which statement is not true regarding dual agency?
The rules established by tradition and court decisions are found in The seller tells REALTOR Lynn that she is relocating to Hawaii. However, listings are currently thin in his market. Bud suggests strongly to Buyer John that he would be better served by buying a house from Broker Nan. The structure does not seem sound and I would not purchase this house. Refer again to the data in (1) above. 127. c. is legally entitled to a commission. B. common law. premisesthe 3 The last group at the local level to review an ethics complaint is the An open listing is an exclusive contract. Broker Jim introduces buyer Ken to a property and keeps in touch with him. Which of the following is NOT a critical factor in determining independent contractor status? B. Olivia may ask her REALTOR principal to initiate litigation but she may not initiate litigation on her own. D) D. Jon is simply being aggressive, which is permissible. B) It is a legal doctrine that is not unusual. B) REALTOR Marys next step should be to D. mutual collaboration. A. instruct her seller to pay a bonus commission directly to REALTOR John. Lynns action is Variable expenses would be reduced by $9 per unit. If REALTOR Shelley wishes to file an arbitration request, against whom does she file it? Which of the following represents Eds fiduciary duty? B. The buyers agent and the sellers agent work for the same company as designated agents. c. agent. She takes the people through the house, and they ask Mary to write the contract. A) In MOST situations, the relationship between real estate broker and seller is what type of agency? C. arbitration. D. required by state law to be followed by all licensees. C. a client only during the professional relationship between the client and the REALTOR. A. REALTOR Brian is the respondent. C. offering to reduce broker fees to a short sale Because of this statement, D. neither Nathan nor Katherine. A. Nan did not sign a contract with Bob. B) To settle this agreement, they can C. Ann does not have to cite her reasons for filing an ethics complaint against Marge. C) C. arbitrating disputes He shows and sells a listing held by REALTOR Jane. 43. B. neither broker. The relationship between real estate broker and seller is generally what type of agency? which of the following statements is true regarding the situation? B. aggressive, but ethical marketing efforts. Misstatements about the property D. A foundation crack is hidden behind the paneling in the basement. REALTOR Matthew brings a complicated purchase contract to Nelson that requests partial owner financing. REALTOR Sam represents seller Linda. 02. What should Erin tell Jones? 145. fraudulent misrepresentation. 140. Neither the offer nor the escrow instructions mentioned: (a) the broker as the agent, or (b) terms for payment of a commission. She files a request for arbitration and an ethics complaint. Sacha does not want arbitration, and both agree to get lawyers and sue one another. 3. Sacha does not want arbitration, and both agree to get lawyers and sue one another. 7. To get his business started, he sends a mass e-mail to his former fraternity brothers, offering to assist them with any of their real estate needs. obedience to all instructions of the principal. C. mediation. C. express an opinion about the quality of title on a property She takes the people through the house and they ask Mary to write the contract. A) A. proof of clear title on the property Walt Disney Company wants to open a new theme park in Chicago but first needs to acquire land for the park. A house built years ago over a ditch covered with decaying timber or a house with ceilings that were improperly attached to the support beams are examples of C. maintain the confidentiality of the information since the seller is his client An accounting of all monies and property relating to the engagement. how a customer is differentiated from a client. Only information about material defects the seller has provided the agent. A. an introduction and favors Andrews side. D) universal agency. A. the seller must disclose, but the broker has no obligation to disclose. care and skill in performance. After Mikes listing contract expires, Dean sells the property to Kathy. REALTOR Loretta owns a large brokerage, which includes an in-house mortgage lender, an in-house title company, and a home warranty company. of the following aspects of REITs as a diversifier? Lori subsequently meets Broker Amy, whose son plays ball with Loris son. A. This is What is the internal rate of return? He should Questions Only A. arbitration. the principal. Broker Nathan has a property listed for sale. a) If an agent appoints a sub-agent, that sub-agent is not normally regarded as an agent of the principal. Only information about material defects that the agent has personally observed Eddie suggests taking the matter to arbitration. A. REALTOR Jane notices a home in her market area listed with REALTOR Lindas name on it. A) Pete tells them it is no problem and asks them to sign an exclusive buyer contract with his company and he will show them the listing. She negotiates the offer with buyer Dan, who offered less than asking price. C. member associations, individually. 26. The agents fiduciary relationship of trust and confidence with the principal means that the broker owes the principal certain specific duties. Obedience. A. an image of the REALTORs license. D. websites must maintain a minimum number of listings at all times so the site should never look skimpy. A. bait and switch. consideration. If Jackie Knox, who owns property in Chicago, agrees to sell the needed land and the agent signs his name "Saul Arnold," _____. A nonagent (transactional broker, facilitator, coordinator, or contract broker) is not an agent of either party. Compute profit margin and investment turnover for each department. If Jackie Knox, who owns property in Chicago, agrees to sell the needed land and the agent signs his name "Saul Arnold, agent," _____. B) 27. Which of the following choices addresses standards designed around duties to the client, not the public? C. No, but only if she doesnt solicit the listing at the same time. B. REALTOR Mike is showing a property to his client Jean. How is the NCREIF Property Index calculated? conditions that need not be disclosed. C. avoid the subject of the back door and if it comes up, lie REALTOR Bill is representing sellers Sue and Sam, who are divorcing. Broker Steve has brought arbitration against Broker Deb. B. have an arbitration hearing at Wallys association, if Jona agrees. Which of the following is an INCORRECT statement regarding misuse of confidential information and the agent's duty of loyalty? 6. A) the principal to whom the agent gives advice and counsel. C) C. Yes, because REALTORS are not permitted to use county records for such purposes. B. contact the sellers and write the contract. A. A) REALTOR Tamika notices a home in her market area that has one of listing agents Alonzos signs, but she cant find the listing for it in the MLS. 65. C. the principal The broker: a. is not entitled to a commission because of the open listing. spacefor The dual agency does not constitute a violation of the duty of loyalty so long as the agent acts fairly and equitably. Marty later writes a contract and a sale is made. D. Yes, because she does not have permission from REALTOR Katie. REALTOR Marty has a daughter who is interested in a property. An agent works as a salesperson for a principal who owns an automotive parts business. A. ethical. administrative law. C. is simply doing his job by selling the companys listings. B. respond to the author of the comment and request the author remove the comment. D. unethical behavior between two REALTORS. Chapter 30. B. Common law, statutory law, and administrative law, Real estate agency relationships are governed by which kinds of law? B. Melanie can seek the prospects future business. B) A. A. the co-operating commission originally offered by Nelson. Arbitration deals with monetary disputes only and could also be initiated by or made against a customer, client, or non-member broker. This is an example of commingling. Which of the following is considered dual agency? B. negate that the introduction strongly favors Paul. B. C. litigate any differences. Joe tells Ralph that if he shows up at the hearing, hell wish he hadnt! 149. The seller didnt mention this before the open house. D. Yes, because Ted did not initiate the conversation. A. allowable because the offer had already been presented and Matthew is just adding information. D) Refer to the original data. C. not run the ad at all. Scott is in violation of the Code because A. not timely disclosure per the requirements of the Code. B. REALTOR Brian is the mediator. Pete learns that the buyers have an exclusive agreement that expires in two months with REALTOR Ryan, employed by a competitive brokerage. C) A. fiduciary duties. of the following is not true regarding dual agency? A) tell the seller that the defect must be repaired. A) Disclosure was improper and possibly illegal, regardless of the agent's motive. For the years ended December 31, 2013 and 2012. The agent gives the offer to the seller, who asks to consider it for 24 hours. REALTOR Lynn is very well connected to REALTORS all over the country. C. Buyer Travis is the owner of Big City Enterprises and High-Rise Corporation. Trisha wants to sell her house quickly because her new job in another city begins next month. both parties consent in writing to the dual agency. Ethics Committee. Open house in a beautiful tree-lined neighborhood this Saturday! She stipulates that her client, Buyer Jack, will pay her fee. REALTOR Loretta has a large brokerage that includes an in-house mortgage lender, an in-house title company, and she offers home warranties through her company. 98. 118. A. completely unlike state licensing laws. D. the National Association of REALTORS. B. consider how and when Amy entered the transaction. A. ask the buyers if they are exclusively represented by another REALTOR. A real estate professional's acting for both the buyer and the seller in the same transaction. the destruction of the property. Common law, statutory law, and administrative law. I recently toured this home with REALTOR Jordan. 90. depositing money into an escrow account. B) Chad is a customer of Marcys. Kevin must D. Paula is simply expressing her personal opinion, which she is entitled to do. C) the seller and the broker must both disclose this material fact. Dual agency is legal in all other states and Washington, D.C., though regulations vary by state in three key areas: When during a transaction agents must disclose dual agency A. Loretta may insist that all buyers and sellers use the auxiliary services provided by her company. Eddie and Sacha Being primarily responsible to the customer. B. pay both Sherry and Vinod a full commission. B. drafting advertisements for general mailing 57. B. draft a purchase contract from scratch B. Did Antonio violate the Code? (2) Which department is most efficient at generating sales from average invested assets? B. not accepting a commission or rebate without the clients knowledge and consent. 30. C. Yes, Marty should have disclosed his relationship with all parties involved when an offer was made. Generally, a principal is liable for the torts of its independent contractors. That same day, Jans buyer client calls Carlos directly and asks for an appointment to see the property and Carlos provides the showing. not required to disclose the information because the seller might reject the offer. B. When preparing an opinion of value, REALTORS are required to C. A REALTOR may not file an ethics complaint at the same time she files a request for arbitration. No, because REALTOR Katie is obviously clueless about how to price a property. D) Broker Millie presents as evidence the listing in the MLS with no compensation offered to a buyers agent, only offered to sub-agents. REALTOR Antonio has a buyer agency contract, which entitles him to collect a fee. The sales associate was practicing puffing. B. determining if ethics complaints should go forward and holding the hearings. B. Loretta needs to say nothing about these businesses or services; it is obvious she owns them. REALTOR Nelson has an exclusive listing contract with seller Jennifer. C) latent defects. a. must have a definite termination date. C. No, Antonio is entitled to collect these fees as long as there was informed consent from both parties to the transaction. D) This is an example of A. ask the buyers if they are exclusively represented by another REALTOR. No, Martys daughter and the seller were in mutual agreement with the stipulations of the sale. Which of these statements could be considered discriminatory? Broker Joann admits she was an exclusive buyer agent for her client and she knew the compensation offering before showing the house. The agent, without informing the principal, purchases the land for personal use. 97. Commingling and conversion Broker Mike introduced Kathy to the property. 16. B. REALTOR Juan hosts several websites aimed toward different types of buyers. Which of the following is not true regarding dual agency? D) Most people familiar with the housing market know that a buyer's agent . A. advising customers or clients on how to get a house show ready Disclosure of material facts that the agents knows. This relationship is Broker Paul files arbitration against Steve, claiming he introduced the property to Rhonda. Subsequently, REALTOR Nelson sells the property to the buyer that REALTOR Dee introduced to the property. C. Olivia may ask her REALTOR principal to request arbitration but she may not request arbitration on her own. B) C. a violation of Code, because it is not a general announcement. Which of these items is NOT required to be provided with the opinion of value? C) contact the city building inspector about the defect. The real estate broker's fiduciary responsibility to keep the principal informed of all facts, including property condition and issues that affect a seller's willingness to sell and a buyer's willingness to buy, is the duty of: A. skill, care and diligence B. disclosure C. obedience D. accounting disclosure The fiduciary responsibilities of an agent to the principal under the common law of agency include C. both Broker Deb and Broker Steve. A. Donna has not violated any Article or Standard; she just did her job and sold the house. B. disclosing her relationship with Derek Each party must be informed he will not receive. An agent receives an offer. With a dual agency relationship, which fiduciary duty does a client give up? C) Tom is not meeting her expectations, so she terminates the employment relationship. Universal Buyer Holly contacts Sam indicating that she has seen the house Linda is selling and would like to make an offer. C. websites must be maintained and updated frequently. A) Broker Judy has been working actively with Buyer John for several months. C) A. broker Brenda. 101. If a real estate agent who is employed to purchase real estate for a principal secretly sells his or her own property to the principal, this is a violation of the duty of loyalty known as __________. 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. C) D. sending a mass mailing out to potential clients, 122. In an exclusive listing, as a matter of law, a listing between the broker and seller: A key element of an agent's fiduciary responsibility of loyalty is to A) reveal relevant information or material facts. B. Nan has an exclusive, current, valid agreement with Bob. The company has a large amount of unused capacity and is studying ways of improving profits. No, Tamika is permitted to call Alonzo to get the information she needs. Broker Deb. 29. C. Providing an opinion about the structure is outside the scope of my expertise. Subsequently, REALTOR Shelley claims that she represented buyer Jack. The basic framework of the agency law that governs the legal responsibilities of real estate brokers to the people they represent is known as, Designated agency is MOST likely to occur when. Subsequently, REALTOR Nelson sells the property to the buyer REALTOR Dee introduced to the property. I know Bill, and hes got a reputation for only working hard on his million-dollar listings. D. REALTOR who is the procuring cause of the sale, 40. B. opinion of value. 54. Absolutelythis is a community property state. how an implied agency may occur. D) Jennifer rejects the offer. This relationship is. REALTORS seek arbitration over monetary disputes with another REALTOR because sales associates are agents of the broker. No, because the selling agent can change his mind. D) B. REALTOR principal or the firm itself agency is actually illegal in some states. C. Id be happy to discuss this house with you but I cannot discuss anything else. D. ratifying the findings of the Professional Standards Hearing Panel and hearing appeals from either party. D) B. B) A real estate professional's duties to a customer do NOT include Agents are generally allowed to self-deal with the principal, especially if the self-dealing is undisclosed. \end{array} REALTOR Erin has been selling and listing residential properties for about a year. Dual agency is a situation to describe when a real estate agent works with both the buyer and the seller. REALTOR Dee shows a property listed by REALTOR Nelson. A. B) C. maintain the confidentiality of the information Property Rights: Estates, Tenancies, And Multiple Ownership Interests, Real Estate Investment Analysis And Business Opportunity Brokerage. B. D) A. disclose the existing accepted offer The fact that the introduction occurred many months ago does NOT C) D. Brianna. REALTOR Scott has several websites, each directed at various niches, such as first-time buyers, seniors, etc. After the closing, Eddie calls Sacha to discuss the matter. B. 68. disclosure. This way is more efficient. C. The neighborhood looks predominately white but there are a few Latinos who live a couple of blocks over. B. unethical. C. really none of REALTOR Janes or her clients business. D. neither Buyer Bill nor Broker Anne. unstable properties. 10/22 newly Choices (A), 01. A) A) C. The price that the sellers told the agent is their minimum selling price. A. Olivia can take no action since Jon is the principal broker at his agency; his title gives him seniority in this situation. Broker Paul introduces tenant Rhonda to a property. NAR May the Code Be With You / The Code of Ethics in Action Real-Life Applications Class Disclosure The agent tells a buyer the seller will accept up to $10,000 less than the list price. A) A. Which of these is an example of panic selling? C. estimated market evaluation. Jean asks Mike his opinion about the structure of the property. 92. 124. REALTOR Eddie believes that REALTOR Sacha sold his client a house. B. state First twenty people through the door receive a gift card to Chipotle! An agency relationship between a seller and a broker is usually created by a written employment contract called a B. D. The seller initiates direct contact with the buyers agent. D. Marge does not have to provide any information about the matter to the Grievance Committee. 81. The marketing manager claims this new approach would increase unit sales by 30% without any change in selling price; the companys new monthly fixed expenses would be $180,000; and its net operating income would increase by 20%. A) Seller George paid for a home inspection on his house for a prospective buyer. REALTOR Marcy listed Dereks home, thus creating an agency relationship in which she owes fiduciary duties to Derek. REALTOR-ASSOCIATE Olivia believes that REALTOR Jon from another agency sold a house to her client and that she was the procuring cause of the sale. Buyer John mentions at his place of employment that he is looking for a house with Broker Judy. Thus, profits vary considerably from year to year according to general economic conditions. In most states, dual agency refers to a situation where the same REALTOR represents both the buyer and the seller in a real estate transaction. D) Which item is considered outside the scope of a real estate license, according to Article 2? The agent believes the seller will not accept any of the three offers. A) Betty could be released from the agency agreement and seek representation from another broker. Grievance Committee D. do not have the option of arbitration through the local Association of REALTORS. Broker Amy discovers that buyer Lori has looked at a property with Ken and tells Lori that she is also in the real estate business and can help her buy the property. What is Barbaras duty? D. I will ask the selling REALTOR her opinion and get back to you., 110. InvestmentCenterSalesIncomeAverageInvestedAssetsElectronics$40,000,000$2,880,000$16,000,000SportingGoods20,000,0002,040,00012,000,000\begin{array}{lccc} D. undivided loyalty. REALTOR Betty is hosting an open house where she meets buyer Josie. Identify which statement regarding this situation is TRUE. What are the typical implications to an REIT investor of REITs being listed? B. unethical. D. Yes, because she does not have permission to talk to the seller from REALTOR Katie. It is one of the rules enacted by legislatures and other governing bodies. The next day, Miriam gets a phone call from seller Katie who asks to be released from her exclusive agreement so that she can re-list her property with REALTOR Tom, who is now working for REALTOR Ethan. D. The buyer sought another broker in order to get a lower price. Broker Paul later brings a sales agreement on the property from one of the attendees of the open house. 55. C. documentation of what the opinion is based on Jones owns a small auto dealership, which he wants to relocate closer to his new home. D. license law complaints. B) Article 3Cooperate with other REALTORS An agreement that is specific in its terms and conditions is considered C. fraud. Buyer Kathy contacts Seller Dean about buying his property. REALTOR Howard has an exclusive representation agreement with a buyer. 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. However, Jordan rejects the offers and instead sells the house to a friend. A) B) The buyer offered $175,000 and the seller accepted. (Assume that enough funds are available to make the purchase.). Tamika calls Alonzo to find out if the property is exclusively listed and, if so, when it expires. Dual agency limits the level of representation that can be offered by the licensee and also prohibits the licensee from acting exclusively for either party. B. by not informing Frank that he had signed a contract with Mr. Johnson Disney employs Saul Arnold as an agent to work on its behalf to acquire the needed property. The next day, Broker Nan calls Buyer John. B) All material facts known about the property from the seller, another agent, previous experience with the property, or researching public records. B. are going to need to put this decision in writing to the Board of REALTORS. D. Melanie should not solicit a buyer agreement with these buyers. Dual agency disclosure; A 2. . REALTOR Ann is furious when she discovers that REALTOR Marge sold a listing to one of Anns clients. d. is subject to disciplinary action by the Real Estate Commissioner for negligence. A. A. will have years of arbitration ahead of them. 143. Compare our rates to others This ad is C) Katy could elect not to make any appointments. local registries of residential information on sex offenders. A. confidentiality At the closing table, Howard reveals to both REALTORJane and the sellers that he has an exclusive buyer agency agreement with his client. Broker Joann. Broker Joann admits she was an exclusive buyer agent for her client and knew the compensation offering before showing the house. Lynn then tells the seller she could recommend a good REALTOR there. The Minevik Group is a Swedish-based, high-technology engineering firm. The agent should: d. hold the offers for 24 hours before conveying them to the owner. C) Call me in a week and Ill tell you my opinion of Bill and what your next steps should be. A. have the opinion verified by an appraiser. D. Randy, 84. D. not call the sellers; REALTOR Linda has told her everything she needs to know. REALTOR Patty has an appointment to show a listing of REALTOR Katies. A person who authorizes another to act in his or her place in regard to relations with third persons is the: (B), and (D) are true statements about dual Which of the following does NOT indicate a buyer trying to freeze out a broker? It follows IFRS and reports its results in millions of Swedish kronor (SEK). All of these A. Josie tells Betty she isnt happy with the small number of showings Bills had on her house and she is thinking of finding a new REALTOR. The couple wants to ensure their children are raised in a diverse area. REALTOR Jim violated the code even if unintentional. a. B) Brenda could be appointed to either the buyer or the seller and a different associate assigned to Betty. C) Dual special agency A sales associate of a broker told a prospective buyer that the house being shown is "the best house in the area." D. I will ask the selling REALTOR her opinion and get back to you., 109. C. REALTOR Clarence is the complainant. C. both Broker Joann and Broker Millie. General a trustee. Did Lisa violate the Code? A. In an advertisement for a four-bedroom home, which of the following statements could be considered discriminatory? Nelson informs Matthew of the rejection, and Matthew believes Jennifer did not understand the details of the contract. No, because of the right of free speech, Brad can call Ted any time he wants regarding any offers. InvestmentCenterElectronicsSportingGoodsSales$40,000,00020,000,000Income$2,880,0002,040,000AverageInvestedAssets$16,000,00012,000,000. A) sales associates are agents of the broker. After the closing, Eddie calls Sacha to discuss the matter. Identify which statement is true. C. really none of REALTOR Janes or her clients business. While driving to the courthouse to represent Qaadir at trial, Zaafir negligently causes an automobile accident in which Maali is severely injured. Nice and sturdy basement and everything appears dry. sales associates are agents of the licensing authority. 147. Question: Which of the following statements Is true reqarding the practice of designated agency under North Carolina Real Estate Commission rules?O A Designated agency provides an optional method of practicing dual agency for real estate firms.O B.The designated agency concept may be utilized by a firm that does not practice dual agency. C.