After Mikes listing contract expires, Dean sells the property to Kathy. D) 4 Q . 57. D. do not have the option of arbitration through the local Association of REALTORS. 146. No, because her client, Larry, has no interest in the property. Broker Joann, buyers agent, is seeking arbitration against Broker Millie, sellers agent. A. appraisal. disclosure of all facts that the real estate professional knows or should reasonably be expected to know that materially affect the value or desirability of the property. REALTOR Barbara holds an open house on a rainy day and discovers the seal for the back door is leaking. the seller must disclose, but the broker has no obligation to disclose. This is Jennifer rejects the offer. Which of the following statements is TRUE regarding dual agency? A. keep the comment posted; it only helps his business and, after all, he didnt write it. REALTOR Eddie believes that REALTOR Sacha sold his client a house. A) D. Yes, Marty should not have said anything to the other REALTOR and the seller at the closing. In dual agency, the real estate professional represents two principals in the same transaction. D. Olivias client would have to request arbitration on her behalf; she may not request arbitration on her own. D. a violation of the Code; REALTOR Matthew did not have permission from REALTOR Nelson to contact Jennifer. a. third party. I have no experience selling commercial properties but I would be happy to take on the challenge. D) Identify which statement regarding mediation is TRUE. the statutory law that is enacted by the legislature. What should Erin tell Jones? A. C. Grievance Committee. A. Melanie can only talk to these buyers if they contact her. D. has not obtained informed consent from the buyers to be obligated to pay two commissions. The seller had made no mention of it. Chapter 30. must promote and safeguard the seller's best interests. A. it is prohibited to target solicitations to first-time buyers because of their lack of experience. Show an Amount column, a Per Unit column, and a Percent column on each statement. The Catholic Church on the corner indicates that the area is predominately Italian-Catholic. A. appraisal. \text{Sales (15,000 units X \$30 per unit)}&\text{\$450,000}\\ I would like to sell your business property but first, I would have to take classes. the sales associate was guilty of fraud. obedience. REALTOR Devon At the closing table, Marty tells Caroline and the seller that the buyer is actually his daughter. disclosure of material facts that the agent knows. The two functions of the local REALTOR Associations Board of Directors, with respect to Code enforcement, are required to disclose the information because it is a material fact important to the seller. both parties are represented by attorneys. C. disclosing her relationship with Derek D) can accept an offer on behalf of the seller. InvestmentCenterSalesIncomeAverageInvestedAssetsElectronics$40,000,000$2,880,000$16,000,000SportingGoods20,000,0002,040,00012,000,000\begin{array}{lccc} C. a client only during the professional relationship between the client and the REALTOR. A: This information may be withheld since the agent never saw any evidence of infestation or damage. A. REALTOR Ava posted an ad at her health club to inform people that she just created a new web page and listed her URL on the ad. B. extended an offer of cooperation to another broker, which is not a violation of the Code. 92. Buyer Travis introduces himself as the CEO of Big City Enterprises. Broker Steve. Sacha does not want arbitration, and both agree to get lawyers and sue one another. When, how and to whom agents must reveal for whom they provide client based services. Which of the following is considered dual agency? The agent, without informing the principal, purchases the land for personal use. D. providing little to no information about known issues with a house. Subsequently, REALTOR Shelley claims that she represented Buyer Jack. \text{Contribution margin}&\text{135,000}\\ 53. C. obedience to the inspector. C. Price reductions just made on this beautiful Victorian. REALTOR Crystal went door-to-door in a particular subdivision asking homeowners if they were interested in selling because the ethnic make-up of the neighborhood is changing. In most states, a REALTOR is not required to have a license to sell real estate. Tamika calls Alonzo to find out if the property is exclusively listed and, if so, when it expires. A. Administrative law. C) 03. B. obedience. Being primarily responsible to the customer. A) C. the principal Accidental or implied agency created excessive liability for both licensees and their brokers (and even consumers), and it opened the door to unintended and undisclosed dual agency. An agency relationship between a seller and a broker is usually created by a written employment contract called a B. REALTOR Brian is the respondent. A broker engaged by a buyer has the responsibility to. A) required to disclose the information because it is a material fact important to the seller. Id love to sign you but I cant say anything else until you are out of your contract. B. B. Ralph should not talk to Joe until after the hearing. C) The structure looks good. B. providing the standard professional service expected Given this information: What cause of fatality is least likely to occur? Broker Roger files arbitration against Broker Paul, claiming procuring cause because he introduced the property to the buyer. D) A. state registries of residential information on sex offenders. B. telling him the lowest price Derek will take for the house, which Derek told her in confidence Escrowing D) 16. This way is more efficient. C. A REALTOR can use guided statements to diminish another REALTORs integrity. inform any prospective buyers of the defect. B) stagnant properties. A beautiful home on 1.5 acres with trees and a small pond D. must arbitrate as he and Edward are both REALTORS. REALTOR Kara posts an ad claiming the most you will be charged is a $5,000 commission. Which of the following is true of a listing agreement? REALTOR Antonio has been asked by a listing client to prepare an opinion of value on his property. With a dual agency relationship, which fiduciary duty does a client give up? Board of Directors A seller, anxious to sell, listed a home for $190,000 and signed an agency agreement with a broker who then told a buyer to submit a low offer. The agent's job is to sell the principal's automotive parts to auto repair shops and other purchasers. At 6 p.m. the same day, the agent receives two more offers. 49. C. the name of the REALTORs firm. Broker Paul later brings a sales agreement on the property from one of the attendees of the open house. a criminal registry that is maintained by state real estate offices. Study with Quizlet and memorize flashcards containing terms like Which is TRUE about listings? C. Owen is Howards fiduciary. not required to disclose the information because the seller might reject the offer. The hearing panel will C. No, but only if she doesnt solicit the listing at the same time. A. has no business concerning himself with the other REALTORs contract; it is none of his business. D. I think you should list with me as soon as that week is up. He needs to sell the commercial property and asked Erin if she would be the listing agent. D. Loretta must disclose her interest to her clients and customers, including any financial benefit received. C) A) A. loyalty. C) How would a histogram of US REIT returns over the last twenty years be described? B. Neil is in violation of SOP 1-3 for misleading sellers about market value. C. are not allowed to litigate the matter. 10/22 newly D. Jon is simply being aggressive, which is permissible. REALTOR Marys next step should be to Common law and representative law Jennifer rejects the offer. Broker Anne. D. Melanie should not solicit a buyer agreement with these buyers. C. a violation of Code as Lynn cannot attempt to obtain future business with Terrys client at this point. Identify which statement is true. Bud suggests strongly to Buyer John that he would be better served by buying a house from Broker Nan. A. Ed leaked information about who would appear at the hearing. C. Ann does not have to cite her reasons for filing an ethics complaint against Marge. All material facts known about the property from the seller, another agent, previous experience with the property, or researching public records. the destruction of the property. D) A) He sells Marys property and receives an additional fee for the sale. D. weigh into consideration; Paul introduced the property and is the procuring cause. Patty prepares a CMA prior to the appointment, then shows the property to her prospect, buyer Larry. C) C. Loretta may not market these auxiliary services to buyers or sellers using her company. Broker Deb. The broker is called. Any broker is authorized to encourage such bids for the property. At the request of a client, REALTOR Marguerite provided a written estimated value of the clients property. B) statutory law. 46. 142. B) C. both Nathan and Katherine. B. D. Joe should not talk to Ralph until after the hearing. C. not run the ad at all. D. Melanie should not solicit a buyer agreement with these buyers. C) not required to disclose the information because the agent has no agency relationship with seller. A) In MOST situations, the relationship between real estate broker and seller is what type of agency? 144. a latent defect. The broker can disclose confidential information about the seller to a buyer if it increases the likelihood of a sale. A) A) commingling. Property Rights: Estates, Tenancies, And Multiple Ownership Interests, Real Estate Investment Analysis And Business Opportunity Brokerage. It has been reported that 40%40 \%40% of U.S. workers employed as purchasing managers are females. If Jackie Knox, who owns property in Chicago, agrees to sell the needed land and the agent signs his name "Saul Arnold," _____. Broker REALTOR Miriam employs REALTOR Tom. 88. B) being primarily responsible to the customer. 90. C) avoid conflicts of interest. A. Katherine, as the selling broker a state registries of residential information on sex offenders. C. You really need to consult with your attorney with questions of that nature. b. innocent In an arbitration dispute, the fact that Jim initially introduced Ken to the property favors Walt Disney Company wants to open a new theme park in Chicago but first needs to acquire land for the park. D. No, because she is a property manager and the listing agent does not offer that service. A) fraudulent misrepresentation. No. D. Paula is simply expressing her personal opinion, which she is entitled to do. After the closing, Melanie visits the buyers in their home and asks if they have any questions or need any information about the community. B. call the sellers directly to confirm the nature and expiration date of any listing agreement they have. Jean asks Mike his opinion about the structure of the property. A seller tells his agent in confidence that he must sell fast and may accept less than the list price. The agent gives the offer to the seller, who asks to consider it for 24 hours. In a(n) _____ agency, a contracting third party knows that the agent is acting for a principal but does not know the identity of the principal. an undisclosed dual agency. A third party who owns and wants to sell his vacant land tells an agent of the principal of the availability of the land. A. ethical. This fact favors B. determining if ethics complaints should go forward and holding the hearings. The Minevik Group is a Swedish-based, high-technology engineering firm. B. have an arbitration hearing at Wallys association, if Jona agrees. unmarketable properties. If another brokerage wants to show the property, what is the listing brokers responsibility? REALTOR Tamika notices a home in her market area that has one of listing agents Alonzos signs, but she cant find the listing for it in the MLS. Broker Steve has brought arbitration against Broker Deb. The dual agent may reveal to the seller the maximum the buyer is willing to pay. B) C. notifying him of all known material facts This relationship is. D) inform any prospective buyers of the defect. D) Agents are generally allowed to self-deal with the principal, especially if the self-dealing is undisclosed. A. will have years of arbitration ahead of them. C. express an opinion about the quality of title on a property D. Randy, 84. \text{Net operating income}&\underline{\underline{\text{\$\hspace{5pt}45,000}}}\\ B. Ann cannot file multiple complaints against Marge over this one event. 4. REALTOR Brianna is a buyer agent and sells Randys house. According to the Code of Ethics, who owns the listing agreements for a firm? If two licensees, who are not REALTORS, have a monetary dispute, they Jordan is a lawyer who has her own law firm and specializes in real estate law. Dylan, a real estate developer, hires Jordan to represent him in the purchase of land. B. Nan has an exclusive, current, valid agreement with Bob. B. Sarah may ask her REALTOR principal to initiate litigation but Sarah may not initiate litigation on her own. Broker Deb admits that she extended an offer of cooperation and compensation to Broker Steve. administrative law. Refer again to the data in (1) above. c. is legally entitled to a commission. B. arbitration complaints. D. neither Broker Joann nor Broker Millie. A) REALTORS Sherry and Vinod both show his property. C. The sellers agent has authorized the buyers agent to speak to the seller. B. disclosure B. knows a way around the problem. C. offering to reduce broker fees to a short sale She leases it. A) A real estate professional's representing more than one principal B) Two brokerage companies cooperating with each other C) A real estate professional's acting for both the buyer and the seller in the same transaction D) A real estate professional's listing and then selling the same property A honest and fair dealing. D. An arbitration hearing is required before parties may attempt mediation. A licensee must be a REALTOR to sell real estate in most states. B. ethical, because this is considered a general announcement. A) Broker Amy discovers that buyer Lori has looked at a property with Ken and tells Lori that she is also in the real estate business and can help her buy the property. A. bait and switch. C. Donna has violated the Code by not getting informed consent from both buyer and seller to be a dual agent. Another goal was to recognize and accommodate the growing practice of buyer agency, 60. (C). Which of the following is correct? unstable properties. A. find out if Holly is in an exclusive relationship with a REALTOR and explain to Holly that Sam represents only Linda in this transaction C. prepare a CMA which demonstrates the accuracy of the price. C. Olivia may ask her REALTOR principal to request arbitration but she may not request arbitration on her own. 3 The last group at the local level to review an ethics complaint is the D) She takes the people through the house and they ask Mary to write the contract. B) care and skill in performance. D. Donna has violated the Code by not making it clear to buyer Dan that she was representing the seller. Which of the following Standards is NOT considered a duty to the public? No, because of the right of free speech, Brad can call Ted any time he wants regarding any offers. The seller didnt mention this before the open house. No, the fact that his daughter was the buyer is inconsequential to the transaction. B. disclosing her relationship with Derek What fiduciary duty did the buyer's agent violate? A. REALTOR-ASSOCIATES Statutory law question. C) Katy could elect not to make any appointments. Stan enters into an agreement with Tammy. A) A. fiduciary duties. No, Alonzo is required to post all listings in the MLS. a nonagent. Sales(15,000unitsX$30perunit)VariableexpensesContributionmarginFixedexpensesNetoperatingincome$450,000315,000135,00090,000$45,000. the broker always acts as the agent of a client or customer. C. demand that Sherry split the commission with Vinod. A. racial segregation. In a dual agency situation, if it is permitted by state law, a broker may represent both the seller and the buyer in the same transaction provided When preparing an opinion of value, REALTORS are required to A. a monetary dispute between two licensees. However, Jordan rejects the offers and instead sells the house to a friend. A) A real estate professionals representing more than one principal, B) Two brokerage companies cooperating with each other, C) A real estate professionals acting for both the buyer and the seller in the same transaction, D) A real estate professionals listing and then selling the same property. C) both the buyer and the seller are customers. "The size of the bedrooms makes them wonderfully cozy and perfect for your children." C. a living document that is revised annually. This is a violation of the Code because Implied C) It is Marys listing and she has the key; the sellers are not home but told her to show it anytime. The first thing Sam should do is Principals are generally liable if an agent's frolic and detour is substantial. a) The partners are under a duty to account for any profits made whilst competing with the firm. Which of the following is TRUE about the difference between a special agent and a general agent? I recently toured this home with REALTOR Jordan. C. Providing an opinion about the structure is outside the scope of my expertise. Did Pattys actions violate the Code? A. Melanie can only talk to these buyers if they contact her. C) The National Association of REALTORS Code of Ethics is B. unethical. care. B. Loretta needs to say nothing about these businesses or services; it is obvious she owns them. 3. A. complete a pre-printed contract The first committee at the local level to review an ethics complaint or a request for arbitration is the C. The dual agent must have the written consent of both parties. D) Such disclosure is not prevented by the requirement for client confidentiality. REALTOR Brian has filed an ethics complaint against REALTOR Clarence. Identify which statement is true. He has fulfilled the requirements of Article 7 by Broker Joann, a buyers agent, is seeking arbitration against Broker Millie, a sellers agent. Before leaving, REALTOR Patty takes the seller aside and tells her the property wont sell because it is overpriced and shows the seller her comps. only Disney is liable on the contract if Disney ratified the contract. She takes the people through the house, and they ask Mary to write the contract. Pete learns that the buyers have an exclusive agreement that expires in two months with REALTOR Ryan, employed by a competitive brokerage. C. reasonable care C. Id be happy to discuss this house with you but I cannot discuss anything else. universal agency. General membership. A. Jane. Later, Ken meets Broker Brenda at a party and is persuaded to let her represent him in the purchase of the property. Disney tell Saul that the maximum it will pay for a 1-acre lot is $1 million. A. attending the Grievance Committee meetings and the Professional Standards hearings. An exclusive listing must always be at least 30 days long., What are the three most common types of listings . B. include persons of only one race to show the demographics of that neighborhood. 149. The term, however, can have different meanings. He shows and sells a listing held by REALTOR Jane. a. has no legal right to a commission. Which of the following is an INCORRECT statement regarding misuse of confidential information and the agent's duty of loyalty? B. Tom is not meeting her expectations, so she terminates the employment relationship. should present to the seller only the highest offer for the property. Which statement is TRUE of a real estate broker acting as the agent of the seller? A sellers agent is expected to disclose information about material defects in the property to prospective buyers. c. It allows a broker to complete general tasks. the possible reaction of potential buyers or tenants. C) A. Dual agency exists when a real estate broker represents both parties in a transaction in a fiduciary capacity. She negotiates the offer with buyer Dan, who offered less than asking price. Agents are prohibited from using general information, knowledge, or experience acquired during the course of an agency in later employment. C. documentation of what the opinion is based on d. principal. D. set up an appointment with the title company. B. opinion of value. In a real estate transaction the customer is considered the: A. To keep the websites from looking skimpy, Scott keeps several sold or expired listings on his site that appear to be available. restrictions on disclosure of confidential information. D. Seller Dean was not free to sell the property on his own. A. Donna has not violated any Article or Standard; she just did her job and sold the house. Which of the following is NOT a common type of breach of the agent's duty of loyalty to the principal? A REALTOR can recommend another REALTOR to a client who mentioned she is relocating out of state. Sara would be considered a Transaction broker B. drafting advertisements for general mailing REALTOR Antonio has a buyer agency contract, which entitles him to collect a fee. C. other REALTORS. A. advising customers or clients on how to get a house show ready Statements of opinion are permissible I recommend if you are interested, you have the house inspected by a professional. needs but spent about an hour at the property asking many questions about other homes for sale. REALTOR Betty is hosting an open house where she meets buyer Josie. New builds going fast! A person who authorizes another to act in his or her place in regard to relations with third persons is the: A) D. Yes, because REALTORS are prohibited from receiving compensation from more than one party. D. Yes, because REALTORS are prohibited from receiving compensation from more than one party. C. once it has been reviewed by the Ethics committee All information about material defects that the agent knows or should know While doing so, the agent also works as a salesperson for a competing seller of automotive parts. 145. Identify the scenario below where it would NOT be appropriate for a buyers agent to talk to the seller directly concerning price, terms, or conditions. C. avoid the subject of the back door and if it comes up, lie What is Franks duty? There are four elements of a cause of action for fraud: (1) the licensee made a misstatement or failed to disclose a material fact; (2) the licensee either knew or should have known that the statement was not accurate or that the undisclosed information should have been disclosed; (3) the buyer relied on the misstatement; and (4) the buyer was D. the total commission paid to REALTOR Nelson by the seller. 2 Which of the following committees is most like a grand jury? A. abandonment of John by Broker Judy. REALTOR Nelson owes REALTOR Dee Is this a violation of the Code? A) B. disclosure of material facts. Dual agency can lead to a conflict of interest. B) A) The structure does not seem sound and I would not purchase this house. C. Yes. how an implied agency may occur. 65. B. Paul. depositing money into an escrow account. A. D) Article 11Provide the standard of professional service expected Josie tells Betty she isnt happy with the small number of showings Bills had on her house and she is thinking of finding a new REALTOR. C. more compelling than any efforts made after the open house by Paul and it favors Roger. Past correlation of US REIT returns (over the last 20+ years) tends to indicate which C) D. Brianna. While REALTOR Mary is putting a sign on a property, a couple pulls up in a car and asks if they can see the property. 133. Broker Millie presents as evidence the listing as it appeared in the MLS, with no compensation offered to a buyers agent, only to sub-agents. REALTORS are entitled to collect some fees, which a non-member licensee is not. When Todd finished his degree in marketing, he started a career as a REALTOR. No, Martys daughter and the seller were in mutual agreement with the stipulations of the sale. This particular fact favors A. not a violation of the Code as it is helpful courtesy offered to the seller. Jona is requesting arbitration because he feels Wally unfairly went into contract with his client. REALTOR Matthew brings a complicated purchase contract to Nelson that requests partial owner financing. C. both Brenda and Jim. 83. B) Brenda could be appointed to either the buyer or the seller and a different associate assigned to Betty. In this case, the agent is on a _____, and most jurisdictions hold _____ liable if the agent injures someone while on such a mission. B) D. panic selling. D. REALTOR Clarence is the respondent. When homeowners in a particular area are convinced that the ethnic or racial make-up of their neighborhood is changing, causing them to sell below market value, this is known as The statement is FALSE. The agent believes the seller will not accept any of the three offers. The best solution available to Tim is to This is Eddie suggests taking the matter to arbitration. B. C) B. D. false advertising. C. Yes, Tamika should have just asked the owners, who were in the driveway when she was there. Buyer Travis owns several corporations and has Broker Salvatore show him a property owned by Keith. a facilitator relationship. D. use the comment in other places on his website to help drum up new business. No, because REALTORS are entitled to collect some fees, which a non-member licensee is not. NAR May the Code Be With You / The Code of Ethics in Action Real-Life Applications Class B. While REALTOR Mary is putting a sign on a property, a couple pulls up in a car and asks if they can see the property. when, how, and to whom agents must reveal for whom they provide client-based services. B. I recently toured this home with REALTOR Jordan. In the common law of agency, the relationship of broker to client is that of Buyer Bill acknowledges that he signed and understood an exclusive buyer agency contract with Broker Anne that provided that he would pay her a commission if he purchased a property within the time indicated by the contract, which he did. Dual B. Loretta needs to say nothing about these businesses or services; it is obvious she owns them. D. request arbitration services from the National Association of REALTORS if both Jona and Wally agree. D. the National Association of REALTORS. Who is liable? Subsequently, Vinod tells Tim that Wanda was his client and he is owed a commission. D. only consider who wrote the successful contract on the property. Walt Disney Company wants to open a new theme park in Chicago but first needs to acquire land for the park. Explain. "The simple design is uncluttered and offers many possibilities for decorating.". Which of the following is an INCORRECT statement regarding a "frolic and detour?". Do you agree with the marketing managers proposal? D) D. merely a mention and does not favor Broker Linda. B. Loretta may not market these auxiliary services to buyers or sellers using her company. A broker performing as a property manager who deposits the rent into his operating account is an example of C. large, four-bedroom on a quiet cul-de-sac lot She tells REALTOR Ed, in confidence, to do whatever it takes to sell her house. C) is a process that accommodates an in-house sale in which two different sales associates of the same broker are involved. D. refuse to return calls of the agent involved so as not to have to decide, 22. C. The price that the sellers told the agent is their minimum selling price. 8. All of these 99. 147. The sales associate was practicing puffing. After the closing, Dan expressed his confusion because he thought Donna was representing him in the sale. Sometimes principals request that agents run errands or conduct other acts on their behalf while the agent or employee is on personal business. C. may not arbitrate as he does not belong to the local association. No, because her client, Larry, has no interest in the property. Which of the following is an INCORRECT statement regarding usurping an opportunity and the agent's duty of loyalty? A. ask the buyers if they are exclusively represented by another REALTOR. A. Loretta may insist that all buyers and sellers use the auxiliary services provided by her company. A. allowable because the offer had already been presented and Matthew is just adding information. C. merely a mention and does not favor Broker Andrew. This fact favors Subsequently, Dean lists the property with Broker Mike. latent defects. C) B) A) No, Martys daughter and the seller were in mutual agreement with the stipulations of the sale. B. REALTORS are not permitted to advertise on more than one site. a. Dual agency is a violation of real estate law b. the concept of caveat emptor. Jack should 14. Broker Deb admits that she extended an offer of cooperation and compensation to Broker Steve. Deceitful or dishonest practices Arbitration deals with monetary disputes only and could also be initiated by or made against a customer, client, or non-member broker. C. Jon is allowed to encourage Halie to break her contract with Grant if she is not satisfied with his performance. C. only consider who made the initial introduction to the property.
