Unit 4,5,6 quizzes

In Illinois, a real estate broker hired by an owner to sell a parcel of real estate must comply with the…

Illinois statutory agency law and common law of agency.

The six common law fiduciary duties are…

care, obedience, loyalty, disclosure, accounting, and confidentiality.

Under Illinois agency law…

Sponsoring brokers may designate which sponsored licensee represents the client.

In real estate transactions, the term fiduciary typical refers to the…

agents relationship to the principal

What best describes an agent?

A person who is placed in a position of trust and confidence

A buyer who is a client of the broker wants to purchase a house that the broker has listed for sale…

The seller and the buyer must give written consent for dual agency.

In a dual agency situation, a licensee may represent both the seller and the buyer if…

both parties give their informed written consent

Which of these statements is true of a real estate broker acting as the agent of the seller?

The broker is obligated to render faithful service to the seller.

A seller listed his property with a brokerage company. The agency relationship between the seller and the sponsoring broker is what type of agency?

Special

What is considered a dual agency?

A licensee acting for both the buyer and the seller in the same transaction

Which of these events will terminate an agency in a designated agent seller relationship?

The owner declares personal bankruptcy.

In Illinois, which of these is true concerning designated agency?

License law requires the licensee to disclose, in writing, that a designated agency relationship exists.

A real estate licensees responsibility to keep the principal informed of al the facts that could affect a transaction is the duty of…

disclosure

A sponsoring broker who has contracted with an apartment building owner to manage a high - rise apartment is probably…

a general agent

Which statement is true regarding the National Do Not Call Registry?

Real estate licensee may phone any visitors to an open house for up to three months after that open house.

The brokers commission was $8,200. If the commission rate was 6%, what was the selling price of the property?

$136,666.67

A broker received $2,520 as the firms 50% share of a commission. If the property sold for $72,000, what was the commission rate?

7%

One general rule of the National Do Not Call Registry is…

Unless there is an established business relationship, it is illegal to make an unsolicited phone call to a number listed on the national registry.

Two real estate companies agreed to boycott the services of a title company so that a new title company can take over the corresponding market share. The two real estate companies are violating the…

Sherman Antitrust Act

In Illinois, the usual “proof” that the listing broker has earned commission is the…

closing of the sale

Federal regulations on unsolicited email…

require commercial emails to include a physical address, among other things, for the sender.

Which of these may a sponsoring broker dictate to an independent contractor?

compensation the person would receive

An Illinois real estate licensee who is engaged as an independent contractor…

must have a written independent contractor agreement with the sponsoring broker.

Which of the following is an example of price-fixing?

“This is the same commission that every other real estate company in town charges”

Real estate licensees who are paid in a lump sum and who are personally responsible for paying their own taxes are probably…

independent contractors

The amount of commission paid to a sponsored licensee is determined by…

mutual agreement with the sponsoring broker

Which of these statements is true of a listing contract?

It is an employment contract for the professional services of the broker.

Illinois licensees may…

submit a listing to the local MLS

The final decision on a property’s listed price should be determined by the…

seller based on the broker’s CMAs and advice.

Under a listing agreement, the broker is entitled to sell the property for any price, as long as the seller receives $185,000. The broker may keep any amount over what the seller needs to net. This type of listing is called…

a net listing

Which of these is a similarity between an open listing and an exclusive - agency listing?

Under both, the seller avoids paying the broker a commission if the seller sells the property to someone the broker did not procure.

A comparative market analysis…

can help the seller price the property

Illinois requires that listing agreements contain…

an automatic expiration date or statement of clients right to terminate.

In Illinois, what brokerage agreements must be in writing?

Exclusive brokerage agreement

Under what conditions is a disclosure of contemporaneous offers required?

When a buyers agent is acting as designated agent for more than one buyer interested in buying the same property.

A listing taken by a real estate licensee is an agreement between the seller and the…

sponsoring broker