D) It may not be superseded by statutory law. \end{array} What is the best action for Dennis to take? The individual who is authorized and consents to represent the interests of another person in dealings with a third person is B. not consider how and when Amy entered the transaction. A. not a violation of the Code as it is helpful courtesy offered to the seller. C. providing disclosure and obtaining consent from both parties. Subsequently, REALTOR Nelson sells the property to the buyer REALTOR Dee introduced to the property. Eddie and Sacha REALTOR Nelson has an exclusive listing contract with seller Jennifer. After the closing, Dan expressed his confusion because he thought Donna was representing him in the sale. an attorney-in-fact. C) Elizabeth leases the property from Broker Jane. D. include persons of several races in order to avoid exclusivity in advertising. A) the administrative law created by real estate agencies as authorized by the legislature. Broker Joann, a buyers agent, is seeking arbitration against Broker Millie, a sellers agent. a. Dual agency is a violation of real estate law b. Generally, the relationship between real estate broker and seller is Identify which statement regarding this situation is TRUE. No, because of the right of free speech, Brad can call Ted any time he wants regarding any offers. 23. No, because the selling agent can change his mind. Broker Deb. She stipulates that her client, Buyer Jack, will pay her fee. C. only look at the MLS. A key fact is REALTOR Jane notices a home in her market area listed with REALTOR Lindas name on it. C) B) 133. 6. D. Brianna. A. racial segregation. C) the client. A. Jane. Which. The company has a large amount of unused capacity and is studying ways of improving profits. C) C) The seller tells REALTOR Lynn that she is relocating to Hawaii. C. explaining to a customer why a contract cant be enforced "The uneven floors just mean that the building dates to colonial times." D) C. remove the comment immediately. C) This is an example of A) D. panic selling. Broker Katherine is aware of the listing as it is in the local MLS. 98. This is Agents are prohibited from using general information, knowledge, or experience acquired during the course of an agency in later employment. Common law Which of these items is NOT required to be provided with the opinion of value? C. ethics complaints. REALTOR Marcy has listed Dereks home, thus creating an agency relationship in which she owes fiduciary duties to Derek. REALTOR Dee files an arbitration request and is able to prove she is the procuring cause of the sale. Upon discovering a latent defect in a property, the real estate professional should discuss the problem with the seller and then Broker Anne. A. A special agent represents the principal for one certain transaction only. Which of the following is TRUE regarding dual agency? 146. care and skill in performance. Broker Linda is at a wedding seated at a table with nine other guests. D. request arbitration services from the National Association of REALTORS if both Jona and Wally agree. B) 128. c. It allows a broker to complete general tasks. 51. REALTOR Jim violated the code When a broker places trust funds of others into the company's operating account and then withdraws funds for the firm's use, what illegal practice has taken place? buyer representation agreement. Stan enters into an agreement with Tammy. principal is liable for any injuries caused by the agent's intentional torts. D. Loretta must disclose her interest to her clients and customers, including any financial benefit received. Broker Roger has an open house on a property and has a register for attendees to sign. B. property profiling. The duty of _____ is a fiduciary duty owed by an agent not to act adversely to the interests of the principal. REALTOR Lisa, a property manager, researchs county records to determine the owners of multi-unit buildings. 65. D. tell the sellers to disclose the leaks, 31. D. false advertising. 03. The agent is 94. Any broker is authorized to encourage such bids for the property. should present to the seller only the highest offer for the property. D) REALTOR Mike is showing a property to his client Jean. C. only consider who made the initial introduction to the property. REALTOR Marty has a daughter who is interested in a property. B. Melanie can seek the prospects future business. REALTOR Frank holds an open house for a client on a rainy day and discovers a window leak. Broker Paul files arbitration against Steve, claiming he introduced the property to Rhonda. A REALTOR principal receives an offer on one of her listings. Which of the following is TRUE about the difference between a special agent and a general agent? 85. A) B. is obligated to arbitrate only if he has a specific written agreement to arbitrate. No, because REALTOR Katie is obviously clueless about how to price a property. B. his client. The seller didnt mention this before the open house. General membership. Did Pattys actions violate the Code? 127. C. disclosing her relationship with Derek b) If a partner makes a profit using information gained from inside the firm, but uses that information in a venture that is outside the firm, he may keep that profit. self-dealing An agent works for a principal that is in the business of real estate development. Select the statement that is considered practicing law and should be avoided. B) 141. The broker in charge of an office, by ownership or designation as the managing broker, is called a(n) a subagent. a licensed personal assistant of a sales associate is the agent of the sales associate. A sales associate of a broker told a prospective buyer that the house being shown is "the best house in the area." C. Yes, Marty should have disclosed his relationship with all parties involved when an offer was made. D) prohibited in all states because a broker must always represent one party. D. Seller Keith had no knowledge of Salvatores efforts with Travis. Nice and sturdy basement and everything appears dry. D. Donna has violated the Code by not making it clear to buyer Dan that she was representing the seller. a. must have a definite termination date. Jack should Marty later writes a contract and a sale is made. At the closing table, Howard reveals to both REALTORJane and the sellers that he has an exclusive buyer agency agreement with his client. A) D. only consider who wrote the successful contract on the property. D. the total commission paid to REALTOR Nelson by the seller. D. required by state law to be followed by all licensees. A. has no business concerning himself with the other REALTORs contract; it is none of his business. B) C. Great location, four blocks away from the Park and Ride 147. Obedience. D) Marty later writes a contract and a sale is made. The structure looks good. implications of REIT dividends for pension funds? 69. B. maintain confidentiality since the seller didnt mention the leak REALTOR Devon traveled to another state where he bought a property for himself. Carlos tells Jan that the property is not available for showing today but will be available in a week. REALTOR Devon A) the buyer and the seller are represented by the same company. Property Rights: Estates, Tenancies, And Multiple Ownership Interests, Real Estate Investment Analysis And Business Opportunity Brokerage. This particular fact favors C. Paula is in violation of Article 15 for posting misleading statements. This is called a(n) However, listings are currently thin in his market. C) A) A. Neil is in violation of Article 15 for not blogging about REALTOR Paulas successes. B. litigation. Jerry discloses his compensation agreements to both parties and receives their consent. D. weigh into consideration; Paul introduced the property and is the procuring cause. D. mediation is not available. When Kathy applies for a mortgage, the lender turns her down because she doesnt have a sufficient down payment. The broker is guilty of negligent misrepresentation. B. ethical, because this is considered a general announcement. B. yes, because the nature and the terms of the contract were not made clear REALTOR Howard has an exclusive representation agreement with a buyer. B. something that would be understood by both REALTORS and does not need to be disclosed. being primarily responsible to the customer. C. a violation of the Code, despite the fact that REALTOR Nelson did have permission from REALTOR Matthew. D) I would like to sell your business property but first, I would have to take classes. Only choice (C) is not true, so it is the correct answer to the question. Tom is not meeting her expectations, so she terminates the employment relationship. Board of Directors. Morton Companys contribution format income statement for last month is given below: Sales(15,000unitsX$30perunit)$450,000Variableexpenses315,000Contributionmargin135,000Fixedexpenses90,000Netoperatingincome$45,000\begin{array}{lrr} the concept of caveat emptor. New builds going fast! 35. REALTORS Jona and Wally are from different states where their boards do not have an established inter-association arbitration agreement. No, because REALTOR Katie is obviously clueless about how to price a property. 8. 148. B) 77. No, because her client, Larry, has no interest in the property. C. offering to reduce broker fees to a short sale Identify which of the following inducements is prohibited. B. disclosure of material facts. D. comparative financial analysis. That same day, Jans buyer client calls Carlos directly and asks for an appointment to see the property and Carlos provides the showing. Deceitful or dishonest practices Exclusive neighborhood community with a Tier 1 golf club A) Bud suggests strongly to Buyer John that he would be better served by buying a house from Broker Nan. After Mikes listing contract expires, Dean sells the property to Kathy. REALTOR Marys next step should be to C. arbitrating disputes 73. C) Which of the following Standards is considered a duty to other REALTORS? restrictions on disclosure of confidential information. A. Which of the following duties does Marcy NOT owe to Chad? a. third party. an undisclosed dual agency. D. Yes, because REALTORS are prohibited from receiving compensation from more than one party. C) 101. D. An arbitration hearing is required before parties may attempt mediation. C. tell prospective buyers Trisha must sell quickly because Ed must follow all instructions of the client B) the seller and the listing broker do not have to disclose anything. D. Broker Steve. She negotiates the offer with buyer Dan, who offered less than asking price. 140. REALTOR Barbara holds an open house on a rainy day and discovers the seal for the back door is leaking. Thus, profits vary considerably from year to year according to general economic conditions. It is legal in all states. A. completely unlike state licensing laws. B. telling him the lowest price Derek will take for the house, which Derek told her in confidence #1. Which of these actions violates the Code? B. maintain confidentiality since the seller didnt mention the leak REALTOR-ASSOCIATE Olivia believes that REALTOR Jon from another agency sold a house to her client and that she was the procuring cause of the sale. 92. It is Marys listing and she has the key; the sellers are not home, but told her to show it anytime. C. estimated market evaluation. 139. C) The best solution available to Tim is to Do you agree with the marketing managers proposal? Which event will terminate an agency in a broker-seller relationship? What does the phrase the law of agency is a common law doctrine mean? The hearing panel will This particular fact favors Identify which statement regarding this situation is TRUE. He sends letters only to those homeowners whose properties he has previously appraised. B. arbitration complaints. This is a violation of the duty of loyalty known as _________. D. showing his interest in the property personally. environmental hazards. A. appraisal. C. Id be happy to discuss this house with you but I cannot discuss anything else. However, fixed expenses would increase to a total of$225,000 each month. Disney employs Saul Arnold as an agent to work on its behalf to acquire the needed property. B. tell the seller that the defect must be repaired. B. opinion of value. A. Howard is Owens client. B) B. C) If two licensees, who are not REALTORS, have a monetary dispute, they D. Donna has violated the Code by not making it clear to buyer Dan that she was representing the seller. Broker Mike introduced Kathy to the property. A nonagents job is simply to help both the buyer and the seller with the necessary paperwork and formalities involved in transferring ownership of real property. C. Olivia may ask her REALTOR principal to request arbitration but she may not request arbitration on her own. D. A REALTOR may file a request for arbitration only after any ethics complaint about the same matter is resolved. A) A. ask the buyers if they are exclusively represented by another REALTOR. D) C. mediation. REALTOR Tamika notices a home in her market area that has one of listing agents Alonzos signs, but she cant find the listing for it in the MLS. Eddie suggests taking the matter to arbitration. D) B. the first step in procuring cause and strongly favors Roger. D) The relationship between the property owner and the associated brokers at Hannah Smith Realty could best be described as (buyer subagency, designated agency, dual agency, seller subagency) A) B. D. urge the seller to update the disclosure form or have the back door repaired, 107. C) C. reasonable care A. ask the buyers if they are exclusively represented by another REALTOR. 119. unnecessary disclosure. Broker Paul introduces tenant Rhonda to a property. A. Identify the scenario below where it would NOT be appropriate for a buyers agent to talk to the seller directly concerning price, terms, or conditions. B. disclosing her relationship with Derek A REALTOR may tell prospective clients not to list with REALTORS offering flat-rate commissions. A. local B. once it has been reviewed by the Grievance committee REALTOR-ASSOCIATE Olivia believes that REALTOR Jon from another brokerage sold a house to her client and that she was the procuring cause of the sale. Broker Amy discovers that buyer Lori has looked at a property with Ken and tells Lori that she is also in the real estate business and can help her buy the property. REALTOR Dee files an arbitration request and is able to prove she is the procuring cause of the sale. REALTOR Marcy listed Dereks home, thus creating an agency relationship in which she owes fiduciary duties to Derek. B. Olivia may ask her REALTOR principal to initiate litigation but she may not initiate litigation on her own. 29. A) C. The buyer refused to negotiate with the broker. A. REALTOR Brian is the respondent. D. half of the commission REALTOR Nelson actually received from the seller after he negotiated with the seller to reduce his commission. Board of Directors D. false advertising. D) In dual agency, an agent's actual knowledge pertains to. A real estate broker's responsibility to keep the principal informed of all the facts that might affect a transaction is the duty of A. Loretta may insist that all buyers and sellers use the auxiliary services provided by her company. D) The next day, Howard calls Owen and tells him that he would like to make an offer on the house. 18. A REALTOR can recommend another REALTOR to a client who mentioned she is relocating out of state. B) 25. In a(n) _____ agency, a contracting third party does not know of either the existence of the agency or the principal's identity. being primarily responsible to the customer. C. draw up the paperwork on Hollys offer. A. will have years of arbitration ahead of them. a trustee. A. ASSOCIATE-BROKER. 125. Zaafir only, because he is an independent contractor. express information of facts about a property or client's circumstances. Every state has mandatory agency disclosure laws that stipulate B. like the United States Constitution and Bill of Rights, fairly immutable. REALTOR Antonio has been asked by a listing client to prepare an opinion of value on his property. D. Marge does not have to provide any information about the matter to the Grievance Committee. When Todd finished his degree in marketing, he started a career as a REALTOR. Chad is a customer of Marcys. He sells Marys property and receives an additional fee for the sale. Sign it in a few clicks Draw your signature, type it, upload its image, or use your mobile device as a signature pad. A. favor either party. C) C) Subsequently, Vinod tells Tim that Wanda was his client and he is owed a commission. Which of the following represents Eds fiduciary duty? For the years ended December 31, 2013 and 2012. Sara, a licensee, is helping customer Mark find a house? C) 96. Click the card to flip Flashcards Created by depositing money in an interest-bearing trust account. B. neither broker. 56. C) D) judicial law. REALTOR Eddie believes that REALTOR Sacha sold his client a house. 2 Which of the following committees is most like a grand jury? If Jackie Knox, who owns property in Chicago, agrees to sell the needed land for $1.5 million and the agent signs his name "Saul Arnold, agent for Walt Disney", _____. Past correlation of US REIT returns (over the last 20+ years) tends to indicate which D. Seller Dean was not free to sell the property on his own. A. appraisal. 13. What should Erin tell Jones? D. all parties in a transaction, whether they are clients or customers. a facilitator relationship. D. what is required by the Code. B. the co-operating commission originally offered by Nelson. Trisha wants to sell her house quickly because her new job in another city begins next month. He should both parties consent in writing to the dual agency. 43. only Disney is liable on the contract if Disney ratified the contract. The Federal Fair Housing Law prohibits me from discussing the racial composition of the neighborhood. In a real estate transaction the customer is considered the: B. Jack the possible reaction of potential buyers or tenants. "The uneven floors just mean that the building dates to colonial times. B. REALTOR principal or the firm itself What fiduciary duty did the buyer's agent violate? She then cross-references that list with the list of properties currently in the MLS, sending letters only to those sellers whose properties are listed for sale. It is illegal in all states. C. documentation of what the opinion is based on B) not required to disclose the information because the seller might reject the offer. B) Lets not worry about that todaylets wait until we sell your house, then well figure it out. a. 137. 59. C. litigate any differences. Donna, representing the seller, holds firm and gets Dan to buy at asking price. D. telling him the lowest price Derek will take for the house, which Derek told her in confidence. an agency. B. REALTOR Brad shows the listing, writes up an offer, and then calls Smitty to ask him when he would like to present the offer to his client. A young couple is looking for a new house. A) required to disclose the information because it is a material fact important to the seller. The first committee at the local level to review an ethics complaint or a request for arbitration is the D. Yes, Marty should not have said anything to the other REALTOR and the seller at the closing. C. REALTOR principal and REALTOR-ASSOCIATES jointly D. REALTOR. A. call the MLS to alert them that REALTOR Linda is not sharing all of her listings. Cancel your current listing contract and sign up with A-1 Realty for an all-expense paid weekend in Las Vegas! A key element of an agent's fiduciary responsibility of loyalty is to A) reveal relevant information or material facts. C) b. broker. a nonagent. A broker performing as a property manager who deposits the rent into his operating account is an example of Seller Sue says to REALTOR Bill one day, I will get half the money when we sell this house, wont I? Which response is correct? 104. D. request arbitration services from the National Association of REALTORS if both Jona and Wally agree. depositing money into an escrow account. the sales associate was practicing puffing. C. fraud. Did Marty violate the Code? Which of these statements could be considered discriminatory? This way is more efficient. A) D) However, Jordan rejects the offers and instead sells the house to a friend. REALTOR Dee shows a property listed by REALTOR Nelson. At the closing table, Marty tells Caroline and the seller that the buyer is actually his daughter. A. Katherine, as the selling broker While reviewing the MLS data sheet, Kevin notices that the cooperative broker compensation offered in the MLS listing is less than the fee he negotiated with Susan with his buyer broker agreement. She was terrible and I believe she is not a licensed REALTOR and you should never give her your business. Jack knows for a fact that Jordan is licensed. A. find out if Holly is in an exclusive relationship with a REALTOR and explain to Holly that Sam represents only Linda in this transaction A) the buyer and the seller are represented by the same company. A) tell the seller that the defect must be repaired. the broker always acts as the agent of a client or customer. 12. Acting for more than one party in a transaction is within the law c. Failure to disclose dual agency is a violation of the law d. A real estate license may be revoked or suspended for failure to disclose dual agency a. D) latent defects. 49. When a REALTOR only has a contract with a buyer; he is only permitted to collect a fee from the buyer. the principal to whom the agent gives advice and counsel. Which of the following does NOT indicate a buyer trying to freeze out a broker? The buyers agent is also the sellers agent, acting as a disclosed dual agent. REALTORS Sherry and Vinod both show his property. The structure does not seem sound and I would not purchase this house. The broker has committed fraud. 72. C) Custom designers are available in person this Friday from noon until 4 PM! B. According to the Code of Ethics, a REALTOR owes the duty of confidentiality to C. tell the Byers they cannot talk to Sam C. litigate any differences. D. Jon is simply being aggressive, which is permissible. A. Sarah can take no action as Thomas is the principal broker at his agency; his title gives him seniority in this case. a principal. D) The sales associate was practicing puffing. C. the principal 26. A third party who owns and wants to sell his vacant land tells an agent of the principal of the availability of the land. amend the listing agreement to authorize dual agency and get Jacks signature Broker Hannah obtains an exclusive listing for Hannah Smith Realty. needs but spent about an hour at the property asking many questions about other homes for sale. C. The neighborhood looks predominately white but there are a few Latinos who live a couple of blocks over. A) C. Yes, Tamika should have just asked the owners, who were in the driveway when she was there. It is a legal doctrine that is not unusual. B. Melanie can seek the prospects future business. REALTOR Antonio has a buyer agency contract, which entitles him to collect a fee. Is Brad violating the Code if he calls Ted? Broker Ken showed a property to buyer Lori. Did Pattys actions violate the Code? A. 144. 71. C) D) C) 32. C. large, four-bedroom on a quiet cul-de-sac lot A) D. include persons of several races in order to avoid exclusivity in advertising. B. draft a purchase contract from scratch B) If Jackie Knox, who owns property in Chicago, agrees to sell the needed land and the agent signs his name "Saul Arnold," _____. Did Marty violate the Code? A) Statutory law The broker can accept a commission from the buyer without the seller's approval. Josie asks Betty her opinion. 136. (Assume that enough funds are available to make the purchase.). Commingling and conversion C. national 48. The agent gives the offer to the seller, who asks to consider it for 24 hours. C. both Broker Deb and Broker Steve. an agent. C. a living document that is revised annually. b) An agent cannot accept commission from both parties to a transaction without his principals' consent. D. weed out offers that seem unreasonable to keep Trisha from wasting her time. care and skill in performance. Identify which statement regarding mediation is TRUE. How should Larry respond to the question? Only information about material defects that the agent has personally observed unless it was considered puffing. REALTOR Bill finds out about the contact and accuses Melanie of trying to steal his client. Edit your form online Type text, add images, blackout confidential details, add comments, highlights and more. A. Marty makes arrangements with the listing agent, REALTOR Caroline, to show the property. C. hearing Professional Standards cases and ratifying the results. The relationship between the agent and the seller ends automatically if the purchaser submits an offer. A. fiduciary duties. B) Which of the following is NOT a critical factor in determining independent contractor status? commingling. D) A) In the common law of agency, the relationship of broker to client is that of 55. Some states allow it, with certain conditions. B. consider how and when Amy entered the transaction. The Catholic Church on the corner indicates that the area is predominately Italian-Catholic. D) D) C. maintain the confidentiality of the information In a(n) _____ agency, a contracting third party knows that the agent is acting for a principal but does not know the identity of the principal. even if unintentional. Susan wants to make an offer. 132. c. is 90 days after the listing agreement is signed. D) Which of these advertisements is an example of inducement? The two functions of the local REALTOR Associations Board of Directors, with respect to Code enforcement, are The fact that the introduction occurred many months ago does NOT A. Twenty years ago, a former occupant of the house committed suicide in the house. Broker Joann admits she was an exclusive buyer agent for her client and she knew the compensation offering before showing the house. NAR May the Code Be With You / The Code of Ethics in Action Real-Life Applications Class B. allowable because REALTOR Nelson obviously doesnt understand the offer. 99. B. Question: Which of the following statements Is true reqarding the practice of designated agency under North Carolina Real Estate Commission rules?O A Designated agency provides an optional method of practicing dual agency for real estate firms.O B.The designated agency concept may be utilized by a firm that does not practice dual agency. C. A licensee must be a REALTOR to sell real estate in most states. The broker can agree to a change in price without the seller's approval. B) All information about material defects that the agent knows or should know, What is a seller's agent required to disclose to prospective buyers about material defects in the property? C. not a true picture. Show an Amount column, a Per Unit column, and a Percent column on each statement. Buyer Travis introduces himself as the CEO of Big City Enterprises. B. Loretta needs to say nothing about these businesses or services; it is obvious she owns them. unstable properties. D. provide the basis for their opinion. A. D. talk Susan out of buying the house. 82. C. once it has been reviewed by the Ethics committee In real estate transactions, agency is often formed without the signature of the client, so it is up to the real estate professional to keep track of your disclosure. the common law. A. A) Betty could be released from the agency agreement and seek representation from another broker. C) contact the city building inspector about the defect. Jean asks Mike his opinion about the structure of the property. D. an intrusion by Broker Nan into an existing relationship. REALTOR Marys next step should be to A. REALTOR-ASSOCIATES A real estate professional's duties to a customer do NOT include both parties consent in writing to the dual agency. The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Compare our rates to others This ad is After the closing, Melanie visits the buyers in their home and asks if they have any questions or need any information about the community. C. Yes, because REALTORS have an agreement to cooperate. Josie is in a contract with REALTOR Bill, which is expiring in a week. A net listing is illegal in all states. D. tell the Byers to call Sam to find out the nature and terms of any agreement they have with Sam. D. A REALTOR accepts an undisclosed fee from a buyer while serving as a listing agent for the seller. REALTOR Nelson owes REALTOR Dee spacefor The local association of REALTORS must offer mediation to both parties before an arbitration hearing is held. C. prepare a CMA which demonstrates the accuracy of the price. the sales associate is guilty of fraud only if the buyer purchases the house. B. Paul. B) Buyer Bill. A method of resolving a dispute in which the parties involved discuss the situation and resolve it themselves is called C. websites must be maintained and updated frequently. D. targeted sales. D. REALTOR Clarence is the respondent. Id love to sign you but I cant say anything else until you are out of your contract. Which of these items is a REALTOR required to discover and disclose, according to Article 2 of the Code of Ethics? A) Disclosure DBA accounting. C. Mediation is not a method of dispute resolution preferred by the National Association of REALTORS. Sometimes principals request that agents run errands or conduct other acts on their behalf while the agent or employee is on personal business.
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