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Real Estate

TEST 11

admin 2019.03.06 19:19 Views : 167

1 of 10 - The Lemps have been looking at new homes for weeks and have not found anything worthy of an offer. Mikel, their agent, has invested a large amount of time in showing homes with no luck. Today, he calls Mr. Lemp and says, "I have found you the perfect home! The home is amazing! The yard is perfect and lush. The school district is the best in the state. This home and area are the most prestigious in the city!" Are these types of statements legal?
No, this is intentional misrepresentation and cannot be substantiated.
 
Yes, this is legal as long as Mikel does not violate the Federal Fair Housing Laws. These statements are considered “Puffing” in the real estate world. “Puffing” can be unethical if the statements are not true, but it is not illegal.
No, this is unintentional misrepresentation. By exaggerating, Mikel is making promises about the property and surrounding areas that are purely subjective.
 
No, this is merely good salesmanship. Describing a home and the surrounding area in glowing terms is just that and nothing more.
You answered incorrectly
Puffing is giving an exaggerated or subjective opinion, such as the schools and the area are great, and while puffing is unethical, it is not illegal as long as the exaggerated statements are not untrue.
2 of 10 - Howard wants to purchase a vacation property. He decides to use the expertise of a real estate professional. One of his business associates recommends Jose. Howard explains to Jose that he wants Jose to only represent his purchasing interest, and a contract is signed. Who is the agent? Who is the principal? What is their relationship? What is Jose's role?
 
Jose is the agent; Howard is the principal; they have an agency relationship; Jose is a special agent.
Jose is the principal; Howard is the agent; they have a third party relationship; Jose is a broker.
Jose is the agent; Howard is the principal; they have a fiduciary relationship; Jose is a special agent.
 
Both A and C
You answered incorrectly
Jose is an agent who is empowered to contract to represent the interest of someone called a principal, in this case, Howard. The relationship between the agent and the principal is an agency relationship with Jose being a special agent who is handling one transaction for Howard.
3 of 10 - What is the difference between commingling and conversion? Which, if either, is considered a more serious violation?
Commingling is the practice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and use of a client's funds by a licensee. Commingling is the more serious of the two violations.
Commingling is the unlawful misappropriation and use of a client's funds by a licensee. Conversion is the practice of mixing a client's money with the agent's personal funds. Conversion is the more serious of the two violations.
 
Commingling is the practice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and use of a client's funds by a licensee. Neither violation is considered more serious than the other; they both have heavy criminal penalties.
 
Commingling is the practice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and use of a client's funds by a licensee. Conversion is the more serious violation.
You answered incorrectly
While commingling or mixing the client's money with the agent's personal or business funds is illegal, conversion or misappropriation and use of a client's funds by a licensee, resulting in the agent converting those funds into his own, is a much more serious violation than commingling and has heavy criminal penalties.
4 of 10 - Price fixing, group boycotts, bid rigging, market allocation and division of markets by location or price are all examples of ________________ and are punishable by ___________________.
Estoppels; suspension of one's license
Intentional misrepresentation; fines of up to $10 million for corporations and up to $350,0000 for individuals and/or prison time
 
Antitrust violations; fines of up to $100 million for corporations and up to $1 million for individuals and/or prison time
Conversion; prison time and up to $1 million in fines
You answered correctly
5 of 10 - Perry is listing his home with Extra Real Estate Company, a brokerage. He wants the listing as follows: He must receive $250,000 from the sale of the home, anything above that price is the broker's commission. Which type of listing agreement is Perry demanding?
Exclusive Agency
Open Listing Agreement
Exclusive Right to Sell with Automatic Extender
 
Net Listing
You answered correctly
6 of 10 - Hassan is not happy with the listing agreement on his home through REE Realty Company. He has not been pleased with the showings without notice, the agents showing his home have been rude, and he doesn't feel the property has received the advertising or exposure promised when he signed the listing contract. What is his best option for terminating the listing with REE Realty Company?
Hassan could wait for himself or the broker to pass away.
 
Hassan could wait for the expiration of the agreement term to pass.
 
Hassan could speak with the broker and possibly come to a mutual agreement that it is in both parties' best interest to cancel the listing.
Hassan could cancel the agreement; however, since it is contractual, the broker could decide to sue for damages.
You answered incorrectly
Hassan could cancel the contract but could risk the broker suing for damages. So Hassan might be better off trying to get the broker to agree that it is in the best interest of both Hassan and the broker to cancel the listing.
7 of 10 - TBH Realty Company is handling the sale of the Lopez (seller) home to the Bright (buyer) family. The buyers give an earnest money deposit to the brokerage in the amount of $5,000. The money is then deposited into the broker's account at the bank on the seventh business day after receiving the funds. Has TBH Realty Company followed all trust account regulations with the earnest money?
Yes, the money was received and deposited into the broker's account by the seventh business day after receiving the funds.
No, the broker should have deposited the earnest money into the broker's account within three business days of receiving the funds.
 
No, not only should the broker have deposited the earnest money within three business days of receipt of the funds, the money was to have been deposited into the broker's trust fund not the broker's account.
No, the broker should have deposited the earnest money into the broker's trust fund not the broker's account within the seven days allotted after receipt of funds.
You answered correctly
8 of 10 - Scott is trying to sell his home FSBO. The Bartells believe Scott's home could be their dream home, but they have been working with Melinda, a licensee, to find a new home. Melinda shows the Bartells the home, failing to disclose her status as an agent. They love Scott's home and want to buy it. Scott is not interested in any way, shape, or form in working with an agent. However, the Bartells have made an offer above his asking price and he can't refuse it over the Melinda issue. Which of the following describes the creation of this agency relationship?
Written or expressed
 
Ostensible Agency
 
Ratification
Implied
You answered incorrectly
With a ratification, an agency relationship is created when the principal accepts the conduct of someone who acted without prior authorization as the principal's agent, such as Melinda failing to disclose her status as an agent and Scott accepted Melinda's action because he wanted to sell the property.
9 of 10 - The Marinos are selling their home to the Snyders. Tim is representing both the Marinos and the Snyders in the transaction. He had initially listed the Marinos’ home and realized their home would be perfect for his buyer clients, the Snyders. After making all the necessary disclosures to both parties, he showed the Snyders the Marinos’ home and they are buying it. The Marinos are paying commission on the transaction to Tim's broker, who in turn, will compensate Tim. Since the Marinos are paying Tim's commission, does this constitute an agency relationship, and, if so, what kind of an agency relationship?
 
The fact that one party (the Marinos/sellers) or another party (the Snyders/buyers) pays a commission does not create an agency relationship.
 
Yes, this constitutes an agency relationship. Due to the Marinos' paying the commission, the relationship would be between Tim, a special agent to the Marinos, and the Marinos (sellers).
Yes, this constitutes an agency relationship between the Marinos, the Synders and Tim. The payment of commission by the sellers produces a single agency relationship between the parties.
None of the above.
You answered incorrectly
Since Tim is representing both clients in the transaction and has made the necessary disclosures to both parties, it appears he already has a dual agency agreement with the parties. However, payment of commission does not in itself create an agency agreement. So, while Tim may have a dual agency relationship with these clients, the relationship is not based on the payment of commission.
10 of 10 - RSS Real Estate Brokerage is the listing broker for the Pratte property. RSS delegates some of the responsibility of the listing to Helpful Real Estate Company. The two brokers cooperate on listings frequently and have a good working relationship. Unfortunately, RSS failed to get the principal's (Pratte's) agreement to the delegation. What is the relationship between RSS Real Estate Brokerage and Helpful Real Estate Company?
 
Helpful Real Estate Company becomes the agent of RSS Real Estate Brokerage due to the appointment without the consent of the principal.
Helpful Real Estate Company is now the assigned agent of the listing broker, RSS Real Estate Brokerage.
Helpful Real Estate Company becomes the cooperating agent to RSS Real Estate Brokerage's listing broker’s ?representation of the Pratte property?.?
 
Helpful Real Estate Company becomes the dual agent to RSS Real Estate Brokerage's listing broker’s ?representation of the Pratte property?.?
You answered incorrectly
In a situation in which the listing broker appoints another broker without the consent of the principal, the second broker becomes the agent of the listing broker.
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