Chapter 2 Flashcards by Naiomi Cacho

A real estate salesperson is typically what type of agent?

Special Agent

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In order to dislcose confidential information, the agent must first obtain what from the client?

Written Consent

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Who’s job is it to act as the middleman of the transaction?

Broker

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The broker, as a franchisee of a national brokerage, is considered what to the national brokerage?

Sub-agent

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A listing given to any number of brokers without liability to compensate any broker, except the one who first secures a buyer ready, willing and able to meet the terms of the listing, is known as an?

Open Listing

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A real estate broker teamed up with another real estate broker in an effort not to do business with a cross-town broker. What would these brokers be accused of?

Group boycotting

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Conspiring to establish fixed fees or prices for services or products is known as?

Price Fixing

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According to this fiduciary duty, an agent must present all offers to the client.

Disclosure

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In additional to the principal, the agent also owes fiduciary duties to who?

The customer

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According to this agent’s fiduciary duties, the agent must be competent and not act in a negligent manner.

Reasonable care

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An agreement between memeber’s of a trade to exclude other memeber’s from fair participation in the trade is known as?

Group Boycott

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A real estate salesperson successful sold their client’s house. Who receives the commission from this transaction?

The agents broker

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A situation in which one party is held partly responsible for the unlawful actions of a third party is known as?

Vicarious Liability

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An agreement of employment by a broker under which the exclusive right to sell for a specified period is granted to the broker is known as?

Exclusive Right to Sell

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This is a form of agency that occurs when the words and actions of the parties indicate that there is an agency relationship?

Implied Agency

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According to which of an agent’s fiduciary duties, must the agent work in the best interests of their client.

Loyalty

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Mark, a property owner, signed an agency agreement with Andrew, a real estate broker, to sell his house. What type of agency was created between Mark and Andrew?

Expressed Agency

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Generally, what are the 2 ways a broker is compensated for a transaction.

Flat Fee and Percentage of the sale price

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John is a real estate broker and wants to enter into an agency relationship with Steve, a property owner.
What document must John and Steve execute in order to enter into an agency relationship…?

Listing Agreement

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The degree of caution and concern for the safety of their him/herself and other an ordinarily prudent and rational person would use in circumstances is known as?

Reasonable Cause

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An agreement between members of a trade to refrain from competition in specific market areas is known as?

Market Allocation

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Which of the following may be considered a 3rd party to a transaction?

Customer

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According to which fiduciary duty is an agent prohibited from forcing on his/her client a sale, lease, or opportunity to buy?

Loyalty

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Making an intentionally false statement to induce someone to contract is know as?

Misrepresentation

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A general agent is typically granted more power than what other type of agent?

Special Agent

Manu brokerages allow in-house referaral fees when an agent refers a client to another agent. Who ultimately distributes the referral fee to a referring agent?

The sponsoring broker

A licensed real estate agent who acts on behalf of a tenant in commercial property transaction is known as?

Tenant's Agent

Which of the following is considered a principal in an agency relationship?

Owner

An agent has become aware of information that may affect the value of his client's property. If the agent revels this information to a prospective buyer, he will be in breach of which fiduciary duty?

Confidentiality

As an agent to a cooperative board, Mark has the authority to enter into contracts with 3rd party vendors to help service the building. This level of authority suggests that Mark is what type of agent?

General Agent

According to an agent's fiduciary duties, the agent must present all offers to his/her client. Which of the following fiduciary duties best reflects this?

Disclosure

Mr. and Mrs. Smith are seeking to sell their two bedroom house. Mark is a real estate broker and a family friend of the Smiths. The Smiths allowed Mark to show their house to prospective buyers but did not actually sign an agency agreement. Under this scenario, what type of agency relationship may arise...?

Implied Agency

John, a real estate salesperson, has entered into an agency agreement with a client whose scope is limited to that described in the agreement. This level of authority suggests that John is what type of agent...?

Special Agent

The broker's client is also referred to as the?

Principal

According to which of the agent's fiduciary duties, the agent must not change or modify the financial terms of a deal?

Accountability

The principle which precludes a person from asserting something contrary to what is implied by a previous action or statement of that person, or by a previous pertinent judicial determination, is known as...?

Estoppel

According to the duties a principal owes to the agent, the principal commits to doing what?

Compensate the agent for a successful transaction

In a typical transaction, who directly pays the real estate salesperson their commission?

Broker

In NYS, a referral fee may only be paid after what is obtained?

Informed consent of the client

Who is not considered a principal in an agency relationship?

Agent

The agree upon price between the seller and seller's agent, for which the property will be sold is known as?

Listing Price

When dual agency exists between the landlord's agent and tenant's agent, which fiduciary duty may be most at risk to both principals?

Undivided Loyalty

What is the typical length of term for an Exclusive Right to Sell Agreement?

6 months

How does a salesperson pay taxes on commission earned?

Taxes are paid in arrears

Which for is used to inform the parties to a transaction about the risks of dual agency?

Disclosure Form

Two brokers entered into an agreement whereby one broker will only do business on the east side of the city and the other broker will only do business on the west side of the city, in essence creating a market allocation agreement. What would this agreement limit...?

Competetion

Mark, a buyer's broker, found a prospective property for his client on the MLS. By agreeing to the cooperative arrangement of the MLS, who does Mark have an agency relationship with, in addition to his client...?

The Seller

If two brokerage firms enter into a market allocation agreement, what may they be limiting...?

Competition

In order for two brokers to enter into a dual agency arrangement, who must provide informed consent...?

The seller and buyer

Andrew, a real estate broker representing the buyer in a transaction, has entered into a dual agency arrangement after agreeing to the MLS cooperative arrangement. What does Andrew owe the seller in the transaction...?

Fiduciary Responsibilities

True or False: According to the Buyer's Agency Agreement, the broker is obligated to provide legal advice to the buyer.

False

In a single agency transaction, what are the seller's broker's duties to the buyer...?

To be fair and honest

If a real estate agent representing the buyer enters into a dual agency arrangement through the MLS, to whom does he/she become a sub-agent...?

The seller

Even if the buyer's and seller's brokers agree to dual agency, who may reject the arrangement of dual agency in a transaction...?

The seller

Josh is a real estate broker who represents a landlord in a rental transaction. When do Josh's fiduciary duties to his client terminate...?

When the tenant signs the lease

Ben, a real estate broker, entered into an Exclusive Right to Sell agreement with his client. Ben introduced a buyer to the seller who eventually bought the property; however, the client decided to terminate the agreement with Ben prior to the closing. Who is entitled to the commission...?

Ben, the listing broker

Which form informs the client about dual agency and details the risks and benefits involved in the transaction...?

Disclosure Form

John is an agent who has been designated to represent the buyer in a dual agency arrangement. Who does John owe a fiduciary duty to...?

Only the buyer

As stated in the Exclusive Right to Sell Agreement, this clause dictates that an owner cannot discriminate against any potential buyers...?

Fair Housing Clause

According to NYS law, how long is a broker allowed to take an extended leave of absence from his/her brokerage office...?

A broker is not allowed to take an extended leave of absence.

Who is required to sign the NYS Agency Disclosure Form?

The buyer or seller

Mark, a real estate broker representing a seller, insists that his client use his real estate attorney, otherwise, he won't sell the house. What has Mark introduced...?

Tie-in Arrangement

According to this agreement, taxes are NOT deducted from commissions an agent has earned over the course of business...?

Independent Contractor Agreement

Marcus, a real estate broker representing a buyer, is insisting that his client use his real estate attorney, otherwise, he will only show a limited number of properties to the client. What has Marcus introduced to his client...?

Tie-in Arrangement

Unlike single agency where a broker represents either the buyer or the seller, but not both, in this type of agency a broker can represent both the buyer and seller...?

Dual Agency

What should an agent recommend their clients obtain as a means to verify the financial capabilities of the client?

Have the buyer obtain a pre-approval letter from the lender.

As stated in the Buyer's Agency Agreement, what is the buyer's obligation to the broker?

Compensate the broker for services rendered

The listing price is also referred to as ?

The price agreed upon in the contract between the seller and seller's agent.

MLS Is an acronym for what?

Multiple Listing Service

When a buyer's broker agrees to the cooperative arrangement of the MLS, and becomes a sub-agent to the seller, what type of agency is created...?

Dual Agency

According to New York State law, an independent contractor agreement can NOT be signed under what condition...?

Duress

When a buyer's broker agrees to the cooperative arrangement of the MLS, he/she becomes what to the seller, who’s property is listed on the MLS...?

Sub-agent

Ben, a real estate agent, represents several buyers. In an attempt to increase his commission, he decides to have his clients bid against the same property without their knowledge or consent. Which fiduciary duty has Ben breached...?

Loyalty

Prior to January 1, 2011, what was NOT permitted under New York State law...?

Advance consent to dual agency

When two brokers agree to the MLS' cooperative arrangement, what type of agency is created...?

Expressed Agency

John is the seller's broker in a transaction. An associate broker from John's office is interested in showing the property to his client. Who must provide informed consent before the associate broker's client views the property...?

John's client

Chapter 2 Flashcards

(77 cards)