Chapter 3 Flashcards by Rocky Acc

What is unauthorized practice of law called?

The Duncan and hill decision

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What year and prior do you need to be worried about lead in a house?

Homes built before1978

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If you’re putting your clients house on the market, what is the paperwork that you need to put together.

A CMA, a comparative market analysis

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Do salespeople do appraisals?

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If you’re an appraiser taking a look at a property, what kind of approach would you use? An easy approach.

The sales Comparison approach

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If an appraiser can’t find comparable, and your property is unique, what approach will he use?

The cost approach. Figure out how much it would cost to build.

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If you have a property that you have to appraise and it’s like a 25 unit apartment building, what approach will the appraiser take to price out the property.

Income capitalization approach

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What is the present worth of future benefits?

Value

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No one is under duress, and the seller is ready to sell, and the buyer is ready to buy, what is that called?

Market value

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An employment agreement between an owner (principal) and a licensed real estate broker, where the broker receives a fee from the owner as compensation for services.

Listing agreement

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What is a listing agreement?

An employment agreement between a principal and a broker where the broker receives compensation from the owner

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What is the Duncan and Hill decision?

It cautions real estate agents regarding the unauthorized practice of law

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What is a designated agent?

And a dual agency situation the broker can designate another agent to represent either the seller or the buyer

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In a single agency agreement in which a broker represents a seller,
A. The buyer is the client
B. The buyer is a sub agent
C. The seller is the customer
D. The seller is the client

The seller is the client

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Which listing agreement provides the broker with the greatest incentive to successfully market the property?
A. Open listing
B. Net listing
C. Exclusive agency listing
D. Exclusive right to sell listing

D, exclusive right to sell

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A sales person agreed to meet a buyer at a home listed by the sales persons broker, when must the sales person provide the buyer with an agency disclosure?
A. In advance of the first in person meeting
B. Before entering the property
C. After showing the property
D. When the buyer expresses interest in making an offer

Before entering the property

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As long as the agency relationship is clear and explicit,
A. The seller must pay
B. The buyer must pay
C. It does not matter legally whether the buyer or the seller pays the fee
D. All of these are true

C, it does not matter legally whether the buyer or the seller pays the fee
(school)

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A listing contract will terminate as the result of performance of the object. This means that
A. The property has been destroyed
B. The seller and the broker agree to cancel
C. The owner has decided not to sell
D. The property has been sold

D, the property has been sold

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Does it legally matter if the seller or the buyer pays the fee in an agency relationship

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What Does performance of the object mean?

The property has been sold.

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In a dual agency relationship, the parties give up their right to
A. Undivided loyalty
B. Care
C. Accounting
B. Obedience

Undivided loyalty (school)

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A broker represents a home buyer as a buyers agent. The broker wants to show the buyer a property that a seller has listed with him. If the broker shows the buyer the property, he should first do what?

Also, is he violating license law?

Inform both parties of this dual agency, then get the informed, written consent of both buyer and seller to act as a dual agent (school)

No he is not violating license law

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When a broker takes a listing, all sales people who work for the broker are generally considered what to the broker, and what to the seller?

Agents for the broker and sub agents for the seller

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Which listing agreement gives sellers the ability to reserve the right to conduct their own sale without compensating the exclusive agent?
A. Exclusive agency listing
B. Net listing
C. Any multiple listing
D. Exclusive right to sell

Exclusive agency listing

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Which one best describes a residential transaction? A. A building containing six or fewer units intended for dwelling purposes B. A building containing three or fewer units intended for dwelling purposes C. A building containing four or fewer units intended for dwelling purposes D. A building containing five or fewer units intended for dwelling purposes

C, 4 units

The broker represents both the seller and the buyer in the same transaction is known as?

Dual agency

In which agency does a seller AND buyer give up their right to full disclosure and undivided loyalty?

Dual agency

What listing in this: Owner can sell on their own

Exclusive agency listing

Is a commission due to a broker in an exclusive agency listing?

Which listing is this: No commission is due to the broker and the owner has the right to sell their property on their own. A. Open listing B. Net listing C. Exclusive right to sell listing D. Exclusive agency listing

Exclusive agency listing

What are the 3 different buyer agency agreements?

Exclusive buyer-agency agreement Exclusive agency buyer-agency agreement Open buyer-agency agreement

Which buyer agency agreement is similar to an open listing?

An open buyer-agency agreement

Which agreement is this: The buyer employs a number of brokers and only the one who finds the property gets the commission

Open buyer-agency agreement

What is the open buyer agency agreement most similar to?

Open listing

What is the exclusive agency buyer agency agreement most similar to?

Exclusive agency listing

Which agreement is this? The buyer has the right to find property on their own and no commission is due to the broker.

Exclusive agency buyer-agency agreement

Does the buyer have the right to find property on their own in an open buyer-agency agreement?

Yes

What are the three different types of listings?

Open listing Exclusive right to sell listing Exclusive agency listing

Which type of listing is an exclusive agency buyer-agency agreement similar to?

Exclusive agency listing

Which buyer-agency agreement is this: Buyer has the right to find property on their own and no commission is due to the broker.

Exclusive agency buyer-agency agreement

Does a buyer have the right to find property on their own in an exclusive agency buyer-agency agreement?

Yes

Which listing has the greatest protection for a broker?

Exclusive right to sell listing

Broker earns a commission no matter who sells property within the listing time frame in which type of listing listing?

Exclusive right to sell listing

Which listing gives a broker commission no matter who sells the property?

Exclusive right to sell listing

What is an open listing?

Where the seller employs a number of brokers and the one who sells the property gets the commission.

Which listing is this: The seller employs a number of brokers and the one who sells the property gets the commission.

Open listing

Which form is necessary for homes built prior to 1978?

Lead based paint disclosure form

The lead based paint disclosure form is necessary for homes built prior to what year?

1978

Who is responsible to disclose any known hazard of a lead-based paint?

both The seller and landlord

True or false: the seller, but not the landlord, is obligated to disclose any known hazard of lead-based paint.

False , both are obligated

If you, as the seller or the landlord, do not disclose any known hazard of lead-based paint, how much do you get fined?

$11,000

which buyer-agency agreement gives the greatest protection to the broker?

Exclusive right to represent buyer-agency agreement

Which buyer-agency agreement gives the broker a commission no matter who finds the property within the buyer agency timeframe?

Exclusive buyer- agency agreement

One agent has the exclusive right to represent the client. Which buyer agency agreement is this?

Exclusive buyer-agency agreement

What does the regulation 175.7 under the DOS state? What does section 443 under 175.7 state?

- A real estate broker should make it clear for which party he is acting - He can’t receive compensation from more than one party except with the full knowledge and consent of all parties - applies to all types of properties - 443 states that brokers and salespersons give sellers/buyers an agency disclosure form that describes the roles of sellers’ agents

What classifies as first substantive contact?

The moment I buy rocks into the agents office and begins discussing your real estate needs for financial situation. 41 environments the agent at the advertised listed property with the intent to inspect the property for purchase.

When showing a buyer a property, at what point should disclosure be made to a buyer?

Prior to entering a property being shown.

What does “records of transactions to be maintained” require?

Each licensed broker to maintain transaction records like copies of agency disclosure forms for at least 3 years

Brokers enlisting the help of other brokers to market their listed properties.

MLS

When a listing broker and selling (buyer) broker list on MLS, and they split commissions, what does this create?

Subagency

Co-brokerage is?

In a sub-agency, the selling broker (buyer broker) is acting as a sub agent of the seller, as well as being an agent of the listing broker

When a broker accepts a listing from a seller: - The broker becomes the sellers agent - any salesperson who works for the broker becomes a subagents of the seller because they are an agent of the broker What is this ?

Sub agent

What is necessary for a dual agency?

Full disclosure and informed consent

The Secretary of State deemed it possible to allow the managing broker to designate an agent to represent the buyer and another to represent the seller. If designated sales agents are appointed, what will they function as?

Single agents giving undivided loyalty to their respective clients

Name the 3 listing agreements

Open listing, exclusive right to sell, exclusive agency listing

Do all the same requirements for disclosure, loyalty, and confidentiality apply to a tenant agency from a broker?

Yes

Does the exclusive right to sell listing agreement have one broker or multiple brokers?

One

Does the exclusive agency listing agreement have multiple brokers or one broker?

One

Does an open listing agreement have one broker or multiple brokers?

Multiple

Who gets paid in an open listing agreement which has multiple brokers?

Only the selling broker gets paid

In an exclusive right to sell listing agreement does the broker get paid a commission and if so, how?

This listing agreement provides the best protection because the broker is entitled to a commission regardless of who sells the house.

Under the exclusive right to sell listing agreement, is the seller allowed to sell their own property?

Under an exclusive agency listing agreement does the seller retain the right to sell their property without obligation?

Yes

Which listing agreement is this if the broker gets paid only if they or another broker is the procuring cause.

Exclusive agency listing agreement

Does the seller retain the right to sell their property without obligation under an open listing agreement?

Yes, the seller can sell

Which listing is the least restrictive of the three types?

The open listing agreement

Which listing agreement tends to be the least motivating for agents to want to spend a great deal of time or advertising money on the property?

Open listing agreement

Is MLS a type of listing?

No, it is organized within a geographic area by a group of brokers who agree to distribute and share listing information.

The broker is free to offer the property for sale at any price. What is this known as?

A net listing

Is a net listing legal or illegal in New York?

Illegal because it lends itself to fraud and is seldom in the seller‘s best interest. It also violates fiduciary responsibilities owed to a principal by the agent.

True or false; most homebuyers today use the Internet to browse the market to start their own searches. However most sales are eventually made face-to-face through the services of a broker.

True

What should the broker immediately do on their website when a sale occurs?

Remove the listing from the for sale section of the site. Failure to do so will subject the licensee to disciplinarian action by the department of state.

Can abandonment by a broker who spends no time on the listing terminate a listing?

Yes

does performance of the object terminate a listing?

Yes

True or false, automatic extension clauses in an exclusive listing is illegal in New York.

True

True or false: New York State requires that a functioning carbon monoxide detector and smoke alarm be installed in every one or two family house, co-op, or condo offered for sale

True

Do sellers and landlords have to disclose the presence of known lead-based paint or hazards at the time of the listing, later before the closing, or both?

Both

What penalty will occur if sellers and landlords fail to comply with lead paint disclosure requirements?

$11,000 penalty

At what age and under are landlords required to inspect every year for lead hazards?

Age 6 and under

Who is known to conduct frequent audits of the office of a brokerage in order to enforce the law that requires the attaching of lead paint disclosure forms to all contracts pertaining to the sale or lease of residential property?

The environmental protection agency (epa)

What must sellers and landlords provide in regard to lead paint disclosure?

HUD OR ERA booklet

The broker is entitled to payment if he or another broker locates the property that the buyer ultimately purchases. however if the buyer find a suitable property on his own, And is not obligated to pay the broker, which buyer agency agreement is this an example of?

Exclusive agency buyer agency agreement

Does the payment of fees determine who an agent represents?

No, it does not matter legally whether the buyer or the seller pays the fee, as long as the agency relationship is clear and explicit.

A buyers agent may be compensated by who?

The buyer, the seller, or both (with full disclosure and informed consent)

Who is more likely to be a customer, a seller or a buyer?

Buyer

If you have children under the age of “blank” then landlords must install window guards in New York City.

What is the most complete type of ownership?

Fee simple, you can do whatever you want with it

Liens attached to the property not the ?

Owner

What are the 3 different types of listings?

1. Exclusive right to sell listing (greatest protection for broker, he earns commission no matter who sells property within the listing time frame) 2. Exclusive agency listing (owner can sell on their own, no commission due to broker) 3. Open listing (seller employs a number of brokers, only the one who sells the property gets the commission)

Name the 3 different buyer-agency agreements and the 3 listing agreements

1. Exclusive buyer-agency agreement (best for broker, makes money no matter who sell property) 2. Exclusive agency buyer agency agreement (no commission due to broker, buyer has right to find property on their own) 3. Open buyer agency agreement (buyer hires multiple brokers, get paid if you find the property) 1. Exclusive right to sell listing 2. Exclusive agency listing 3. Open listing

If you get involved in dual agency, what do both parties (seller and buyer) give up their right to

Full disclosure and undivided loyalty

When must a salesperson provide a buyer with an agency disclosure form?

Before entering a property and at first substantive contact

Does it legally matter who pays the commission fee ?

No, as long as the agency relationship is explicit and clear

If a broker takes a listing, all salespeople who work for him are generally considered what?

Agent to the broker, sub agent to the seller

Meeting of the minds is

When you come to an agreement on dual agency I think

What is it called when a broken becomes the sellers agent

Subagent

Are net listings legal?

What is this: an agreement to sell for a specific amount of time, for no title, so it’s a ? Not a sale

A lease or rental

What is a net listing ?

Broker can offer property for sale at any price. Fraud. Violates fiduciary responsibility. Agent goes to homeowner saying the house is worth $400k, but the owner just wants $350k, so anything you get after $350k is yours

What does EPA stand for?

Environmental protection agency ($11,000 penalty)