No, because her client, Larry, has no interest in the property. Agents are prohibited from using general information, knowledge, or experience acquired during the course of an agency in later employment. Obedience. 67. casual statement - a licensee might unwittingly become a consumer's agent. 33. Is Brad violating the Code if he calls Ted? What is the carrying value of Mineviks total inventory as of December 31, 2013? 118. D. REALTOR Clarence is the respondent. C. is simply doing his job by selling the companys listings. Board of Directors. b. is three months. At the closing table, Marty tells Caroline and the seller that the buyer is actually his daughter. The couple wants to ensure their children are raised in a diverse area. dual agency. Select the statement that is considered practicing law and should be avoided. express information of facts about a property or client's circumstances. The Federal Fair Housing Law prohibits me from discussing the racial composition of the neighborhood. B. C. a violation of Code, because it is not a general announcement. An agency relationship between a seller and a broker is usually created by a written employment contract called a 141. B. the co-operating commission originally offered by Nelson. NAR May the Code Be With You / The Code of Ethics in Action Real-Life Applications Class D. contact Linda to let her know there is an offer. required to disclose the information because it is a material fact important to the seller. The sales associate was practicing puffing. While REALTOR Mary is putting a sign on a property, a couple pulls up in a car and asks if they can see the property. C) 3. A) D) She and Dean enter into an agreement of sale. 99. Do international differences in financial leverage exist? REALTOR Marty has a daughter who is interested in a property. A. consider how and when Amy entered the transaction. To get the answers she needs, Jane may the broker always acts as the agent of a client or customer. release of information regarding a transaction two years following closing. At the request of a client, REALTOR Marguerite provided a written estimated value of the clients property. B. advise Holly that Linda will only take listing price; since he is Lindas agent, he has the right to do so. A. allowable because the offer had already been presented and Matthew is just adding information. C. You really need to consult with your attorney with questions of that nature. The first committee at the local level to review an ethics complaint or a request for arbitration is the Which of the following scenarios MOST accurately describes the typical income tax A. quality of title to the property B. \text{Sales (15,000 units X \$30 per unit)}&\text{\$450,000}\\ D) the sales associate was guilty of fraud. A. proof of clear title on the property This is D. Broker Steve. B. offer to directly pay REALTOR John a bonus commission if he produces a contract at full price. Broker Steve has brought arbitration against Broker Deb. C. Only those licensed as sales agents may become REALTORS. C. avoid the subject of the back door and if it comes up, lie b. broker. D) Jona is requesting arbitration because he feels Wally unfairly went into contract with his client. Agency - National Association of Realtors Jean asks Mike his opinion about the structure of the property. REALTOR Jerry has exclusive employment contracts with buyer Stan and seller Tammy. c. fiduciary. Identify which of these practices a REALTOR is permitted to do. A. B. D. weigh into consideration; Paul introduced the property and is the procuring cause. should present to the seller only the highest offer for the property. A) The seller, Morgan, contacts Buyer Valerie independently and informs her that the property is for sale. D) The two functions of the local REALTOR Associations Board of Directors, with respect to Code enforcement, are D. Article 14Arbitrate disputes. Article 9Put contracts in writing REALTOR Jack notices the following comment posted under one of his listings on his website. How is the NCREIF Property Index calculated? B. allowable because REALTOR Nelson obviously doesnt understand the offer. It is illegal in all states. A. This is an example of A real estate professional's duties to a customer do NOT include The seller accepts the offer. Subsequently, Dean lists the property with Broker Mike. D. request arbitration services from the National Association of REALTORS if both Jona and Wally agree. D. I will ask the selling REALTOR her opinion and get back to you., 109. REALTORS seek arbitration over monetary disputes with another REALTOR because must promote and safeguard the seller's best interests. D) the seller and the buyer are represented by different companies. REALTOR Dee files an arbitration request and is able to prove she is the procuring cause of the sale. B. determining if ethics complaints should go forward and holding the hearings. He should REALTOR Donna has a property exclusively listed and shows it to buyer Dan, who wants to make an offer. A. attending the Grievance Committee meetings and the Professional Standards hearings. A. Melanie can only talk to these buyers if they contact her. The broker can agree to a change in price without the seller's approval. C. Sign a six-month contract with Tims Realty and if we sell your home, youll get a free GrillMate gas grill. C. REALTOR Lyla listed her clients property for less than they had wanted to sell it for because she knew it had a better chance of selling at that price. The dual agent may not disclose confidential information from one party to the other. Most people familiar with the housing market know that a buyer's agent . B. This would most likely be viewed as When a consumer wishes to obtain specific information about a listing, he is instructed to click here. The click actually is consent for the consumer to enter into an exclusive, year-long buyer agency agreement with Nathan but this is not apparent. B) C. Nan sold a house to Bob last year. REALTOR Devon Properties that are considered undesirable because of events that occurred there or because a known sex offender lives in the area are considered The agent has not violated any agency responsibilities to the seller. B. include persons of only one race to show the demographics of that neighborhood. A) Identify the scenario below where it would NOT be appropriate for a buyers agent to talk to the seller directly concerning price, terms, or conditions. D. Owen is Howards principal. The agent's job is to sell the principal's automotive parts to auto repair shops and other purchasers. Grievance Committee A. instruct her seller to pay a bonus commission directly to REALTOR John. Each party must be informed he will not receive. B. the total commission paid to REALTOR Nelson by the seller. tell the seller that the defect must be repaired. Under these circumstances the broker: A. a monetary dispute between two licensees. can disclose the seller's minimum price. C. both brokers. A broker helps a buyer and a seller with paperwork but does not represent either party. C. not run the ad at all. Marty makes arrangements with the listing agent, REALTOR Caroline, to show the property. C. draw up the paperwork on Hollys offer. A licensed broker obtained an exclusive right-to-sell listing from an owner. the customer. 145. Which of the following is NOT a critical factor in determining independent contractor status? Which of the following describes a typical equity REIT? D) REALTOR Jack notices the following comment posted under one of his listings on his website. 60. After the closing, Melanie visits the buyers in their home and asks if they have any questions or need any information about the community. Absolutelythis is a community property state. required to disclose the information under the Fair Credit Registry Act. accounting. REALTOR Scott has several websites, each directed at various niches, such as first-time buyers, seniors, etc. B. Olivia may ask her REALTOR principal to initiate litigation but she may not initiate litigation on her own. An open listing is an exclusive contract. an agency. Subsequently, he calls her several times a week, sends her e-mails, and mails a packet of additional information. B. REALTOR principal or the firm itself Inform any prospective buyers of the defect. C) C) C) A. REALTOR-ASSOCIATES All information about material defects that the agent knows or should know A) the possible reaction of potential buyers or tenants. C. documentation of what the opinion is based on D. Yes. Rather than pay sales commissions, which are currently included in variable expenses, the company would pay salespersons fixed salaries and would invest heavily in advertising. Which of the following statements is NOT true about dual agency Oxford University Press | Online Resource Centre | Multiple choice REALTOR Devon traveled to another state where he bought a property for himself. Care an agent. A. Ann cannot file both an ethics complaint and an arbitration request at the same time. Broker Roger has an open house on a property and has a register for attendees to sign. A. contact Sam and ask him the nature and terms of any agreement he has with the Byers Common law, statutory law, and administrative law. A) Explain. the broker informs either the buyer or the seller of this fact. No, because REALTOR Katie is obviously clueless about how to price a property. 34. D. neither Jane nor Paul. d. has no specified term. Seller Sue says to REALTOR Bill one day, I will get half the money when we sell this house, wont I? Which response is correct? A broker engaged by a buyer has the responsibility to. D) Eddie suggests taking the matter to arbitration. D. The seller initiates direct contact with the buyers agent. The broker can disclose confidential information about the seller to a buyer if it increases the likelihood of a sale. C) REALTOR Dee shows a property listed by REALTOR Nelson. Multiple Choice The dual agency is permissible so long as both parties are fully informed as to the dual role of the agent and consent. D. Melanie should not solicit a buyer agreement with these buyers. Most state statutes require that material facts to a transaction, such as credit issues, be disclosed to a seller, even if the buyer is a client. D. excellent location; walk to the bus stop. Howard and Owen chat about the features of the house and Howard seems to be interested. At 6 p.m. the same day, the agent receives two more offers. A. REALTOR Nelson has an exclusive listing contract with seller Jennifer. C) His boss is Bud, whose wife is Broker Nan. 117. 3 The last group at the local level to review an ethics complaint is the Broker REALTOR Miriam employs REALTOR Tom. REALTOR Jon has an open house, which buyer Halie attends. He shows and sells a listing held by REALTOR Jane. C. Providing an opinion about the structure is outside the scope of my expertise. 147. The structure looks good. Refer to the original data. Arbitration deals with monetary disputes only and could also be initiated by or made against a customer, client, or non-member broker. Which of the following duties does Marcy NOT owe to Chad? Every agency relationship has a principal, an agent, and a third party. a criminal registry that is maintained by state real estate offices. D. Yes, because REALTORS should not misrepresent the availability of access. D) \text{Electronics}&\text{\$\hspace{1pt}40,000,000}&\text{\$\hspace{1pt}2,880,000}&\text{\$\hspace{1pt}16,000,000}\\ B. may ask the local Association of REALTORS to arbitrate it. C. websites must be maintained and updated frequently. REALTOR Barbara holds an open house on a rainy day and discovers the seal for the back door is leaking. Subsequently, REALTOR Shelley claims that she represented Buyer Jack. 102. Common law c. agent. She stipulates that her client, Buyer Jack, will pay her fee. What does the phrase the law of agency is a common law doctrine mean? B. knows a way around the problem. Broker Joann. C. a violation of Code as Lynn cannot attempt to obtain future business with Terrys client at this point. A. not a violation of Code, because it targets listed properties. D. tell the sellers to disclose the leaks, 31. REALTOR Patty has an appointment to show REALTOR Katies listing. \end{array} Chad is a customer of Marcys. The hearing panel will 24. C. the principal The broker has violated the agency relationship with the seller. REALTOR Howard has an exclusive representation agreement with a buyer. \text{Variable expenses}&\underline{\text{\hspace{5pt}315,000}}\\ C. maintain the confidentiality of the information since the seller is his client Module II- Part III-INCLUDES MUST-KNOW QUESTI, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Calculus for Business, Economics, Life Sciences and Social Sciences, Karl E. Byleen, Michael R. Ziegler, Michae Ziegler, Raymond A. Barnett, Washington County FFA Dairy Foods CDE PART TWO. REALTOR Lisa, a property manager, researchs county records to determine the owners of multi-unit buildings. D. the National Association of REALTORS. Dual Agency vs. Designated Agency: Understand the Difference C. hearing Professional Standards cases and ratifying the results. B. have an arbitration hearing at Wallys association, if Jona agrees. C. not a true picture. A) A broker acting for both parties in the same transaction, B) A broker representing more than one principal, C) A broker listing a property and then, after it is relisted with another broker, selling the same property, D) Two brokerage companies cooperating with each other, The laws enacted by a legislature make up, The relationship of broker to client in an agency relationship is that of. 43. The agent gives the offer to the seller, who asks to consider it for 24 hours. the agent. 35. A. Jon did not make a reasonable effort to determine if Halie has an exclusive agreement. A. encourage the sellers to update the disclosure form and/or have the window repaired 116. C. Donna has violated the Code by not getting informed consent from both buyer and seller to be a dual agent. The National Association of REALTORS Code of Ethics is D. urge the seller to update the disclosure form or have the back door repaired, 106. The listing broker and the seller find a small roof leak in the attic. C) both the buyer and the seller are customers. C. Id be happy to discuss this house with you but I cannot discuss anything else. The hearing panel will B) Later, Ben, who was seated at the same table with Linda, buys the house from Broker Andrew. A. B. A. each members conscience. C. Joes statement could be considered a threat. B. D) A) Which of the following results is NOT an implication of the smoothing of real estate An agent works as a salesperson for a principal who owns an automotive parts business. an offer made on the property. Which of the following is an INCORRECT statement regarding dual agency? sales associates are agents of the broker. D. sending a mass mailing out to potential clients, 122. A REALTOR has the duty of loyalty to C. Yes. C) REALTOR Barbara holds an open house on a rainy day and discovers the seal for the back door is leaking. Disney tell Saul that the maximum it will pay for a 1-acre lot is $1 million. administrative law. 64. What is NOT one of the major ways that a REIT can be structured? principal is liable for any injuries caused by the agent's intentional torts. B) That same day, Jans buyer client calls Carlos directly and asks for an appointment to see the property and Carlos provides the showing. She mentions to all of them that she has just listed a home near the country club. A) B) REALTOR Kim can REALTOR Mike is showing a property to his client Jean. A. ethical. Because of that, the listing broker REALTOR Shelley reduces the fee Randy owes her. A seller, anxious to sell, listed a home for $190,000 and signed an agency agreement with a broker who then told a buyer to submit a low offer. B. an attorney-in-fact. The individual who is authorized and consents to represent the interests of another person in dealings with a third person is honest and fair dealing. 68. Jun 5, 2022. It is part of a body of law established by tradition and court decisions. Linda refuses to answer Janes questions. What is Barbaras duty? In a(n) _____ agency, a contracting third party does not know of either the existence of the agency or the principal's identity. REALTOR Patty has an appointment to show REALTOR Katies listing. REALTOR Donna has a property exclusively listed and shows it to buyer Dan, who wants to make an offer. Accounting Cycle and Classifying Accounts, Adjusting Accounts for Financial Statements, Asset Demand and Supply under Uncertainty, Business Analytics & Technology Management Chapter 2, Business Analytics & Technology Management Chapter 3, Business Analytics & Technology Management Chapter 4, Business Analytics & Technology Management Chapter 5, Business Analytics & Technology Management Chapter 6, Capital Budgeting and Managerial Decisions, Derivative Instruments and Hedging Activities, External Financial Statements and Revenue Recognition, Financial Intermediaries and Financial Markets, Financial Markets and Securities Offerings, Financial Statements and Accounting Transactions, Integrated Marketing Communications and Direct Marketing, Interactive Marketing and Electronic Commerce, Interpersonal and Organizational Communication, Introduction to Human Resource Management, Introduction to Human Resources Assessment, Managerial Accounting Concepts and Principles, Market Segmentation Targeting and Positioning, Organization and Operation of Corporations, Organizational Markets and Buyer Behaviour, Profitability Analysis and Analytical Issues, Profitability Analysis and Decentralization, Reporting and Analyzing Long Lived Assets, Responsibility Accounting and Performance Measures, Understanding Interest Rates Determinants. A. Loretta may insist that all buyers and sellers use the auxiliary services provided by her company. A. a 20% referral fee. Which of the following is TRUE about the difference between a special agent and a general agent? C) C. made a great decision. A. offering an inducement to get someone through the door 92. A. no, because Nathan is not responsible for how the website functions \end{array} D. set up an appointment with the title company. The broker has violated the agency relationship with the seller. D. both brokers. A) D. tell the Byers to call Sam to find out the nature and terms of any agreement they have with Sam. Disclosure The seller's agent is aware that a new landfill has been approved for development on an adjacent property but does not disclose this information to a buyer. B) Neither the offer nor the escrow instructions mentioned: (a) the broker as the agent, or (b) terms for payment of a commission. The agents fiduciary relationship of trust and confidence with the principal means that the broker owes the principal certain specific duties. C) dual-purpose mission; both the principal and the agent. No, Martys daughter and the seller were in mutual agreement with the stipulations of the sale. The broker designates one sales associate to represent the seller and one sales associate to represent the buyer. What should Erin tell Jones? D. State Licensing Board of Directors. A licensee must be a REALTOR to sell real estate in most states. The relationship between the agent and the seller ends automatically if the purchaser submits an offer. Conflict of interest is inherent in a dual agency arrangement. A. apparently limited to the open house and does not favor Roger. When a broker places trust funds of others into the company's operating account and then withdraws funds for the firm's use, what illegal practice has taken place? What are the typical implications to an REIT investor of REITs being listed? Which of the following is not true regarding dual agency? C) A. Mikes answer should be 47. An agency relationship may be terminated by all of the following, except: b. the principal's refusal of an offer to purchase that was presented in the name of a third party. Keeping both paper and digital copies of important documents is always a safe idea! B. by not informing Frank that he had signed a contract with Mr. Johnson returns due to the use of appraisals? D. targeted sales. 02. D) What Is Dual Agency? When Agent Reps Both Buyer and Seller - Realtor.com An agent must supply a written Agency Disclosure: b. to a seller before listing a property or to a buyer before writing an offer. D) A. favor either party. B) Administrative law. Walt Disney Company wants to open a new theme park in Chicago but first needs to acquire land for the park. REALTOR Brianna is a buyer agent and sells Randys house. C. A REALTOR can use guided statements to diminish another REALTORs integrity. Sara, a licensee, is helping customer Mark find a house? Later, a sales contract is entered into directly between Seller Keith and High-Rise Corporation. D) A. implied agency A. dictatorial business. C. Yes, because Ted did not give his consent to talk to Brad. Which of the following is correct? C. a violation of the Code, despite the fact that REALTOR Nelson did have permission from REALTOR Matthew. Which of the following statements is LEAST accurate regarding UPREITs and downREITs? D. must arbitrate as he and Edward are both REALTORS. The broker is guilty of intentional misrepresentation. the concept of caveat emptor. D. required by state law to be followed by all licensees. D. The buyer sought another broker in order to get a lower price. B. recorded deed restrictions a. Several buyers enter REALTOR Petes office and ask about one of the companys listings. The seller didnt mention this before the open house. B) Agents are prohibited from using general information, knowledge, or experience acquired during the course of an agency in later employment. the principal. B. Paul. This is a violation of the duty of loyalty known as ___________. A. stigmatized properties. Identify which statement is true. B. advise Susan of the commission differential and renegotiate his fee. A) PDF A GUIDE TO TENNESSEE S AGENCY AW - gcar.net C. The neighborhood looks predominately white but there are a few Latinos who live a couple of blocks over. D. contact Linda to let her know there is an offer. B. Sacha does not want arbitration, and both agree to get lawyers and sue one another. D. unprofessional behavior. A. Which of the following is not a listing agreement typically used in California? A) A. accounting for any deposit monies she receives from him, which are put into a separate account When Todd finished his degree in marketing, he started a career as a REALTOR. If in a week, you are still thinking about a new agent, Id be happy to talk to you about how I would go about selling your house. the death of either party. being primarily responsible to the customer. Based on these facts, which statement is TRUE? C) After the closing, Eddie calls Sacha to discuss the matter. If Jackie Knox, who owns property in Chicago, agrees to sell the needed land and the agent signs his name "Saul Arnold, agent," _____. A) Which of the following duties does Marcy NOT owe to Chad? D) It may not be superseded by statutory law. Broker Deb admits that she extended an offer of cooperation and compensation to Broker Steve. D. Yes, because she does not have permission to talk to the seller from REALTOR Katie. In dual agency, the real estate professional represents two principals in the same transaction. As a manager, what factor would be paramount in your mind in deciding whether to purchase the new equipment? 17. D. license law complaints. 143. C) Buyer Holly contacts Sam indicating that she has seen the house Linda is selling and would like to make an offer. C. Olivia may ask her REALTOR principal to request arbitration but she may not request arbitration on her own. 25. D) A person who may be affected by the terms of an agreement, but who is not a party to the agreement is known as the: A. C. are not allowed to litigate the matter. In an arbitration dispute, the fact that Jim initially introduced Ken to the property favors the common law of agency in the state in which the property owner lives. A. REALTOR Brian is the mediator. C. Loretta may not market these auxiliary services to buyers or sellers using her company. C. No, I have no experience selling commercial properties so it is illegal for me to do it. New builds going fast! 94. Carlos tells Jan that the property is not available for showing today but will be available in a week.