90days-Online Study Guides to pass your NY Real Estate CE License Exam


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examples:

What type of buyer agency agreement allows the buyer to work with multiple agents with the commission paid to the agent who actually handles the transaction resulting in a closed sale?

Single property

Exclusive right to represent

Exclusive agency

Open agency agreement

 

78. An agency agreement does NOT protect you, the agent, from:

wandering sellers

Confusion over duties

Fraudulent buyers

Wandering buyers

 

79. What is the largest professional organization in the real estate field?

ARELLO

NAR

FTC

NAEBA

 

 

---f---

  1. ____________________ oversees free trade and commerce.
    1. Fannie Mae
    2. HUD
    3. Federal Trade commission (FTC)
    4. ARELLO
  2. In recent years the majority of homebuyers have been ___________________.
    1. Single
    2. Married couples
    3. Seniors
    4. Divorcees

 

  1. The agent must show "reasonable care and skill." This falls under the duty of _______.
    1. Obedience
    2. Loyalty
    3. Disclosure
    4. Care

 

  1. In New York, any multi-family housing built after _______ must conform or adhere to the accessibility requirements to better ensure that the public access, common use areas, and individual units are accessible for people with disabilities.
    1. 1968
    2. 1978
    3. 1991
    4. 2005

 

  1. When a broker is working with a buyer or seller, but not representing them, this is referred to as:
    1. Non-agency
    2. Single agency
    3. Dual agency
    4. Buyer agency

 

  1. To help screen out buyers who are not serious in their commitment and are just shopping around, you may ask for a ____________ fee.
    1. Retainer
    2. conditional
    3. Down payment
    4. Contingency

 

  1. All of these are common means of termination of an agency, EXCEPT for ___________.
    1. Expiration
    2. Agreement
    3. Nolo contendere
    4. Completion

 

  1. Generally, when residential properties are submitted to an MLS, the listing agent, with the permission of the seller, is making a blanket offer of _____________ to all the members of the MLS.
    1. Imputed
    2. Subagency
    3. Dual agency
    4. Designated

 

  1. The doctrine in tort law making an employer or principal liable for the wrong of an employee or agent is called _______________.
    1. Habeas Corpus
    2. Caveat Emptor
    3. Respondeat Superior
    4. Material Disclosures

 

  1. Who should keep track of contract deadlines to make sure they are met on time?
    1. The buyer's agent
    2. The seller's attorney
    3. The lender
    4. The county clerk

 

  1. The agent must put _____________ interest above all others.
    1. The principal's
    2. Their own
    3. Their Broker's
    4. The professional organization

 

  1. Which type of buyer agency is the preferred arrangement of many brokers, because it gives them greater control of the assignment. and they have a greater likelihood of receiving compensation?
    1. Implied agency
    2. Exclusive right to represent
    3. single property agency
    4. dual agency

 

  1. Which party must sign an agreement disclosing the condition of the property and reporting any known flaws?
    1. Buyer
    2. Seller
    3. Agent
    4. Buyer and seller

 

  1. If the client has any questions or concerns about the contract they _____________.
    1. Should be reassured by the primary broker
    2. Should be given a copy of the pertinent state laws
    3. Should be referred to legal counsel
    4. None of the above

 

 

  1. An agent may be generally defined as someone who represents another in dealings with ______________ .
    1. Lawyers
    2. Third parties
    3. Sellers
    4. Buyers

 

  1. What is a body of unwritten laws based on legal precedents established by the courts which forms the basis of each state's legal system.
    1. Common Law
    2. Agency Law
    3. Statutory Law
    4. Tort Law

 

  1. An agency agreement where the agent also has an interest in the property is called a(n) ______________________.
    1. Familial agency
    2. Dual agency
    3. Agency coupled with an interest
    4. Public interest agency

 

  1. An actual agency created by the written or spoken words of the principal authorizing the agent to act is the definition of a(n) ________________.
    1. Implied
    2. Factual
    3. Express
    4. Contractual

 

  1. "The person or thing through which power is exerted or an end is achieved", is the definition of __________________.
    1. Client
    2. Contract
    3. Agency
    4. Employee

 

  1. Subagents are agents of the ____________ agents and are bound by the same fiduciary duties
    1. Fiduciary
    2. Master
    3. Designated
    4. Primary

 

  1. Everyone in New York State is protected by Fair Housing Laws at the _______________ level.
    1. Federal District Court
    2. State
    3. Local
    4. All of the above

 

  1. Seller paid fees in buyer agency are ______________.
    1. Rare
    2. Common
    3. Illegal
    4. Not morally acceptable

 

  1. Residential or commercial real estate properties with some sort of a negative history associated with either the property itself or the owners can be described as ___________ properties.
    1. Haunted
    2. Handicapped
    3. Stigmatized
    4. Traumatized

 

  1. What type of commission can be comfortable for experienced agents, but a nightmare for inexperienced agents who do not have regular income yet?
    1. 100% commission with a desk fee
    2. 75/25 split
    3. 60/40 split
    4. 50/50 split

 

  1. According to the 2021 NAR Profile of Home Buyers and Sellers, what was the average differential between the median selling price of a FSBO and that sold using a real estate agent?
    1. 2%
    2. 45%
    3. 22%
    4. 100%

 

  1. Compensation to a buyer's agent is paid as a _____________.
    1. Flat fee
    2. Flat fee or percentage fee
    3. Flat fee, percentage fee or hourly rate
    4. Hourly rate or flat fee

 

  1. An agency relationship which is created after the principal agrees to be bound by the actions of another person who was acting without authority is known as a(n) ________________.
    1. Dual Agency
    2. Reconciliation agreement
    3. Agency by Ratification
    4. Agency in Absentia

 

  1. How long, based on the 2021 NAR Profile of Home Buyers and Sellers, did buyers 18-24 estimate they would stay in their home?
    1. 1 year
    2. 2 years
    3. 12 years
    4. 25 years

 

  1. Which type of agency is imposed by law?
    1. Express agency
    2. Agency by Ratification
    3. Implied Agency
    4. Agency by Estoppel

 

  1. Which type of agency relationship is becoming more popular today?
    1. Seller agency only
    2. Buyer agency only
    3. Dual agency
    4. None of the above

 

  1. All funds must be deposited into special escrow or trust accounts and can never be mixed with the agent's personal funds or the brokerage company funds. This is called ___________ and it is illegal.
    1. Disintermediation
    2. Profiteering
    3. Commingling
    4. Spoofing

 

  1. How long, based on the 2021 NAR Profile of Home Buyers and Sellers, did buyers estimate they would stay in their home?
    1. 1 year
    2. 2 years
    3. 12 years
    4. until retirement

 

  1. How can an agency agreement end?
    1. The agreement time period ends
    2. The transaction is complete
    3. Mutual agreement of both parties
    4. all of the above

 

  1. If there are blanks in the contracts that need to be filled in, make sure that every blank is filled in or ________________________.
    1. Crossed out
    2. Crossed out and initialed, dated, and timed.
    3. Rewritten Crossed out and initialed
    4. Sent for attorney review

 

  1. A moral and legal obligation between two parties where one acts on behalf of the principal is called a(n) _______________ relationship.
    1. Agency
    2. Contractual
    3. binding
    4. Bilateral

 

  1. When the broker is working with a "customer" and not a "client" and is acting in the capacity of a facilitator rather than an agent, this is known as ________________.
    1. single agency
    2. Partial agency
    3. Dual agency
    4. Non-Agency

 

  1. Which of the following types of housing is subject to all of New York’s Fair Housing Laws?
    1. Owner-occupied one or two family units
    2. Cooperatives
    3. Room rentals for people of the same sex
    4. Room rentals in one’s owner-occupied housing

 

  1. A group of laws that address and provide remedies for civil wrongs not arising out of contractual obligations are known as ________ laws.
    1. Felony
    2. Tort
    3. Aggrieved
    4. Implied

 

  1. The agent is obligated to work in the best interest of his or her client in a(n) ____________ manner.
    1. Diligent
    2. Lawful
    3. Purposeful
    4. Professional

 

  1. Which type of agency relationship is becoming more popular today in New York?
    1. Seller agency only
    2. Buyer agency only
    3. Dual agency
    4. None of the above

 

  1. Subagents are agents of the ____________ agents and are bound by the same fiduciary duties
    1. Fiduciary
    2. Master
    3. Designated
    4. Primary

 

  1. The key to working successfully with senior buyers is to really emphasize your _____________________.
    1. Own maturity
    2. Familiarity with VA and FHA loans
    3. Buyer counseling services
    4. Empathy

 

  1. Which type of specialty is the most recent trend in the development of agency practice?
    1. Seller's agency
    2. Dual agency
    3. Buyer's agency
    4. Net listings

 

  1. Agent Judy showed the Smiths a home in April. The listing agreement expired on May 1. The protection clause was set for 90 days after the listing expired and Judy listed the Smiths when submitting her list of names to the seller. The Smiths approached the sellers directly a few days after the listing expired and offered to purchase the home without a commission payment. The seller was eager to sell his house, so he accepted the offer. Is agent Judy entitled to a commission?
    1. No, the listing had expired and the seller is no longer bound to Judy
    2. No, the sale had to close within the 90-day period for Judy to receive a commission
    3. No, the Smiths approached the seller so the seller does not owe a commission
    4. Yes, the Smiths were on Judy's protected list and she is owed a commission

 

  1. The primary relationship between a real estate agent and his or her client is that of a(n)_________________ one.
    1. Implied
    2. Confidential
    3. Fiduciary
    4. Imputed

 

  1. Today, buyer agency is permitted in ______ states
    1. 15
    2. All
    3. 40
    4. 35

 

  1. In criminal law the ________ becomes the prosecution .
    1. Federal government
    2. County
    3. Aggrieved party
    4. State

 

  1. In New York State, real property is defined as property used or occupied, or intended to be used or occupied, wholly or partly, as the home or residence of one or more persons improved by all of the following EXCEPT:
    1. One-to-four family dwellings
    2. Condominiums
    3. Commercial real estate
    4. Cooperatives

 

  1. The most common fiduciary responsibilities can be summed with the acronym _______________.
    1. COAL
    2. FIRREA
    3. OLDCAR
    4. RESPA

 

  1. The most common example of a general agent is a _______________.
    1. Notary public
    2. Commercial broker
    3. Landlord
    4. Property manager

 

  1. A real estate agent's "best efforts" is a subjective term that means: _______.
    1. All possible efforts efforts
    2. It is open to interpretation
    3. Meets the minimum effort
    4. That of a typical layperson

 

  1. According to the 2021 NAR Profile of Home Buyers and Sellers, what percent of all home sales came from first-time buyers?
    1. 12%
    2. 90%
    3. 34%
    4. 78%
  2. Agent “A” is showing a house to a potential buyer. The listing agent for the house is Agent “B.” Agents “A” and “B” work for the same real estate firm. In this case, Agent “A” would be working exclusively in the best interests of the buyer and Agent “B” would be working for the seller. This is an example of ________agency.
    1. Designated
    2. Buyer’s
    3. Cooperative
    4. Sub

 

  1. An exclusive right to represent agreement guarantees a broker the exclusive right to represent a buyer for _______________.
    1. One year
    2. 6 months
    3. A certain time frame
    4. 90 days

 

“Agency Law” Course Questions only (no answers)

Answers will be revealed with proper subscription
 

 

  1. A(n) _________ may be generally defined as someone who represents another in dealings with third parties.
    1. Consumer
    2. Agent
    3. Client
    4. Principal

 

  1. The obligation to follow the principal's lawful instructions falls under the duty of:
    1. Care
    2. Obedience
    3. Loyalty
    4. Disclosure

 

  1. Failure to provide proper disclosure, even when done unintentionally, could be considered:
    1. Dishonesty
    2. Fraud
    3. Disloyalty
    4. Disobedience

 

  1. A "principal-agent" relationship may arise from:
    1. Explicit appointment
    2. Implication
    3. All of the above
    4. None of the above

 

  1. John is the listing agent for Susan. Susan went to John, even though he is not familiar with her neighborhood, because they are old friends and she trusted him. Before John agreed to a listing price for Susan's home, he spent a few days researching the local MLS to find the selling price of other properties in Susan's area. This action by John would be an example of which of the traditional common law agency duties?
    1. Loyalty
    2. Obedience
    3. Disclosure
    4. Care

 

  1. An agent's primary responsibility is to:
    1. Him or herself
    2. A third party
    3. The principal
    4. His or her supervising broker

 

  1. The acronym COALD is used to represent an agent’s common law duties. Which of the following demonstrates the correct terms in the acronym?
    1. Consideration, Originality, Affiliation, Leadership, Direction
    2. Character, Operation, Assessment, License, Dedication
    3. Care, Obedience, Accounting, Loyalty, Disclosure
    4. Customer, Ownership, Association, Legal, Delivery

 

  1. The principles of agency are based on which system developed centuries ago in England?
    1. Feudal law
    2. Noble law
    3. Common law
    4. Parliamentary law

 

  1. Which of these is NOT one of the traditional common law agency duties?
    1. Timeliness
    2. Care
    3. Disclosure
    4. Obedience

 

  1. A consensual fiduciary relationship in which one party acts on behalf of and under the control of another in dealing with third parties, is the definition of:
    1. Employment
    2. Agency
    3. Obedience
    4. None of the answers shown
  2. You answered correctly
  3. A ____________ is a relationship in which one party places trust, confidence, and reliance in and is influenced by another who has a duty to act for the benefit of the other party.
    1. Fiduciary relationship
    2. Beneficiary relationship
    3. Trustee relationship
    4. Buyer-seller relationship

 

  1. Someone or something that acts or exerts power, a moving force in achieving some result is the definition of:
    1. Buyer
    2. Agent
    3. Seller
    4. REALTOR

 

  1. What are the main concerns of a fiduciary relationship?
    1. To only manage money for another
    2. To act in the best interest of the agent
    3. To be under complete control of another
    4. To manage money or property for another

 

  1. The obligations of an agent are to:
    1. Act on behalf of themselves to achieve an end
    2. Act on behalf of another to achieve an end
    3. Act on behalf of themselves to prevent an end
    4. Act on behalf of another to prevent an end

 

  1. What word is generically used in describing typical real estate relationships?
    1. Customer
    2. Broker
    3. Client
    4. Consumer

 

  1. The ________ is represented by the agent, whereas a ________ represents themselves.
    1. Customer; client
    2. Customer; agent
    3. Client; agent
    4. Client; customer

 

  1. A person or business that purchases a commodity or service is a(n):
    1. Client
    2. Principal
    3. Agent
    4. Customer

 

  1. Fiduciary comes from the Latin word "fides" which means:
    1. "consistency"
    2. "Trust"
    3. "Honesty"
    4. "Prudence"

 

  1. Brokers should know, and be able to explain, basic:
    1. Tort law
    2. Components of a good deal
    3. Real estate law
    4. Principles of appraising

 

  1. An agent should always obey the instructions of their client, unless:
    1. The instructions are illegal
    2. The action doesn't make sense
    3. The instructions make the sale difficult
    4. The agent doesn't agree with the client

 

  1. An agent who acts in the best interests of the principal or client is said to be:
    1. Loyal
    2. Qualified
    3. Confidential
    4. Responsible

 

  1. The care that an ordinarily reasonable and prudent person would use under the same or similar circumstances is:
    1. Normal care
    2. Due care
    3. Ordinary care
    4. Typical care

 

  1. What is the biggest hazard of dealing with trust accounts?
    1. Commingling
    2. Inflation
    3. An economic downturn
    4. A failed transaction

 

  1. Which of the following would a broker, acting as agent for a seller, NOT be expected to do?
    1. Arrive at a reasonable listing and selling price
    2. Ensure that they receive the maximum commission
    3. Investigate and discover material facts
    4. Explain real estate documents

 

  1. A doctrine in tort law that makes a master liable for the wrong of a servant is called:
    1. Habeas Corpus
    2. Fiduciary responsibility
    3. Respondeat superior
    4. Fraud

 

  1. The degree of care or competence that one is expected to exercise in a particular circumstance or role is:
    1. Measure of care
    2. Degree of care
    3. Ordinary care
    4. Standard of care

 

  1. Which of these is a fiduciary responsibility?
    1. Confidentiality
    2. Obedience
    3. Loyalty
    4. All of the above

 

  1. A doctrine in tort law that makes a master liable for the wrong of a servant is called:
    1. Habeas Corpus
    2. Fiduciary responsibility
    3. Respondeat superior
    4. Fraud

 

  1. Failure to provide proper disclosure, even when done unintentionally, could be considered:
    1. Dishonesty
    2. Fraud
    3. Disloyalty
    4. Disobedience

 

  1. An agent should always obey the instructions of their client, unless:
    1. The instructions are illegal
    2. The action doesn't make sense
    3. The instructions make the sale difficult
    4. The agent doesn't agree with the client

 

  1. The principles of agency are based on which system developed centuries ago in England?
    1. Feudal law
    2. Noble law
    3. Common law
    4. Parliamentary law

 

  1. Someone or something that acts or exerts power, or a moving force in achieving some result is the definition of:
    1. Buyer
    2. Agent
    3. Seller
    4. Realtor

 

  1. An agent who acts in the best interests of the principal or client is said to be:
    1. Loyal
    2. Obedient
    3. Confidential
    4. Responsible

 

  1. The care that an ordinarily reasonable and prudent person would use under the same or similar circumstances is:
    1. Typical care
    2. Due care
    3. Ordinary care
    4. Measure of care

 

  1. John is the listing agent for Susan. Susan went to John, even though he is not familiar with her neighborhood, because they are old friends and she trusted him. Before John agreed to a listing price for Susan's home, he spent a few days researching the local MLS to find the selling prices of other properties in Susan's area. This action by John would be an example of which of the traditional common law agency duties?
    1. Loyalty
    2. Obedience
    3. Disclosure
    4. Care

 

  1. A consensual fiduciary relationship in which one party acts on behalf of and under the control of another in dealing with third parties is the definition of:
    1. Employment
    2. Agency
    3. Obedience
    4. None of the answers shown

 

  1. Brokers should know, and be able to explain, basic:
    1. Tort law
    2. Components of a good deal
    3. Real estate law
    4. Principles of appraising

 

  1. The most obvious repercussion for being careless in the real estate industry is the risk of being liable for:
    1. Negligence
    2. Commingling
    3. Slander
    4. Intentional misrepresentation

 

  1. Traditionally, the seller’s agent listed the property and entered it into the multiple listing service. Any agent who showed the listed property worked as a subagent of the:
    1. Seller's agent
    2. Seller
    3. Buyer's agent
    4. Buyer

 

  1. What is the most common misconception about agency?
    1. In order to create an agency relationship, a client must provide immediate compensation
    2. The party that pays the fees determines agency relationships
    3. The agent who is showing you a property automatically represents you
    4. Agency relationships can only be between agents and sellers

 

  1. What type of agency relationship may be created unknowingly or unwittingly?
    1. Express agency
    2. Implied agency
    3. Agency by estoppel
    4. Agency by ratification

 

  1. An agency that is created because the agent's actions can imply their intentions to create such a relationship is an:
    1. Express agency
    2. Implied agency
    3. Agency by estoppel
    4. Agency by ratification
  2. Giving notice without giving notice is a description of:
    1. Expressed notice
    2. Actual notice
    3. Deconstructive notice
    4. Constructive notice

 

  1. Jim wants to buy a beachfront property and is looking for an agent to represent him. Stan, a local real estate agent, shows Jim a few properties and eventually finds one that Jim wants to buy. Has an agency occurred?
    1. Yes
    2. Not yet

 

  1. Agent Bill is about to show William's home to a potential buyer. William is concerned about a portion of the foundation that is crumbling and asks Bill to somehow cover it up so that the buyer does not notice. Bill informs William that this is against the law, but William insists that it is done. Bill plants a bush in front of the suspect area which successfully hides it from vision. The buyer purchases the house and later finds the undisclosed defect. Bill is sued for failing to disclose the defect. He claims that William should bear some of the blame. Is William liable?
    1. Yes
    2. No

 

  1. When a blanket offer of subagency is given, when does the subagency relationship actually develop?
    1. As soon as the property is listed in the MLS
    2. When an offer to purchase is procured by the subagent
    3. As soon as the subagency is offered
    4. As soon as the subagency is accepted

 

  1. In what type of listing is a broker entitled to a commission regardless of who effects the transaction?
    1. Open listing
    2. For Sale by Owner
    3. Exclusive right to sell listing
    4. Net listing

 

  1. What has traditionally been the most common type of agency?
    1. Seller agency
    2. Buyer agency
    3. Dual agency
    4. Designated agency

 

  1. To whom is the subagent to be loyal?
    1. Buyer
    2. Listing agent
    3. Buyer's agent
    4. Themselves

 

  1. A licensee who assists one or more parties through a transaction without being an agent for any party to the transaction is a(n):
    1. Dual agent
    2. Designated agent
    3. Intermediary
    4. Single agent

 

  1. The critical difference in tort liability between the average person and skilled professionals is known as:
    1. Standard of care
    2. Implied agency
    3. Assumed risk
    4. Standard of liability

 

  1. In a seller’s agency, to whom is the subagent to be loyal?
    1. Buyer
    2. Listing agent
    3. Buyer's agent
    4. Themselves

 

  1. Facts that an agent knows because they are known by their principal or a subordinate agent would be considered:
    1. Imputed knowledge
    2. Actual knowledge
    3. Implied knowledge
    4. Constructive knowledge

 

  1. Which fiduciary obligation does NOT necessarily end with the expiration of an agency agreement?
    1. Loyalty
    2. Obedience
    3. Accounting
    4. Confidentiality

 

  1. What type of agency relationship is fraught with peril and should generally be avoided?
    1. Single agency
    2. Dual agency
    3. Designated agency
    4. General agency

 

  1. In which type of listing was it common for more than one "for sale" sign to be placed on the lawn?
    1. Open listing
    2. Exclusive agency listing
    3. Exclusive right to sell listing
    4. Net listing

 

  1. What type of agency have many states adopted as a way to allow a single firm to handle a transaction "in-house" without having to worry about breaking fiduciary duties to one of the parties involved in the transaction?
    1. Single agency
    2. Express agency
    3. Designated agency
    4. General agency

 

  1. In which type of buyer agency agreement is the broker guaranteed a commission regardless of whether or not the buyer agent handled the transaction?
    1. Single property
    2. Exclusive right to represent
    3. Self-representation
    4. Open agency agreement

 

  1. What type of buyer agency allows the buyer to reserve the right to purchase a property directly from the seller, without the use of an agent?
    1. Single property
    2. Exclusive right to represent
    3. Exclusive agency
    4. Dual agency

 

  1. What does the acronym ARELLO stand for?
    1. Association of Real Estate Local Law Officials
    2. Association of Real Estate Licensed Legal Officials
    3. Association of Real Estate Listing Law Officials
    4. Association of Real Estate License Law Officials

 

  1. What type of property is NOT generally listed with MLS or listing information?
    1. Residential
    2. Investment
    3. Commercial
    4. Townhouses

 

  1. What type of buyer agency agreement allows the buyer to work with multiple agents with the commission paid to the agent who actually handles the transaction resulting in a closed sale?
    1. Single property
    2. Exclusive right to represent
    3. Exclusive agency
    4. Open agency agreement

 

  1. What organization played a major role in 1983 in researching and reporting about real estate agency?
    1. FTC
    2. NAR
    3. ARELLO
    4. NAEBA

 

  1. Until the 1970's, buyers who were seeking income producing properties would:
    1. Employ a commercial broker specializing in this property type
    2. Find the property on the MLS
    3. Employ a buyer agent
    4. Search the classifieds and hope for the best

 

  1. In the early ______, NAR changed their policies. The policies of REALTOR® Multiple Listing Services and the REALTOR® Code of Ethics were amended to make seller agency optional and to recognize the possibility of buyer agents.
    1. 1970's
    2. 1980's
    3. 1990's
    4. 2000's

 

  1. What is NOT one of the benefits to the seller when the buyer has a buyer's agent?
    1. No longer need to worry about vicarious liability
    2. The buyer is less informed
    3. The buyer would most likely sue the buyer's agent in the event a property defect was not discovered
    4. No longer responsible for the actions of a subagent

 

  1. All blanks on a contract need to be:
    1. Filled out or crossed off
    2. Time stamped
    3. Initialed and dated
    4. All of the answers shown

 

  1. For homes built prior to 1978, a buyer's agent should ensure that their client receives which disclosure?
    1. Asbestos
    2. Mold
    3. Lead-based paint
    4. Radon

 

  1. Whose responsibility is it to ensure that the earnest money in the purchase contract is collected and deposited?
    1. The buyer
    2. The seller
    3. The buyer's agent
    4. The bank representative

 

  1. The acronym NAEBA stands for:
    1. National Association of Executive Buyer Agents
    2. National Association of Exclusive Buyer Agents
    3. National Association of Executive Broker Agents
    4. National Association of Exclusive Broker Agents

 

  1. Which statement is a benefit to buyers who use an agent?
    1. Less control in the process of buying or selling
    2. The agent acts as a middleman
    3. Agents have access to a larger pool of listings
    4. Being responsible for the actions of a subagent

 

  1. When working with a relocation client, the company’s interest is:
    1. To find rental properties rather than purchasing homes
    2. How efficiently the agents work and follow the corporate relocation package benefits
    3. The most cost efficient way
    4. None of the above

 

  1. What type of fee is most commonly used to weed out buyers who are not serious in their commitment and may just be shopping around?
    1. Hourly rate fee
    2. Retainer fee
    3. Percentage fee
    4. Flat fee

 

  1. A business relationship agreement does NOT protect you from:
    1. Wandering buyers
    2. Fraudulent buyers
    3. Lost compensation
    4. Subagency liability

 

  1. What are the best companies to target when initiating contact for relocation employees?
    1. Small to medium size, with 10 or fewer people relocating every two years
    2. Large to medium size, with 50 or more people relocating a year
    3. Medium size, with 30 to 50 people relocating every two years
    4. None of the above

 

  1. What form of compensation is the same regardless of the purchase price for the property?
    1. Flat fee
    2. Percentage fee
    3. All of the above
    4. None of the above

 

  1. What nontraditional services may be added to an agency agreement?
    1. Investment analysis
    2. Assistance in development
    3. Planning of a project
    4. All of the above

 

  1. Whose responsibility is it to make sure that the earnest money agreed to in the purchase contract is collected and deposited?
    1. The buyer
    2. The seller
    3. The buyer's agent
    4. The seller's agent

 

  1. What form offers proof that a customer was made aware of all their options when working with an agent?
    1. Purchase and sale agreement
    2. Disclosure form
    3. Buyer's agent agreement
    4. Listing agreement

 

  1. In what situation should the agent work as a buyer's agent?
    1. When the seller is a friend or relative
    2. When the buyer is a friend or relative
    3. When the seller is a recent client
    4. When the buyer does not wish to remain anonymous

 

  1. Until the mid-1980's, what was the common practice of agency?
    1. The agent neither represented the interests of the buyer or the seller
    2. The agent usually represented the buyer in a real estate transaction
    3. The agent only showed houses that they themselves listed with allegiance to the seller
    4. The agent showed a house to a buyer and became a subagent of the listing agent with allegiance to the seller

 

  1. What issue may arise when choosing buyer agency only as the office agency?
    1. Buyers will need to list their old homes with another office
    2. Convincing sellers to pay the agent's fees
    3. Not being able to access MLS
    4. There are no issues to foresee
  2. Who decides what type of agency will be practiced in the office?
    1. The office manager
    2. The licensees employed by the brokerage
    3. The broker of record
    4. The licensee with the most experience

 

  1. A permanent file should include:
    1. The written agency agreement
    2. Records regarding transactions made by the client
    3. All records regarding that particular transaction
    4. There is no permanent file

 

  1. Once an agreement is reached it should be:
    1. Confirmed with a hand shake
    2. Announced to the rest of the office
    3. Documented in writing
    4. Left as an oral agreement

 

  1. The median age of the home buyer in 2019 was ___ .
    1. 29 years
    2. 33 years
    3. 47 years
    4. 66 years

 

  1. Brokers have a responsibility to ___________ and __________ their employees.
    1. Train; license
    2. Train; supervise
    3. License; supervise
    4. Supervise; compensate

 

  1. What is one of the best tools a broker can utilize to protect his/her company?
    1. Employee handbook
    2. Video/audio recordings of employee meetings
    3. Desk fees
    4. A strong internet presence

 

  1. According to the 2019 NAR Profile of Home Buyers and Sellers, what was the average differential between the median selling price of a FSBO and that sold using a real estate agent?
    1. $10,000
    2. $40,000
    3. $80,000
    4. $120,000

 

  1. In 2019, for all sellers, the most commonly cited reason for selling their home was ________________________.
    1. a job relocation
    2. the desire to move closer to friends and family
    3. it was too small
    4. it was too big

 

  1. Buyers in 2019 searched for an average of __ weeks.
    1. 2
    2. 5
    3. 10
    4. 17

 

  1. The median household income was $___________, according to the 2019 NAR Profile of Home Buyers and Sellers.
    1. $62,250
    2. $70,600
    3. $81,500
    4. $93,200

 

  1. A salesperson paid an hourly wage with a set work schedule and job description would most likely be considered a(n):
    1. Contract agent
    2. Independent contractor
    3. Employee
    4. Associate broker

 

  1. What clause entitles a broker to collect a commission after the listing expires or is cancelled?
    1. Escalator clause
    2. Point of sale clause
    3. Protection clause
    4. Agency clause

 

  1. Brokers typically choose to work with salespersons as independent contractors so that the broker:
    1. Can increase marketing programs
    2. Benefits in terms of taxes
    3. Can develop a more cohesive organization
    4. All of the above

 

  1. If an employer does not have to withhold taxes from an agent who works for their firm, the agent is considered a(n):
    1. Employee
    2. Subagent
    3. Independent contractor
    4. Sub-contractor

 

  1. What topic should be included in the office policy manual?
    1. Advertising
    2. Commission splits
    3. Agency
    4. All of the above

 

  1. According to the 2019 NAR Profile of Home Buyers and Sellers, what percent of all home sales came from first-time buyers?
    1. 53%
    2. 44%
    3. 33%
    4. 62%

 

  1. According to the 2019 NAR Profile of Home Buyers and Sellers, what percent of sellers reported that their home was listed on a local multiple listing service?
    1. 67%
    2. 73%
    3. 89%
    4. 99%

 

  1. The main distinction between an employee and an independent contractor is:
    1. The number of hours worked per day
    2. Time spent in the office
    3. Who they report to
    4. The way they are paid

 

  1. Who could be held liable for the acts of associated agents in the event of a lawsuit?
    1. The agent
    2. The broker
    3. Both A and B
    4. None of the above

 

  1. When did most states begin requiring agency disclosure?
    1. 1940's
    2. 1960's
    3. 1980's
    4. 2000's

 

  1. What is one of the best tools a broker can utilize to protect his/her company?
    1. Office policy manual
    2. Video/audio recordings of employee meetings
    3. Desk fees
    4. A strong internet presence

 

--f—

  1. If deadlines such as the original closing date are missed and there is an agreement between the parties to extend those deadlines, the extension agreement must be ___________.
    1. In writing
    2. Notarized
    3. Permitted
    4. Filed with the MLS

 

  1. According to the 2019 NAR Profile of Home Buyers and Sellers, what was the first step that homebuyers took in the home buying process?
    1. Call the local Board of REALTORS®
    2. contact a real estate agent
    3. look online at properties for sale
    4. look at newspaper ads

 

  1. ____________ liability is liability that is imposed for another's acts because of imputed or constructive fault (as negligence).
    1. Vicarious
    2. Implicit
    3. Superior
    4. Primary

 

  1. In which type of agency does the firm appoint two separate agents to represent two separate clients: the seller and the buyer?
    1. Designated
    2. Single
    3. Dual
    4. Buyer

 

  1. Which Latin phrase means that the principal can be held accountable for any harm caused through the use of an agent?
    1. Brutum Fulmen
    2. Auribus Teneo Lupum
    3. Corvus Oculum Corvi Con Eruit
    4. Respondeat Superior

 

  1. General agency law may include relationships between executor and ______________.
    1. Decedent
    2. Guardian
    3. Ward
    4. Employee

 

  1. If ______________ notice is given, then actual notice does not need to be personally delivered.
    1. Critical
    2. Constructive
    3. Conjunctive
    4. Cooperational

 

  1. A key factor under ____________ is that there needs to be a clear distinction between the roles of each licensee.
    1. Licensed agency
    2. Broker agency
    3. Single agency
    4. Subagency

 

  1. There should then be ____________ to make sure that salespersons associated with the firm understand their responsibilities.
    1. Annual education requirements
    2. In-house training sessions
    3. Monthly testing
    4. Minimum standards

 

  1. Some agencies concentrate on single agency but allow _______________ with full disclosure and informed consent in those situations where another member of their firm represents a party who wishes to buy an in-house listing.
    1. Dual agency
    2. Seller agency only
    3. Non-agency
    4. Buyer agency only

 

  1. Who should you contact to find out what fiduciary responsibilities are imposed on real estate agents in your state?
    1. An occupational attorney
    2. The MLS Board
    3. Your broker in charge
    4. State real estate licensing agency

 

  1. In order to obtain a license, real estate agents need to subscribe to certain professional ________________.
    1. Standards of conduct
    2. Acts of transcription
    3. Business classes
    4. Magazines and services

 

  1. A real estate agency relationship is a ___________ for services to be performed.
    1. Request
    2. Contract
    3. File
    4. Term

 

  1. Legally and morally, it is acceptable to have who pay all or part of a buyer's broker fee?
    1. The seller
    2. The buyer
    3. The seller's agent
    4. The buyer's estate

 

  1. The Business Relationship Agreement can be a tool that might help protect you from future ____________.
    1. Legal liability
    2. Engagement
    3. Buyer disputes
    4. Questions about professionalism

 

  1. Brokers are held to a higher standard of care than a lay person because of their:
    1. Professional status, state license and fiduciary responsibilities
    2. Professional status, state license and better morals
    3. Idealism, state license and fiduciary responsibilities
    4. Professional status, accounting certification and fiduciary responsibilities

 

  1. Many state commissions felt that developing ________________ for licensees to use was the best way to guarantee that all potential clients were made aware of all their options and could make an informed decision.
    1. Broker requirements
    2. Hazardous condition laws
    3. Employment classifications
    4. Standard disclosure forms

 

  1. The chances of real estate professionals being sued is quite high due to the various forms of what to which they are exposed?