A general agency empowers the agent to
transact matters of all types for the principal
transact the principal's affairs in a certain business
perform only specific acts for the principal
an automatic renewal clause
Transacts the principal's affairs - A general agency is one in which the agent is given the power to bind the principal in a particular trade or business
An agent's authority can arise from
Agencies can be created by written agreement, ostensible agency or agency by ratification, for example.
Exclusive listings must include
Date of expiration. All exclusive listings must have definite termination dates.
A broker receives a check for earnest money from a buyer and deposits the money in an escrow account. He does this to protect himself from the charge of:
� novation.
� anti-trust.
� discrimination.
� commingling.
commingling
The Fair Housing Law of 1968 does which of the following?
� Builds equal housing for all people.
� Guarantees separate but equal housing for everyone in the United States.
� Provides fair housing opportunity for everyone in the United States.
� Guarantees
Provides fair housing opportunity for everyone in the United States.
Acting as a dual agent without the consent of all parties is a breach of a broker's duty of:
� loyalty
� personal performance
� due care
� accountability
loyalty
If the expiration date is inadvertently left off the listing agreement, when will it expire?
� 60 days from the date of signing.
� 90 days from the date of signing.
� 180 days from the date of signing.
� Listing is not considered valid.
90 days from the date of signing
A seller who wishes to retain the right to sell his home should NOT sign which of the following types of listings?
� open listing
� exclusive right-to-sell
� exclusive agency listing
� general listing
exclusive right-to-sell
The law that requires that all transfers of ownership rights to real estate be in writing is the:
� statute of frauds
� statute of limitations
� parol evidence rule
� statute of liberties
statute of frauds
Exclusive listings must include:
� a dragnet clause.
� permission for the listing broker to appoint subagents.
� a definite date of expiration.
� an automatic renewal clause
a definite date of expiration.
An agent's authority can arise from:
� ratification.
� custom
� implication
� all of the above
all of the above
A broker listed a house knowing that the basement was subject to periodic flooding during the springtime. Should the broker advise prospective buyers of this fact?
� Yes, because he owes a fiduciary responsibility to the buyer.
� Yes, because the concealm
Yes, because the concealment of a vital fact from the buyer is prohibited by law.
A cooperating broker finds a buyer for a home listed with ABC Realty Company, Inc. The selling broker represents:
� the seller
� the buyer
� both the buyer and the seller
� neither the buyer nor the seller
the seller
An agent who is authorized to bind his employer in a trade or business is:
� a special agent
� a general agent
� an exclusive agent
� a principal agent
a general agent
Commingling, one of the major reasons for revocation of real estate licenses, would occur when the licensee:
� puts earnest money deposits in his personal account.
� engages in blockbusting.
� fails to indicate an agency relationship.
� uses unlicensed pe
puts earnest money deposits in his personal account.
Which of the following statements about the appointment of subagents is true?
� The listing broker may appoint a subagent if the subagent requests it.
� The listing broker may appoint salespersons within his company to act as subagents.
� The seller may p
The seller may prohibit the listing broker from appointing a subagent.
A salesperson is employed by a broker to sell Mr. Smith's farmland. As a result of this agreement, the salesperson has fiduciary relationship with:
� Mr. Smith only.
� broker only.
� Mr. Smith and the broker.
� none of the above
Mr. Smith and the broker.
A broker may represent and collect a commission from both the buyer and seller as long as:
� he has the prior knowledge and agreement of the seller, who is his principal responsibility.
� he has the prior knowledge and agreement of both parties in such a
he has the prior knowledge and agreement of both parties in such a transaction.
Baker gives Able his power of attorney. Able is called a/an:
� agent in place.
� real estate broker.
� lawyer.
� attorney-in-fact
attorney-in-fact
The amount of a broker's commission is:
� based upon standard rates established in the area
� established by agreement between the broker and the seller
� established by the real estate board
� 6% or 7% for single-family residences depending on the area
established by agreement between the broker and the seller
If the commission in a listing contract is arranged such that the broker receives all of the purchase price in excess of a certain figure, the listing is a/an:
� open listing.
� net listing.
� gross listing.
� multiple listing.
net listing
As the seller's agent, a broker may:
� reject an offer on behalf of the seller.
� work to get the buyer the best possible price.
� solicit offers for the seller's listed price.
� try to negotiate better terms before submitting an offer.
solicit offers for the seller's listed price
Denying a loan to a qualified borrower entirely on the basis of the neighborhood involved:
is a form of discrimination called redlining
If a contract for sale provides that the owner is selling his home in an "as is" condition, then:
� caveat emptor applies
� latent defects must still be disclosed to the purchaser
� the owner is generally immune from liability
� the broker must assist the
latent defects must still be disclosed to the purchaser
Which type of listing agreement gives the broker maximum protection?
� an open listing
� a net listing
� an exclusive right-to-sell
� an exclusive agency listing
an exclusive right-to-sell
Brokers often hold funds belonging to others. They must keep these funds in a/an:
� office safe to which only the broker has the combination.
� savings account in the name of the person whose money it is.
� trust or escrow account.
trust or escrow account
If two rival brokers claim a commission under an open listing, who should the commission go to?
the broker who was procuring cause of the sale
When a salesperson performs his duties as a licensee, he does so:
as a general agent for his broker
The term "blockbusting" means:
� making telephone calls to seek prospective buyers or sellers.
� offering property for sale only to persons of a certain race.
� prompting homeowners to sell their properties due to the entry of minority persons in the neig
prompting homeowners to sell their properties due to the entry of minority persons in the neighborhood.
The primary purpose of a listing agreement is to:
� serve as a contract of employment between the owner and broker
� list all improvements and amenities of the property
� serve as a guide for a sales contract
� none of the above
serve as a contract of employment between the owner and broker
Owner Brewer authorized broker Owens to sign a contract of sale for him. This authorization was granted by:
� a special provision in the exclusive right-to-sell listing.
� making Owens a general agent.
� making Owens an ostensible agent.
� executing a pow
executing a power of attorney
When may a salesperson legally refuse to show a house to an Asian prospect?
� When the seller has indicated a desire not to have Asians own the property.
� When the seller has indicated a desire to have Asians with children own the property.
� When the se
When the seller says the property is not to be shown while the seller is out of town.
The illegal practice of lenders refusing to make real estate loans in areas of a city designated as minority areas is known as:
redlining
The Equal Housing Opportunity Poster must be conspicuously displayed:
� in each brokerage office
A broker whose negligence in preparing a sales contract allows the purchaser to void the agreement, has breached his duty of:
� personal performance
� obedience.
� accountability
� due care
due care
Broker A lists a home for $140,000. The seller is anxious to sell and advises the broker that he will accept all offers for at least $120,000. Broker tells a prospective buyer who offers $121,000. The seller accepts the offer and subsequently finds out th
sue the broker for damages
In an agency relationship, the employer is called the:
principal
A broker and salesperson both owe all but which of the following to the purchaser?
� negotiation of the lowest possible price
� honesty
� fairness
� disclosure of material facts
negotiation of the lowest possible price
Which of the following is a characteristic of an exclusive right-to-sell listing?
� It may allow more than one broker to share a commission paid by the seller.
� The seller may sell the property himself without being obligated to pay a broker's commission
: It may allow more than one broker to share a commission paid by the seller
The agent in power-of-attorney is the
attorney-in-fact
Which of the following is NOT required to be included in a listing contract?
� definite termination date
� specific sales price
� items of personal property
� the commission rate
items of personal property
The unauthorized withdrawal of any portion of an earnest money deposit from a broker's trust account before the sale is consummated or otherwise terminated, regardless of the intended use, is considered:
� constructive fraud
� commingling
� negligent misr
commingling
In some cases, a broker's commission can be earned if he can prove he set in motion a series of events which resulted in the sale. To do so means he:
� had an exclusive right to sell listing
� secured the buyer's signature on the sales contract
� was the
was the procuring cause of sale
The Federal Fair Housing Act may be enforced by bringing complaints to:
� Federal Housing Administration.
� Department of Housing and Urban Development.
� U.S. Court of Appeals
Department of Housing and Urban Development
A broker listed property for $78,000. He receives an offer for $76,000. Which of the following is/are true?
� The broker is entitled to a full commission.
� The broker has found a ready, willing, and able buyer on the terms of the owner.
� The broker is e
The broker is not entitled to a commission at this time.
When a real estate broker is retained to perform one specific act for a principal, it is known as:
� general warranty.
� special agency.
� general agency
� special warranty
special agency
A real estate broker's agency relationship to a seller is a/an:
� general agent.
� attorney-in-fact.
� special agent.
� agent provacateur.
special agent
A broker received two offers on the same property at the same time. He/she should:
submit both offers to the property owner
Murphy does not know about the leaking basement so he proceeds to make an offer. Should the broker have told Murphy about the defect?
� No. Caveat emptor would apply in this case
� Any defects known to the broker should have been disclosed to Murphy
� Sin
Any defects known to the broker should have been disclosed to Murphy
Acting as a dual agent without the consent of all parties is a breach of a broker's duty of:
� loyalty
If a listing agreement does NOT authorize a broker to accept and hold an earnest money deposit on behalf of the seller, then the:
� deposit must be turned over to the seller immediately.
� purchaser cannot be required to pay a deposit.
� broker has implie
broker has implied authority to accept such deposits.
A broker has a listing, the terms of which allow him to earn a commission only if he finds a buyer before the seller or another broker does. This is an example of:
� open listing.
� exclusive right-to-sell listing
� net listing
� exclusive agency listing
open listing.
An exclusive agency may NOT be terminated:
� before its expiration date
� by the principal when the broker is making the principal's payments to avoid foreclosure
� if the broker has been using diligent effort
� unilaterally by agent or principal.
by the principal when the broker is making the principal's payments to avoid foreclosure
Which of the following instructions from a seller may NOT be complied with by a real estate broker?
� not put up a "for sale" sign in yard
� not show the property after 6 p.m.
� not show the property to persons who do not speak English
� not show property
not show the property to persons who do not speak English
The provision in a listing agreement that extends the period of the agency on those prospects to whom the broker introduced the property prior to expiration is called:
� an automatic renewal clause
� an estoppel clause
� an equal dignities clause
� a safe
a safety clause
Under which of the following would a broker NOT be entitled to a commission for the sale of property which he has listed?
� He finds a ready, willing, and able buyer on the terms of the owner as reflected by the existence of a ratified sales contract.
� H
He finds a ready and willing buyer and the seller refuses to accept the offer
A buyer is interested in a neighborhood where there have been incidents of racial violence. The agent should:
� tell the buyer.
� say "you may not like living here. There has been trouble. It is not a good neighborhood."
� say nothing.
� suggest that the
suggest that the buyer investigate the neighborhood.
When a salesperson performs his duties as a licensee, he does so:
� on behalf of himself
� as a special agent for the seller
� as a general agent for his broker
� on behalf of the buyer
as a general agent for his broker
In listing a property for sale, which item is NOT necessary for a valid exclusive listing agreement?
� date of listing
� address of property
� legal description
� listing period
address of property
A statement of exaggeration which a reasonable person would recognize as UNTRUE is an example of:
� misrepresentation
� actual fraud
� puffing
� innocent misrepresentation
puffing
Broker Sam was showing a tract of land with irregular boundaries. When asked about a boundary, the broker indicated that it ran from the edge of the stone wall to the creek. Broker Sam knew this was not exactly correct. After the buyer purchased this prop
Yes, the broker knew his statement was not completely accurate.