Question 1

Choose the one most appropriate answer for each.
-a broker employed by and therefore loyal to the buyer

Accepted Answer

A) agent 
B) agency by estoppel 
C) boycotting 
D) buyer's broker 
E) commingling
F)dual agency
G)fiduciary relationship
H)implied authority
I)middleman
J)ostensible authority
K)price fixing
L)principal
M)property report
N)puffing
O)sales associate
P)special agency
Q)subagent
R)third parties
S)trust account
T)universal agency 
A) agent 
B) agency by estoppel 
C) boycotting 
D) buyer's broker 
E) commingling
F)dual agency
G)fiduciary relationship
H)implied authority
I)middleman
J)ostensible authority
K)price fixing
L)principal
M)property report
N)puffing
O)sales associate
P)special agency
Q)subagent
R)third parties
S)trust account
T)universal agency

Question 2

After an earthquake, a property manager had to meet with insurance adjusters to arrange for repairs to several properties which she managed. The property owners had given the manager what kind of agency authority?

Accepted Answer

A)  Universal 
B)  Special 
C)  General 
D)  Power of Attorney 
A)  Universal 
B)  Special 
C)  General 
D)  Power of Attorney

Question 3

Choose the one most appropriate answer for each.
-results when a principal fails to maintain due diligence over her agent and the agent exercises powers not granted to him

Accepted Answer

A) agent 
B) agency by estoppel 
C) boycotting 
D) buyer's broker 
E) commingling
F)dual agency
G)fiduciary relationship
H)implied authority
I)middleman
J)ostensible authority
K)price fixing
L)principal
M)property report
N)puffing
O)sales associate
P)special agency
Q)subagent
R)third parties
S)trust account
T)universal agency 
A) agent 
B) agency by estoppel 
C) boycotting 
D) buyer's broker 
E) commingling
F)dual agency
G)fiduciary relationship
H)implied authority
I)middleman
J)ostensible authority
K)price fixing
L)principal
M)property report
N)puffing
O)sales associate
P)special agency
Q)subagent
R)third parties
S)trust account
T)universal agency

Question 4

Choose the one most appropriate answer for each.
-statements a reasonable person would recognize as non-factual or extravagant

Accepted Answer

A) agent 
B) agency by estoppel 
C) boycotting 
D) buyer's broker 
E) commingling
F)dual agency
G)fiduciary relationship
H)implied authority
I)middleman
J)ostensible authority
K)price fixing
L)principal
M)property report
N)puffing
O)sales associate
P)special agency
Q)subagent
R)third parties
S)trust account
T)universal agency 
A) agent 
B) agency by estoppel 
C) boycotting 
D) buyer's broker 
E) commingling
F)dual agency
G)fiduciary relationship
H)implied authority
I)middleman
J)ostensible authority
K)price fixing
L)principal
M)property report
N)puffing
O)sales associate
P)special agency
Q)subagent
R)third parties
S)trust account
T)universal agency

Question 5

The relationship, which is created when one person authorizes another to act on his behalf, is called ratification.

Accepted Answer

A) True 
 B)False

Question 6

The placing of funds belonging to others in a broker's personal bank account constitutes ____________________.

Accepted Answer

The answer of The placing of funds belonging to others...

Question 7

A salesperson received an earnest money check from a buyer on the listing of a co-op broker. What should the salesperson do with the check?

Accepted Answer

A)  Deposit it into his client trust account 
B)  Sign it and pass it on to the seller 
C)  Get it signed by the buyer and the seller and turn it over to his broker 
D)  Hold the check until the contract has been signed by all parties 
A)  Deposit it into his client trust account 
B)  Sign it and pass it on to the seller 
C)  Get it signed by the buyer and the seller and turn it over to his broker 
D)  Hold the check until the contract has been signed by all parties

Question 8

Choose the one most appropriate answer for each.
-the principal gives the agent legal power to transact matters of all types

Accepted Answer

A) agent 
B) agency by estoppel 
C) boycotting 
D) buyer's broker 
E) commingling
F)dual agency
G)fiduciary relationship
H)implied authority
I)middleman
J)ostensible authority
K)price fixing
L)principal
M)property report
N)puffing
O)sales associate
P)special agency
Q)subagent
R)third parties
S)trust account
T)universal agency 
A) agent 
B) agency by estoppel 
C) boycotting 
D) buyer's broker 
E) commingling
F)dual agency
G)fiduciary relationship
H)implied authority
I)middleman
J)ostensible authority
K)price fixing
L)principal
M)property report
N)puffing
O)sales associate
P)special agency
Q)subagent
R)third parties
S)trust account
T)universal agency

Question 9

An agent's authority may be granted by

Accepted Answer

A)  written agreement. 
B)  custom in the industry. 
C)  both a and b. 
D)  neither a nor b. 
A)  written agreement. 
B)  custom in the industry. 
C)  both a and b. 
D)  neither a nor b.

Question 10

Choose the one most appropriate answer for each.
-refusing to work with another broker because of an arbitrary set of rules

Accepted Answer

A) agent 
B) agency by estoppel 
C) boycotting 
D) buyer's broker 
E) commingling
F)dual agency
G)fiduciary relationship
H)implied authority
I)middleman
J)ostensible authority
K)price fixing
L)principal
M)property report
N)puffing
O)sales associate
P)special agency
Q)subagent
R)third parties
S)trust account
T)universal agency 
A) agent 
B) agency by estoppel 
C) boycotting 
D) buyer's broker 
E) commingling
F)dual agency
G)fiduciary relationship
H)implied authority
I)middleman
J)ostensible authority
K)price fixing
L)principal
M)property report
N)puffing
O)sales associate
P)special agency
Q)subagent
R)third parties
S)trust account
T)universal agency

Question 11

All of the following are examples of fiduciary relationships EXCEPT

Accepted Answer

A)  trustee-beneficiary. 
B)  attorney-client. 
C)  broker-principal. 
D)  grantor-beneficiary. 
A)  trustee-beneficiary. 
B)  attorney-client. 
C)  broker-principal. 
D)  grantor-beneficiary.

Question 12

A broker who misrepresents a property to a prospect may be subject to the loss of rights to a ____________________.

Accepted Answer

The answer of A broker who misrepresents a property to...

Question 13

Traditionally, in residential sales, prior to the emphasis on buyer agency, the broker considers the buyer to be

Accepted Answer

A)  a client. 
B)  a customer. 
C)  a principal. 
D)  a fiduciary. 
A)  a client. 
B)  a customer. 
C)  a principal. 
D)  a fiduciary.

Question 14

A salesperson who worked as an agent in a broker's office decided to sell his own home. He placed a classified ad in the paper for his open house, listing only his own home number. The salesperson's actions were against state real estate license law.

Accepted Answer

A) True 
 B)False

Question 15

Two buyers purchase a home through a broker. After the close of escrow, the buyers discover a structural problem with the property, which the seller had not disclosed to anyone, including the broker. The buyers attempted to rescind their agreement. If they succeed, what commission is the broker entitled to in this case?

Accepted Answer

A)  Full commission 
B)  Expenses only 
C)  None 
D)  Full commission minus expenses 
A)  Full commission 
B)  Expenses only 
C)  None 
D)  Full commission minus expenses

Question 16

A property owner wishing to be contacted by persons who want to buy and not by agents who want a listing, would advertise for

Accepted Answer

A)  "principals only". 
B)  "customers". 
C)  "clients". 
D)  "third parties". 
A)  "principals only". 
B)  "customers". 
C)  "clients". 
D)  "third parties".

Question 17

A broker listed a property and in one week found a buyer for the property herself. Under these circumstances, the broker

Accepted Answer

A)  may only represent the seller. 
B)  may have a dual agency. 
C)  may not represent the buyer. 
D)  is not required to disclose a dual agency. 
A)  may only represent the seller. 
B)  may have a dual agency. 
C)  may not represent the buyer. 
D)  is not required to disclose a dual agency.

Question 18

Choose the one most appropriate answer for each.
-a separate account for holding client's and customer's money

Accepted Answer

A) agent 
B) agency by estoppel 
C) boycotting 
D) buyer's broker 
E) commingling
F)dual agency
G)fiduciary relationship
H)implied authority
I)middleman
J)ostensible authority
K)price fixing
L)principal
M)property report
N)puffing
O)sales associate
P)special agency
Q)subagent
R)third parties
S)trust account
T)universal agency 
A) agent 
B) agency by estoppel 
C) boycotting 
D) buyer's broker 
E) commingling
F)dual agency
G)fiduciary relationship
H)implied authority
I)middleman
J)ostensible authority
K)price fixing
L)principal
M)property report
N)puffing
O)sales associate
P)special agency
Q)subagent
R)third parties
S)trust account
T)universal agency

Question 19

Choose the one most appropriate answer for each.
-a relationship that requires trust, honesty, and exercise of good business judgment

Accepted Answer

A) agent 
B) agency by estoppel 
C) boycotting 
D) buyer's broker 
E) commingling
F)dual agency
G)fiduciary relationship
H)implied authority
I)middleman
J)ostensible authority
K)price fixing
L)principal
M)property report
N)puffing
O)sales associate
P)special agency
Q)subagent
R)third parties
S)trust account
T)universal agency 
A) agent 
B) agency by estoppel 
C) boycotting 
D) buyer's broker 
E) commingling
F)dual agency
G)fiduciary relationship
H)implied authority
I)middleman
J)ostensible authority
K)price fixing
L)principal
M)property report
N)puffing
O)sales associate
P)special agency
Q)subagent
R)third parties
S)trust account
T)universal agency

Question 20

A buyer making an offer on a property writes an earnest money check to the broker. The seller will not be available for 5 days. What should the broker do with the check?

Accepted Answer

A)  Attach it to the offer in the file 
B)  Mail it with the offer to the seller 
C)  Hold the check until the contract has been signed by all parties 
D)  Hold it until the seller returns home 
A)  Attach it to the offer in the file 
B)  Mail it with the offer to the seller 
C)  Hold the check until the contract has been signed by all parties 
D)  Hold it until the seller returns home

Exam 20: The Principal-Broker Relationship: Agency

Choose the one most appropriate answer for each. -a broker employed by and therefore loyal to the buyer

After an earthquake, a property manager had to meet with insurance adjusters to arrange for repairs to several properties which she managed. The property owners had given the manager what kind of agency authority?

Choose the one most appropriate answer for each. -results when a principal fails to maintain due diligence over her agent and the agent exercises powers not granted to him

Choose the one most appropriate answer for each. -statements a reasonable person would recognize as non-factual or extravagant

The relationship, which is created when one person authorizes another to act on his behalf, is called ratification.

The placing of funds belonging to others in a broker's personal bank account constitutes ____________________.

A salesperson received an earnest money check from a buyer on the listing of a co-op broker. What should the salesperson do with the check?

Choose the one most appropriate answer for each. -the principal gives the agent legal power to transact matters of all types

An agent's authority may be granted by

Choose the one most appropriate answer for each. -refusing to work with another broker because of an arbitrary set of rules

All of the following are examples of fiduciary relationships EXCEPT

A broker who misrepresents a property to a prospect may be subject to the loss of rights to a ____________________.

Traditionally, in residential sales, prior to the emphasis on buyer agency, the broker considers the buyer to be

A salesperson who worked as an agent in a broker's office decided to sell his own home. He placed a classified ad in the paper for his open house, listing only his own home number. The salesperson's actions were against state real estate license law.

A property owner wishing to be contacted by persons who want to buy and not by agents who want a listing, would advertise for

A broker listed a property and in one week found a buyer for the property herself. Under these circumstances, the broker

Choose the one most appropriate answer for each. -a separate account for holding client's and customer's money

Choose the one most appropriate answer for each. -a relationship that requires trust, honesty, and exercise of good business judgment

A buyer making an offer on a property writes an earnest money check to the broker. The seller will not be available for 5 days. What should the broker do with the check?

Nature and Description of Real Estate

Rights and Interests in Land

Forms of Ownership

Transferring Title

Recordation Abstracts and Title Insurance

Contract Law

Real Estate Sales Contracts

Mortgage and Note

Deed of Trust

Lending Practices

The Loan and the Consumer

Sources of Financing

Types of Financing

Taxes and Assessments

Title Closing and Escrow

Real Estate Leases

Real Estate Appraisal

Licensing Laws and Professional Affiliation

The Principal-Broker Relationship: Employment

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Condominiums, Cooperatives, Puds, and Timeshares

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