Post 301-Broker Relationships and
Responsibilities Exam Questions With
Correct Answers
Dual Agency - ANSWER-Disclosed and consensual
Not between two firms
Not automatic
Designated Agency - ANSWER-Disclose names to client
No later than presentation of offer
Easier to practice in larger firms
"Dual Designated" agents
BIC or other authorized person may appoint
Documents/Info gathered by Seller - ANSWER-Sellers deed/title
Survey boundaries
Copy of restrictive covenants
HOA Bylaws/rules/dues/assessments
Balance due on sellers mortgage (short sale/foreclosure?)
Agency brochure - ANSWER-Must be provided at first substantial contact
Does not have to be signed
Does not form agency relationship
Material
fact - ANSWER-About the property
Related to the property
Principal able to complete the transaction
Special importance
Disclosing material facts about a seller's property - ANSWER-To client or customer
Even if it hurts your customer
Regardless of how pubic the material fact is
Listing agent has highest responsibility
Buyer agent is responsible to disclose if known
Answer questions to avoid misrepresentation
Willful - ANSWER-intentional
Negligent - ANSWER-Unintentional--failure to exercise reasonable care
Omission - ANSWER-Failure to disclose
, Misrepresentation - ANSWER-Communication of false info--lie
Commissions - ANSWER-Negotiable
Not set by law
Firm cannot set rates
No "customary" fee for all firms
Deed Discloses - ANSWER-Owners
Legal description
Type of ownership
Not a survey
Property Disclosure Statement - ANSWER-Assist seller in understanding form
Do not fill out for seller
Seller does not have to disclose but agent must
Consequences of not providing Property Disclosure Statement - ANSWER-3-day right
to rescind (date of acceptance of contract/settlement or occupancy of buyer whichever
comes first)
Withdraw without penalty including due diligence fee
Lead Based Paint Amendment/Disclosure - ANSWER-Must be provided for all
residential properties per 1978
Don't have to test
Buyer gets 10 days to do assessment before obligated to purchase property
Exceptions--elderly housing and 0 bedroom dwellings
Measuring properties - ANSWER-Exterior whenever possible
2-story--include stairs on both floors
Rules of calculating square footage - ANSWER-Heated by conventional systems
Finished with typical materials for that type of property
Accessible from other headed and finished areas
Exterior measurements
Exterior walls are considered 6" thick
Room must have at least 50% with 7' ceiling height
Listing contract requirements - ANSWER-Specific start and end dates
3 types
Not created by the Real Estate Commission
Must be signed by sellers and any agent representing the firm
3 types of listing contracts - ANSWER-Open--any agent & owner can sell
Exclusive Agency--One Agency & owner can sell
Exclusive Right to Sell--One Agent
Responsibilities Exam Questions With
Correct Answers
Dual Agency - ANSWER-Disclosed and consensual
Not between two firms
Not automatic
Designated Agency - ANSWER-Disclose names to client
No later than presentation of offer
Easier to practice in larger firms
"Dual Designated" agents
BIC or other authorized person may appoint
Documents/Info gathered by Seller - ANSWER-Sellers deed/title
Survey boundaries
Copy of restrictive covenants
HOA Bylaws/rules/dues/assessments
Balance due on sellers mortgage (short sale/foreclosure?)
Agency brochure - ANSWER-Must be provided at first substantial contact
Does not have to be signed
Does not form agency relationship
Material
fact - ANSWER-About the property
Related to the property
Principal able to complete the transaction
Special importance
Disclosing material facts about a seller's property - ANSWER-To client or customer
Even if it hurts your customer
Regardless of how pubic the material fact is
Listing agent has highest responsibility
Buyer agent is responsible to disclose if known
Answer questions to avoid misrepresentation
Willful - ANSWER-intentional
Negligent - ANSWER-Unintentional--failure to exercise reasonable care
Omission - ANSWER-Failure to disclose
, Misrepresentation - ANSWER-Communication of false info--lie
Commissions - ANSWER-Negotiable
Not set by law
Firm cannot set rates
No "customary" fee for all firms
Deed Discloses - ANSWER-Owners
Legal description
Type of ownership
Not a survey
Property Disclosure Statement - ANSWER-Assist seller in understanding form
Do not fill out for seller
Seller does not have to disclose but agent must
Consequences of not providing Property Disclosure Statement - ANSWER-3-day right
to rescind (date of acceptance of contract/settlement or occupancy of buyer whichever
comes first)
Withdraw without penalty including due diligence fee
Lead Based Paint Amendment/Disclosure - ANSWER-Must be provided for all
residential properties per 1978
Don't have to test
Buyer gets 10 days to do assessment before obligated to purchase property
Exceptions--elderly housing and 0 bedroom dwellings
Measuring properties - ANSWER-Exterior whenever possible
2-story--include stairs on both floors
Rules of calculating square footage - ANSWER-Heated by conventional systems
Finished with typical materials for that type of property
Accessible from other headed and finished areas
Exterior measurements
Exterior walls are considered 6" thick
Room must have at least 50% with 7' ceiling height
Listing contract requirements - ANSWER-Specific start and end dates
3 types
Not created by the Real Estate Commission
Must be signed by sellers and any agent representing the firm
3 types of listing contracts - ANSWER-Open--any agent & owner can sell
Exclusive Agency--One Agency & owner can sell
Exclusive Right to Sell--One Agent
