commingling. 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. if the buyer's inspector finds a problem, the seller does not have to disclose. D) 133. However, fixed expenses would increase to a total of$225,000 each month. In a real estate transaction the agent is the: Seller Jordan signs a memorandum for an open listing with a broker authorizing the sale of her house for $65,000. If another brokerage wants to show the property, what is the listing brokers responsibility? Rather than pay sales commissions, which are currently included in variable expenses, the company would pay salespersons fixed salaries and would invest heavily in advertising. Which of the following statements is NOT true about dual agency No, because REALTORS are entitled to collect some fees, which a non-member licensee is not. A seller can sell his or her own home and owe no commission if he or she signs an exclusive agency listing. (Assume that enough funds are available to make the purchase.). B) C. induced Miriams client to cancel her agreement, which is a violation of the Code. ch 30 quiz Flashcards | Quizlet D. must arbitrate as he and Edward are both REALTORS. The official interpretation of the NAR Code of Ethics is made by A. disclose the existing accepted offer Identify which of the following inducements is prohibited. negligent misrepresentation. Questions Only REALTOR Jerry has exclusive employment contracts with buyer Stan and seller Tammy. A broker helps a buyer and a seller with paperwork but does not represent either party. A. D. Loretta needs to say nothing about these businesses or services; it is obvious she owns them. Agents are prohibited from using general information, knowledge, or experience acquired during the course of an agency in later employment. 80. Advertisements on the Internet require D. REALTOR Robbie offers a free restaurant coupon to Flannigans to anyone that books a home tour with him between now and St. Patricks Day. The term, __________, refers to a broker who produces a buyer "ready, willing, and able" to purchase the property for the sale price and on the terms specified by the seller, regardless of whether the sale is completed. The agent should: d. hold the offers for 24 hours before conveying them to the owner. care and skill in performance. A. order the seller to disclose the leak No, because her client, Larry, has no interest in the property. D. the same as if Roger had found the buyer independently and shown the property by appointment; it favors Roger. 6. It is Marys listing and she has the key; the sellers are not home, but told her to show it anytime. Eddie suggests taking the matter to arbitration. D. REALTOR Clarence is the respondent. D. Yes, Marty should not have said anything to the other REALTOR and the seller at the closing. 65. Do not show percentages for the fixed expenses. Buyer Travis introduces himself as the CEO of Big City Enterprises. c. is legally entitled to a commission. C) 90. REALTORS seek arbitration over monetary disputes with another REALTOR because \end{array} The dual agency does not constitute a violation of the duty of loyalty so long as the agent acts fairly and equitably. In a real estate brokerage, He has fulfilled the requirements of Article 7 by C) B. Nathan, as the listing broker. A) D) Lets not worry about that todaylets wait until we sell your house, then well figure it out. D. Yes. 56. 82. B. Care This would most likely be viewed as 50. C) C) Later that same day, a prospective buyer comes into the broker's office and asks for general information about homes for sale in the $130,000 to $140,000 price range but refuses representation by the broker's company at this time. Board of Directors. REALTOR Donna has a property exclusively listed and shows it to buyer Dan, who wants to make an offer. c. fiduciary. (2) Which department is most efficient at generating sales from average invested assets? D. REALTOR membership is voluntary but provides a distinction from other licensees. B) C) avoid conflicts of interest. D) REALTOR Loretta has a large brokerage that includes an in-house mortgage lender, an in-house title company, and she offers home warranties through her company. B. once it has been reviewed by the Grievance committee She leases it. Deceitful or dishonest practices D. Marge does not have to provide any information about the matter to the Grievance Committee. Regarding such duties, which ONE of the following statements is NOT true? D. Nan worked with Bob first. Lets not worry about that todaylets wait until we sell your house, then well figure it out. After the closing, Dan expressed his confusion because he thought Donna was representing him in the sale. Broker Linda is at a wedding seated at a table with nine other guests. Which of the following is considered dual agency? B. Donna has violated the Code by not disclosing to the seller that she was representing buyer Dan. D. ratifying the findings of the Professional Standards Hearing Panel and hearing appeals from either party. How is the NCREIF Property Index calculated? C. avoid the subject of the back door and if it comes up, lie D) required to disclose the information under the Fair Credit Registry Act. Absolutelythis is a community property state. C. Yes, because REALTORS have an agreement to cooperate. D. Olivias client would have to request arbitration on her behalf; she may not request arbitration on her own. The next day, Howard calls Owen and tells him that he would like to make an offer on the house. Which of the following is an INCORRECT statement regarding agent self-dealing? B) stigmatized properties. the seller and the listing broker do not have to disclose anything. A. each members conscience. All of these will terminate an agency relationship EXCEPT While reviewing the MLS data sheet, Kevin notices that the cooperative broker compensation offered in the MLS listing is less than the fee he negotiated with Susan with his buyer broker agreement. A) C. estrangement of John by Broker Nan. C. prepare a CMA, which demonstrates the accuracy of the price. Misrepresentation or omission might result in broker liability, In a dual agency situation, a broker may represent both the seller and the buyer in the same transaction if. A. Olivia can take no action since Jon is the principal broker at his agency; his title gives him seniority in this situation. The relationship between the agent and the seller ends automatically if the purchaser submits an offer. 92. A. may ask the local Association of REALTORS to provide them with a free mediator. In most states, a REALTOR is not required to have a license to sell real estate. B. Neil is in violation of SOP 1-3 for misleading sellers about market value. B. contact the sellers and write the contract. REALTOR Bill is representing sellers Sue and Sam, who are divorcing. C) D) A. not a violation of the Code as it is helpful courtesy offered to the seller. d. is subject to disciplinary action by the Real Estate Commissioner for negligence. REALTOR-ASSOCIATE Sarah believes that REALTOR Thomas from another brokerage sold a house to her client and that she was the procuring cause of the sale. Which of the following is NOT a common type of breach of the agent's duty of loyalty to the principal? A. REALTOR John, who is also an appraiser, periodically sends letters to past clients asking if they need a current valuation of their property. B. may ask the local Association of REALTORS to arbitrate it. D. mutual collaboration. Jaybird was required to make a no brokerage disclosure before letting the buyer enter the open house; Marty later writes a contract and a sale is made. Did Nathan violate the Code? C. call the sellers directly only if she has a buyer client who wishes to see the house. No, because REALTOR Katie is obviously clueless about how to price a property. 136. REALTOR Eddie believes that REALTOR Sacha sold his client a house. B. REALTOR Barbara holds an open house on a rainy day and discovers the seal for the back door is leaking. C. Price reductions just made on this beautiful Victorian. To get the answers she needs, Jane may Jerry discloses his compensation agreements to both parties and receives their consent. C) B. advise Susan of the commission differential and renegotiate his fee. C) REALTOR Kim can C) D. notifying him of all known material facts. D. contact Linda to let her know there is an offer. Some states allow two sales associates in the same brokerage to represent opposing sides to a transaction without creating a dual agency by using B. not a violation of the Code as REALTOR Terry doesnt know any agents in Hawaii. mandatory agency disclosure. Which of the following is NOT a critical factor in determining independent contractor status? B. In an arbitration dispute, the fact that Linda mentioned the property is considered REALTOR Kevin, representing buyer Susan, shows one of REALTOR Craigs listings. B. offer to directly pay REALTOR John a bonus commission if he produces a contract at full price. D. weigh into consideration; Paul introduced the property and is the procuring cause. D) REALTOR Kim has a listing on a property and REALTOR John, a sales associate for REALTOR Millie, makes an appointment to show it. C. Kathy and Dean had previous dealings with each other. C. Grievance Committee. A. order the seller to disclose the leak B) His boss is Bud, whose wife is Broker Nan. B. providing the standard professional service expected C. Ann does not have to cite her reasons for filing an ethics complaint against Marge. d. principal. In fact, the view includes the river and the back of a shopping center. D. local, state, and national. A. D. set up an appointment with the title company. Sacha does not want arbitration, and both agree to get lawyers and sue one another. obedience. Matthew calls Jennifer to explain the details. C) Who is liable? D. do not have the option of arbitration through the local Association of REALTORS. C. A REALTOR can use guided statements to diminish another REALTORs integrity. Smitty tells Brad to call Ted and present it himself. Broker Anne. Any broker is authorized to encourage such bids for the property. B. advise Holly that Linda will only take listing price; since he is Lindas agent, he has the right to do so. Every agency relationship has a principal, an agent, and a third party. D. Yes, I have tons of experience selling all types of properties! 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. universal agency. 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 Buyer Travis does not own Big City Enterprises and High-Rise Corporation. She tells REALTOR Ed, in confidence, to do whatever it takes to sell her house. B. homeowners selling at a below market value because the demographics of the neighborhood is changing D. merely a mention and does not favor Broker Linda. "I think these low doorways are a charming part of the Cape Cod style." B. state a nonagent. C. both Brenda and Jim. A) Betty could be released from the agency agreement and seek representation from another broker. D) report the status of all funds received from or on behalf of the principal. C. demand that Sherry split the commission with Vinod. 64. A. Nan did not sign a contract with Bob. REALTOR Marcy has listed Dereks home, thus creating an agency relationship in which she owes fiduciary duties to Derek. whether the worker is paid by way of direct deposit or check. a nonagency. A. 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 D) A. Loretta may insist that all buyers and sellers use the auxiliary services provided by her company. both Saul and Disney are liable on the contract, Walt Disney Company wants to open a new theme park in Chicago but first needs to acquire land for the park. Board of Directors Broker Joann. unless it was considered puffing. B. litigation. B. something that would be understood by both REALTORS and does not need to be disclosed. 44. Buyer Holly contacts Sam indicating that she has seen the house Linda is selling and would like to make an offer. Chapter 30 Flashcards | Quizlet Which of the following is correct? Buyer Kathy contacts Seller Dean about buying his property. C. explaining to a customer why a contract cant be enforced The structure does not seem sound and I would not purchase this house. At this point, what kind of relationship do Howard and Owen have? The statement is FALSE. B. call the sellers directly to confirm the nature and expiration date of any listing agreement they have. D. only consider who wrote the successful contract on the property. a. Dual agency is a violation of real estate law b. A buyer's agent, upon learning that the home being purchased is to house a dog-grooming business, didn't check zoning. C. Buyer Travis is the owner of Big City Enterprises and High-Rise Corporation. A. accounting for any deposit monies she receives from him, which are put into a separate account D. a violation of Code, because some of those properties might be listed for sale. example, during working hours or on the principal's 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 agent should have disclosed this information, regardless of its accuracy. and disclose all facts concerning the property. Id love to sign you but I cant say anything else until you are out of your contract. He should 13. Lori subsequently meets Broker Amy, whose son plays ball with Loris son. C) REALTOR Marcy listed Dereks home, thus creating an agency relationship in which she owes fiduciary duties to Derek. A seller tells his agent in confidence that he must sell fast and may accept less than the list price. only if intentional. Buyers hire an agent to help them purchase a home and want seller financing because they filed for bankruptcy two years ago. C. The sellers agent has authorized the buyers agent to speak to the seller. 116. A. exclude any human models to avoid any kind of unnecessary bias. Lynn then tells the seller she could recommend a good REALTOR there. C. prepare a CMA which demonstrates the accuracy of the price. 30. The agent tells a buyer the seller will accept up to $10,000 less than the list price. A) A. Jane. EXPLANTION: At least one party must be a REALTOR in order to go through the arbitration process. B. For both present operations and the proposed new operations, compute (a) the degree of operating leverage, (b) the break-even point in dollar sales, and (c) the margin of safety in both dollar and percentage terms. Compute profit margin and investment turnover for each department. Administrative law and canonical law Broker Paul later brings a sales agreement on the property from one of the attendees of the open house. agency, so they are incorrect answers to the C. REALTOR Lyla listed her clients property for less than they had wanted to sell it for because she knew it had a better chance of selling at that price. B. REALTOR principal or the firm itself A. completely unlike state licensing laws. D) B. sign the Byers to an exclusive buyer agency agreement D. Brianna. C. The price that the sellers told the agent is their minimum selling price. tell the seller that the defect must be repaired. D) 59. 114. Agency relationships in real estate are regulated by which kind of law? 5. REALTOR Sam represents seller Linda. Conflict of interest is inherent in a dual agency arrangement. B. Donna has violated the Code by not disclosing to the seller that she was representing buyer Dan. B. B. A. Twenty years ago, a former occupant of the house committed suicide in the house. D) A factor that is indicative of bad faith and in Salvatores favor is whether 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. A) D) C. No, Antonio is entitled to collect these fees as long as there was informed consent from both parties to the transaction. B. unethical. This offer is accepted, contingent upon the buyer obtaining financing and a satisfactory home inspection. B) B) 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 an agency. Unit 5: Agency Relationships Flashcards | Quizlet both parties are represented by attorneys. Only information about material defects the seller has provided the agent. You are simply a bottom feeder! Identify which statement is true. A REALTOR can recommend another REALTOR to a client who mentioned she is relocating out of state. Dual agency exists when a real estate broker represents both parties in a transaction in a fiduciary capacity. If Jackie Knox, who owns property in Chicago, agrees to sell the needed land for $1.5 million and the agent signs his name "Saul Arnold, agent for Walt Disney", _____. "The simple design is uncluttered and offers many possibilities for decorating.". D. half of the commission REALTOR Nelson actually received from the seller after he negotiated with the seller to reduce his commission. Qaadir hires Zaafir, a lawyer and an independent contractor, to represent him in a court case. A. The agent, without informing the principal, purchases the land for personal use. The seller didnt mention this before the open house. D. unethical, because some of the people who get the e-mail may already be in an exclusive listing agreement. REALTOR Nelson has an exclusive listing contract with seller Jennifer. 105. "The uneven floors just mean that the building dates to colonial times." Which of the following Standards is considered a duty to other REALTORS? Eddie and Sacha 29. Broker Ken showed a property to buyer Lori. dual-purpose mission; both the principal and the agent. Broker Paul files arbitration against Steve, claiming he introduced the property to Rhonda. Loyalty REALTOR Brad shows the listing, writes up an offer, and then calls Smitty to ask him when he would like to present the offer to his client. C) A) Yes, Antonio only has a contract with the buyer; therefore, he is only permitted to collect a fee from the buyer. Jean asks Mike his opinion about the structure of the property. C. No, but only if she doesnt solicit the listing at the same time. 18. Which of the following statements is LEAST accurate regarding UPREITs and downREITs? Inform any prospective buyers of the defect. C. Yes, Marty should have disclosed his relationship with all parties involved when an offer was made. b. broker. B. C. Yes. A. complete a pre-printed contract A. Jon did not make a reasonable effort to determine if Halie has an exclusive agreement. Study with Quizlet and memorize flashcards containing terms like Which is TRUE about listings? It does not require an agency agreement. 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. 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) must promote and safeguard the seller's best interests. Buyer Bill. \text{Electronics}&\text{\$\hspace{1pt}40,000,000}&\text{\$\hspace{1pt}2,880,000}&\text{\$\hspace{1pt}16,000,000}\\ Common law and representative law D) The buyers agent and the sellers agent work for the same company as designated agents. This is Absolutelythis is a community property state. the seller and the broker must both disclose this material fact. C. only consider who made the initial introduction to the property. The agent should have disclosed this information, regardless of its accuracy. C. half of the commission REALTOR Nelson actually received from the seller, after he negotiated with the seller to reduce his commission. C. panic selling. The Catholic Church on the corner indicates that the area is predominately Italian-Catholic. A. appeals complaints. Which of the following statements is TRUE? REALTOR Jeffrey is preparing a new advertisement for the Sunday paper that will have pictures of people enjoying the neighborhood community pool. B. yes, because the nature and the terms of the contract were not made clear Buyer Travis owns several corporations and has Broker Salvatore show him a property owned by Keith. The two functions of the local REALTOR Associations Board of Directors, with respect to Code enforcement, are C) This could be an example of No, Martys daughter and the seller were in mutual agreement with the stipulations of the sale. D. A quiet condominium community situated close to downtown hotspots, 123. ! D. I think youll get more than half with me as your REALTOR., 111. C. a 20% referral fee. Jennifer rejects the offer. only Disney is liable on the contract if Disney ratified the contract. C. Donna has violated the Code by not getting informed consent from both buyer and seller to be a dual agent. the broker was guilty of fraud because he is responsible for actions of the sales associate. D) release of information regarding a transaction two years following closing. This fact favors PDF A GUIDE TO TENNESSEE S AGENCY AW - gcar.net As a general rule, dual agency is permissible. fraud. In a(n) _____ agency, a contracting third party does not know of either the existence of the agency or the principal's identity. A. allowable because the offer had already been presented and Matthew is just adding information. 55. B. allowable because REALTOR Nelson obviously doesnt understand the offer. A. the co-operating commission originally offered by Nelson. A. an image of the REALTORs license. 126. A) B. include persons of only one race to show the demographics of that neighborhood. Agents are generally allowed to self-deal with the principal, especially if the self-dealing is undisclosed. C. both Broker Joann and Broker Millie. REALTOR Marys next step should be to C. not run the ad at all. REALTOR Patty has an appointment to show a listing of REALTOR Katies. D. REALTOR who is the procuring cause of the sale, 40. Which statement is correct? When preparing an opinion of value, REALTORS are required to Several buyers enter REALTOR Petes office and ask about one of the companys listings. Broker Steve. What is NOT one of the major ways that a REIT can be structured? 23. Did Pattys actions violate the Code? D. not call the sellers; REALTOR Linda has told her everything she needs to know. As long as there was prior informed consent from both parties before the transaction was complete, this is not a violation. administrative law. A) required to disclose the information because it is a material fact important to the seller. C. not a true picture. 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