Question 1

It is common for real estate firms to identify submarkets,such as property types or particular sections of a city,in which they can specialize and concentrate their transaction activity.This practice is referred to as:

Accepted Answer

A) internet marketing 
B) open listing 
C) discount brokerage 
D) market segmentation

Question 2

There are a number of different types of listing contracts that can be used when marketing a property.Which of the following types of listings requires the broker to be paid a commission if anyone,other than the owner,sells the property during the contract period?

Accepted Answer

A) Open listing 
B) FSBO listing 
C) Exclusive agency listing 
D) Exclusive right of sale listing

Question 3

According to the law of agency,real estate brokers are required to observe several duties as they act as an agent for an individual trying to buy or sell a property.Which of the following duties refers to a broker's obligation to be completely open and honest with the principal?

Accepted Answer

A) Disclosure 
B) Confidentiality 
C) Loyalty 
D) Obedience

Question 4

Real estate brokers serve as intermediaries by bringing buyers and sellers together in the real estate market.For this service,brokers are paid what is commonly referred to as a:

Accepted Answer

A) commission 
B) licensing fee 
C) recovery fee 
D) listing fee

Question 5

Modern real estate brokerage normally relies on a multiple listing service (MLS)through which brokers have access to each other's listings.Which of the following types of agency agreements is established with the use of a MLS?

Accepted Answer

A) Single agency agreement 
B) Subagency agreement 
C) Dual agency agreement 
D) Designated agent agreement

Question 6

Federal and state laws prohibit discrimination in housing.However,exemptions do exist depending on the particular type of property that is being considered.All of the following activities could be considered exempt in specific scenarios EXCEPT:

Accepted Answer

A) Refusing to sell or rent to a person because of race. 
B) Refusing to sell or rent based on familial status (i.e.having children). 
C) Refusing to sell or rent to persons based on age. 
D) Refusing to sell or rent a single-family home based on religion provided the owners do not employ the services of a broker or agent.

Question 7

As an agent for the buyer or seller,a broker has 6 basic fiduciary responsibilities.Which of the following definitions best describes the responsibility of "Obedience"?

Accepted Answer

A) Broker must follow the instructions of the principal to the limits of what is legal and ethical 
B) Broker must keep principal informed of all changes in the financials of the negotiation 
C) Broker must not convey information about principal's financial status or motivations 
D) Broker must never subordinate the best interest of the principal to the interests of others,including himself/herself

Exam 12: Brokerage and Listing Contracts