Real Estate Sales Exam Paper - National Ohio (PDF)

REAL ESTATE SALES - NATIONAL + OHIO Dashboard Cameron's Stuff You completed this session Here's how you did on Dec 7, 2024, 2:48:00 AM: 125 67 Total Correct Questions...

REAL ESTATE SALES - NATIONAL + OHIO Dashboard Cameron's Stuff You completed this session Here's how you did on Dec 7, 2024, 2:48:00 AM: 125 67 Total Correct Questions Category Progress Missed 58 0 Marked for 54% Review Property Ownership 7 Total Questions 3 Correct 4 Missed ★ 0 Marked for Review 👎 Question (1 of 7) A couple is engaged to be married. Any real estate they own at the time the marriage takes place remains that spouse's property in severalty, and property acquired after the marriage belongs equally to both of them. This type of ownership is referred to as CORRECT ANSWER: community property YOUR MISSED ANSWER: tenancy in common RATIONALE Joint tenancy is the ownership of real estate by two or more people with the right of survivorship. In a cooperative, the purchaser is a stockholder and receives a proprietary lease to the apartment for the life of the cooperative. Tenancy in common refers to real estate owned by two or more people and each owns an undivided fractional interest in the property. Community property consists of all property, real and personal, acquired by either spouse during the marriage. ID: 10197  👎 Question (2 of 7) Which is NOT an example of a freehold estate? CORRECT ANSWER: periodic tenancy YOUR MISSED ANSWER: fee simple RATIONALE A periodic tenancy is a leasehold estate. ID: 10181 👎 Question (5 of 7) In some states the right of a husband to gain ownership of property when his wife dies can be described as CORRECT ANSWER: curtesy YOUR MISSED ANSWER: dower RATIONALE The wife's interest in a deceased husband's property is "dower," the husband's interest is called "curtesy." Entireties is a type of co-ownership for married people in some states. To devise is to give real property as a gift in a last will and testament. ID: 10221 👎 Question (6 of 7) A wife and husband may not hold title to their home as CORRECT ANSWER: tenants at will YOUR MISSED ANSWER: tenants in common RATIONALE Tenancy at will is a leasehold estate. ID: 10189 Land Use Controls and Regulations 4 Total Questions 1 Correct 3 Missed ★ 0 Marked for Review 👎 Question (2 of 4) Which gives a government the right to take private property for public use provided the owner is given just compensation? CORRECT ANSWER: eminent domain  YOUR MISSED ANSWER: condemnation RATIONALE Escheat is the power of the government to take property when one dies intestate and without heirs. Condemnation and appropriation describe the act of taking property. The power of the government to take private land for public use is called eminent domain. ID: 12032 👎 Question (3 of 4) Billy has a two-acre lot that is zoned agricultural. He asks his real estate agent if she could tell him how to go about building a house on the land. Billy's agent tells him that he needs CORRECT ANSWER: a use variance YOUR MISSED ANSWER: an area variance RATIONALE Zoning restrictions are issued by the local government. Declarations and bylaws are the rules that govern a condominium. A planned unit development involves more than one kind of land use. An area variance is just permission from the government to deviate from the zoning rule. A use variance is permission from the government to use the land for something different than what is it zoned for. ID: 12034 👎 Question (4 of 4) Developer George purchased five acres of residential land on the edge of town with frontage on the main highway. When the zoning board and city council refused to rezone the property to accommodate a commercial development, George sued for the value he would have received had the land been rezoned to a higher classification. This type of legal challenge is known as CORRECT ANSWER: inverse condemnation YOUR MISSED ANSWER: spot zoning RATIONALE Inverse condemnation occurs when a property owner sues the government, asking the court to order the government either to pay compensation or loosen land use restrictions. It may or may not be frivolous to do this. Eminent domain is the power of government to take private land for public use. Spot zoning is changing the zoning classification of a specific parcel of land. ID: 12024 Valuation and Market Analysis 6 Total Questions 4 Correct 2 Missed ★ 0 Marked for Review  👎 Question (1 of 6) When the appraiser looks at the home Sandy just purchased, they notice it has a fireplace and the comparable homes do not. They make a $3,000 upward adjustment on their sales comparison approach worksheet. The $3,000 adjustment is based on what appraisal principle? CORRECT ANSWER: contribution YOUR MISSED ANSWER: conformity RATIONALE This is the amount the fireplace "contributes" to the value. It is not necessarily the cost to install the individual item. ID: 13571 👎 Question (4 of 6) While determining the net operating income of an investment property, an appraiser will not take into account CORRECT ANSWER: interest expense YOUR MISSED ANSWER: income from vending machines RATIONALE Although tax deductible, the amount of interest an owner pays is not used to calculate the net operating income. Remember, anything related to debt service is an owner's expense. ID: 13568 Financing 8 Total Questions 4 Correct 4 Missed ★ 0 Marked for Review 👎 Question (1 of 8) A note that calls for periodic payments of principal only, with a balloon payment at the end of the loan term, is called a(n) CORRECT ANSWER: installment note YOUR MISSED ANSWER: adjustable rate note RATIONALE A straight note calls for interest-only payments with a balloon payment at the end of the loan term. In an amortized note, principal and interest are paid together. An adjustable rate note permits the lender to periodically adjust the rate of interest according to fluctuations in the cost of money (interest). An installment note calls for periodic payments of principal only, with a balloon payment at the end of the loan term. ID: 6880  👎 Question (3 of 8) If a property sells for $240,000 and two brokers participated in the sale, how much is the selling salesperson be paid if the rate was 7% and the broker and salespersons shared commissions equally? CORRECT ANSWER: $4,200 YOUR MISSED ANSWER: $8,400 RATIONALE $240,000 x.07 / 4 = $4200 ID: 76234 👎 Question (5 of 8) A court order instructing an official (e.g., a sheriff) to sell property in order to pay a judgment is called CORRECT ANSWER: writ of execution YOUR MISSED ANSWER: foreclosure RATIONALE Foreclosure is the proceeding that declares a mortgage void and forces the sale of property to satisfy the debt. The court order directing an official to seize and/or sell the property is called the writ of execution. An order of attachment would happen when the court needs to seize property owned by a debtor. A deficiency judgment is what the lender asks a court for when a sheriff sale does not yield enough to pay off the note. ID: 6890 👎 Question (8 of 8) What rate of interest was charged on a loan amount of $30,000 with monthly interest payments of $275? CORRECT ANSWER: 11% YOUR MISSED ANSWER: 10% RATIONALE $275 x 12 month / loan amount = 11% ID: 76226 General Principles of Agency 10 Total Questions 3 Correct 7 Missed ★ 0 Marked for Review 👎 Question (2 of 10) An agent's duties to all customers include CORRECT ANSWER: good faith and fair dealing YOUR MISSED ANSWER: all of the answers listed RATIONALE The only duty to a customer is that of good faith and fair dealing. The agent/customer relationship is not a fiduciary one. It's important to know the difference between client and customer. ID: 2000 👎 Question (3 of 10) A buyer is found for a seller/client of a broker. How did the agency relationship terminate? CORRECT ANSWER: accomplishment of purpose YOUR MISSED ANSWER: operation of law RATIONALE Agency ends by accomplishment of purpose (the correct answer) when the listing sells during the listing period. Expiration is when the listing expiration date arrives. Mutual release is when broker and seller agree to end the relationship before it expires. Operation of law is when the broker or seller becomes incapacitated or dies, or if the building is destroyed. ID: 2033 👎 Question (4 of 10) A broker has a policy that agents will not be dual agents in in-company transactions or when the agents sell their own listings. Which would a potential buyer be to the listing agent if the buyer wants to buy the agent's listing? CORRECT ANSWER: customer YOUR MISSED ANSWER: agent RATIONALE A dual agent is a broker or salesperson who represents both buyer and seller. A client is a party represented by a broker. An agent is someone a client hires to represent them like a broker. The customer is the party in the transaction that is not represented. ID: 2029 👎 Question (6 of 10) What type of relationship best describes how a real estate broker represents their principal in the sale of the principal's single-family home? CORRECT ANSWER: special or specific agency YOUR MISSED ANSWER: dual agency RATIONALE A real estate agent works as a special agent, while a property manager would most likely be a general agent. A universal agent is one who can do anything on behalf of someone (e.g., an attorney in fact). A broker is a dual agent when they represent both buyer and seller in the same transaction.  ID: 2020 👎 Question (8 of 10) An agent is showing a house to a customer. The agent tells the buyer that the seller is desperate for an offer. Which duty has the agent breached? CORRECT ANSWER: loyalty YOUR MISSED ANSWER: disclosure RATIONALE An agent must have the client's permission to reveal such a motivation to a customer. ID: 2008 👎 Question (9 of 10) An agent has entered a written agreement with a buyer to search for a home, that also has a beginning date and an ending date. What agreement would be used? CORRECT ANSWER: A buyer broker agreement YOUR MISSED ANSWER: A listing agreement RATIONALE A buyer would sign a buyer broker agreement when working with an agent to find a home. Buyer Broker agreements have a beginning date and an ending date ensuring an agent would be paid a commission if they achieve the goals in the agreement for a buyer purchasing a home. These are usually not mandatory and are used at each agents discretion. However they should be used for everyone's best interest. ID: 69210 👎 Question (10 of 10) A salesperson has a direct fiduciary duty to the CORRECT ANSWER: broker YOUR MISSED ANSWER: client RATIONALE The salesperson always has a duty to the broker. The broker always has a duty to the client. ID: 1993 Property Condition and Disclosures 8 Total Questions 4 Correct 4 Missed ★ 0 Marked for Review 👎 Question (2 of 8) What is the legal process by which potentially responsible parties who contributed to contamination at a Superfund site can be required to reimburse the trust fund for money spent during any clean up actions by the federal government? CORRECT ANSWER: cost recovery YOUR MISSED ANSWER: Core Program Cooperative Agreement RATIONALE The Core Program Cooperative Agreement is an assistance agreement whereby the EPA transfers money, property, services, or anything of value to a state for the accomplishment of authorized activities. Corrective action is the EPA's requirement for treatment, storage, and disposal facilities handling hazardous waste. A cost/benefit analysis is a quantitative evaluation of the costs which would be incurred by implementing an environmental regulation versus the overall benefits to society of the proposed action. Cost recover is the legal process by which potentially responsible parties who contributed to contamination at a Superfund site can be required to reimburse the government for any money spent during clean up. ID: 10686 👎 Question (3 of 8) What insulating material was pumped into houses until its ban in the 1970s? CORRECT ANSWER: urea-formaldehyde insulation YOUR MISSED ANSWER: asbestos RATIONALE The insulation pumped into houses was urea-formaldehyde insulation. ID: 10669 👎 Question (4 of 8) A lead-based paint disclosure form is required for all residential dwellings built before January 1, 1978. When applicable, who must sign the form? CORRECT ANSWER: buyer, seller, and both agents YOUR MISSED ANSWER: seller and buyer RATIONALE All parties must sign the disclosure form. Both agents are equally liable for compliance. ID: 10664 👎 Question (5 of 8) Real estate agent Sue is showing a buyer client a house. The house is full of antique furniture, fixtures, and decorations. In the largest bedroom is a wall-sized wardrobe which covers the wall between the bedroom and the bathroom. A slow leak behind the bathtub has caused chronic moisture in the plaster of this wall. Sue  should CORRECT ANSWER: tell the buyer about the latent defect YOUR MISSED ANSWER: tell the seller to disclose the potential damage and hazards RATIONALE A defect is considered latent or material if the buyer would not discover it in a reasonably thorough inspection of the property. The buyer is not required to move heavy pieces of furniture. A patent defect is obvious at a reasonable inspection level. An agent can't tell the seller what to disclose, but it is the agent's duty to disclose what is hidden. ID: 10680 Contracts 14 Total Questions 9 Correct 5 Missed ★ 0 Marked for Review 👎 Question (2 of 14) A seller places his home on the market on Tuesday. On Wednesday, his agent calls and says there are four offers on the property and he would like to present them at 7 p.m. After looking at all the offers and comparing them, what should the seller do? CORRECT ANSWER: accept one offer or counteroffer one offer YOUR MISSED ANSWER: counteroffer all the offers at a higher price RATIONALE The seller has no obligation to accept any of the offers, but could accept one of them. It need not be the one with the highest price. If making a counteroffer, he should counter only one offer at a time. ID: 6627 👎 Question (4 of 14) Archie and Bert mutually agree to terminate a contract. The buyer, Bert, asks for the earnest money back and the seller, Archie, consents. This is an example of CORRECT ANSWER: rescission YOUR MISSED ANSWER: unilateral agreement RATIONALE Cancellation occurs when both parties agree to terminate the contract. However, any consideration tendered would be kept by the seller. Rescission allows the buyer to receive the earnest money back. This would be a bilateral agreement to terminate a contract, not a unilateral one. Anticipatory repudiation is the breach of a contract before the contract even commences. ID: 6597  👎 Question (8 of 14) Emily had signed a one-year lease, but after living in the apartment for three months, she transferred her right of possession for the remainder of the lease to her friend. Which type of arrangement does Emily have with her friend? CORRECT ANSWER: assignment YOUR MISSED ANSWER: novation RATIONALE A gross lease describes the arrangement between landlord and tenant. In a sublease the tenant will regain possession before the tenancy ends. A novation would require the consent of the landlord and the withdrawing tenant would be relieved of liability. In an assignment the tenant will not regain possession of the lease before it ends. ID: 6639 👎 Question (9 of 14) An offer to purchase that states the offer will remain open for 72 hours CORRECT ANSWER: may be withdrawn by the offeror at any time before the offer is accepted YOUR MISSED ANSWER: may be withdrawn within 72 hours, only with the approval of the offeree RATIONALE An offer is just an offer. It does not become a contract until it is accepted. Thus, even if the offer said it would remain open for 72 hours, it is not binding upon either party as it is not a contract. On the 72nd hour the offer will expire. ID: 6621 👎 Question (13 of 14) Broker Blair wants to attempt to enforce a broker protection clause of a listing agreement. Which must she do at the expiration of the listing? CORRECT ANSWER: give the seller a list of prospects that viewed the listing during the listing period YOUR MISSED ANSWER: take down the sign and collect the lock box RATIONALE Under the terms of a listing agreement the broker often negotiates a broker protection period. In order to enforce the agreement, upon expiration of a listing, the broker must present to the seller a list of prospects who viewed the property. ID: 6637 Transfer of Title 6 Total Questions 4 Correct 2 Missed ★ 0 Marked for Review  👎 Question (2 of 6) Prorated taxes are shown on the settlement statement as a CORRECT ANSWER: credit to buyer and debit to seller YOUR MISSED ANSWER: debit to buyer and credit to seller RATIONALE Prorated taxes are a credit to the buyer and a debit to the seller. The seller is responsible for taxes payable through the date of closing. Since (in most states) homeowners pay taxes in arrears of one year, the seller would have to bring the taxes current and give that money to the buyer as a credit. ID: 10780 👎 Question (5 of 6) To inherit is to receive title CORRECT ANSWER: through a last will and testament YOUR MISSED ANSWER: to real property through a deed RATIONALE If a deed was used the grantor and grantee must be alive as this is a requirement for a valid deed. If a deed says "by love and affection" it was a gift and, again, both parties are alive. Receiving title by reversion is the result of the measuring life ending in a life estate. When one is a devisee, they inherit the title through the certificate of transfer as a result of a valid last will and testament. ID: 10798 Practice of Real Estate 10 Total Questions 8 Correct 2 Missed ★ 0 Marked for Review 👎 Question (5 of 10) Based on the Civil Rights Act of 1866, what is the maximum amount of punitive damages that can be awarded? CORRECT ANSWER: no limit YOUR MISSED ANSWER: $100,000 RATIONALE There is no limit for the amount of punitive damages that can be awarded. ID: 6004 👎 Question (9 of 10) An out-of-state prospect asks an agent to locate a diverse neighborhood for him. The agent should  CORRECT ANSWER: explain that research of this nature is beyond the agent's scope of authority YOUR MISSED ANSWER: show the prospect a diverse neighborhood RATIONALE A real estate agent has no duty or obligation to provide demographic data that would have the effect of limiting housing choices. An agent can provide resources for the consumer to explore on their own (i.e. www.census.gov). ID: 6002 Real Estate Calculations 8 Total Questions 5 Correct 3 Missed ★ 0 Marked for Review 👎 Question (2 of 8) Dave wishes to sell a piece of land at a 15% net profit. He purchased the land for $95,500. Rounding your answer to the nearest dollar, what will he have to sell the land for to receive a 15% profit after paying the selling broker a 7% commission on the sale price? CORRECT ANSWER: $118,091 YOUR MISSED ANSWER: $115,149 RATIONALE This is a two-part calculation. First, determine the 15% profit on $95,500 ($95,500 x 0.15 = $14,325; $14,325 + $95,500 = $109,825, or $95,500 x 1.15 = $109,825). Next, factor in the commission fee of 7%: 100% - 7% = 93% net to owner. Now, use the percent formula: Whole (Total/Gross Sale price) = Part (Net amount + Expenses) / Percent (100% minus deductions) and plug in the known variables. $109,825 / 0.93 = $118,091.39. Rounded, Scott should sell his piece of land for $118,091 to make a 15% profit. ID: 9002 👎 Question (7 of 8) A parcel of land is purchased for $234,000 and later sold for $256,300. What is the percent of profit? CORRECT ANSWER: 9.5% YOUR MISSED ANSWER: 9% RATIONALE This is a two-part calculation. First, determine what was made; $256,300 - $234,000 = $22,300. Now, plug these numbers into the formula; Percent Profit = Made / Paid or $22,300 / $234,000 = 0.0953. The percent of profit was 9.5%. ID: 8972  👎 Question (8 of 8) If a seller has a $94,000 first mortgage and a $25,000 second mortgage and agrees to sell for $155,000 with a $22,500 cash down payment, what is the equity in the home? CORRECT ANSWER: $36,000 YOUR MISSED ANSWER: $53,000 RATIONALE The difference between what you own and what you owe on what you own is your equity. So, $155,000 - $119,000 ($94,000 + $25,000) = $36,000. The cash down payment should be ignored. The equity in the home is $36,000. ID: 9004 State Governance of the Real Estate Profession 4 Total Questions 3 Correct 1 Missed ★ 0 Marked for Review 👎 Question (4 of 4) What happens when a vacancy occurs on the Real Estate Commission? CORRECT ANSWER: the governor appoints someone to serve the remainder of the former commissioner's term YOUR MISSED ANSWER: the Superintendent appoints an interim replacement commissioner to serve out the year RATIONALE Should a vacancy on the Real Estate Commission occur, it would be filled in the manner prescribed for regular appointments to the Commission. The replacement appointee will serve the remainder of the predecessor's term. ID: 3680 Licensing Requirements 6 Total Questions 1 Correct 5 Missed ★ 0 Marked for Review 👎 Question (2 of 6) When a real estate broker wishes to associate himself with another broker as a real estate salesperson, how does the Division handle this transfer? CORRECT ANSWER: by placing the broker's license on deposit and issuing a salesperson's license YOUR MISSED ANSWER: by merely changing the address on the broker's license RATIONALE A licensed broker may request that his broker's license be placed on deposit and that a salesperson's license be issued in its place.  ID: 18637 👎 Question (3 of 6) Within what time period must a broker return the license of a salesperson when requested by the division? CORRECT ANSWER: 3 business days YOUR MISSED ANSWER: 10 days RATIONALE License law requires the broker to send the license back within 3 days. ID: 18664 👎 Question (4 of 6) If an applicant for a real estate license has completed all requirements for examination, has been approved to sit for the examination, and has received notice of the approval, then fails to pass both portions of the examination within the required one-year period, what will happen? CORRECT ANSWER: He will have to re-apply and pay another application fee YOUR MISSED ANSWER: He will have to pay another application fee plus a fine RATIONALE An applicant for licensure will have only the 12-month eligibility period to successfully pass both portions of the examination. If the applicant fails to pass both portions of the examination in that period, he must submit a new application, plus the processing fee payable to the testing vendor. The applicant may then re-take the examination. ID: 18633 👎 Question (5 of 6) If the license of a salesperson is suspended or revoked, what are the permissible activities that the licensee can undertake? CORRECT ANSWER: cannot practice real estate at all YOUR MISSED ANSWER: can only complete transactions already underway RATIONALE No person shall engage in any act or acts for which a real estate license is required while that person's license is placed in an inactive status, is suspended, or is revoked. ID: 18636 👎 Question (6 of 6) The fee for branch office licensing each year is  CORRECT ANSWER: $15 YOUR MISSED ANSWER: $14 RATIONALE Brokers that maintain branch offices must pay a fee of $15 per office per year. ID: 18659 License Law and Rules of the Ohio Real Estate Commission 16 Total Questions 10 Correct 6 Missed ★ 0 Marked for Review 👎 Question (3 of 16) A salesperson first obtained his license in 2002 after completing the required classroom hours of pre- licensure education and passing the examination. He completed the 10-hour post-licensure course, but failed to renew the license at the first renewal date. After a year, the license was revoked. If, at a later date, the salesperson wants to reapply to obtain a license, how many years will he be able to do so before having to retake the pre-licensure classroom instruction? CORRECT ANSWER: 10 years YOUR MISSED ANSWER: 1 year RATIONALE A person who has provided evidence of completing the pre-licensure classroom instruction within a 10-year period immediately preceding his current application for licensure will be considered to have completed the hours of each course taken. ID: 447 👎 Question (4 of 16) May a consumer who has been harmed by a licensee acting under her license as a real estate salesperson or broker immediately file a claim for payment from the Real Estate Recovery Fund? CORRECT ANSWER: No, the consumer must file a lawsuit, get a final judgment, and attempt to collect YOUR MISSED ANSWER: No, the consumer must first attend an informal meeting RATIONALE Upon obtaining a final judgment in any court of competent jurisdiction, the consumer must have diligently pursued other remedies available. No more than one year may pass since final adjudication of the judgment. ID: 451 👎 Question (5 of 16) If the amount available in the Real Estate Recovery Fund is less than _____, the Ohio Real Estate Commission must impose a special assessment of up to $10 on each licensed real estate broker, brokerage, or a salesperson who files a notice of license renewal. CORRECT ANSWER: $500,000 YOUR MISSED ANSWER: $1,000,000 RATIONALE The Dodd-Frank Reform Act lowered the threshold amount in the Real Estate Recovery Special Account to $500,000. ID: 523 👎 Question (6 of 16) Sandy, an apartment manager in Florida, meets the owner of an apartment building in Cleveland, Ohio at a vacation hot spot in Miami. Sandy gets the owner to hire her to manage the apartment building in Cleveland for a flat fee. After several months, Sandy receives a Cease and Desist order from the Ohio Real Estate Commission but Sandy ignores it. How much per day can Sandy be fined by the Ohio Real Estate Commission? CORRECT ANSWER: $1000 YOUR MISSED ANSWER: $50 RATIONALE For every day that the order is ignored after receiving a Cease and Desist Order, the Commission can fine an individual $1,000. ID: 521 👎 Question (8 of 16) A person who is under the supervision of a licensed broker working with residential rental property may work without a license so long as her duties are limited to CORRECT ANSWER: furnishing published information and exhibiting rental units to prospects YOUR MISSED ANSWER: all of the answers listed RATIONALE As long as the unlicensed employee at a residential rental property works under the supervision of a licensed broker and is compensated by salary or on an hourly basis, she can perform maintenance, clerical or administrative support, collect rents and security deposits, exhibit or show rental units, furnish published information, supply applications and leases, and receive applications and leases for submission for approval. ID: 454 👎 Question (15 of 16) A copy of a real estate purchase contract must be given to the involved parties CORRECT ANSWER: upon signing YOUR MISSED ANSWER: within three business days RATIONALE  Ohio Revised Code 4735.18 states that a copy of a contract must be given to the parties at the time they sign it. ID: 487 Brokerage Relationships (Agency Law) 14 Total Questions 4 Correct 10 Missed ★ 0 Marked for Review 👎 Question (2 of 14) A salesperson went on a listing appointment and negotiated an Exclusive Agency agreement with the seller. What documents did the seller sign? CORRECT ANSWER: Listing agreement, Waiver Of Duties Statement, Consumer Guide, Lead Paint Disclosure, Residential Disclosure YOUR MISSED ANSWER: Listing agreement, agency Disclosure, Consumer Guide, Lead Paint Disclosure, Residential Property Disclosure RATIONALE In an Exclusive Agency agreement, the seller is doing most of the tasks a listing agent would in an Exclusive Right to Sell listing agreement. In the event of an Exclusive Agency agreement, the state needs the seller to execute a Waiver of Duties statement so there is evidence that the seller knew the broker would not be marketing the property. ID: 1067 👎 Question (3 of 14) Joe, a salesperson from Happy Days Real Estate, sold a house listed by Better Days Real Estate. What part of the Agency Disclosure Statement would Joe and Better Days Real Estate fill out? CORRECT ANSWER: Section I YOUR MISSED ANSWER: Section II RATIONALE A transaction involving two brokers is a Section I transaction. An in-company transaction is a Section II type. A transaction where one licensee is selling his own listing would require filling out Section III. There is no section IV. ID: 1061 👎 Question (5 of 14) In becoming an agent, a licensee becomes a fiduciary and owes clients the duties of accountability, reasonable skill and care, loyalty, obedience, confidentiality, and full disclosure. When might other licensees in the same brokerage become involved in that agency relationship? CORRECT ANSWER: when the other licensees receive confidential information from the agent of the client YOUR MISSED ANSWER: when the buyer signs a buyer agency agreement RATIONALE When a licensee in a brokerage receives confidential information concerning a client of an affiliated licensee in the same brokerage, the licensee receiving the information also becomes an agent of that client. Otherwise, other agents in a brokerage do not automatically become agents of an affiliated agent's client. ID: 1035 👎 Question (6 of 14) Agent Andy was so excited to be writing and presenting his first offer to the seller and listing agent that he forgot to make the offer contingent on the sale of the buyer's current residence. After an investigation and disciplinary hearing, all of the following could happen EXCEPT CORRECT ANSWER: six months probation YOUR MISSED ANSWER: proof of 10-hours of post-license training RATIONALE There are a number of disciplinary actions that can be taken against a licensee ranging from a simple reprimand to permanent revocation of license. Criminal actions would only take place after indictment and prosecution. ID: 1059 👎 Question (7 of 14) Jim is a property manager. He has a commercial park that he leases offices in, and he also has a 200 unit residential building with tenants in yearlong leases. Jim decides to put his own personal residence up for sale, as well as a warehouse. Which property would require the use of the Consumer guide to agency relationships form? CORRECT ANSWER: His personal residence YOUR MISSED ANSWER: the 200 unit residential building RATIONALE The consumer guide to agency relationships form must be provided on one to four residential dwelling units. It is not required for commercial buildings. ID: 1077 👎 Question (8 of 14) A salesperson takes a call at the office. The caller is a buyer who says he has a trust fund and wants to buy a house. The house the caller is interested in is a house personally owned by the real estate agent. Which situation is not possible? CORRECT ANSWER: the salesperson can represent both himself and the buyer YOUR MISSED ANSWER: the salesperson must disclose the agency relationship RATIONALE As of September 2014, no licensee can act as a dual agent when the licensee is a principal in a transaction. ID: 1078 👎 Question (9 of 14) Agent Wendy met potential buyer, Suzie, at a trade show and made an appointment to meet to talk about exclusive buyer representation. At the meeting, Suzie signed a purchaser Agency Agreement and a Consumer Guide to Agency with Wendy. After several weeks of searching, Wendy found a house for Suzie and closed the deal. At closing, Suzie was surprised to see on the Settlement Statement that she was paying a $700 broker fee in addition to the agreed upon commission of 3.5%. Which of the following best describes the situation? CORRECT ANSWER: agent Wendy had a duty to explain all of the fees YOUR MISSED ANSWER: Suzie should have read the purchaser agency agreement more carefully RATIONALE Agency law imposes the duties of obedience, loyalty, disclosure, confidentiality, accountability, reasonable skill, and care in performing any duties contained in an Agency Agreement. It is the duty of the broker and salesperson to make sure that buyer and seller clients understand all of the fees they are being charged. ID: 1060 👎 Question (10 of 14) A licensee who will be working with a seller must make sure that the state-mandated Consumer Guide to Agency Relationships is provided to the seller before CORRECT ANSWER: placing a sign in the seller's yard YOUR MISSED ANSWER: the seller signs the listing agreement RATIONALE A seller's agent must provide the seller with the Consumer Guide to Agency Relationships prior to marketing or showing the property. A yard sign is a form of marketing the property. ID: 1033 👎 Question (11 of 14) A buyer is about to make a written offer on a listing. The sales agent says that, under Ohio law, $1,000 in earnest money must accompany the offer. The sales agent is guilty of CORRECT ANSWER: misrepresentation YOUR MISSED ANSWER: fraud RATIONALE In all likelihood, the sales agent is guilty of misrepresentation. Even though many sales agents believe the law requires earnest money with all offers, this is not true. If the sales agent knew that such a law did not exist, then he would have been lying, and guilty of fraud.  ID: 1056 👎 Question (14 of 14) In an effort to try to force the seller to accept the buyer's offer, the selling agent indicated to the listing agent that their buyer was withdrawing their offer. When can the buyer's agent legitimately do this? CORRECT ANSWER: when instructed by the buyer to do so YOUR MISSED ANSWER: it is standard operating procedure RATIONALE No salesperson or broker has the authority to extend or withdraw offers and counteroffers without instructions from their clients. Instructions should be in writing, indicating the wishes of the client. ID: 1070 Leasing and Property Management 4 Total Questions 4 Correct 0 Missed ★ 0 Marked for Review