questions real estate exams

Question 1

The salesperson must be competent and not act in negligent manner. this is known as

Answer 1

reasonable care

Question 2

the salesperson must work in the best interest of the client. this is known as

Answer 2

loyalty

Question 3

the salesperson must communicate with the client and present all offers this is known as

Answer 3

disclosure of information

Question 4

the salesperson must safeguard any money or property held on behalf of the client. this is known as

Answer 4

accountabilty

Question 5

the salesperson must act in accordance to the client’s demands and instructions this is known as

Answer 5

obedience

Question 6

your client is going through a divorce and must quickly sell their house. this fiduciary duty requires that this information remain private, as it may affect a buyer’s office price. this is

Answer 6

confidentiality

Question 7

you have a client who is looking for a 2 bedroom rental apartment in a desirable neighborhood. you find an apartment that matches your clients criteria but the apartment is listed well below market value. Although you personally may want the apartment for yourself, this fiduciary duty requires that you present the apartment to your client first. this is

Answer 7

loyalty

Question 8

your expertise as a salesperson lies in residential rentals. according to this fiduciary duty, you may have to pass on a deal if a client comes to you looking to lease a new 50,000 sq.ft office space this is

Answer 8

reasonable care

Question 9

your client demands that you list her property below market value as she wants to sell the property quickly. although you can earn a higher commission I the property were sold at market value, this fiduciary duty requires you to follow through with your clients listing price. this is

Answer 9

obedience

Question 10

a mortgage broker offers to give you a referral fee if you refer your buyer to them to obtain a mortgage. this fiduciary duty requires that you disclose the referral fee to the buyer as there can be no hidden profits in the deal. this is

Answer 10

accountability

Question 11

A property was sold for $555,000. The total commission for the transaction was 5%. The listing broker and buyer’s broker agreed to split the commission 50/50. What is the amount of commission paid to the buyer’s broker..

Answer 11

13,857

Question 12

The one by whom a broker is employed is known as a

Answer 12

principal

Question 13

Justin, a real estate salesperson, would like to offer his colleague a referral fee for referring him a new client. Before offering the referral fee, however, Justin obtained informed consent from the client. Why must Justin obtain consent from the client…?

Answer 13

Justin has a fiduciary duty to the client

Question 14

Amy’s house was listed for $455,000. The property eventually sold for $410,000. The agreed upon commission was 5%. How much did Amy pay in commissions at the closing of the property…?

Answer 14

20,500

Question 15

Justin, a real estate salesperson with City Brokerage, recently met a client who is looking to purchase a condo in Manhattan. Since Justin specializes in Brooklyn rentals, he decides to refer the client to a colleague of his at City Brokerage and instead receive a referral fee. If Justin’s client closes a deal with the other salesperson, who ultimately pays Justin his referral fee…

Answer 15

Justin’s sponsoring broker

Question 16

Appointing one or more individual agents in a firm to represent only the interests of the seller, and one or more different individual agents in the firm to represent only the interests of the buyer, when a firm has an “in-house” dual agency situation, is known as…?

Answer 16

Designated Sales Agent

Question 17

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

Answer 17

Confidentiality

Question 18

Mark is a real estate agent who has entered into an agency relationship with David, a homeowner, to sell David’s house. They agreed to set Mark’s commission at 6% of the sales price. How else may the commission be calculated…?

Answer 18

flat fee

Question 19

A contract where one transaction depends upon another is known as a…?

Answer 19

Tie-in Arrangement

Question 20

If two or more brokerage firms conspire to not do business with another brokerage firm, what may they be liable of…?

Answer 20

Group Boycotting

Question 21

An agreement of employment of a broker to the exclusion of all other brokers is known as…?

Answer 21

Exclusive Agency

Question 22

A property was sold for $230,000. The total commission for the transaction was 6%. The listing broker and buyer’s broker agreed to split the commission 50/50. If the listing broker’s real estate agent was responsible for the sale of the property and receives a 60/40 split with his broker, how much commission is paid to the real estate agent…?

Answer 22

4140

Question 23

An agent who represents the buyer of real property is referred to as a…?

Answer 23

Buyer’s Agent

Question 24

Which of the following fiduciary duties is conversely related to the duty of Disclosure…?

Answer 24

Confidentiality

Question 25

A real estate salesperson is typically what type of agent...?

Answer 25

Special Agent

Question 26

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

Answer 26

owner

Question 27

The 'L' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...?

Answer 27

loyalty

Question 28

The 'C' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...?

Answer 28

Confidentiality

Question 29

An actual agency created by written or oral agreement between the principal and the broker is known as...?

Answer 29

expressed agency

Question 30

In a typical agency structure, who is the primary agent to the client...?

Answer 30

real estate broker

Question 31

John is interested in purchasing a two bedroom house and enters into an agency relationship with Chris, a real estate broker, to help him find a house. According to the fiduciary duties Chris owes to John, which of the following is true...?

Answer 31

According to the duty of Obedience, Chris should not show John one bedroom houses

Question 32

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

Answer 32

tenant

Question 33

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...?

Answer 33

Disclosure

Question 34

Representing both principals (seller and buyer) in a transaction is known as...?

Answer 34

dual agency

Question 35

According to an agent's fiduciary duties, the agent must be competent and not act in a negligent manner. Which of the following fiduciary duties best reflects this...?

Answer 35

Reasonable Care

Question 36

According to an agent's fiduciary duties, the agent must not change or modify the financial terms of a deal. Which of the following fiduciary duties best reflects this...

Answer 36

Accountability

Question 37

A property was sold for $650,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. What is the amount of commission paid to the buyer's broker...?

Answer 37

39,000

Question 38

An agent and the principal enter into an agency relationship through what document...?

Answer 38

listing agreement

Question 39

Which of the following is an example of obedience, one of the six fiduciary duties an agent owes his/her client...?

Answer 39

Only showing the type/size of house the client is looking for

Question 40

John, a real estate broker, and Chris, a property owner, have entered into an agency relationship. Soon after, a dispute arose in regards to how much commission should be paid to John if he finds a buyer for Chris' property. What should they do to resolve their dispute...?

Answer 40

Refer back to the listing agreement, which states the agreed upon commission

Question 41

The 'O' in the acronym 'OLD CAR' refers to which of the agent's six fiduciary duties...?

Answer 41

Obedience

Question 42

Which of the following fiduciary duties is conversely related to the duty of Confidentiality...?

Answer 42

disclosure

Question 43

In a typical transaction, who directly pays the real estate salesperson his/her commission...?

Answer 43

broker

Question 44

John, a real estate salesperson, was referred a client from another agent. After successfully closing on the deal, John would like to offer a referral fee to the agent who referred the client. What must John obtain first before offering a referral fee...?

Answer 44

informed consent of the client

Question 45

A written explanation, to be signed by a prospective buyer or seller of real estate, explaining to the client the role that the broker plays in the transaction is described on the...?

Answer 45

agency disclosure form

Question 46

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

Answer 46

sub-agent

Question 47

The first contact or meeting by a licensee when some detail and information about the property is shared with parties who express some interest in the real estate transaction is known as...?

Answer 47

first-substantive contact

Question 48

According to this fiduciary duty, an agent cannot fail to reveal material information about a property in an effort to secure the sale...?

Answer 48

disclosure

Question 49

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...?

Answer 49

listing agreement

Question 50

According to this doctrine, a principal cannot claim that an implied agency relationship did not exist...?

Answer 50

Estoppel

Question 51

A property was sold for $625,000. The total commission for the transaction was 5%. The listing broker and buyer's broker agreed to split the commission 50/50. If the listing broker's real estate agent was responsible for the sale of the property and receives a 50/50 split with his broker, how much commission is paid to the real estate agent...?

Answer 51

7812.5

Question 52

An agent who represents the seller of real property is referred to as the...?

Answer 52

seller`s agent

Question 53

The employer of an agent or broker is known as a...?

Answer 53

principal

Question 54

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...?

Answer 54

special agent

Question 55

A property was sold for $750,000. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. If the buyer's broker's real estate agent was responsible for the sale of the property and receives a 40/60 with his broker, how much commission is paid to the real estate agent...?

Answer 55

9000

Question 56

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

Answer 56

written consent

Question 57

Justin, a real estate salesperson, would like to offer his colleague a referral fee for referring him a new client. Before offering the referral fee, however, Justin obtained informed consent from the client. Justin's actions are an example of what policy...?

Answer 57

dull disclosure

Question 58

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

Answer 58

the sponsoring broker

Question 59

According to an agent's fiduciary duties, the agent must work in the best interests of his/her client. Which of the following fiduciary duties best reflects this...?

Answer 59

loyalty

Question 60

A property was sold for $525,600. The total commission for the transaction was 6%. The listing broker and buyer's broker agreed to split the commission 50/50. If the buyer's broker's real estate agent was responsible for the sale of the property and receives a 65/35 split with his broker, how much commission is paid to the real estate agent...?

Answer 60

10249.2

Question 61

According to the duties a principal owes to the agent, the principal commits to doing which of the following...?

Answer 61

Compensate the agent for a successful transaction

Question 62

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...?

Answer 62

expressed agency

Question 63

Lisa is a real estate broker who has entered into an agency relationship with Robert, a landlord looking to lease one of his apartments. Lisa brings Andrew, a prospective tenant, to Robert with an offer to rent Robert's apartment. Which of the following statements is correct...?

Answer 63

Lisa is the Agent, Robert is the Principal, and Andrew is the Customer

Question 64

Susan and Mark are in the process of getting a divorce and need to sell their house quickly. They have hired a real estate broker to help facilitate the transaction. According to which fiduciary duty must the information regarding the divorce not be disclosed...?

Answer 64

confidentiality

Question 65

An agent of a broker who is already acting as an agent of a principal is known as a...?

Answer 65

sub-agent

Question 66

According to the Buyer's Agency Agreement, which of the following in an obligation owed by the broker to the buyer...?

Question 67

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...?

Answer 67

Vicarious Liability

Question 68

According to the Buyer's Agency Agreement, which of the following is considered a buyer's obligation to the broker...?

Answer 68

Conduct all negotiations through the broker

Question 69

Only after January 1, 2011 was this permitted, as stated under Section 443 of the NYS Real Property Law...?

Answer 69

dvNCE CONSET TO DUAL AGENCY

Question 70

A person that provides services to another under terms specified in a contract or within a verbal agreement is known as an...?

Answer 70

independent contractor

Question 71

According to the Buyer's Agency Agreement, which of the following is NOT an obligation owed by the buyer to the broker...?

Answer 71

Have a personal real estate attorney on call to help with the negotiations

Question 72

What should be provided before a dual agency relationship occurs...?

Answer 72

informed consent by all parties

Question 73

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

Answer 73

undivided loyalty

Question 74

Brian, a property owner, recently accepted an offer from an interested buyer. Brian's attorney recommended that he NOT fill out the Property Disclosure Form. If Brian takes his attorney's advice, how much money will he have to pay at the closing in the form of a credit...?

Answer 74

500

Question 75

The Listing Price is also referred to as what...?

Answer 75

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

Question 76

According to this document, a seller's agent owes his/her client the following six fiduciary duties; reasonable care, undivided loyalty, confidentiality, full disclosure, obedience, and duty to account...?

Answer 76

NYS disclosure form

Question 77

Which of the following is a typical characteristic of an independent contractor relationship...?

Answer 77

Which of the following is a typical characteristic of an independent contractor relationship...?

Question 78

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

Answer 78

competition

Question 79

MLS is an acronym for what...?

Answer 79

Multiple Listing Service

Question 80

At what time during a transaction may a principal dissolve a dual agency arrangement...?

Answer 80

any point in the transaction

Question 81

According to the Buyer's Agency Agreement, which of the following is the broker's obligation to his/her client...?

Answer 81

assist in locating available property

Question 82

A Lead Paint Disclosure Form is required for all properties built prior to what year...?

Answer 82

1978

Question 83

Josh, a real estate broker, is hesitant to enter into a dual agency arrangement as it may affect these duties to his client...?

Answer 83

Fiduciary Duties

Question 84

When an agent represents either the buyer or the seller, but NOT both in a transaction, the agent is considered what...?

Answer 84

dual agent

Question 85

Which of the following is NOT an obligation owed by the broker to the buyer, as stated in the Buyer's Agency Agreement...?

Answer 85

Inspect potential properties for structural defects

Question 86

If the commission for a transaction is 6% and the seller's agent agrees to share 50% of his/her commission with participating brokers, what percentage of the purchase price is shared with the buyer's broker...?

Answer 86

3%

Question 87

Mark, a real estate agent, is attempting to rent an apartment on behalf of his client. Another agent, who works for Mark's broker, is seeking to show the apartment to his client. In this scenario, what type of agency exists...?

Answer 87

dual agency

Question 88

Mark is a real estate broker who represents a tenant seeking to rent an apartment. When do Mark's fiduciary duties to his client terminate...?

Answer 88

when his client signs the lease

Question 89

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

Answer 89

to be fair and honest

Question 90

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...?

Answer 90

reasonable care

Question 91

When a broker is involved in a dual agency arrangement, whereby he/she designates sales agents to represent both the buyer and seller, the broker owes a fiduciary duty to whom...?

Question 92

An estate which the tenant holds his own right, without being joined in interest with any other person is known as

Answer 92

estate in severalty

Question 93

An ownership of realty by two or more persons, each of whom has an undivided interest, without the “right of survivorship” is known as

Answer 93

tenancy in common

Question 94

Ownership of realty by two or more persons, each of whom has an undivided interest with the “right of survivorship” is known as

Answer 94

joint tenancy

Question 95

Ownership of real property by a married couple in which interests cannot be transferred without the consent of the other spouse is known as

Answer 95

tenancy by the entirely

Question 96

Absolute ownership of real property is known as what...?

Answer 96

Fee Simple Estate

Question 97

In this type of estate, the owner is entitled to the entire property with unconditional power of disposition during the owner’s life and descending to the owner’s heirs or distributees...?

Answer 97

Fee Simple Estate

Question 98

A lien imposed against property without consent of the owner, e.g., taxes, special assessments.

Answer 98

Involuntary Lien

Question 99

A contractual or consensual lien that is created by an action taken by the debtor, such as a mortgage loan to buy real estate.

Answer 99

Voluntary Lien

Question 100

An instrument in writing, duly executed and delivered, that creates a lien upon real estate as security for the payment of a specified debt, which is usually in the form of a bond.

Answer 100

Mortgage

Question 101

A lien that attaches to all personal and real property of a person or firm.

Answer 101

General Lien

Question 102

A lien that only binds to a specific asset or property.

Answer 102

Specific Lien

Question 103

A legal document, filed in the office of the county clerk giving notice that an auction or proceeding is pending in the courts affecting the title to the property. (Not applicable in commission disputes.)

Answer 103

Lis Pendens

Question 104

A security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property.

Answer 104

Mechanic's Lien

Question 105

A lien imposed by law upon a property to secure the payment of taxes.

Answer 105

Tax Lien

Question 106

Any right to or interest in the land interfering with its use or transfer, or subjecting it to an obligation.

Answer 106

Encumbrance

Question 107

A legal document used to make the claim of one party junior to (or inferior to) a claim in favor of another.

Answer 107

Subordination Agreement

Question 108

A right to cross or otherwise use someone else’s property for a specified purpose.

Answer 108

Easement

Question 109

A type of negative easement. This easement prevents an adjoining land owner from building any structure that would obstruct the passage of light or air from reaching the dominant land.

Answer 109

Easement for Light and Air

Question 110

An easement that benefits an individual or a legal entity, rather than a dominant estate.

Answer 110

Easement in Gross

Question 111

An easement that benefits the dominant estate and “runs with the land”. In other words, an easement appurtenant generally transfers automatically when the dominant estate is transferred.

Answer 111

Easement Appurtenant

Question 112

Something which is outside property itself but belongs to the land and adds to its greater enjoyment such as a right-of-way or a barn or a dwelling.

Answer 112

Appurtenances

Question 113

A parcel of real property that has an easement over another piece of property (the servient estate).

Answer 113

Dominant Tenement

Question 114

A parcel of real property that is encumbered by an easement of a dominant estate.

Answer 114

Servient Tenement

Question 115

Parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access.

Answer 115

Easement by Necessity

Question 116

Implied easements granted after the dominant estate has used the property in a hostile, continuous, and open manner for a statutorily prescribed number of years.

Answer 116

Easement by Prescription

Question 117

The creation of an easement by one party expressly transferring the easement to another party.

Answer 117

Easement by Grant

Question 118

An easement that is not created by express statements between the parties; but as a result of surrounding circumstances that dictate that an easement must have been intended by the parties.

Answer 118

Easement by Implication

Question 119

An easement created by the government or government agency that has exercised its right under eminent domain.

Answer 119

Easement by Condemnation

Question 120

A wall built along the line separating two properties, partly on each, which wall either owner, the owner’s heirs and assigns has the right to use; such right constituting an easement over so much of the adjoining owner’s land as is covered by the wall.

Answer 120

Party Wall

Question 121

A building, part of a building, or obstruction which intrudes upon or invades a highway or sidewalk or trespasses upon the property of another

Answer 121

Encroachment

Question 122

Something which is outside property itself but belongs to the land and adds to its greater enjoyment such as a right-of-way or a barn or a dwelling.

Answer 122

Appurtenances

Question 123

Permission granted by a party to another party as an element of an agreement between both parties.