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Superior School Chapter 7
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Questions in this quiz (28)
1The real estate broker's fiduciary responsibility to keep the principal informed of all facts, including property condition and issues that affect a seller's willingness to sell and a buyer's willingness to buy, is the duty of:
- Askill, care and diligence
- Bdisclosure
- Cobedience
- Daccounting
2Designated agency in North Carolina is considered: 1. A form of dual agency 2. Mandatory if you practice dual agency
- A1 only
- B2 only
- CBoth 1 and 2
- DNeither 1 nor 2
3Designated agency can be practiced: 1. Between two firms 2. Between a broker-in-charge and a provisional broker licensee in their office
- A1 only
- B2 only
- CBoth 1 and 2
- DNeither 1 nor 2
4An agent must have the buyer sign a written agency agreement by what specific point in time? 1. At the time of first substantial contact 2. Prior to the submission of an offer on the buyer’s behalf 3. At the time the agent attempts to limit the buyer’s ability to work with another agent
- A1 only
- B1 and 2 only
- C2 and 3 only
- D1, 2 and 3
5Under the general principles of agency, when a licensee is acting on behalf of a client and acts improperly who is liable for the acts of the licensee?
- Aonly the client
- Bonly the licensee and the broker-in-charge
- Conly the client and the licensee
- Dthe client, the licensee, the firm and or the broker-in-charge
6A disclosure of agency status should be made by a buyer’s agent to the seller: 1. With a written confirmation in the offer to purchase and contract 2. At the initial contact with the seller’s agent, orally or in writing
- A1 only
- B2 only
- CBoth 1 and 2
- DNeither 1 nor 2
7Iris, a subagent of the seller who is working with a buyer customer, is told by the buyer customer that he wants to offer a low price on a property. The buyer customer says to Iris, “I want to offer $85,000 initially; however, I’ll go as high as $90,000 to get the property.” Iris wrote the offer and delivered the offer to the listing agent, Lucy. Iris told Listing Agent Lucy that the buyer customer is offering $85,000 initially, but he will go as high as $90,000 to get the property. Listing Agent Lucy did not tell the seller the buyer would be willing to go for a higher price. The seller accepted the buyer's offer of $85,000. Who violated the Law of Agency?
- AIris
- BLucy
- CBoth Iris and Lucy
- DNeither Iris nor Lucy
8The amount of compensation due to a licensee from the brokerage firm is determined by:
- Astate real estate regulators to ensure the public the most protection from incompetent licensees
- Blocal real estate board's minimum wage guarantee to agents
- Cin-house employment contracts
- Dlisting agreements
9Which of the following would be dual agency?
- Aa broker-in-charge assisting a buyer client in the purchase of property that was listed by a provisional broker of another firm
- Ba provisional broker and a broker licensee from firms that are cooperating in a transaction
- Ca firm that represents buyers and sellers
- Da broker having a buyer client for a property the broker personally listed
10A real estate broker was responsible for a chain of events that resulted in the sale of one of his client's properties. This is referred to as:
- Achain of title
- Bprocuring cause
- Cprivate offering
- Dready, willing and able buyer
11All of the following could legally be considered fraudulent, EXCEPT:
- Adeceitful or dishonest practices
- Bgeneralized exaggerated opinions about the property
- Comitted statements of material fact
- Dmisstatements about the property
12A seller has listed a home with a broker for $90,000, and the broker suggests to a prospective buyer-customer that they submit a low offer because of the seller's urgent need to sell. The buyer offers $85,000, and the seller accepts it. In this situation:
- Athe broker has violated his agency relationship with the seller
- Bthe broker's action was acceptable since the seller accepted the offer
- Cthe broker acted properly to obtain a quick offer on the property
- Dany broker is encouraged to solicit such bids for the property
13Upon discovering a latent defect in the property, the listing agent should discuss the problem with the seller, and then:
- Ainform the seller that the defect must be repaired
- Barrange for the repairs himself or herself as required by the terms of a typical listing contract
- Cinform any prospective buyers of the defect
- Dcontact the city building inspector about the defect
14Which of the following BEST describes the common law of agency?
- Athe disclosure requirement by the agent to third parties no later than first substantial contact
- Bcase law establishing the responsibilities of a person who acts for another
- Cthe Code of Ethics prescribed by the local trade association
- Dstate license laws and statutes
15A buyer-client has instructed the agent to show only properties where the seller is willing to pay the buyer agent's commission. The agent contacts an owner selling a property without the assistance of a real estate agent with the hope that the seller would be willing to pay her commission if the buyer decided to purchase the seller's property. In order to comply with North Carolina Real Estate Commission Rules, the agent must do all of the following, EXCEPT:
- Aobtain permission from her buyer-client in order to obtain compensation from the seller
- Bdisclose her agency status to the seller at initial contact
- Cconvince the seller to list with her and authorize dual agency
- Dprovide the Working with Real Estate Agents brochure to the seller
16The listing broker tells a prospective buyer that the seller is on the verge of bankruptcy. The broker's actions are:
- Aacceptable since they may promote an offer from the buyer
- Bacceptable as long as the broker does not disclose any additional specific financial information concerning his client's credit history
- Cunacceptable unless there are multiple offers on the property
- Dunacceptable unless the seller has authorized the broker to share the information with potential buyers
17A listing agent is showing a house to a prospective buyer customer. The seller told the listing agent that during the past 10 winters, they have been unable to rid the house of rodents. The seller has hidden rodent damage by the strategic placement of a large sofa. Which of the following statements is TRUE?
- AThis information may be withheld since the agent never saw any evidence of infestation or damage.
- BDisclosing the information could create a fiduciary relationship with the buyer and, thereby, create an unauthorized dual agency situation.
- CWithholding the information prevents the disclosure of a material fact.
- DDisclosing the information violates the agency duties with the seller.
18Which of the following BEST describes a designated agency transaction?
- Athe listing firm appointing an agent to represent the seller
- Bthe selling firm appointing an agent to represent the buyer
- Csome agents in the same firm representing buyers exclusively and other agents in the same firm representing sellers exclusively
- Da broker-in-charge appointing one agent to exclusively represent the seller as the client and appointing a different agent to exclusively represent the buyer as a client while the firm remains in dual agency
19If the broker-in-charge (BIC) is to act as one of the designated agents on a North Carolina in-house transaction, which of the following may be appointed as a designated agent for the other party to the transaction?
- Aan actively licensed provisional broker within the firm, so long as disclosure is made to both clients
- Ba full broker within the firm who has no prior confidential knowledge of the party that the BIC will represent
- Ca broker-in-charge cannot be appointed as a designated agent
- Da licensed provisional broker who has no prior confidential knowledge about the party that the BIC will represent
20Which of the following describes designated agency in North Carolina?
- Adesignated agency is optional, not mandatory
- Bdesignated agency does not eliminate dual agency
- Cdesignated agents cannot have prior confidential knowledge of the other party to the transaction
- Dall of the above
21The North Carolina Working With Real Estate Agents brochure must be given:
- Ato property owners upon initial contact
- Bto all consumers prior to first substantial contact
- Conly to buyers in a real estate transaction
- Dto all unrepresented consumers in a sales transaction no later than first substantial contact
22All of the following situations will terminate a listing, EXCEPT:
- Amutual agreement by the parties
- Bbreach by either party
- Cdeath of the individual listing licensee
- Dbankruptcy of the firm
23A licensee is an actively licensed real estate broker who has a written contract with his firm that specifies that he will not be treated like an employee. The licensee's entire income is from sales commissions rather than an hourly wage. Based on these facts, the licensee will be treated by the IRS as:
- Aa real estate assistant
- Ban employee
- Ca subagent
- Dan independent contractor
24All of the following are TRUE regarding the North Carolina Working With Real Estate Agents brochure, EXCEPT:
- Athe consumer is not required to sign the brochure
- Bif the first substantial contact is by phone, the brochure must be provided within 3 calendar days
- Cthe brochure's use is mandatory in all real estate transactions, including residential sales, commercial transactions and property management
- Dthe brochure must be given in all sales transactions at first substantial contact
25Jack is a NC real estate licensee. He has decided to sell his own house which he is doing outside of his brokerage as a For Sale by Owner. Jill, a prospective buyer has approached Jack at one of his open houses and has expressed an interest in buying the home. Which of the following is a proper course of action for Jack?
- AExclusively represent Jill, but only after full disclosure of his interest in the property.
- BEnter in a dual agency relationship where Jack represents himself as the seller and also represents Jill as the buyer.
- CFully disclose his interest in the property and treat Jill as a customer.
- DRepresent Jill, but do so only on a non-exclusive basis since he has an interest in the property.
26Rite Stuff Realty is a NC real estate firm that buys and flips homes. All of the homes that Rite Stuff handles are owned by the firm entity. In regard to the listing and sale of these homes, which of the following is a correct statement?
- ANone of the agents of Rite Stuff may act as representatives of buyers and must treat all buyers as customers since the firm owns the properties
- BRite Stuff must act as dual agents in the sale of their homes because they are the owners
- CThe North Carolina Real Estate Commission is not concerned with whom Rite Stuff represents so long as agency is properly disclosed
- DRite Stuff may offer exclusive buyer representation, dual agency or designated agency to prospective purchasers of their homes
27All of the following are true of The Residential Property and Owners Association Disclosure Statement, EXCEPT:
- AIt requires a seller to disclose material defects in their home prior to sale
- BIt must be provided to the buyer prior to submission of an offer
- CIt is intended for 1-4 unit residential properties
- DFailure to provide the disclosure form creates a 3 day right of rescission for the buyer
28All of the following are exempt from the requirement to provide an RPOADS and MOG, EXCEPT
- ATransfers between spouses
- BFirst sale of a dwelling not yet inhabited
- CBoth parties agree not to complete the form
- DA For Sale by Owner
Information
- Description
- Laws and Regulations Governing Brokerage Relationships
- Author
- Larkin Willis
- Language
- English
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