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Gold Coast Real Estate 47
Revision Quiz Questions
In which of the following situations does a general agency relationship exist? (a) When a broker is employed to market a property (b) When a sales associate is working with a customer (c) When a sales associate is employed by a broker (d) When a broker is employed by a buyer - โ โ (c) When a sales associate is employed by a broker Broker Joan just received an oral offer to purchase a listed property. No earnest money accompanied the oral offer. Which of the following statements is correct? (a) Joan must present the offer. (b) Joan should not present the offer since no earnest money deposit was received. (c) Joan must advise the customer that an earnest money deposit is required to make an offer valid.
(d) Joan should reject the offer on behalf of the seller. - โ โ (a) Joan must present the offer. Which of the following statements best describes a transaction broker? (a) A transaction broker is an agent of both parties.
(b) A transaction broker has fiduciary duties to the seller. (c) A transaction broker has fiduciary duties to the buyer. (d) A transaction broker provides limited representation to both parties. - โ โ (d) A transaction broker provides limited representation to both parties. An agent failed to advise a principal regarding the value of the owner's property prior to accepting a listing. Which fiduciary duty did the agent breach? (a) Loyalty (b) Disclosure (c) Accounting (d) Obedience - โ โ (b) Disclosure Broker Tom sold a property which was listed with broker Alice. Tom was unable to attend the closing, so Alice collected the entire commission. Alice refused to pay Tom his share of the commission. What could Alice be charged with? (a) Failure to account (b) Collecting an overage (c) Commingling (d) Fraud - โ โ (a) Failure to account Brokers in a non residential sale are not required to use
______________________________.
for a Broker to be legally paid a kick back or rebate, he/she must have performed a ______________________ held an appropriate ____________________and all parties must be _______________________ of the payment.
(a) principal, meeting present (b) service, position, advised (c) MLS, position, advised (d) service, license, advised - โ โ (d) service, license, advised
Who owes fiduciary duties in a single agency relationship? (a) The broker only (b) The principal only (c) Both parties (d) Neither party - โ โ (a) The broker only All of the following activities are exempt from the requirement to provide disclosures under the Brokerage Relationship Disclosure Act, EXCEPT: (a) Sales staff at a new development center (b) Showing property to a party that is not being represented (c) A bona fide open house or model home showing that does not involve eliciting confidential information, the execution of a contractual offer or an agreement for representation, or negotiations concerning price terms, or conditions of a potential
sale
(d) Responding to general factual questions from a potential buyer or seller concerning properties that have been advertised for sale - โ โ (b) Showing property to a party that is not being represented As an agent, a broker is employed by and acts on behalf of whom? (a) A buyer (b) A seller (c) A customer (d) A principal - โ โ (d) A principal Mary, an Ohio broker, accompanied a customer to Florida and met with broker Stan in his office in Miami. While Stan showed the customer property and obtained a binding contract for the purchase of a condominium, Mary took some time off and went to the beach. When Mary returned to Stan's office, she discovered that Stan had written a contract and demanded a share of the commission. Which statement is correct?
(a) Stan may share the commission with Mary. (b) Mary violated the real estate license law by accompanying the customer to Florida. (c) If Stan pays Mary a share of the commission, Stan will be in violation of the license law.
(a) Unimproved property intended for four units or fewer (b) Agricultural properties of ten acres or less (c) Leases with options to purchase all or a portion of improved property of four or fewer residential units (d) Dispositions of business interests involving property of five or more residential units - โ โ (d) Dispositions of business interests involving property of five or more residential units When can both parties in a transaction pay a broker a commission?
(a) When the broker has performed. (b) When both parties are aware of the dual commission. (c) When both parties are being represented by the broker. (d) When both parties agree to the dual commission. - โ โ (d) When both parties agree to the dual commission. All of the following provide control of agency relationships in real estate, EXCEPT:
(a) F.S. 475 (b) Common law
(c) The Brokerage Relationship Disclosure Act (d) The Department of Financial Services - โ โ (d) The Department of Financial Services Which of the following statements best describes policy and procedure manuals?
(a) Policy and procedure manuals are maintained by all real estate offices. (b) Policy and procedure manuals are required by law. (c) Policy and procedure manuals are a major cause of arguments. (d) Policy and procedure manuals are useful in maintaining
good relations within a brokerage office. - โ โ (d) Policy and procedure manuals are useful in maintaining good relations within a brokerage office. A broker has appointed two sales associates to act as agents in a nonresidential transaction, one for the seller and one for the buyer. Which statement is correct?
(a) This is an illegal dual agency. (b) The sales associates are referred to as designated sales associates.
(d) This is acceptable, as long as the rebate does not exceed 10% of the purchase price. - โ โ (c) This is legal, provided that all parties are informed and agree. A seller with nonrepresentation (no brokerage relationship) informed an agent that he is selling his home due to a divorce, and for that reason would take $20,000 below market value. The agent told a potential buyer "If I were you, I would offer $20, less than the asking price. The seller is in in the middle of a nasty divorce, and you'll likely get a good deal." Which of the following statements is correct? (a) The agent should not have disclosed this information due to limited confidentiality, and disciplinary action may be taken by the FREC. (b) The agent has an implied loyalty to the seller to obtain offers as close to market value as possible. (c) The agent may disclose the above information in a No Brokerage Relationship. (d) The agent was in compliance by telling the buyer to offer less, but violated the law by telling the buyer about the divorce. - โ โ (c) The agent may disclose the above information in a No Brokerage Relationship. Regarding single agency, which of the following statements is most correct?
(a) The licensee would be a designated agent, which is acceptable in residential transactions. (b) A licensee may represent the buyer and seller as a single agent in the same transaction. (c) A licensee may represent both parties in the same transaction, but must be careful what is said to each party. (d) A licensee is prohibited from representing the buyer and seller as a single agent in the same transaction. - โ โ (d) A licensee is prohibited from representing the buyer and seller as a single agent in the same transaction. Which brokerage relationship status includes a full fiduciary relationship?
(a) Single Agency (b) Transaction Broker (c) Dual Agency
(d) Non-representation (no brokerage relationship) - โ โ (a) Single Agency
(a) Single (b) Special (c) General
(d) Listing - โ โ (b) Special A sales associate is a _______________________ of the brokers principle.
(a) Sub-Agent (b) Single Agent - โ โ (a) Sub-Agent
A licensee can create an agency relationship ______________________or ____________________________.
(a) accidentally or inadvertently
(b) single agency or brokerage - โ โ (a) accidentally or inadvertently Fairness and honesty are required of all licensees in which brokerage relationship?
(a) Single agency only (b) Transaction brokerage only (c) Nonrepresentation only
(d) Any real estate transaction - โ โ (d) Any real estate transaction According to the Brokerage Relationship Disclosure Act, which is the only brokerage relationship form that must be signed or initialed?
(a) Single Agency Disclosure (b) Transaction Broker Disclosure (c) Consent to Transition to Transaction Broker (d) Important Information Disclosure - โ โ (c) Consent to Transition to Transaction Broker Which of the following statements is correct regarding a broker's authority to act on behalf of the principal?
(a) A broker can refuse offers on behalf of the principal. (b) A broker can buy the listed property without consent of the principal. (c) A broker must follow all legal instructions of the principal or withdraw. (d) A broker must ignore the instructions of a principal when the instructions are not in the best interests of the
principals. (d) A fiduciary relationship cannot be created without the payment of compensation. - โ โ (a) A special agent is only authorized to perform a single act on behalf of the principal. Sal, a properly licensed Arizona broker, forms a relationship with Betty, a properly licensed Florida broker. Sal agrees to refer potential buyers to Betty, and in return, Betty agrees to pay Sal 25% of her commission as a referral fee. Jorge, a competitor of Betty's, discovers the relationship and files a complaint with DBPR. What will an investigation of the complaint most likely determine?
(a) The Florida real estate license law was not violated. (b) Broker Betty violated F.S. 475 by paying the commission to Sal. (c) Since Sal accepted the commission, both brokers violated F.S. 475. (d) Sal violated Florida's real estate license law by asking
Betty to pay a referral fee. - โ โ (a) The Florida real estate license law was not violated. Which of the following best describes the practice of dual agency in Florida?
(a) Dual agency is legal, provided it is disclosed to both parties. (b) Dual agency is another name for Transaction Brokerage. (c) Dual agency is a violation of Florida Statute 475. (d) Florida law creates a presumption of dual agency unless
another relationship is formed. - โ โ (c) Dual agency is a violation of Florida Statute 475. A prospective purchaser made a written offer to purchase a home listed by broker Ben. Before Ben presented the offer to the seller, a second prospective purchaser made a verbal offer of $180,000, but did not put the offer in writing, and did not provide any earnest money. Which statement correctly describes Ben's situation? (a) Ben is not required to submit the oral offer. (b) Ben must only present the written offer since the law requires him to present offers in the order they are received. (c) Ben should not present the oral offer because oral offers not accompanied by an earnest money deposit are worthless. (d) Ben is required to present both offers to the seller. - โ โ (d) Ben is required to present both offers to the seller. A real estate licensee who is working with a seller receives a call from another broker stating that, "I am representing a buyer as the buyer's broker. I'm standing in front of one of your listed properties with my buyer." What can the licensee infer from this conversation?
____________________________,
______________________________
____________________________ and _________________________________.
(a) no brokerage, single agency, written disclosure (b) transaction brokerage, single agency and non representation - โ โ (b) transaction brokerage, single agency and non representation In non residential transaction a broker may assign one or more sales associates to represent a buyer and one or more sales associates to represent a seller in the same transaction as single agents if both parties have assets of _______________________or more.
(a) 5 million (b) 2 million (c) 1 million
(d) 6 million - โ โ 1 million the consent of transition to transaction broker notice is required to be ______________________ or ___________________for the transition to occur.
(a) notarized and signed (b) witnessed and notarized (c) initialed or signed
(d) signed and witnessed - โ โ (c) initialed and signed If the principal to sign or initial the consent to transition to transaction broker notice form, the broker is required to act as a _______________________ _________________________.
(a) double agent (b) power of attorney (c) single agent
(d) subagent - โ โ (c) single agent Brokers are required to retain copies of all disclosure documents for transaction that have resulted in a contract being entered into for a period of _____________ years.
(a) 8 (b) 6 (c) 2
(d) 5 - โ โ (d) 5 The only brokerage relationship that includes fiduciary duties is _______________________ ________________________.
