land contract-contract for deed-or installment contract has been reached btw the seller & buyer

vendor finances & retains title til final pmt by vendee

an amendment to contract is created

by adding provisions to an accepted contract

Buyer offered & gave seller 3 days 2 respond next day found a FSBO &revoked offer w dual agent

do nothing+cuz she has notified agent her decision 2 rescind

clause in a contract that makes timely performance a condition of the contract is called the

"time is of the essence" clause

Seller accepted monetary consideration & agreed 2 sell property 4 agreed amount w specific time

if buyer chooses 2 purchase this contract is option contract

Which one is true regarding a trust account?

broker set up 2 hold $ of others til it's closed or released

To earn a commission, an agent must be which of the following?

Be licensed & have a written compensation agreement

1day prior closin, seller find out LA is related 2buyer, If seller refuse 2pay. will broker win

No.Undisclosed dual was created &fiduciary duty was breached

agent & seller hav exclusive right-2-sell, seller refuse 2 sell 2 Buyer=agreed 2 pay full price

seller can refuse 2 sell, but a commission is owed to broker

The broker is accountable for which of the following?

training & supervision of licensees under broker's control

After bad Home Inspection buyer refused 2 buy, LA advised seller 2 hide the damage & sell as is

LA must disclose material defects not disclosed by seller

Seller list his house for $190K, but was not told the value was $200k. Agent purchased property

Agent violated the responsibility of: Loyalty

Learning disabled & illiterate seller placed an X after understanding all the terms of contract

It's valid cuz seller is illiterate, not incompetent

Broker's policy=1st offer b presented & rejected b4 presentin 2nd one. Seller don't see 2nd one

is not permissible, because broker must submit all offers

Which of the following is the responsibility of a seller's agent to the buyer?

Disclosure of any material fact pertinent to the property

In a showing, an agent exaggerates a property's benefit. this action is

puffing, is legal as long as there is no misrepresentation

Buyer's offer says Apr. 15 closing or contract is null & void=Buyer may refuse 2 buy on Apr. 16

if the contract contained a "time is of the essence" clause

In a bilateral contract

both parties to the contract have duties to be performed

Which of the following BEST defines the law of agency?

rules of law responsibilities &obligations who acts 4 others

an executed contract means

all of the parties have fully performed their duties

A buyer's agent would NOT recommend the buyer seek expert advice if the buyer asked

how long has the property been on the market?

to create a contract, the offeree must accept the offer

without any changes to the offer

Which 1 is NOT TRUE about an exclusive agency agreement?

it excludes the seller from selling the property

Agent deposited $500 EMD in his account when offer was accepted, week later he wrote check2firm

It's not legal because it is commingling of funds

Which 1 is NOT a responsibility of the agent when agent is representing the buyer in RE?

show properties that maximize broker's comm. & select times

studbud

Unit 1 Review

70 termsStudBud Administration15 plays

Agency Relationships and Contracts

Flashcards70 cardsFPractice quizPHost liveL

Questions 70

Answers

1
land contract-contract for deed-or installment contract has been reached btw the seller & buyer
mortgagor finance & retain title til final pmt by mortgagee
vendor finances & retains title til final pmt by vendee
mortgagee finance & retain tittle til final pmt by mortgagor
vendee finances & retains title til final pmt by vendor
2
an amendment to contract is created
only by attorneys before closing
by adding provisions to an accepted contract
only if using fill-in-blank agreements
before the original contract is created
3
Buyers entered into an exclusive buyer agency agmt. What agency relationship has been created?
universal agency
general agency
dual agency
special agency
4
Buyer offered & gave seller 3 days 2 respond next day found a FSBO &revoked offer w dual agent
do nothing+cuz she has notified agent her decision 2 rescind
make an immediate offer to FSBO property before it's sold
give the seller 3 days 2 accept or reject, as offer stated
make sure seller's notified of revocation b4 makin new offer
5
clause in a contract that makes timely performance a condition of the contract is called the
"time is of the essence" clause
within a reasonable time clause
unity of time clause
drop dead time clause
6
Seller accepted monetary consideration & agreed 2 sell property 4 agreed amount w specific time
if buyer chooses 2 purchase, contract is listing contract
if buyer chooses 2 purchase this contract is land contract
if buyer chooses 2 purchase this contract is sales contract
if buyer chooses 2 purchase this contract is option contract
7
Which one is true regarding a trust account?
broker set up 2 hold $ of others til it's closed or released
$ from the trust account can be used by broker at any time
must b open by new agent within 7 days of receipt of license
If buyer default on contract=agent may w/draw $ & pay seller
8
To earn a commission, an agent must be which of the following?
Be licensed & have a written compensation agreement
Be the procuring cause of sale & have met all CE requirement
Be the procuring cause of the sale & also be a member of MLS
Be licensed & have met all CE requirements
9
1day prior closin, seller find out LA is related 2buyer, If seller refuse 2pay. will broker win
Yes. Disclosure of relationship btw buyer & LA is irrelevant
No.Undisclosed dual was created &fiduciary duty was breached
No. Seller can rescind a listing agreement prior to closing
Yes. Seller must pay cuz there's a ready willin & able buyer
10
To insert additional terms into the contract, the agent would use
an addendum
a contingency
a new contract
an adaptation clause
11
agent & seller hav exclusive right-2-sell, seller refuse 2 sell 2 Buyer=agreed 2 pay full price
seller can refuse the offer & has no legal liability to no1
seller can refuse 2 sell, but a commission is owed to broker
seller cannot refuse 2 sell cuz he signed exclusive listing
seller cannot refuse 2 sell cuz the listed price was offered
12
An exclusive right-to-sell listing is BEST described as
personal service contract
buy-sell contract
property management contract
broker-principal contract
13
A sales contract, land contract, or trust deed would give the buyer
a cloud on the title
an equitable title
a legal title
a quiet title
14
The broker is accountable for which of the following?
the office hours that agents work
the number of cold calls each gent makes each day
the payments of agents' income taxes
training & supervision of licensees under broker's control
15
After bad Home Inspection buyer refused 2 buy, LA advised seller 2 hide the damage & sell as is
LA was fulfilling agent's duty of loyalty & gave good advice
Buyer will prevail cuz agent must indemnify the inspector
LA must disclose material defects not disclosed by seller
Buyer will not prevail 4 buying the house as is
16
Seller list his house for $190K, but was not told the value was $200k. Agent purchased property
Agent violated the responsibility of: Discovery
Agent violated the responsibility of: Obedience
Agent violated the responsibility of: Accountability
Agent violated the responsibility of: Loyalty
17
The status of a contract that meets all the essential elements and is enforceable is called
voidable contract
void contract
valid contract
unenforceable contract
18
Contract entered into w/o duress, menace, misrepresentation, or fraud, meets the legal reqs of?
reality of consent
meeting of the minds
valuable consideration
proper legal form
19
BEST description of type of agency that is created by the actions or conduct of the parties is
an implied agency
a dual agency
a single agency
an express agency
20
Agent has buyer interested in his own firm's listing BIC appoints 1 Agent 2seller & 1 for buyer
this is designated gency
this is implied agency
This is express agency
undisclosed agency
21
An oral sales contract involving the sale of real estate is
voidable
unenforceable
valid
void
22
Learning disabled & illiterate seller placed an X after understanding all the terms of contract
It's valid cuz seller has an attorney verify what agent said
It's valid cuz seller is illiterate, not incompetent
It's not valid cuz illiterate ppl can never enter into valid
It's not valid cuz illtearate must have a guardian explain
23
An agent forgot to get the buyer to sign the offer. what is the status of the offer?
valid
voidable
void
voluntary
24
Broker's policy=1st offer b presented & rejected b4 presentin 2nd one. Seller don't see 2nd one
is permissible, providing the commission is split btw agents
not permissible, because broker must notify 2nd buyer of 1st
is permissible, if arrangement is written in PB's contract
is not permissible, because broker must submit all offers
25
Which of the following is the responsibility of a seller's agent to the buyer?
Disclose that seller is near bankruptcy or foreclosure
Disclosure that the seller has AIDS
Disclosure of any material fact pertinent to the property
Disclosure of the lowest offer the seller will accept
26
Clause in contract that is meant 2 relieve party from liability for injuries 2 another party is
indefeasible clause
exculpatory clause
indemnification clause
execution clause
27
A promise or something of value made by 1 party to induce other party to enter into a contract
reality of consent
the meeting of the minds
legal consideration
the authorization to perform
28
In a showing, an agent exaggerates a property's benefit. this action is
misrepresentation of the property and is illegal
a ministerial act, which is legal
puffing, is legal as long as there is no misrepresentation
common business practice and is legal
29
Buyer couldn't secure a loan after offer was accepted. which clause allows seller to get EMD?
forfeiture clause
indemnification clause
punitive damages clause
Exculpatory clause
30
transfer of rights, duties, or both from 1 contract to another contract or 1 person to another
assignment
acknowledgement
accession
attestation
31
A listing agent lost the seller's house keys. The agent has breached his fiduciary duty of
loyalty
accountability
care
disclosure
32
An optionee has communicated 2 optionor that optionee will purchase property-option contract is
executory bilateral contract
executory unilateral contract
executive unilateral contract
executive bilateral contract
33
Buyer's offer says Apr. 15 closing or contract is null & void=Buyer may refuse 2 buy on Apr. 16
if the contract contained a transfer clause
if the contract contained a contingency clause
if the contract contained a "time is of the essence" clause
if the contract contained a settlement clause
34
In a bilateral contract
a restriction is placed in the contract
only one of the parties is bound to the contract
both parties to the contract have duties to be performed
consideration is not an essential element
35
Which of the following is NOT required to create valid sales contract?
Earnest Money
Offer and acceptance
Consideration
Signature
36
Agent works 4 company that required jacket had benefits & paid taxes. What was the relationship
an independent contract
a general partnership
an employer/ employee
a joint venture
37
Which of the following BEST defines the law of agency?
rules of law responsibilities &obligations who acts 4 others
rules & regulations of the state licensing agency
principles that govern one's conduct in business
the selling of another's property by an authorized agency
38
an executed contract means
all of the parties have fully performed their duties
a party has the right to sue for specific performance
contingencies do not have to be met
only one party to the contract must perform
39
A buyer's agent would NOT recommend the buyer seek expert advice if the buyer asked
Does this crack in foundation mean theres structural damage?
how long has the property been on the market?
how should i take title to the property?
would you recommend a radon test?
40
A contract that has no legal force or effect is
unenforceable
void
valid
voidable
41
Attorney said about investing 2 a buyer who will b attending a foreclosure sale "Caveat emptor"
let the bank beware
let the seller beware
let the buyer beware
let the neighbors beware
42
to create a contract, the offeree must accept the offer
before the end of the business day of receiving it
within 24 hours of receiving the offer
only after it has been approved by an attorney
without any changes to the offer
43
Which 1 is NOT TRUE about an exclusive agency agreement?
it excludes the seller from selling the property
it excludes other brokers from listing the property
it may contain a broker protection clause
it may contain a clause prohibiting a For Sale sign in yard
44
When neither party can sue the other to force performance, the contract is said to be
unenforceable
voidable
valid
void
45
Legal action that may be taken to enforce the terms of the contract is a suit
for possession
to quiet the title
for specific performance
for exoneration
46
listing agreement: allows seller to have contracts w more than 1 broker & right to sell herself
exclusive right-to-sell listing
net listing
open listing
exclusive agency listing
47
Agent deposited $500 EMD in his account when offer was accepted, week later he wrote check2firm
It's not legal because it is embezzlement
Is legal, if broker/firm told him to follow that precedure
It's not legal because it is commingling of funds
Is legal, if buyer gave agent permission 2 follow precedure
48
An offer was accepted with contingencies. The status of this contract is
void
unenforceable
valid
voidable
49
if brokerage represents both parties in the transaction as customers is acting as?
an implied agency
a transaction broker
an express agency
a business broker
50
Which 1 is NOT a responsibility of the agent when agent is representing the buyer in RE?
show properties that maximize broker's comm. & select times
Suggest the minimum amount of EMD to be offered
Be fair & honest w seller, but safeguard buyer's interest
Require seller 2 sign property condition & confirm condition
51
Upfront damage or compensation that r agreed to be paid by breaching party in contract r called
liquidated damages
compensatory damages
statutory damages
punitive damages
52
Which of the following documents would NOT create an agency relationship?
Sales contract
Property management agreement
Listing contract
Buyer agency contract
53
All this statements are False about a Seller's agent except
must follow the legal instructions of the seller
can lower the price of property w/o the seller's approval
can disclose seller's personal info 2 buyer if it helps sale
can accept commission from buyer w/o seller's approval
54
The principal to whom an agent gives professional opinions and counsel is a
fiduciary
subagent
client
customer
55
BRealty's agent is buyer agent 4 a home listed by XRealty=Seller will pay the commission: Agent
Gets her commission check from either principal broker
Gets her commission check from principal broker of XRealty
Gets her commission check from principal broker of BRealty
Gets her commission check directly from buyer
56
The term that means let the seller beware is
caveat actor
caveat venditor
caveat emptor
caveat viator
57
Buyer signed an agreement to pay the agent when she purchased a property described in contract
exclusive-agency buyer agency agreement
buyer agency disclosure agreement
exclusive buyer agency agreement
open buyer agency agreement
58
Broker represents a buyer interested in a house that is listed by a difficult 2 negotiate agent
say nothing about LA and tell buyer the house just sold
write an offer if he's really interested in purchasing house
Agent should inform buyer to negotiate directly w seller
Agent should inform buyer that LA is difficult & find other1
59
1 contract was substituted for another & was released of liability from original. term release?
indemnification
exchange
alieanation
navation
60
An agent received a $500 bonus check from a seller. What should she do with the check?
Check is commission & it should b written 2 principal broker
tell seller she can accept only cash & broker cannot know it
tell seller that her broker doesn't allow any agents' bonus
cash the check and say nothing to her broker
61
Which one Best describes an independent contractor w current Real Estate license?
contractor can receive employee benefits from broker
broker is responsible 2 pay contractor's income tax & SS tax
contract w broker 90% or + of income as licensee &not hourly
contract w broker & can regulate agent's working hours
62
The term fiduciary means there is
a written agreement to pay a real estate commission
legal relationship da creates a position of trust confidence
oral agreement that does not create an agency relationship
a legal relationship only duties owed: honesty, good faith
63
Agent advised seller to remove all valuables b4 open house, next day medicine was stolen.
He can be held accountable cuz agent should have check ppl
He can be held accountable for $ or property of others
He can't be accountable cuz agent cannot watch everyone
He can't be accountable cuz he advised 2 remove valuables
64
Which of the following statement is FALSE regarding offer and acceptance?
An offer can be revoked at any time before acceptance
To offer means to put forward for acceptance or rejection
Counteroffer reverses legal positions of offeror and offeree
In real estate, an oral acceptance creates binding contract
65
Buyers brought $20k cash to closing 4 downpayment. Which form must be filed w IRS to report it?
1099
8300
8303
1003
66
Which one would NOT be a required notification that a broker must file with regulatory agency?
Notification of a new listing agreement
Opening a new branch office
Change of location for a branch office
Notification of death of the principal broker
67
Which of the following is an essential element of a contract?
meeting of the minds
equal bargaining power
mutual assent
three-day cancellation cluase
68
Buyer entered into buyer agency agmt that gave him the right 2 enter into agency w other agents
an open buyer agency
a designated buyer agency
an exclusive buyer agency
buyer agency
69
Enforceable contract 4 sale of RE must be in writing & signed by all parties, in accordance w?
Real Estate License Act
Uniform Commercial code
truth in lending act
statute of frauds
70
A broker deposited an EMD check in his business account. The broker is guilty of
embezzlement
commingling
fraud
misrepresentation

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