Questions and Answers
A real estate sales agent may be employed by:
As a prerequisite to an agent's use of an income and expense data worksheet, the agent asks a prospective broker:
A _____ occurs when a broker or their agent has a professional or personal bias which hinders their ability to fulfill the fiduciary duties owed to their client.
conflict of interest
A _____ is sometimes referred to as a selling agent in real estate jargon.
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A broker who fails to disclose their dual agency is subject to:
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When a dual agency is established in a one-to-four unit residential sales transaction, the broker and their agents may not pass on any information from one party to the other relating to:
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Brokers supervise and police the business-related conduct of their agents by:
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The Agency Law Disclosure form is mandated to be presented to all parties by a broker or their agent when listing, selling, buying or exchanging:
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Failure of the seller's agent to provide the seller with the Agency Law Disclosure prior to entering into a listing agreement:
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The _____ relationship established on entering into a listing agreement specifies the scope of activities the broker and their agents are to undertake and authorizes the broker to carry them out.
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An _____ listing does not need to contain an expiration date.
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An exclusive right-to-sell listing agreement entitled a broker to a fee from a seller when:
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Rejection occurs when:
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A withdrawal-from-sale clause entitles a broker to be paid a full listing fee if, during the listing, the owner's conduct causes the property to be:
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On a breach by the seller of a listing which does not contain a termination-of-agency clause, the terminated broker is only entitled to:
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A broker earns a fee under a safety clause when:
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The amount of the broker fee sought by a seller's agent on a property is implicitly related to:
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A Statement of Account for trust funds needs to include:
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"For Sale" signs posted outside of a mobile home can be of a(n) _____ design and need to face the street, but cannot extend into the street.
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The legal basis for a broker's recovery against a seller for intentional interference with the payment of a fee is a:
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Broker fee provisions in a buyer's listing agreement may include:
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Judicially and based on legislation, a cooperating broker is defined as a subagent with affirmative duties of care owed:
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A seller's broker does not have a contractual right to collect a fee from a breaching buyer when the broker lacks:
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When a buyer and seller both agree in writing to the payment of a broker fee, _____ are considered third party beneficiaries.
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All assurances to pay a broker fee on a real estate transaction are required by statute to be in writing and signed by the person who agreed a fee will be paid.
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Of all the various fee arrangements available to brokers for payment of their fees, _____ leave the broker with the least assurance the fee will be paid on close of escrow.
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Study Notes
Real Estate Practice Exam Study Notes
- A real estate sales agent is typically employed by their broker.
- Prior to using an income and expense data worksheet, an agent must confirm prerequisites with a prospective broker.
- A conflict of interest arises when a broker or agent has biases that impede their fiduciary duties to clients.
- In real estate terminology, a buyer's agent is also known as a selling agent.
- Brokers must disclose any dual agency; failing to do so can lead to significant consequences.
- In a dual agency scenario, brokers and their agents cannot share confidential information between represented parties.
- Brokers are responsible for supervising their agents' business conduct through various oversight methods.
- The Agency Law Disclosure form must be provided to all parties involved in a real estate transaction (listing, selling, buying, exchanging).
- If a seller's agent does not provide the Agency Law Disclosure before a listing agreement, they risk losing the broker fee if challenged by the seller.
- An employment relationship is established when entering a listing agreement, specifying broker activities and authorizations.
- Open listings do not require an expiration date.
- An exclusive right-to-sell listing grants brokers a fee when integrated responsibilities are fulfilled.
- Rejection in real estate occurs when certain conditions are met, which indicates a formal denial of an offer.
- A withdrawal-from-sale clause ensures that brokers are compensated if property sales are affected by the owner's actions.
- Upon a seller's breach of a listing without a termination-of-agency clause, a broker is entitled to specific forms of compensation.
- Brokers earn fees under a safety clause when particular conditions favorable to them are encountered.
- A seller's agent's fee correlates implicitly with the time and effort put into servicing the listing.
- A Statement of Account for trust funds should include detailed accounting information.
- "For Sale" signs for mobile homes must have specific designs, face the street, and cannot protrude into it.
- A broker's ability to recover fees from a seller for intentional interference relies on tort law.
- Broker fee arrangements in a buyer's listing agreement may encompass multiple provisions.
- A cooperating broker is viewed as a subagent with affirmative duties owed primarily to the seller.
- A seller’s broker cannot rightfully claim fees from a defaulting buyer unless contractual agreements are in place.
- When a buyer and seller agree in writing on fee payments, their brokers are recognized as third-party beneficiaries.
- Under the Statute of Frauds, all agreements to pay broker fees must be documented in writing and signed by the agreeing parties.
- Among various fee arrangements, unilateral instructions signed solely by the seller offer the least assurance for brokers regarding fee payment upon escrow closure.
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Prepare for your real estate licensing exam with these comprehensive flashcards focused on key concepts and definitions in real estate practice. Each card covers essential topics that all agents must understand ahead of the first Tuesday exam. Test your knowledge and get ready for success in the industry!
