Deck 6: The Search for Real Estate

Question 1

Only licensed real estate brokers can advertise homes on the World Wide Web since this information can be accessed by potential buyers in interstate commerce.

Answer 1

False

Question 2

In most states, licensed real estate brokers and salespersons must also be members of the National Association of Realtors.

Answer 2

False

Question 3

A seller of real estate may cancel at any time a listing agreement that is to be in effect for a specified time, if the broker has given consideration.

Answer 3

False

Question 4

Which of the following agents can be held personally liable to third parties for contracts negotiated on behalf of an undisclosed principal?

A)General agents.
B)Special agents.
C)Secret agents.
D)Implied agents.

Question 5

A listing agreement providing a real estate agent with an exclusive right to sell property also contains a "no deal, no commission clause." If a potential purchaser is unable to obtain financing to complete the purchase after signing a contract:

A)the agent is entitled to a full commission from the seller.
B)the agent is not entitled to a commission from the seller.
C)the agent is entitled to a partial commission from the seller.
D)the agent is entitled to the "earnest money" paid to the seller.

Question 6

Under a buyer-broker arrangement, a buyer may not leave her agent for another buyer agent if she signs an exclusive agency contract without being liable for a commission if the broker finds her a property to buy.

Question 7

Traditionally, the broker whose client bought property listed by another broker, was considered a subagent of the seller, not the agent of the buyer

Question 8

Under the traditional rule, a broker earns a commission under a listing agreement whenever he procures a buyer who is "ready, willing and able" to purchase the real estate, even if the seller refuses to sign a contract with the buyer.

Question 9

In some states a person may broker a sale of property not as an agent with fiduciary duties, but as a transactional broker who simply "assists" a particularly party and is not a fiduciary to that party.

Question 10

Under the U.S Supreme Court's ruling in Meyer v.Holley, brokers are still strictly and personally liable when their agents violate the Fair Housing Act of 1968.

Question 11

Competing brokers A and B meet for lunch and decide to set commissions at 6 percent for a two month period.This activity would be illegal per se under antitrust law.

Question 12

Language such as "a commission is to be paid to the broker whether the purchaser is secured by the broker or by any person other than the seller" creates an "exclusive right to sell" listing agreement.

Question 13

Rob and Kim entered into an oral agreement whereby Rob promises to pay Kim a commission if Kim produces a ready, willing, and able purchaser of Rob's property.Before any performance by Kim, the agreement is:

A)an enforceable contract.
B)an illegal contract.
C)not an enforceable contract.
D)none of the above.

Question 14

The Civil Rights Act of 1866 is the most comprehensive legislation in terms of types of discrimination prohibited in selling or leasing real estate.

Question 15

In most cases, an unlicensed real estate broker may collect a commission earned on the sale of real estate, regardless of who makes the sale, under an "exclusive right to sell" agreement.

Question 16

As a general rule, an agent will be held personally liable for contracts negotiated on behalf of a principal.

Question 17

Kelsey, a seller, signs two open listing agreements with two brokers, Ryan and Nicole.Ryan is the first to find Marissa a potential buyer, who agrees to buy the property if a suitable closing date can be worked out.Without Ryan's knowledge, Nicole later strikes a deal with Marissa to close earlier and persuades her to sign the contract to buy Kelsey's home.In this situation the commission would go to:

A)Ryan.
B)Nicole
C)Ryan and Nicole would split it 50/50.
D)Neither

Question 18

Rick signed a listing agreement with Paul, a real estate agent.The agreement stated that if Rick or anyone acting on his behalf should sell his property, Paul would still be entitled to his commission.This type of an agreement is a(n):

A)exclusive right to sell.
B)open listing.
C)exclusive agency.
D)none of the above.
E)two of the above.

Question 19

The Federal Trade Commission has ruled that the National Association of Realtors® is violating antitrust law when it excludes brokers who operate virtual office websites from giving their clients property listings.

Question 20

Generally, a broker has implied authority to both advertise the house and to accept money from the buyer.

Question 21

The 1968 Fair Housing Act prohibits discrimination in the following situations:

A)A denial of the use of real estate services.
B)Discrimination in the terms or conditions for buying or renting housing.
C)A denial that housing is available for inspection, sale or rent when it really is available.
D)All of the above.
E)a and b only.

Question 22

Jeff, a real estate agent, sells a home to a black couple in a predominately white community.After the sale, he goes to the neighbors and encourages them to sell their homes.He tells them that if they do not, their home values will go down substantially because of the area's imminent transition into a black neighborhood.Jeff is engaged in what illegal practice?

A)Steering.
B)Testing.
C)Blockbusting
D)NIMBY Not In My Backyard).
E)None of these.

Question 23

Broker A has a listing agreement with the seller.Broker B has found a buyer for the property, but he is not the buyer's broker.Assuming that both brokers are subject to an MLS agreement:

A)Broker B is a subagent of the seller.
B)Broker B, in many states, might have to disclose to the buyer that he is not acting on behalf of the buyer as his agent.
C)Broker B might owe the buyer a duty to disclose material facts about the property's value.
D)All of the above.
E)None of the above.