State Laws Brokerage Relationships True/False

Question 1

Broker is NOT required to prove procuring cause in order to collect a commission under an exclusive right of sale listing.

Answer 1

True

Question 2

Broker is NOT required to prove procuring cause in order to collect a commission under an open listing.

Answer 2

False

Question 3

Seller’s property is listed for $65,000. Seller tells broker that seller will accept an offer of $60,000. Broker must disclose this information to all prospective buyers.

Answer 3

False:
Must keep confidential

Question 4

Seller is showing the property to broker. Seller tells broker about a problem with the septic system & asks broker NOT to disclose the condition. Broker should explain that to do so they would BOTH be violating the law.

Answer 4

True

Question 5

Broker discovers a hidden problem with the condition of Seller’s listed property. After being notified of the problem Seller orders broker NOT to disclose the problem. Under the circumstances, broker should cancel the listing.

Answer 5

True

Question 6

Sales Associate & a group of friends have purchased property for investments. Sales Associate wants to earn a commission regardless of who procures the buyer when they later sell the land. This type of listing is exclusive agency.

Answer 6

False:
Exclusive Rights of Sale

Question 7

Broker has an exclusive right of sale listing on Seller’s property. While seller is out of town broker finds a buyer to make an offer on the property. Broker signed the contract for sale & purchase on behalf of seller. This was acceptable because broker held an exclusive right of sale listing.

Answer 7

False:
Broker did not have a power of attorney

Question 8

Someone who is granted the power of attorney is principal’s attorney-in-fact.

Answer 8

True

Question 9

Seller asked sales associate to help sell the house. Sales Associate agreed to do so. This is an implied listing.

Answer 9

True

Question 10

A single agency exists. The duties owed include loyalty, honesty, & obedience.

Answer 10

True

Question 11

Seller has entered into a transaction broker relationship with broker. The broker owes the duty of full disclosure.

Answer 11

False

Question 12

A transaction broker owes the duty of limited confidentiality.

Answer 12

True

Question 13

Laundromat owner allows friend to place a sign in the front window advertising friend’s house for rent. If rented, friend agrees to give owner tickets to the magic for the remainder of the season. Owner is guilty of acting as a real estate broker without a license.

Answer 13

True

Question 14

Although the state & regional REALTOR association did not condone it, brokers in a local MLS agreed to charge a set fee for services. Since it was only the local group, this is NOT a violation of the Sherman & Clayton Antitrust Laws.

Answer 14

False:
This is price-fixing

Question 15

A broker who charges a 10% commission is in violation of the Sherman & Clayton Antitrust laws.

Answer 15

False

Question 16

A transaction broker owes limited confidentiality.

Answer 16

True

Question 17

Seller has agreed to list with only one broker & has retained the right to find they buyer without paying a commission. Seller has signed an open listing.

Answer 17

False:
Exclusive agency listing.

Question 18

A buyer’s binder check received by Sales Associate must be delivered to Broker immediately.

Answer 18

True:
Immediately is by the next business day

Question 19

Binder money is evidence of the buyer’s good faith.

Answer 19

True

Question 20

A buyer’s binder check must be deposited by the broker within 3 business days of receipt from the sales associate.

Answer 20

False:
3 business days from receipt by the sales associate

Question 21

Binder money is required in every residential real estate transaction.

Answer 21

False

Question 22

Sales associate receives a promissory note as binder money. Broker must keep it in a safe place.

Answer 22

True

Question 23

A promissory note is a legal tender & may be deposited in an escrow account.

Answer 23

False

Question 24

The purchase price is entered on the closing statement as a credit to the seller & a debit to the buyer.

Answer 24

True

Question 25

Unpaid city & county taxes are entered on the closing statement as a credit to the seller & debit to the buyer.

Answer 25

False: Debit seller and credit buyer

Question 26

A listing agreement violates the Statute of Frauds if it is patrol with a term less than 12 months.

Answer 26

False: Patrol listings of 12 months or less are exempt

Question 27

Rental property managers may pay a referral fee to tenants not to exceed $50.

Answer 27

True

Question 28

The buyer of a condominium sends written instructions to the licensee to cancel the purchase of a resale condominium within 3 business days of receipt of condominium documents. Broker may return the earnest money deposit without Seller’s permission.

Answer 28

True

Question 29

Sales associate who receives an earnest money deposit on Friday morning must turn it over to broker by Saturday.

Answer 29

False: Saturday is not a business day

Question 30

Example: sales associate, who receives an earnest money deposit on Friday morning must turn it over to broker by Saturday. Answer: false. In the above example, assuming no holidays, broker must deposit the money by end of day, Wednesday.

Answer 30

True

Question 31

The authorized brokerage relationship disclosure requirements of Florida statues, chapter 475. Applied to a contract to purchase 8 acres of undeveloped agricultural property.

Answer 31

True

Question 32

Full confidentiality is required in single agency relationships, but **_NOT_** in transaction broker relationships.

Answer 32

True

Question 33

Broker uses a little company to hold escrow funds. Broker must receive a written receipt for each deposit.

Answer 33

True

Question 34

The chapter 475 definition of residential real estate includes unimproved property zoned for 6 houses.

Answer 34

False

Question 35

A parcel of land zone for more than 4 condo units is defined as residential real estate.

Answer 35

False

Question 36

Agricultural property of 10 or fewer acres is residential real estate.

Answer 36

True

Question 37

A fiduciary relationship includes the responsibilities of: skill, care & diligence; loyalty; confidentiality; disclosure; obedience; & accounting.

Answer 37

True

Question 38

The maximum amount per hundred dollars that can be charged for a documentary stamp tax is $.35.

Answer 38

false: $.70

Question 39

The purpose of recording a deed is to give constructive notice.

Answer 39

True

Question 40

If Adidas recorded one, may assume that the title is merchantable.

Answer 40

False: Recordation does NOT prove validity

Question 41

A grantee would record a deed to give actual notice.

Answer 41

False: Constructive notice