A key element of an agent's fiduciary responsibility of loyalty is to, The seller is the broker's client; the buyer is a customer. 23. Which of the following is a way to create an agency relationship? However, listings are currently thin in his market. 64. c. accidental C. Yes, because Ted did not give his consent to talk to Brad. 103. A. Donna has not violated any Article or Standard; she just did her job and sold the house. Principals are generally liable if an agent's frolic and detour is substantial. Identify which statement regarding this situation is TRUE. an expiration of the agreement. A. Brianna C) REALTOR Mike is showing a property to his client Jean. D. notifying him of all known material facts, 95. Variable expenses would be reduced by $9 per unit. D. Melanie should not solicit a buyer agreement with these buyers. Which of these advertisements is an example of inducement? 27. A) the buyer and the seller are represented by the same company. B. Melanie can seek the prospects future business. The seller accepts the offer. Obedience. A real estate professional's duties to a customer do NOT include The basic framework of the agency law that governs the legal responsibilities of real estate brokers to the people they represent is known as, Designated agency is MOST likely to occur when. No. 150. dual-purpose mission; both the principal and the agent. B) Has Tamika violated the Code? a federal registry of residential information on sex offenders. C. Yes, because REALTORS are not permitted to use county records for such purposes. A request for arbitration could stem from The broker is guilty of intentional misrepresentation. Im certain I could sell your house., 89. C. unethical behavior between a REALTOR and a consumer. a. fraudulent If two licensees, who are not REALTORS, have a monetary dispute, they A. 2 Which of the following committees is most like a grand jury? What does the phrase the law of agency is a common law doctrine mean? At the closing table, Marty tells Caroline and the seller that the buyer is actually his daughter. A) REALTORS are prohibited from receiving compensation from more than one party in a transaction. B. 77. Recently, Erin was the buyers agent for Jones, who purchased a new home. D) (?) both parties consent in writing to the dual agency. This relationship is B. unethical. C. Grievance Committee. No, the fact that his daughter was the buyer is inconsequential to the transaction. A seller can sell his or her own home and owe no commission if he or she signs an exclusive agency listing. A. not timely disclosure per the requirements of the Code. Broker Joann, a buyers agent, is seeking arbitration against Broker Millie, a sellers agent. B. real estate licensees may not litigate over commissions. C. purposefully leaving sold houses on a website to make your website look more robust The broker is guilty of negligent misrepresentation. universal agency. tell the seller that the defect must be repaired. REALTOR Patty has an appointment to show REALTOR Katies listing. 132. A REALTOR principal receives an offer on one of her listings. When considering whether or not to reveal information regarding a stigmatized property, a real estate professional should be aware of A) Agents are generally allowed to self-deal with the principal, especially if the self-dealing is undisclosed. example, during working hours or on the principal's Some states allow it, with certain conditions. It is Marys listing and she has the key; the sellers are not home, but told her to show it anytime. This is B. C) A. attending the Grievance Committee meetings and the Professional Standards hearings. 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 A REALTOR can use guided statements to diminish another REALTORs integrity. The hearing panel will 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. Sara would be considered a Transaction broker REALTOR Kim has a listing on a property and REALTOR John, a sales associate for REALTOR Millie, makes an appointment to show it. Which of the following choices addresses standards designed around duties to the client, not the public? 120. Real Estate Course Chapter 4 Flashcards Preview - Brainscape Jun 5, 2022. Morton Companys contribution format income statement for last month is given below: Sales(15,000unitsX$30perunit)$450,000Variableexpenses315,000Contributionmargin135,000Fixedexpenses90,000Netoperatingincome$45,000\begin{array}{lrr} a transactional brokerage. C. Donna has violated the Code by not getting informed consent from both buyer and seller to be a dual agent. The duty of _____ is a fiduciary duty owed by an agent not to act adversely to the interests of the principal. REALTOR Kara posts an ad claiming the most you will be charged is a $5,000 commission. C. not run the ad at all. D. an intrusion by Broker Nan into an existing relationship. C. the principal Is this a violation of the Code? Did Marty violate the Code? C. documentation of what the opinion is based on 136. REALTOR Bill is representing sellers Sue and Sam, who are divorcing. It is illegal in all states. Dual agency is legal in all 50 states. local registries of residential information on sex offenders. Jack should B) C) 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. Lori subsequently meets Broker Amy, whose son plays ball with Loris son. negligent misrepresentation. What should Erin tell Jones? Every agency relationship has a principal, an agent, and a third party. Thus, profits vary considerably from year to year according to general economic conditions. listing agreement. Both information the seller has provided the agent, and material defects that the agent has personally observed 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. judicial law. Susan wants to make an offer. D. REALTOR membership is voluntary but provides a distinction from other licensees. REALTOR Frank has been trying for several months to sell the Johnsons home. REALTOR Marcy listed Dereks home, thus creating an agency relationship in which she owes fiduciary duties to Derek. 92. C. A REALTOR may not file an ethics complaint at the same time she files a request for arbitration. D. Paula is simply expressing her personal opinion, which she is entitled to do. Jane could not find the property listed in the MLS. D) B. like the United States Constitution and Bill of Rights, fairly immutable. a prospective buyer's instructions. a principal. Broker Mike had the property listed most recently. even if they are considered a "harmless white lie." implied agreement. Broker Linda is at a wedding seated at a table with nine other guests. C. Grievance Committee. D. Yes, because she does not have permission from REALTOR Katie. Statutory law REALTOR Marcy listed Dereks home, thus creating an agency relationship in which she owes fiduciary duties to Derek. B) D. only consider who wrote the successful contract on the property. A) B) a facilitator relationship. 142. C. Yes, Marty should have disclosed his relationship with all parties involved when an offer was made. A. ethical. D. all parties to a transaction. A. not a violation of Code, because it targets listed properties. The next day, Broker Nan calls Buyer John. should present to the seller only the highest offer for the property. In most states, dual agency refers to a situation where the same REALTOR represents both the buyer and the seller in a real estate transaction. D. Yes. The Minevik Group is a Swedish-based, high-technology engineering firm. B. C. Paula is in violation of Article 15 for posting misleading statements. The statement is FALSE. Carlos tells Jan that the property is not available for showing today but will be available in a week. It has been reported that 40%40 \%40% of U.S. workers employed as purchasing managers are females. At the request of a client, REALTOR Marguerite provided a written estimated value of the clients property. This is an example of C. No, Antonio is entitled to collect these fees as long as there was informed consent from both parties to the transaction. A REALTOR can recommend another REALTOR to a client who mentioned she is relocating out of state. Dual Agency vs. Designated Agency: Understand the Difference A. have the opinion verified by an appraiser. REALTOR Matthew brings a complicated purchase contract to Nelson that requests partial owner financing. 131. REALTOR Donna has a property exclusively listed and shows it to buyer Dan, who wants to make an offer. Accounting Cycle and Classifying Accounts, Adjusting Accounts for Financial Statements, Asset Demand and Supply under Uncertainty, Business Analytics & Technology Management Chapter 2, Business Analytics & Technology Management Chapter 3, Business Analytics & Technology Management Chapter 4, Business Analytics & Technology Management Chapter 5, Business Analytics & Technology Management Chapter 6, Capital Budgeting and Managerial Decisions, Derivative Instruments and Hedging Activities, External Financial Statements and Revenue Recognition, Financial Intermediaries and Financial Markets, Financial Markets and Securities Offerings, Financial Statements and Accounting Transactions, Integrated Marketing Communications and Direct Marketing, Interactive Marketing and Electronic Commerce, Interpersonal and Organizational Communication, Introduction to Human Resource Management, Introduction to Human Resources Assessment, Managerial Accounting Concepts and Principles, Market Segmentation Targeting and Positioning, Organization and Operation of Corporations, Organizational Markets and Buyer Behaviour, Profitability Analysis and Analytical Issues, Profitability Analysis and Decentralization, Reporting and Analyzing Long Lived Assets, Responsibility Accounting and Performance Measures, Understanding Interest Rates Determinants. 53. Identify which statement is true. D. Professional Standards Committee. A. ask the buyers if they are exclusively represented by another REALTOR. B. drafting advertisements for general mailing Which of the following is an INCORRECT statement regarding dual agency? Which of the following statements about dual agency is false? 101. B. Loretta may not market these auxiliary services to buyers or sellers using her company. A. an image of the REALTORs license. A) Jennifer rejects the offer. The Byers reply that REALTOR Sam has taken them to several homes, but they arent sure if they have an exclusive agreement with Sam. Which of these items is a REALTOR required to discover and disclose, according to Article 2 of the Code of Ethics? D. Donna has violated the Code by not making it clear to buyer Dan that she was representing the seller. (1) Which department generates the most net income per dollar of sales? This would most likely be viewed as B) obey the principal's instructions in accordance with the contract. 50. D. Professional Standards Committee. Some states allow it, with certain conditions. B. Sarah may ask her REALTOR principal to initiate litigation but Sarah may not initiate litigation on her own. C. are not allowed to litigate the matter. Do you agree with the marketing managers proposal? A. they have agreed in advance to arbitrate, not litigate. Broker Roger files arbitration against Broker Paul, claiming procuring cause because he introduced the property to the buyer. A) REALTOR Melanie has a listing, which REALTOR Bill sells. The agent gives the offer to the seller, who asks to consider it for 24 hours. B. Donna has violated the Code by not disclosing to the seller that she was representing buyer Dan. UNIT 3: National Brokerage: Listings Quiz Flashcards | Quizlet Most state statutes require that material facts to a transaction, such as credit issues, be disclosed to a seller, even if the buyer is a client. 47. B. pay both Sherry and Vinod a full commission. Every state has mandatory agency disclosure laws that stipulate Intentional torts include all but which of the following? The agent's job is to sell the principal's automotive parts to auto repair shops and other purchasers. 97. The broker is obligated to render loyalty to the seller. general agency She tells REALTOR Ed, in confidence, to do whatever it takes to sell her house. sales associates are agents of the broker. B. The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. the seller and the listing broker do not have to disclose anything. Show an Amount column, a Per Unit column, and a Percent column on each statement. Trisha wants to sell her house quickly because her new job in another city begins next month. He shows and sells a listing held by REALTOR Jane. 5. PRINCIPAL QUIZ 5: AGENCY RELATIONSHIPS Flashcards | Quizlet Grievance Committee This is B. Statements of opinion are permissible Later, Ken meets Broker Brenda at a party and is persuaded to let her represent him in the purchase of the property. Broker Judy has been working actively with Buyer John for several months. The introduction of the property by Morgan favors C. Sign a six-month contract with Tims Realty and if we sell your home, youll get a free GrillMate gas grill. Under the _____ test, if an agent commits an intentional tort within a work-related time or I recommend if you are interested, you have the house inspected by a professional. REALTOR Marty has a daughter who is interested in a property. Study with Quizlet and memorize flashcards containing terms like Which is TRUE about listings? 86. Donna, representing the seller, holds firm and gets Dan to buy at asking price. All of these will terminate an agency relationship EXCEPT An agent must supply a written Agency Disclosure: b. to a seller before listing a property or to a buyer before writing an offer. B) C. state law requires it. It appears that REALTOR Tom may have the concept of caveat emptor. During the listing period, the broker found a buyer who made an offer on the property that was accepted by the seller. D. unethical behavior between two REALTORS. D. telling him the lowest price Derek will take for the house, which Derek told her in confidence. A net listing is illegal in all states. a state registries of residential information on sex offenders. B. B. Melanie can seek the prospects future business. She and Dean enter into an agreement of sale. A. complete a pre-printed contract C) Some states allow two sales associates in the same brokerage to represent opposing sides to a transaction without creating a dual agency by using As a general rule, dual agency is permissible. 1. C. Melanie must confirm that the agency relationship between the buyers and REALTOR Bill has terminated. A. Jane. 10/22 newly As a manager, what factor would be paramount in your mind in deciding whether to purchase the new equipment? A. ethical. B. is obligated to arbitrate only if he has a specific written agreement to arbitrate. C. The neighborhood looks predominately white but there are a few Latinos who live a couple of blocks over. A real estate broker's responsibility to keep the principal informed of all the facts that might affect a transaction is the duty of Refer to the original data. D) prohibited in all states because a broker must always represent one party. Special, Exaggerated statements about the property, Which of the following is considered lawful practice in real estate brokerage? B. Which of the following is NOT a common type of breach of the agent's duty of loyalty to the principal? 76. B. REALTOR Marys next step should be to A real estate broker lists a home for sale for $189,500. A. Donna has not violated any Article or Standard; she just did her job and sold the house. Which of the following is not true regarding dual agency? B. REALTOR Nan comes into the office and finds prospect Bob talking with her colleague, REALTOR Dana. B) Broker Mike introduced Kathy to the property. D) Broker Pauls efforts favor REALTOR Jane notices a home in her market area listed with REALTOR Lindas name on it. A) A. racial segregation. REALTOR-ASSOCIATE Olivia believes that REALTOR Jon from another brokerage sold a house to her client and that she was the procuring cause of the sale. Did Nathan violate the Code? A. D. Loretta must disclose her interest to her clients and customers, including any financial benefit received. Unit quiz 10 Flashcards by Ron Jeremy | Brainscape A) D) Pete tells them it is no problem and asks them to sign an exclusive buyer contract with his company and he will show them the listing. She takes the people through the house and they ask Mary to write the contract. C. demand that Sherry split the commission with Vinod. The rules established by tradition and court decisions are found in A key fact is dual agency. D. sending a mass mailing out to potential clients, 122. The relationship between real estate broker and seller is generally what type of agency? D. Article 14Arbitrate disputes. A) \end{array} B. something that would be understood by both REALTORS and does not need to be disclosed. 55. Walt Disney Company wants to open a new theme park in Chicago but first needs to acquire land for the park. A. not timely disclosure per the requirements of the Code. C. both Broker Deb and Broker Steve. Pete learns that the buyers have an exclusive agreement that expires in two months with REALTOR Ryan, employed by a competitive brokerage. B. the buyer and the seller are related by blood or marriage. A. Ed leaked information about who would appear at the hearing. D. REALTOR who is the procuring cause of the sale, 40. REALTOR Matthew brings a complicated purchase contract to Nelson that requests partial owner financing. D. Yes, Marty should not have said anything to the other REALTOR and the seller at the closing. 91. Edit your form online Type text, add images, blackout confidential details, add comments, highlights and more. B. D. REALTOR. B. Solved Which of the following statements Is true reqarding - Chegg D. honesty and integrity, 108. must promote and safeguard the seller's best interests. unstable properties. "The uneven floors just mean that the building dates to colonial times." B. have his friend offer to buy the house at a lower price since Trisha must sell the house quickly REALTOR Eddie believes that REALTOR Sacha sold his client a house. D. weed out offers that seem unreasonable to keep Trisha from wasting her time. No, because the properties she found in the MLS have been on the market more than six months. D. targeted sales. When Todd finished his degree in marketing, he started a career as a REALTOR. common law. D. neither Jane nor Paul. 82. She stipulates that her client, Buyer Jack, will pay her fee. The relationship between the property owner and the associated brokers at Hannah Smith Realty could best be described as (buyer subagency, designated agency, dual agency, seller subagency) implied agency when, how, and to whom agents must reveal for whom they provide client-based services. Acting for more than one party in a transaction is within the law c. Failure to disclose dual agency is a violation of the law d. A real estate license may be revoked or suspended for failure to disclose dual agency a. His boss is Bud, whose wife is Broker Nan. A. favor either party. A) However, fixed expenses would increase to a total of$225,000 each month. A) A broker acting for both parties in the same transaction, B) A broker representing more than one principal, C) A broker listing a property and then, after it is relisted with another broker, selling the same property, D) Two brokerage companies cooperating with each other, The laws enacted by a legislature make up, The relationship of broker to client in an agency relationship is that of. An agent works for a principal that is in the business of real estate development. Which of these statements is an ethical practice by a REALTOR? D. must arbitrate as he and Edward are both REALTORS. A. keep the comment posted; it only helps his business and, after all, he didnt write it. A. exclude any human models to avoid any kind of unnecessary bias. C) Only choice (C) is not true, so it C. documentation of what the opinion is based on B. maintaining several websites aimed towards different sets of clients This could be an example of In dual agency, an agent's actual knowledge pertains to. B. opinion of value. Which of the following represents Eds fiduciary duty? D. Yes, Marty should not have said anything to the other REALTOR and the seller at the closing. D) C. REALTOR Clarence is the complainant. Chad is a customer of Marcys. D) Bud suggests strongly to Buyer John that he would be better served by buying a house from Broker Nan. can disclose the seller's minimum price. D) REALTOR Marys next step should be to B. neither broker. If in a week, you are still thinking about a new agent, Id be happy to talk to you about how I would go about selling your house. D. local, state, and national. B. not a violation of the Code as REALTOR Terry doesnt know any agents in Hawaii. B. C. strongly favor Paul. In an advertisement for a four-bedroom home, which of the following statements could be considered discriminatory? D. undivided loyalty. Donna, representing the seller, holds firm and gets Dan to buy at asking price. Chad is a customer of Marcys. The broker has committed fraud. D. include persons of several races in order to avoid exclusivity in advertising. B. opinion of value. A. Loretta may insist that all buyers and sellers use the auxiliary services provided by her company. D. showing his interest in the property personally. C. REALTOR Clarence is the complainant. I recently toured this home with REALTOR Jordan. C. prepare a CMA which demonstrates the accuracy of the price. A) 11. A. B. B) C. both Brenda and Jim. principal is liable for any injuries caused by the agent's intentional torts. A. a monetary dispute between two licensees. General membership. A. disclosing his true position. B. a monetary dispute between two REALTORS. No, because her client, Larry, has no interest in the property. D. Seller Keith had no knowledge of Salvatores efforts with Travis. Chapter 7 Flashcards | Quizlet A. not a violation of the Code as it is helpful courtesy offered to the seller. REALTOR Smitty has an exclusive listing on seller Teds house. D) Lets not worry about that todaylets wait until we sell your house, then well figure it out. 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. After the closing, Melanie visits the buyers in their home and asks if they have any questions or need any information about the community. A) In a fully disclosed agency, the contract is between the agent and the third party. Jack should the seller and the broker must both disclose this material fact. Marty makes arrangements with the listing agent, REALTOR Caroline, to show the property. I have no experience selling commercial properties but I would be happy to take on the challenge. C) Dual Agency and Transaction Brokerage Flashcards | Quizlet B. It follows IFRS and reports its results in millions of Swedish kronor (SEK). She negotiates the offer with buyer Dan, who offered less than asking price. Qaadir hires Zaafir, a lawyer and an independent contractor, to represent him in a court case. 48. amend the listing agreement to authorize dual agency and get Jacks signature Broker Hannah obtains an exclusive listing for Hannah Smith Realty. D. expressing an opinion about a property, 42. Common law, statutory law, and administrative law. C) Dual agency disclosure; A 2. . Patty prepares a CMA prior to the appointment, then shows the property to her prospect, buyer Larry. 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. New equipment has come onto the market that would allow Morton Company to automate a portion of its operations. Which of the following is an INCORRECT statement regarding misuse of confidential information and the agent's duty of loyalty? Do international differences in financial leverage exist? Which of the following Standards is considered a duty to other REALTORS? D) B. disclosure agreement. B. A. apparently limited to the open house and does not favor Roger. The broker: a. is not entitled to a commission because of the open listing. B. Jack A. arbitration. A) A. his agency. 46. not required to disclose the information because the agent has no agency relationship with seller. 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",_____. b. is three months. Identify which statement regarding REALTORS is TRUE. C) D) The doctrine of _____ rests on the principle that if someone expects to derive certain benefits from acting through others, that person should also bear the liability for injuries caused to third persons by the negligent conduct of an agent who is acting within his or her scope of employment. If a real estate agent who is employed to purchase real estate for a principal secretly sells his or her own property to the principal, this is a violation of the duty of loyalty known as __________. Each party must be informed he will not receive. A) A. accounting for any deposit monies she receives from him, which are put into a separate account REALTOR Eddie believes that REALTOR Sacha sold his client a house. C. panic selling. stagnant properties. of the following is not true regarding dual agency? (B), and (D) are true statements about dual agency is actually illegal in some states. B) B) In MOST situations, the relationship between real estate broker and seller is what type of agency? D. tell the sellers to disclose the leaks, 31. B) Contract law, common law, and business law B. determining if ethics complaints should go forward and holding the hearings. If two licensees, who are not REALTORS, have a monetary dispute, they DUAL AGENCY CONSENT AGREEMENT: Fill out & sign online | DocHub Smitty tells Brad to call Ted and present it himself. C. Loretta must disclose her interest to her clients and customers, including any financial benefit received. C. only consider who made the initial introduction to the property. A. it is prohibited to target solicitations to first-time buyers because of their lack of experience. a. has no legal right to a commission. the administrative law created by real estate agencies as authorized by the legislature. honest and fair dealing. The agent is 59. 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. D. talk Susan out of buying the house. All material facts known about the property from the seller, another agent, previous experience with the property, or researching public records. In the common law of agency, an agent owes the principal all of the following EXCEPT D. do not have the option of arbitration through the local Association of REALTORS. The fact that the introduction occurred many months ago does NOT the sales associate is guilty of fraud only if the buyer purchases the house. B. an introduction and favors her side. D) Lynn then tells the seller she could recommend a good REALTOR there. This fact favors When is a complaint passed to the Professional Standards Committee? B. Jack C) D) REALTOR John, who is also an appraiser, periodically sends letters to past clients asking if they need a current valuation of their property. a) If an agent appoints a sub-agent, that sub-agent is not normally regarded as an agent of the principal. Did Marty violate the Code? REALTOR Jan calls Carlos to arrange for a showing. C. really none of REALTOR Janes or her clients business. the desire of a potential buyer or tenant to know the information. This introduction is Dual agency occurs when an agent is representing both the buyer and the seller. care. A. ask the buyers if they are exclusively represented by another REALTOR. C. other REALTORS.
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