Deck 12: The Brokers Role in the Transfer of Real Estate

Question 1

Brokers must be licensed in all states in which they wish to do business.

Answer 1

True

Question 2

Once brokers are licensed, they are referred to as realtors.

Answer 2

False

Question 3

In all states, brokers must disclose information on sex offenders if a buyer asks about it specifically.

Answer 3

False

Question 4

In an exclusive right-to-sell listing, a sale by the owner relieves the owner of the duty to pay the broker's commission.

Question 5

In an open listing, the seller may list the same property with more than one broker without fear of additional commission liability.

Question 6

A multiple listing is the equivalent of an open listing.

Question 7

In all states, attorneys acting for clients in selling real estate must have licenses.

Question 8

In the case of a corporate owner listing agreement, the proper officer must sign the listing and have authority to do so for it to be valid.

Question 9

A net listing is the same as an exclusive right-to-sell.

Question 10

The general rule for when a commission is due and owing is "no deal, no commission."

Question 11

Disclosure statutes mandate broker disclosure of defects they note.

Question 12

In the "ready, willing and able" standard, "able" includes financially able.

Question 13

An agency relationship exists between brokers and sellers.

Question 14

In some states, a "showing" agent is labeled a sub-agent of the listing agent.

Question 15

An agent who initially shows the property is entitled to the full commission.

Question 16

Brokers generally have authority to accept offers on behalf of their sellers.

Question 17

Once a listing agreement expires, the seller can sell to any buyer the next day without paying a commission.

Question 18

Dual agency status requires disclosure to both buyer and seller.

Question 19

Brokers are required under their duty of care to reveal any dangers in offers.

Question 20

Buyer brokers do not earn a commission, only a flat fee.

Question 21

Brokers must communicate all offers made prior to acceptance to the seller.

Question 22

A broker is free to reject offers below the listing price.

Question 23

Clauses in listing agreements exculpating brokers from liability to the seller are valid.

Question 24

Brokers are only required to disclose direct profits they might make from an offer to the seller.

Question 25

The broker has no duty or liability to the buyer/offeror in a transaction.

Question 26

Procuring cause of the sale can be based on an advertisement.

Question 27

Multiple listing services are not subject to antitrust laws.

Question 28

Brokers can be held liable for negligent misrepresentation.

Question 29

A broker who fails to disclose a buyer's financial difficulties to the seller has breached his fiduciary duty.

Question 30

A listing agreement cannot be extended by the conduct of the parties.

Question 31

A broker has a duty to disclose his interest in a partnership competing with the seller.

Question 32

A dual agency is valid only when both sides agree.

Question 33

A broker has a duty to inspect the listed property.

Question 34

Some states have statutes that prohibit affirmative disclosure of certain information about property.

Question 35

A broker who sells a multiple list property is not an agent of the listing broker.

Question 36

The designation "Realtor" means simply that an agent is licensed.

Question 37

A sub-agency relationship is a breach of fiduciary duty.

Question 38

A broker/agent has a duty to provide legal advice to clients.

Question 39

A broker/agent has a duty to warn clients of potential issues and exposure in a transaction.

Question 40

Disclosure statutes may prohibit brokers/agents from discussing certain issues related to a property.

Question 41

Disclosure statutes may require brokers/agents to discuss certain issues related to a property.

Question 42

Misrepresenting the quality of the schools in the area to prospective buyers is grounds for rescinding the purchase contract.

Question 43

All states impose liability on real estate agents and brokers for innocent or fraudulent misrepresentation.

Question 44

The MLS service of the NAR need not include properties from virtual real estate brokers.

Question 45

A buyer who does not qualify for financing is not a ready, willing, and able buyer.

Question 46

Antiblockbusting statutes have not survived constitutional challenges.

Question 47

Brokers have no fiduciary duties with regard to earnest money on deposit.

Question 48

Brokers are not liable to buyers for intentional misrepresentations about the property.

Question 49

An "as is" clause does not provide blanket immunity for a broker.

Question 50

Brokers need not disclose issues about a property if those issues have been fixed.

Question 51

A non-exclusive right to sell means that the seller can hire more than one broker to sell the same property.

Question 52

Once the listing agreement expires, the seller cannot owe a commission.

Question 53

Brokers have no obligation to question a seller's representations about a property's condition.

Question 54

The list of protected persons is provided to the seller when the listing agreement expires so as to clarify the broker's role with those parties.

Question 55

A buyer who is unable to obtain financing consistent with the contract terms is still a ready, willing, and able buyer.

Question 56

Antisolicitation statutes cannot be specifically directed at real estate agents and brokers.

Question 57

A broker's failure to present all offers is a breach of fiduciary duty.

Question 58

Brokers do not have a duty to disclose to sellers potential problems in the transactions.

Question 59

Dual agents cannot disclose the seller's circumstances to the buyers.

Question 60

The position of the National Association of Realtors on a broker's disclosure duty on sex offenders is to refer the buyer to official government reports.

Question 61

Shield statutes protect brokers from conveying incorrect information about properties.

Question 62

Some states mandate broker silence on disclosure of certain information about previous owners of properties.

Question 63

In a net agency relationship, the listing broker receives whatever amount the seller receives over a predetermined figure for the seller's proceeds.

Question 64

A designated agency relationship is the same as a dual agency.

Question 65

Online listing services follow a different fee structure from the traditional agency listing arrangements.

Question 66

Online listing services have copyright permissions on the use of photos from MLS.

Question 67

The NAR prohibits brokers from working with VOW listings.

Question 68

None of the online listing services involves the use of agents.

Question 69

Electronic signatures are now acceptable for listing agreements.

Question 70

The multiple listing agency is actually a marketing tool and not a type of agency contract.

Question 71

In an exclusive agency, the seller retains the right to sell the property without the listing agent and not be responsible for a commission to that listing agent.

Question 72

A co-operating broker relationship is a subagency relationship.

Question 73

In a subagency relationship, there need not be any disclosure of its terms to the seller or the seller's agent.

Question 74

"Ready, willing, and able" buyer is an easy standard to define for when a commission is due and owing.

Question 75

If a buyer takes steps to thwart the closing of a sale after agreeing to it, the buyer must still pay the agent's commission.

Question 76

A no deal, no commission clause is the assumed standard for listing agreements.

Question 77

In a dual agency relationship, the agent represents both the buyer and the seller in the purchase and sale of property.

Question 78

The phrase "legalized conflicts of interest" refers to exclusive-right-to-sell agencies.

Question 79

Which of the following pairs do have fiduciary responsibilities between them?

A) Broker - broker
B) Broker - agent
C) Broker - seller
D) Broker - licensing agent

Question 80

Which of the following is not grounds for license suspension or revocation?

A) Conviction for felonious burglary
B) Violation of fair housing laws
C) Suit by a buyer for misrepresentation
D) Commingling of funds