C
Question:
True or False: An agency relationship must be in writing to be legally binding.
Answer: False - it could be verbal, or implied agency. Meaning the other
person thought they were in an agency relationship. But, you should always
get it in writing.
Question:
True or False: A facilitator must be impartial when providing services under a
transaction brokerage agreement.
Answer: True
Question:
Identify which of the following would be considered a facilitation service
provided under transaction brokerage.
A. A salesperson prepares an offer including a conditional clause requested by
the buyer.
B. A salesperson prepares an offer instructed by the buyer, but makes certain
corrections to clauses based on the broker's input to ensure that the offer
meets the brokerages standards for all agreements of purchase and sale.
, Page | 3
C. The buyer is submitting an offer on a rural property and asks for a water
quality test. The salesperson provides a list of companies that offer this service
and includes, at the buyers request, a suitable clause in the offer.
D. All of the above.
Answer: D - the buyer can tell you what to write and you can give basic
advice, but you cannot coach them or give feedback.
Question:
True or False: An agency relationship created by agreement can either be
expressed or implied.
Answer: True
Question:
A buyer's salesperson is unaware of potential water problems within a
particular neighbourhood, but accidentally overhears the seller customer
discussing his problems both with water quality and an adequate supply. The
listing brokerage has made no mention of this matter. The prospective buyer
client is keenly interested in the home. After leaving the property, the
salesperson informs the buyer regarding what he overheard. This scenario is
best described by which of the following general obligations owed by the
brokerage to a buyer client.
A. Obedience
B. Disclosure
C. Negotiate Favourable Terms
D. Confidentiality
