NY (“Agency Law”, Fair Housing & Agency Law” and “New Salesperson Agency Law”) CE CLASS Questions with Answers
Answers will be revealed with proper subscription
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“New York New Salesperson Agency Law” course Questions only (no answers)
1. The obligation to follow the principal’s lawful instructions falls under the duty of:
A. Care
B. Obedience
C. Loyalty
D. Disclosure
2. Which of the following would a broker, acting as agent for a seller, NOT be expected to do?
A. Arrive at a reasonable listing and selling price
B. Ensure that they receive the maximum commission
C. Investigate and discover material facts
D. Explain real estate documents
3. A(n) _________ may be generally defined as someone who represents another in dealings with third parties.
A. Consumer
B. Agent
C. Client
D. Principal
4. New York Real Property Law § 443-a pertains to which type of disclosures?
A. Mediation options
B. Fair Housing discrimination disclosure
C. Property disclosures
D. Commission splits
5. Brokers should know, and be able to explain:
A. Tort law
B. Criminal law
C. Real estate law
D. Contract law
6. An agent should always obey the instructions of their client, unless:
A. The instructions are illegal
B. The action doesn’t make sense
C. The instructions make the sale difficult
D. The agent doesn’t agree with the client
7. A consensual fiduciary relationship in which one party acts on behalf of and under the control of another in dealing with third parties, is the definition of:
A. Employment
B. Agency
C. Obedience
D. None of the answers shown
8. A doctrine in tort law that makes a broker liable for the wrong of an agent is called:
A. Habeas Corpus
B. Fiduciary responsibility
C. Respondeat superior
D. Fraud
9. Even unintentional failure to provide proper disclosure, could be considered:
A. Harmless error
B. Fraud
C. Disloyalty
D. Disobedience
10. A participant in an action or transaction especially having control is a(n):
A. Principal
B. Agent
C. Customer
D. Broker
11. A consensual fiduciary relationship in which one party acts on behalf of and under the control of another in dealing with third parties, is the definition of:
A. Employment
B. Agency
C. Obedience
D. None of the answers shown
12. The principles of agency are based on which system developed centuries ago in England?
A. Feudal law
B. Noble law
C. Common law
D. Parliamentary law
13. How are “customers” different from “clients”.
A. Customers never have to pay any fees
B. customers purchase services but do not form an agency agreement
C. customers are owed no ethical duties at all
14. The care that an ordinarily reasonable and prudent person would use under the same or similar circumstances is:
A. Normal care
B. Due care
C. Ordinary care
D. Typical care
15. Even unintentional failure to provide proper disclosure, could be considered:
A. Harmless error
B. Fraud
C. Disloyalty
D. Disobedience
16. Someone or something that acts or exerts power, a moving force in achieving some result is the definition of:
A. Buyer
B. Agent
C. Seller
D. REALTOR
17. An agent who acts in the best interests of the principal or client is said to be:
A. Loyal
B. Qualified
C. Confidential
D. Responsible
18. The obligations of an agent are to:
A. Act on behalf of themselves to achieve an end
B. Act on behalf of another to achieve an end
C. Act on behalf of themselves to prevent an end
D. Act on behalf of another to prevent an end
19. Fiduciary comes from the Latin word “fides” which means:
A. “Faith”
B. “Trust”
C. “Honesty”
D. “Care”
20. What is a fiduciary relationship?
A. Any real estate agreement
B. To act in the best interest of the agent
C. To be under complete control of another
D. To manage money or property for another
21. Which of these is a fiduciary responsibility?
A. Confidentiality
B. Obedience
C. Loyalty
D. All of the above
22. What is the biggest hazard of dealing with trust accounts?
A. Commingling
B. Inflation
C. An economic downturn
D. A failed transaction
23. The degree of competence that one is expected to exercise in a particular circumstance or role is:
A. Doctrine of oversight
B. Loyalty
C. Obedience
D. Standard of care
24. A “principal-agent” relationship may arise from:
A. only written contracts
B. only a spoken agreement
C. Actions taken by the agent that imply an agency relationship
D. All of the above
25. What type of agency relationship has the most financial and legal risk potential for agents?
A. Single agency
B. Dual agency
C. Designated agency
D. General agency
26. In an earlier period in the practice of real estate brokerage, agents would use a listing in which a seller would agree to sell for a certain amount and the broker kept any amount above that. What type of listing is this?
A. Open listing
B. Exclusive agency listing
C. Exclusive right to sell listing
D. Net listing
27. An agency relationship is a _________ and _________ obligation between two parties.
A. Moral; practical
B. Moral; legal
C. Practical; illegal
D. Practical; ethical
28. Giving notice in a manner that a reasonable person should have been aware of is what type of notice?
A. Fraudulent notice
B. Actual notice
C. Deconstructive notice
D. Constructive notice
29. Listing agents often find themselves in lawsuits because a listing agreement requires the broker to exercise his or her:
A. “All Resources”
B. “Best efforts”
C. “Right to rescind”
D. “Contingency plans”
30. Facts that an agent is responsible to know because the broker or client received notice is:
A. Imputed notice
B. Actual notice
C. Statutory Notice
D. Constructive notice
31. In what type of listing is a broker entitled to a commission regardless of who initiates or completes the transaction
A. Open listing
B. For Sale by Owner
C. Exclusive right to sell listing
D. Net listing
32. In what situation(s) can an agency relationship be terminated?
A. Completion
B. Expiration
C. Agreement
D. All of the above
33. A licensee who assists one or more parties through a transaction without being an agent for any party to the transaction is a(n):
A. Dual agent
B. Designated agent
C. Intermediary
D. Single agent
34. To whom is the subagent to be loyal?
A. Buyer
B. Listing agent
C. Buyer’s agent
D. Themselves
35. What is NOT needed in order to form an agency agreement?
A. Principal
B. Compensation
C. Agent
D. None of these are needed to form an agency agreement
36. What is the most common example of a general agent?
A. Buyer’s agent
B. Brokerage manager
C. A dual agent
D. Property manager
37. Traditionally, if the seller’s agent listed the property and entered it into the MLS. – Any agent who showed the listed property worked as a subagent of the:
A. Seller’s agent
B. No one Seller
C. Buyer’s agent
D. State of New York
38. Which agency termination situation would typically be preferred by both parties?
A. Abandonment
B. Completion
C. Impossible performance
D. Force of law
39. The critical difference in responsibility under tort liability between the average person and skilled professionals is known as:
A. Standard of care
B. Implied agency
C. Assumed risk
D. Loyalty
40. An agency that represents either just the buyer or just the seller is called:
A. Single agency
B. Dual agency
C. Subagency
D. Sole agency
41. The type of agency in which the agent represents the principal in a variety of matters related to a particular business is called:
A. Single agency
B. Dual agency
C. Designated agency
D. General agency
42. What has traditionally been the most common type of agency?
A. Seller agency
B. Buyer agency
C. Dual agency
D. Designated agency
43. In which type of listing was it common for more than one “for sale” sign to be placed on a property?
A. Open listing
B. Exclusive agency listing
C. Exclusive right to sell listing
D. Net listing
44. In many states a real estate agent may not sue for a commission unless there is a(n) ________ commission agreement.
A. Oral
B. Written
C. Implied
D. Express
45. Broker Mark is representing seller June. Before Mark could secure a buyer for the property, June was killed in an accident. Mark’s agency agreement is subsequently ended. What type of agency termination does this situation represent?
A. Agreement
B. Expiration
C. Completion
D. Impossible performance
46. Agent Bill is about to show William’s home to a potential buyer. William is concerned about a portion of the foundation that is crumbling and asks Bill to somehow cover it up so that the buyer does not notice. Bill informs William that this is against the law, but William insists that it is done. Bill plants a bush in front of the suspect area which successfully hides it from vision. The buyer purchases the house and later finds the undisclosed defect. Bill is sued for failing to disclose the defect. He claims that William should bear some of the blame. Is William liable?
A. Yes
B. No
C. Both William and Bill have no liability
D. Only Bill has financial and legal liability
47. In many states a real estate agent may not sue for a commission unless there is a(n) ________ commission agreement.
A. Oral
B. Written
C. Implied
D. Express
48. What type of agency relationship may be created unknowingly or unwittingly?
A. Express agency
B. Implied agency
C. Agency by estoppel
D. Agency by ratification
49. What is the most common misconception about agency?
A. In order to create an agency relationship, a client must provide immediate compensation
B. The party that pays the fees determines agency relationships
C. The agent who is showing you a property automatically represents you
D. Agency relationships can only be between agents and sellers
50. Which fiduciary obligation(s) does/do NOT necessarily end with the expiration of an agency agreement?
A. Loyalty
B. Obedience
C. Accounting
D. Confidentiality
51. An agency that is not created by a principal and an agent but one that is imposed by law when a principal acts in such a way as to lead a third party to reasonably believe that another is the principal’s agent and the third party is injured by relying on and acting in accordance with that belief is called what?
A. Express agency
B. Dual agency
C. Agency by estoppel
D. Agency by ratification
52. Facts that an agent is assumed to know because they are known by their principal or a subordinate agent would be considered:
A. Imputed knowledge
B. Actual knowledge
C. Fiduciary Knowledge
D. Constructive knowledge
53. What are the best companies to target when first entering the market for relocation employees?
A. Small to medium size, with 10 or fewer people relocating every two years
B. Large to medium size, with 50 or more people relocating a year
C. Medium size, with 30 to 50 people relocating every two years
D. None of the above
54. What is NOT one of the benefits to the seller when the buyer has their own buyer’s agent?
A. No longer need to worry about vicarious liability
B. Commissions will be lowered
C. The buyer would most likely sue the buyer’s agent in the event a property defect was not discovered
D. No longer responsible for the actions of a subagent
55. Which of these is a benefit to the broker in a buyer agency agreement?
A. Greater client loyalty
B. Absence of liability for acts of the listing broker
C. Avoidance of conflict of interest
D. All of the above
56. The needs of the over-55 buyer may include:
A. Vacation homes
B. Downsizing from current home
C. Access to recreational and cultural activities
D. All of the above
57. What type of property is the least likely to be listed with a local MLS in New York state?
A. Residential
B. Investment
C. Commercial
D. Town houses
58. In which type of buyer agency agreement is the broker guaranteed a commission regardless of whether or not the buyer agent handled the transaction?
A. Single property
B. Exclusive right to represent
C. Self-representation
D. Open agency agreement
59. Above all, buyer’s agents offer undivided loyalty and strive to protect the ___________________ throughout the transaction.
A. Seller’s interests
B. Buyer’s interests
C. Interests of their brokerage
D. Interests of the listing agent
60. What publication in 1983 showed a need for reform to agency law? was?
A. FTC report on unclear and unfair agency laws
B. NAR Code of Ethics
C. ARELLO Guidelines
D. NAEBA lawsuit against agents
61. When working with a relocation client, the companies are usually most interested in:
A. To find rental properties rather than purchasing homes
B. How efficiently the agents work and follows the corporate relocation package benefits
C. How may franchises the broker owns
D. The cheapest agent regardless of quality
62. Whose responsibility is it to insure that the earnest money in the purchase contract is collected and deposited?
A. The buyer
B. The seller
C. The buyer’s agent
D. The bank representative
63. What is NOT one of the general provisions of a buyer contract?
The agent will assist the buyer in finding a property and negotiating the purchase
Specific duties of the agent will be identified
The buyer will furnish financial information to the agent
The agent will pay a commission to the buyer
64. What form of compensation is the same regardless of the purchase price for the property?
Flat fee
Percentage fee
All of the above
None of the above
65. A disclosure form or statement is:
Not required in most states
Not a binding contract
Not necessary to help customers make an informed decision
Not a form licensees should be need to understand
66. What type of buyer agency agreement allows a seller to work with one agent, but not have to pay a commission if the seller themselves find the buyer.
Single property
Exclusive right to sell
Exclusive agency
Dual agency
67. At the moment the listing is obtained, the listing broker should disclose to the seller:
Whether the listing broker will share fees with subagents or buyer’s agents
Whether the property will be listed in the MLS
Whether other brokers will become subagents of the listing agent
All of the above
68. For homes built prior to 1978, a buyer’s agent should insure that their client receives which disclosure?
Asbestos
Mold
Lead-based paint
Radon
69. How does a business relationship protect an agent from other agents?
It does not allow other agents to “steal” buyers
It provides an agreement that allows multiple agents to represent the buyer
It increases the agent’s liability
It does not guarantee an agent’s compensation
70. What does the acronym ARELLO stand for?
Association of Real Estate Local Law Officials
Association of Real Estate Licensed Legal Officials
Association of Real Estate Listing Law Officials
Association of Real Estate License Law Officials
71. What type of fee is most commonly used to weed out buyers who are not serious in their commitment and may just be shopping around?
Hourly rate fee
Retainer fee
Percentage fee
Flat fee
72. Which form of compensation suggests that the agent is more of a consultant?
Percentage fee
Flat fee
Hourly rate
Commission
73. Which organization, founded in 1995, protects the interests of buyer’s agents?
NAR
NAEBA
FTC
ARELLO
74. A permanent file for a transaction should include:
Only the written agency agreement
Records regarding transactions made by the client
All records regarding that particular transaction
There is no permanent file
75. As a buyer’s agent, you are responsible for ensuring that your client understands the conditions of the purchase agreement, including:
“time is of the essence”
“failure to fulfill”
“seller’s right of way”
“buyer’s bidding”
76. What organizations picked up a large market share of the real estate professional business in the 1990s through their policies of REALTOR® Multiple Listing Services and the REALTOR® Code of Ethics were amended to make seller agency optional and to recognize the possibility of buyer agents.
1970’s The MLS Group
1980’s Board of Realty
National Association of Realtors
2000’s Federated Trade Group
77. What type of buyer agency agreement allows the buyer to work with multiple agents with the commission paid to the agent who actually handles the transaction resulting in a closed sale?
Single property
Exclusive right to represent
Exclusive agency
Open agency agreement
78. An agency agreement does NOT protect you, the agent, from:
wandering sellers
Confusion over duties
Fraudulent buyers
Wandering buyers
79. What is the largest professional organization in the real estate field?
ARELLO
NAR
FTC
NAEBA
—fin—
1) ____________________ oversees free trade and commerce.
a. Fannie Mae
b. HUD
c. Federal Trade commission (FTC)
d. ARELLO
2) In recent years the majority of homebuyers have been ___________________.
a. Single
b. Married couples
c. Seniors
d. Divorcees
3) The agent must show “reasonable care and skill.” This falls under the duty of _______.
a. Obedience
b. Loyalty
c. Disclosure
d. Care
4) In New York, any multi-family housing built after _______ must conform or adhere to the accessibility requirements to better ensure that the public access, common use areas, and individual units are accessible for people with disabilities.
a. 1968
b. 1978
c. 1991
d. 2005
5) When a broker is working with a buyer or seller, but not representing them, this is referred to as:
a. Non-agency
b. Single agency
c. Dual agency
d. Buyer agency
6) To help screen out buyers who are not serious in their commitment and are just shopping around, you may ask for a ____________ fee.
a. Retainer
b. conditional
c. Down payment
d. Contingency
7) All of these are common means of termination of an agency, EXCEPT for ___________.
a. Expiration
b. Agreement
c. Nolo contendere
d. Completion
8) Generally, when residential properties are submitted to an MLS, the listing agent, with the permission of the seller, is making a blanket offer of _____________ to all the members of the MLS.
a. Imputed
b. Subagency
c. Dual agency
d. Designated
9) The doctrine in tort law making an employer or principal liable for the wrong of an employee or agent is called _______________.
a. Habeas Corpus
b. Caveat Emptor
c. Respondeat Superior
d. Material Disclosures
10) Who should keep track of contract deadlines to make sure they are met on time?
a. The buyer’s agent
b. The seller’s attorney
c. The lender
d. The county clerk
11) The agent must put _____________ interest above all others.
a. The principal’s
b. Their own
c. Their Broker’s
d. The professional organization
12) Which type of buyer agency is the preferred arrangement of many brokers, because it gives them greater control of the assignment. and they have a greater likelihood of receiving compensation?
a. Implied agency
b. Exclusive right to represent
c. single property agency
d. dual agency
13) Which party must sign an agreement disclosing the condition of the property and reporting any known flaws?
a. Buyer
b. Seller
c. Agent
d. Buyer and seller
14) If the client has any questions or concerns about the contract they _____________.
a. Should be reassured by the primary broker
b. Should be given a copy of the pertinent state laws
c. Should be referred to legal counsel
d. None of the above
15) An agent may be generally defined as someone who represents another in dealings with ______________ .
a. Lawyers
b. Third parties
c. Sellers
d. Buyers
16) What is a body of unwritten laws based on legal precedents established by the courts which forms the basis of each state’s legal system.
a. Common Law
b. Agency Law
c. Statutory Law
d. Tort Law
17) An agency agreement where the agent also has an interest in the property is called a(n) ______________________.
a. Familial agency
b. Dual agency
c. Agency coupled with an interest
d. Public interest agency
18) An actual agency created by the written or spoken words of the principal authorizing the agent to act is the definition of a(n) ________________.
a. Implied
b. Factual
c. Express
d. Contractual
19) “The person or thing through which power is exerted or an end is achieved”, is the definition of __________________.
a. Client
b. Contract
c. Agency
d. Employee
20) Subagents are agents of the ____________ agents and are bound by the same fiduciary duties
a. Fiduciary
b. Master
c. Designated
d. Primary
21) Everyone in New York State is protected by Fair Housing Laws at the _______________ level.
a. Federal District Court
b. State
c. Local
d. All of the above
22) Seller paid fees in buyer agency are ______________.
a. Rare
b. Common
c. Illegal
d. Not morally acceptable
23) Residential or commercial real estate properties with some sort of a negative history associated with either the property itself or the owners can be described as ___________ properties.
a. Haunted
b. Handicapped
c. Stigmatized
d. Traumatized
24) What type of commission can be comfortable for experienced agents, but a nightmare for inexperienced agents who do not have regular income yet?
a. 100% commission with a desk fee
b. 75/25 split
c. 60/40 split
d. 50/50 split
25) According to the 2021 NAR Profile of Home Buyers and Sellers, what was the average differential between the median selling price of a FSBO and that sold using a real estate agent?
a. 2%
b. 45%
c. 22%
d. 100%
26) Compensation to a buyer’s agent is paid as a _____________.
a. Flat fee
b. Flat fee or percentage fee
c. Flat fee, percentage fee or hourly rate
d. Hourly rate or flat fee
27) An agency relationship which is created after the principal agrees to be bound by the actions of another person who was acting without authority is known as a(n) ________________.
a. Dual Agency
b. Reconciliation agreement
c. Agency by Ratification
d. Agency in Absentia
28) How long, based on the 2021 NAR Profile of Home Buyers and Sellers, did buyers 18-24 estimate they would stay in their home?
a. 1 year
b. 2 years
c. 12 years
d. 25 years
29) Which type of agency is imposed by law?
a. Express agency
b. Agency by Ratification
c. Implied Agency
d. Agency by Estoppel
30) Which type of agency relationship is becoming more popular today?
a. Seller agency only
b. Buyer agency only
c. Dual agency
d. None of the above
31) All funds must be deposited into special escrow or trust accounts and can never be mixed with the agent’s personal funds or the brokerage company funds. This is called ___________ and it is illegal.
a. Disintermediation
b. Profiteering
c. Commingling
d. Spoofing
32) How long, based on the 2021 NAR Profile of Home Buyers and Sellers, did buyers estimate they would stay in their home?
a. 1 year
b. 2 years
c. 12 years
d. until retirement
33) How can an agency agreement end?
a. The agreement time period ends
b. The transaction is complete
c. Mutual agreement of both parties
d. all of the above
34) If there are blanks in the contracts that need to be filled in, make sure that every blank is filled in or ________________________.
a. Crossed out
b. Crossed out and initialed, dated, and timed.
c. Rewritten Crossed out and initialed
d. Sent for attorney review
35) A moral and legal obligation between two parties where one acts on behalf of the principal is called a(n) _______________ relationship.
a. Agency
b. Contractual
c. binding
d. Bilateral
36) When the broker is working with a “customer” and not a “client” and is acting in the capacity of a facilitator rather than an agent, this is known as ________________.
a. single agency
b. Partial agency
c. Dual agency
d. Non-Agency
37) Which of the following types of housing is subject to all of New York’s Fair Housing Laws?
a. Owner-occupied one or two family units
b. Cooperatives
c. Room rentals for people of the same sex
d. Room rentals in one’s owner-occupied housing
38) A group of laws that address and provide remedies for civil wrongs not arising out of contractual obligations are known as ________ laws.
a. Felony
b. Tort
c. Aggrieved
d. Implied
39) The agent is obligated to work in the best interest of his or her client in a(n) ____________ manner.
a. Diligent
b. Lawful
c. Purposeful
d. Professional
40) Which type of agency relationship is becoming more popular today in New York?
a. Seller agency only
b. Buyer agency only
c. Dual agency
d. None of the above
41) Subagents are agents of the ____________ agents and are bound by the same fiduciary duties
a. Fiduciary
b. Master
c. Designated
d. Primary
42) The key to working successfully with senior buyers is to really emphasize your _____________________.
a. Own maturity
b. Familiarity with VA and FHA loans
c. Buyer counseling services
d. Empathy
43) Which type of specialty is the most recent trend in the development of agency practice?
a. Seller’s agency
b. Dual agency
c. Buyer’s agency
d. Net listings
44) Agent Judy showed the Smiths a home in April. The listing agreement expired on May 1. The protection clause was set for 90 days after the listing expired and Judy listed the Smiths when submitting her list of names to the seller. The Smiths approached the sellers directly a few days after the listing expired and offered to purchase the home without a commission payment. The seller was eager to sell his house, so he accepted the offer. Is agent Judy entitled to a commission?
a. No, the listing had expired and the seller is no longer bound to Judy
b. No, the sale had to close within the 90-day period for Judy to receive a commission
c. No, the Smiths approached the seller so the seller does not owe a commission
d. Yes, the Smiths were on Judy’s protected list and she is owed a commission
45) The primary relationship between a real estate agent and his or her client is that of a(n)_________________ one.
a. Implied
b. Confidential
c. Fiduciary
d. Imputed
46) Today, buyer agency is permitted in ______ states
a. 15
b. All
c. 40
d. 35
47) In criminal law the ________ becomes the prosecution .
a. Federal government
b. County
c. Aggrieved party
d. State
48) In New York State, real property is defined as property used or occupied, or intended to be used or occupied, wholly or partly, as the home or residence of one or more persons improved by all of the following EXCEPT:
a. One-to-four family dwellings
b. Condominiums
c. Commercial real estate
d. Cooperatives
49) The most common fiduciary responsibilities can be summed with the acronym _______________.
a. COAL
b. FIRREA
c. OLDCAR
d. RESPA
50) The most common example of a general agent is a _______________.
a. Notary public
b. Commercial broker
c. Landlord
d. Property manager
51) A real estate agent’s “best efforts” is a subjective term that means: _______.
a. All possible efforts efforts
b. It is open to interpretation
c. Meets the minimum effort
d. That of a typical layperson
52) According to the 2021 NAR Profile of Home Buyers and Sellers, what percent of all home sales came from first-time buyers?
a. 12%
b. 90%
c. 34%
d. 78%
53) Agent “A” is showing a house to a potential buyer. The listing agent for the house is Agent “B.” Agents “A” and “B” work for the same real estate firm. In this case, Agent “A” would be working exclusively in the best interests of the buyer and Agent “B” would be working for the seller. This is an example of ________agency.
a. Designated
b. Buyer’s
c. Cooperative
d. Sub
54) An exclusive right to represent agreement guarantees a broker the exclusive right to represent a buyer for _______________.
a. One year
b. 6 months
c. A certain time frame
d. 90 days
“Agency Law” Course Questions only (no answers)
Answers will be revealed with proper subscription
1) A(n) _________ may be generally defined as someone who represents another in dealings with third parties.
a. Consumer
b. Agent
c. Client
d. Principal
2) The obligation to follow the principal’s lawful instructions falls under the duty of:
a. Care
b. Obedience
c. Loyalty
d. Disclosure
3) Failure to provide proper disclosure, even when done unintentionally, could be considered:
a. Dishonesty
b. Fraud
c. Disloyalty
d. Disobedience
4) A “principal-agent” relationship may arise from:
a. Explicit appointment
b. Implication
c. All of the above
d. None of the above
5) John is the listing agent for Susan. Susan went to John, even though he is not familiar with her neighborhood, because they are old friends and she trusted him. Before John agreed to a listing price for Susan’s home, he spent a few days researching the local MLS to find the selling price of other properties in Susan’s area. This action by John would be an example of which of the traditional common law agency duties?
a. Loyalty
b. Obedience
c. Disclosure
d. Care
6) An agent’s primary responsibility is to:
a. Him or herself
b. A third party
c. The principal
d. His or her supervising broker
7) The acronym COALD is used to represent an agent’s common law duties. Which of the following demonstrates the correct terms in the acronym?
a. Consideration, Originality, Affiliation, Leadership, Direction
b. Character, Operation, Assessment, License, Dedication
c. Care, Obedience, Accounting, Loyalty, Disclosure
d. Customer, Ownership, Association, Legal, Delivery
8) The principles of agency are based on which system developed centuries ago in England?
a. Feudal law
b. Noble law
c. Common law
d. Parliamentary law
9) Which of these is NOT one of the traditional common law agency duties?
a. Timeliness
b. Care
c. Disclosure
d. Obedience
10) A consensual fiduciary relationship in which one party acts on behalf of and under the control of another in dealing with third parties, is the definition of:
a. Employment
b. Agency
c. Obedience
d. None of the answers shown
11) You answered correctly
12) A ____________ is a relationship in which one party places trust, confidence, and reliance in and is influenced by another who has a duty to act for the benefit of the other party.
a. Fiduciary relationship
b. Beneficiary relationship
c. Trustee relationship
d. Buyer-seller relationship
13) Someone or something that acts or exerts power, a moving force in achieving some result is the definition of:
a. Buyer
b. Agent
c. Seller
d. REALTOR
14) What are the main concerns of a fiduciary relationship?
a. To only manage money for another
b. To act in the best interest of the agent
c. To be under complete control of another
d. To manage money or property for another
15) The obligations of an agent are to:
a. Act on behalf of themselves to achieve an end
b. Act on behalf of another to achieve an end
c. Act on behalf of themselves to prevent an end
d. Act on behalf of another to prevent an end
16) What word is generically used in describing typical real estate relationships?
a. Customer
b. Broker
c. Client
d. Consumer
17) The ________ is represented by the agent, whereas a ________ represents themselves.
a. Customer; client
b. Customer; agent
c. Client; agent
d. Client; customer
18) A person or business that purchases a commodity or service is a(n):
a. Client
b. Principal
c. Agent
d. Customer
19) Fiduciary comes from the Latin word “fides” which means:
a. “consistency”
b. “Trust”
c. “Honesty”
d. “Prudence”
20) Brokers should know, and be able to explain, basic:
a. Tort law
b. Components of a good deal
c. Real estate law
d. Principles of appraising
21) An agent should always obey the instructions of their client, unless:
a. The instructions are illegal
b. The action doesn’t make sense
c. The instructions make the sale difficult
d. The agent doesn’t agree with the client
22) An agent who acts in the best interests of the principal or client is said to be:
a. Loyal
b. Qualified
c. Confidential
d. Responsible
23) The care that an ordinarily reasonable and prudent person would use under the same or similar circumstances is:
a. Normal care
b. Due care
c. Ordinary care
d. Typical care
24) What is the biggest hazard of dealing with trust accounts?
a. Commingling
b. Inflation
c. An economic downturn
d. A failed transaction
25) Which of the following would a broker, acting as agent for a seller, NOT be expected to do?
a. Arrive at a reasonable listing and selling price
b. Ensure that they receive the maximum commission
c. Investigate and discover material facts
d. Explain real estate documents
26) A doctrine in tort law that makes a master liable for the wrong of a servant is called:
a. Habeas Corpus
b. Fiduciary responsibility
c. Respondeat superior
d. Fraud
27) The degree of care or competence that one is expected to exercise in a particular circumstance or role is:
a. Measure of care
b. Degree of care
c. Ordinary care
d. Standard of care
28) Which of these is a fiduciary responsibility?
a. Confidentiality
b. Obedience
c. Loyalty
d. All of the above
29) A doctrine in tort law that makes a master liable for the wrong of a servant is called:
a. Habeas Corpus
b. Fiduciary responsibility
c. Respondeat superior
d. Fraud
30) Failure to provide proper disclosure, even when done unintentionally, could be considered:
a. Dishonesty
b. Fraud
c. Disloyalty
d. Disobedience
31) An agent should always obey the instructions of their client, unless:
a. The instructions are illegal
b. The action doesn’t make sense
c. The instructions make the sale difficult
d. The agent doesn’t agree with the client
32) The principles of agency are based on which system developed centuries ago in England?
a. Feudal law
b. Noble law
c. Common law
d. Parliamentary law
33) Someone or something that acts or exerts power, or a moving force in achieving some result is the definition of:
a. Buyer
b. Agent
c. Seller
d. Realtor
34) An agent who acts in the best interests of the principal or client is said to be:
a. Loyal
b. Obedient
c. Confidential
d. Responsible
35) The care that an ordinarily reasonable and prudent person would use under the same or similar circumstances is:
a. Typical care
b. Due care
c. Ordinary care
d. Measure of care
36) John is the listing agent for Susan. Susan went to John, even though he is not familiar with her neighborhood, because they are old friends and she trusted him. Before John agreed to a listing price for Susan’s home, he spent a few days researching the local MLS to find the selling prices of other properties in Susan’s area. This action by John would be an example of which of the traditional common law agency duties?
a. Loyalty
b. Obedience
c. Disclosure
d. Care
37) A consensual fiduciary relationship in which one party acts on behalf of and under the control of another in dealing with third parties is the definition of:
a. Employment
b. Agency
c. Obedience
d. None of the answers shown
38) Brokers should know, and be able to explain, basic:
a. Tort law
b. Components of a good deal
c. Real estate law
d. Principles of appraising
39) The most obvious repercussion for being careless in the real estate industry is the risk of being liable for:
a. Negligence
b. Commingling
c. Slander
d. Intentional misrepresentation
40) Traditionally, the seller’s agent listed the property and entered it into the multiple listing service. Any agent who showed the listed property worked as a subagent of the:
a. Seller’s agent
b. Seller
c. Buyer’s agent
d. Buyer
41) What is the most common misconception about agency?
a. In order to create an agency relationship, a client must provide immediate compensation
b. The party that pays the fees determines agency relationships
c. The agent who is showing you a property automatically represents you
d. Agency relationships can only be between agents and sellers
42) What type of agency relationship may be created unknowingly or unwittingly?
a. Express agency
b. Implied agency
c. Agency by estoppel
d. Agency by ratification
43) An agency that is created because the agent’s actions can imply their intentions to create such a relationship is an:
a. Express agency
b. Implied agency
c. Agency by estoppel
d. Agency by ratification
44) Giving notice without giving notice is a description of:
a. Expressed notice
b. Actual notice
c. Deconstructive notice
d. Constructive notice
45) Jim wants to buy a beachfront property and is looking for an agent to represent him. Stan, a local real estate agent, shows Jim a few properties and eventually finds one that Jim wants to buy. Has an agency occurred?
a. Yes
b. Not yet
46) Agent Bill is about to show William’s home to a potential buyer. William is concerned about a portion of the foundation that is crumbling and asks Bill to somehow cover it up so that the buyer does not notice. Bill informs William that this is against the law, but William insists that it is done. Bill plants a bush in front of the suspect area which successfully hides it from vision. The buyer purchases the house and later finds the undisclosed defect. Bill is sued for failing to disclose the defect. He claims that William should bear some of the blame. Is William liable?
a. Yes
b. No
47) When a blanket offer of subagency is given, when does the subagency relationship actually develop?
a. As soon as the property is listed in the MLS
b. When an offer to purchase is procured by the subagent
c. As soon as the subagency is offered
d. As soon as the subagency is accepted
48) In what type of listing is a broker entitled to a commission regardless of who effects the transaction?
a. Open listing
b. For Sale by Owner
c. Exclusive right to sell listing
d. Net listing
49) What has traditionally been the most common type of agency?
a. Seller agency
b. Buyer agency
c. Dual agency
d. Designated agency
50) To whom is the subagent to be loyal?
a. Buyer
b. Listing agent
c. Buyer’s agent
d. Themselves
51) A licensee who assists one or more parties through a transaction without being an agent for any party to the transaction is a(n):
a. Dual agent
b. Designated agent
c. Intermediary
d. Single agent
52) The critical difference in tort liability between the average person and skilled professionals is known as:
a. Standard of care
b. Implied agency
c. Assumed risk
d. Standard of liability
53) In a seller’s agency, to whom is the subagent to be loyal?
a. Buyer
b. Listing agent
c. Buyer’s agent
d. Themselves
54) Facts that an agent knows because they are known by their principal or a subordinate agent would be considered:
a. Imputed knowledge
b. Actual knowledge
c. Implied knowledge
d. Constructive knowledge
55) Which fiduciary obligation does NOT necessarily end with the expiration of an agency agreement?
a. Loyalty
b. Obedience
c. Accounting
d. Confidentiality
56) What type of agency relationship is fraught with peril and should generally be avoided?
a. Single agency
b. Dual agency
c. Designated agency
d. General agency
57) In which type of listing was it common for more than one “for sale” sign to be placed on the lawn?
a. Open listing
b. Exclusive agency listing
c. Exclusive right to sell listing
d. Net listing
58) What type of agency have many states adopted as a way to allow a single firm to handle a transaction “in-house” without having to worry about breaking fiduciary duties to one of the parties involved in the transaction?
a. Single agency
b. Express agency
c. Designated agency
d. General agency
59) In which type of buyer agency agreement is the broker guaranteed a commission regardless of whether or not the buyer agent handled the transaction?
a. Single property
b. Exclusive right to represent
c. Self-representation
d. Open agency agreement
60) What type of buyer agency allows the buyer to reserve the right to purchase a property directly from the seller, without the use of an agent?
a. Single property
b. Exclusive right to represent
c. Exclusive agency
d. Dual agency
61) What does the acronym ARELLO stand for?
a. Association of Real Estate Local Law Officials
b. Association of Real Estate Licensed Legal Officials
c. Association of Real Estate Listing Law Officials
d. Association of Real Estate License Law Officials
62) What type of property is NOT generally listed with MLS or listing information?
a. Residential
b. Investment
c. Commercial
d. Townhouses
63) What type of buyer agency agreement allows the buyer to work with multiple agents with the commission paid to the agent who actually handles the transaction resulting in a closed sale?
a. Single property
b. Exclusive right to represent
c. Exclusive agency
d. Open agency agreement
64) What organization played a major role in 1983 in researching and reporting about real estate agency?
a. FTC
b. NAR
c. ARELLO
d. NAEBA
65) Until the 1970’s, buyers who were seeking income producing properties would:
a. Employ a commercial broker specializing in this property type
b. Find the property on the MLS
c. Employ a buyer agent
d. Search the classifieds and hope for the best
66) In the early ______, NAR changed their policies. The policies of REALTOR® Multiple Listing Services and the REALTOR® Code of Ethics were amended to make seller agency optional and to recognize the possibility of buyer agents.
a. 1970’s
b. 1980’s
c. 1990’s
d. 2000’s
67) What is NOT one of the benefits to the seller when the buyer has a buyer’s agent?
a. No longer need to worry about vicarious liability
b. The buyer is less informed
c. The buyer would most likely sue the buyer’s agent in the event a property defect was not discovered
d. No longer responsible for the actions of a subagent
68) All blanks on a contract need to be:
a. Filled out or crossed off
b. Time stamped
c. Initialed and dated
d. All of the answers shown
69) For homes built prior to 1978, a buyer’s agent should ensure that their client receives which disclosure?
a. Asbestos
b. Mold
c. Lead-based paint
d. Radon
70) Whose responsibility is it to ensure that the earnest money in the purchase contract is collected and deposited?
a. The buyer
b. The seller
c. The buyer’s agent
d. The bank representative
71) The acronym NAEBA stands for:
a. National Association of Executive Buyer Agents
b. National Association of Exclusive Buyer Agents
c. National Association of Executive Broker Agents
d. National Association of Exclusive Broker Agents
72) Which statement is a benefit to buyers who use an agent?
a. Less control in the process of buying or selling
b. The agent acts as a middleman
c. Agents have access to a larger pool of listings
d. Being responsible for the actions of a subagent
73) When working with a relocation client, the company’s interest is:
a. To find rental properties rather than purchasing homes
b. How efficiently the agents work and follow the corporate relocation package benefits
c. The most cost efficient way
d. None of the above
74) What type of fee is most commonly used to weed out buyers who are not serious in their commitment and may just be shopping around?
a. Hourly rate fee
b. Retainer fee
c. Percentage fee
d. Flat fee
75) A business relationship agreement does NOT protect you from:
a. Wandering buyers
b. Fraudulent buyers
c. Lost compensation
d. Subagency liability
76) What are the best companies to target when initiating contact for relocation employees?
a. Small to medium size, with 10 or fewer people relocating every two years
b. Large to medium size, with 50 or more people relocating a year
c. Medium size, with 30 to 50 people relocating every two years
d. None of the above
77) What form of compensation is the same regardless of the purchase price for the property?
a. Flat fee
b. Percentage fee
c. All of the above
d. None of the above
78) What nontraditional services may be added to an agency agreement?
a. Investment analysis
b. Assistance in development
c. Planning of a project
d. All of the above
79) Whose responsibility is it to make sure that the earnest money agreed to in the purchase contract is collected and deposited?
a. The buyer
b. The seller
c. The buyer’s agent
d. The seller’s agent
80) What form offers proof that a customer was made aware of all their options when working with an agent?
a. Purchase and sale agreement
b. Disclosure form
c. Buyer’s agent agreement
d. Listing agreement
81) In what situation should the agent work as a buyer’s agent?
a. When the seller is a friend or relative
b. When the buyer is a friend or relative
c. When the seller is a recent client
d. When the buyer does not wish to remain anonymous
82) Until the mid-1980’s, what was the common practice of agency?
a. The agent neither represented the interests of the buyer or the seller
b. The agent usually represented the buyer in a real estate transaction
c. The agent only showed houses that they themselves listed with allegiance to the seller
d. The agent showed a house to a buyer and became a subagent of the listing agent with allegiance to the seller
83) What issue may arise when choosing buyer agency only as the office agency?
a. Buyers will need to list their old homes with another office
b. Convincing sellers to pay the agent’s fees
c. Not being able to access MLS
d. There are no issues to foresee
84) Who decides what type of agency will be practiced in the office?
a. The office manager
b. The licensees employed by the brokerage
c. The broker of record
d. The licensee with the most experience
85) A permanent file should include:
a. The written agency agreement
b. Records regarding transactions made by the client
c. All records regarding that particular transaction
d. There is no permanent file
86) Once an agreement is reached it should be:
a. Confirmed with a hand shake
b. Announced to the rest of the office
c. Documented in writing
d. Left as an oral agreement
87) The median age of the home buyer in 2019 was ___ .
a. 29 years
b. 33 years
c. 47 years
d. 66 years
88) Brokers have a responsibility to ___________ and __________ their employees.
a. Train; license
b. Train; supervise
c. License; supervise
d. Supervise; compensate
89) What is one of the best tools a broker can utilize to protect his/her company?
a. Employee handbook
b. Video/audio recordings of employee meetings
c. Desk fees
d. A strong internet presence
90) According to the 2019 NAR Profile of Home Buyers and Sellers, what was the average differential between the median selling price of a FSBO and that sold using a real estate agent?
a. $10,000
b. $40,000
c. $80,000
d. $120,000
91) In 2019, for all sellers, the most commonly cited reason for selling their home was ________________________.
a. a job relocation
b. the desire to move closer to friends and family
c. it was too small
d. it was too big
92) Buyers in 2019 searched for an average of __ weeks.
a. 2
b. 5
c. 10
d. 17
93) The median household income was $___________, according to the 2019 NAR Profile of Home Buyers and Sellers.
a. $62,250
b. $70,600
c. $81,500
d. $93,200
94) A salesperson paid an hourly wage with a set work schedule and job description would most likely be considered a(n):
a. Contract agent
b. Independent contractor
c. Employee
d. Associate broker
95) What clause entitles a broker to collect a commission after the listing expires or is cancelled?
a. Escalator clause
b. Point of sale clause
c. Protection clause
d. Agency clause
96) Brokers typically choose to work with salespersons as independent contractors so that the broker:
a. Can increase marketing programs
b. Benefits in terms of taxes
c. Can develop a more cohesive organization
d. All of the above
97) If an employer does not have to withhold taxes from an agent who works for their firm, the agent is considered a(n):
a. Employee
b. Subagent
c. Independent contractor
d. Sub-contractor
98) What topic should be included in the office policy manual?
a. Advertising
b. Commission splits
c. Agency
d. All of the above
99) According to the 2019 NAR Profile of Home Buyers and Sellers, what percent of all home sales came from first-time buyers?
a. 53%
b. 44%
c. 33%
d. 62%
100) According to the 2019 NAR Profile of Home Buyers and Sellers, what percent of sellers reported that their home was listed on a local multiple listing service?
a. 67%
b. 73%
c. 89%
d. 99%
101) The main distinction between an employee and an independent contractor is:
a. The number of hours worked per day
b. Time spent in the office
c. Who they report to
d. The way they are paid
102) Who could be held liable for the acts of associated agents in the event of a lawsuit?
a. The agent
b. The broker
c. Both A and B
d. None of the above
103) When did most states begin requiring agency disclosure?
a. 1940’s
b. 1960’s
c. 1980’s
d. 2000’s
104) What is one of the best tools a broker can utilize to protect his/her company?
a. Office policy manual
b. Video/audio recordings of employee meetings
c. Desk fees
d. A strong internet presence
–f—
1) If deadlines such as the original closing date are missed and there is an agreement between the parties to extend those deadlines, the extension agreement must be ___________.
a. In writing
b. Notarized
c. Permitted
d. Filed with the MLS
2) According to the 2019 NAR Profile of Home Buyers and Sellers, what was the first step that homebuyers took in the home buying process?
a. Call the local Board of REALTORS®
b. contact a real estate agent
c. look online at properties for sale
d. look at newspaper ads
3) ____________ liability is liability that is imposed for another’s acts because of imputed or constructive fault (as negligence).
a. Vicarious
b. Implicit
c. Superior
d. Primary
4) In which type of agency does the firm appoint two separate agents to represent two separate clients: the seller and the buyer?
a. Designated
b. Single
c. Dual
d. Buyer
5) Which Latin phrase means that the principal can be held accountable for any harm caused through the use of an agent?
a. Brutum Fulmen
b. Auribus Teneo Lupum
c. Corvus Oculum Corvi Con Eruit
d. Respondeat Superior
6) General agency law may include relationships between executor and ______________.
a. Decedent
b. Guardian
c. Ward
d. Employee
7) If ______________ notice is given, then actual notice does not need to be personally delivered.
a. Critical
b. Constructive
c. Conjunctive
d. Cooperational
8) A key factor under ____________ is that there needs to be a clear distinction between the roles of each licensee.
a. Licensed agency
b. Broker agency
c. Single agency
d. Subagency
9) There should then be ____________ to make sure that salespersons associated with the firm understand their responsibilities.
a. Annual education requirements
b. In-house training sessions
c. Monthly testing
d. Minimum standards
10) Some agencies concentrate on single agency but allow _______________ with full disclosure and informed consent in those situations where another member of their firm represents a party who wishes to buy an in-house listing.
a. Dual agency
b. Seller agency only
c. Non-agency
d. Buyer agency only
11) Who should you contact to find out what fiduciary responsibilities are imposed on real estate agents in your state?
a. An occupational attorney
b. The MLS Board
c. Your broker in charge
d. State real estate licensing agency
12) In order to obtain a license, real estate agents need to subscribe to certain professional ________________.
a. Standards of conduct
b. Acts of transcription
c. Business classes
d. Magazines and services
13) A real estate agency relationship is a ___________ for services to be performed.
a. Request
b. Contract
c. File
d. Term
14) Legally and morally, it is acceptable to have who pay all or part of a buyer’s broker fee?
a. The seller
b. The buyer
c. The seller’s agent
d. The buyer’s estate
15) The Business Relationship Agreement can be a tool that might help protect you from future ____________.
a. Legal liability
b. Engagement
c. Buyer disputes
d. Questions about professionalism
16) Brokers are held to a higher standard of care than a lay person because of their:
a. Professional status, state license and fiduciary responsibilities
b. Professional status, state license and better morals
c. Idealism, state license and fiduciary responsibilities
d. Professional status, accounting certification and fiduciary responsibilities
17) Many state commissions felt that developing ________________ for licensees to use was the best way to guarantee that all potential clients were made aware of all their options and could make an informed decision.
a. Broker requirements
b. Hazardous condition laws
c. Employment classifications
d. Standard disclosure forms
18) The chances of real estate professionals being sued is quite high due to the various forms of what to which they are exposed?
a. Liability
b. Toxins
c. Agency
d. Disclosure
19) What type of firms are free to represent sellers and buyers but never on the SAME transaction?
a. Dual agency
b. Single agency
c. Designated agency
d. Seller agency only
20) As a result of the FTC studies, state licensing agencies began instituting laws that required real estate agents to declare and disclose their what?
a. Agency relationships
b. Rates
c. Broker affiliation
d. License status
21) What is defined by Merriam Webster as an agency in which the agent has an interest in the property regarding which he or she is acting on the principal’s behalf?
a. Agency by contract
b. Agency with intent
c. Agency of association
d. Agency coupled with an interest
22) The typical or traditional relationship that was exhibited in real estate sales and leasing for many years involved the seller/landlord as what?
a. Principal
b. Agent
c. Client
d. Customer
23) In a “procuring cause” situation, the lack of what could weigh against you in an arbitration dispute?
a. Disclosure statements
b. A signed Business Relationship Agreement
c. Proof of licensure
d. A signed contract
24) If one of the parties involved files for bankruptcy, agency can be terminated by ________________.
a. Force of law
b. Failure to perform
c. Abandonment
d. Absolution
25) In 1983, the FTC reported that 71% of buyers surveyed thought that the agent they were working with as a buyer was representing their interests as a ___________.
a. Campaign
b. Consumer
c. Client
d. Customer
26) If someone has not actually signed the agreement or given power-of-attorney to someone else to sign on his or her behalf, then the contract is _________________ and the non-signer could protest the agreement.
a. Inappropriate
b. Valid
c. Not binding
d. Enforceable
27) Where should the client be referred if they have any questions or concerns about the contract?
a. To the broker in charge
b. To the board
c. To the FTC
d. To legal counsel
28) To reach ____________, the agent must confirm that the buyer understands the implications of any decision they make.
a. Agency
b. Contract ratification
c. Informed consent
d. Legal agreement
29) It is important to remember the laws connected to _______________ when dealing with third parties.
a. Disclosure
b. Caveat emptor
c. Licensure
d. Property management
30) The ____________ duties pick up where the common law duties left off.
a. Obedience
b. Cautionary
c. Fiduciary
d. Optiona
31) The percentage of the ___________ that an agent receives may be based on two things: their level of experience and the types of splits that the competition is offering their real estate agents.
a. Commission
b. Profits
c. Capital gains
d. Contracts
32) On January 1, 1993, NAR changed its listing policies for members and eliminated whose requirement for the listing agent’s cooperating buying agent to have loyalty to the seller?
a. The MLS
b. The FTC
c. The Licensing Board
d. The Real Estate Commission
33) What is defined as an actual agency created by the written or spoken words of the principal authorizing the agent to act?
a. Temporary agency
b. Partial agency
c. Express agency
d. Direct agency
34) When should agents be given a copy of the office policy manual?
a. During the employment interview
b. On the first day of employment
c. When their first contract is completed
d. On their first anniversary
35) If the buyer contracts to apply for financing within “X” number of days, who is responsible to make sure that the buyer knows this is the requirement and follows through on it?
a. The seller’s agent
b. The seller
c. The buyer’s agent
d. The lender
36) Conformity to the reasonable business standards that prevail in a particular area for a particular business is the definition of _______________.
a. Palliative care
b. Ordinary care
c. Superior care
d. Substandard care
37) Who is your best contact when trying to establish relationships to secure relocation business?
a. Logistics director
b. Supply chain broker
c. Chief executive officer
d. Human resources manager
38) Today, buyer agency is permitted in which states?
a. Texas only
b. Only 33 states
c. All states except Hawaii and Alaska
d. All states
39) The typical or traditional relationship that was exhibited in real estate sales and leasing for many years involved the brokerage firm as what?
a. Buyer
b. Ward
c. Seller
d. Agent
40) A salesperson is a ________ agent for the broker.
a. Special
b. Secret
c. General
d. Free
41) An agency that is not created as an actual agency by a principal and an agent but that is imposed by law when a principal acts in such a way as to lead a third party to reasonably believe that another is the principal’s agent and the third party is injured by relying on and acting in accordance with that belief. This defines which type of agency?
a. Agency by Ratification
b. Agency by Estoppel
c. Agency by Misconception
d. Agency by Implification
42) In order for a broker to be considered the procuring cause, the broker must have been the __________ cause of the meeting of the minds between buyer and seller.
a. Singular
b. Absolute
c. Extenuating
d. Proximate
43) Which of the following is one of the first duties owed in a buyer’s agency agreement?
a. Familiarity with the type of purchase contract being used
b. Obligation to show a minimum of 10 available properties
c. Responsibility to ensure appropriate lender funding
d. Ensuring the buyer that the transaction will occur with no issues
44) __________ is a group of laws that address and provide remedies for civil wrongs not arising out of contractual obligations.
a. Criminal law
b. Civil law
c. Tort law
d. License law
45) Being a fiduciary requires one to act “with honesty and in a manner consistent with the best interests of the ___________.”
a. Trustee
b. Beneficiary
c. Grantor
d. Donor
46) “Qui facit per alium, facit per se,” translates to which of the following?
a. “Buyer is obligated to be aware of the seller.”
b. “To each his own, but the law will prevail.”
c. “He, who acts through another, is deemed in law to do it himself.”
d. “Seize the day, for tomorrow the useful will also be agreeable.”
47) What ages make up youngest segment of the seniors market?
a. Ages 50-80
b. Ages 59-75
c. Ages 55-70
d. Ages 60-70
48) What refers to the custodial care and record keeping of all money handled on behalf of the principal?
a. Data entry
b. Bookkeeping
c. Administration
d. Accounting
49) General agency law may include relationships between which of the following parties?
a. Broker and employer
b. Guardian and ward
c. Employee and accountant
d. Customer and retailer
50) Which of the following is one of the obligations of a buyers’ agent?
a. Helping the buyer purchase the property at more than full price
b. Helping the buyer find the best possible property
c. Helping advise the buyer about legal issues
d. Helping the buyer fix any issues with the property
51) Common law is in force unless modified by statute or a state’s _____________.
a. Constitution
b. Attorney general
c. Zoning regulations
d. Governor
52) Once the listing is sold, closed, and a commission is paid, what happens to the agency?
a. It expires
b. It renews
c. It becomes legal
d. It becomes binding
53) A Protection Clause, also known as a what?
a. Safety clause
b. Procuring clause
c. Disclosure clause
d. Leverage clause
54) In order to have a designated agency situation, who must consent in writing?
a. The buying agent and broker in charge
b. The lender and the broker in charge
c. The buyer and the seller
d. The selling agent and buying agent
55) ______________ might be employed in commercial property where a seller refuses to list a property or where the seller does not want client status in general because he wishes to represent himself without the potential liability for the agent’s actions.
a. Exclusive Right to Represent
b. Single Property
c. Exclusive Agency
d. Open Agency
56) The Internal Revenue Service states that “an individual is an ______________ if you, the person for whom the services are performed, have the right to control or direct only the result of the work and not the means and methods of accomplishing the result.”
a. Employee
b. Independent contractor
c. Employer
d. Agent of singularity
57) ___________ means that a broker is entitled to a commission if he can prove that a sale was made primarily by his efforts.
a. Caveat emptor
b. Commission guarantee
c. Procuring cause
d. Originating agency
58) A buyer contemplating the purchase of a new home from a builder could benefit from what type of agent representation?
a. Buyer
b. Seller
c. Listing
d. Primary
“Fair Housing & Agency Law” Course Questions only (no answers)
Answers will be revealed with proper subscription
1) Which Act is Title VIII of the Civil Rights Act of 1968?
a. Housing and Community Development Act
b. Equal Opportunity Act
c. Equal Opportunity in Housing Act
d. Fair Housing Act
2) In 1974, the Fair Housing Act was expanded to include:
a. Religion
b. Race
c. Weight
d. Sex
3) In 1917, in Buchanan v. Warley, it was ruled that Louisville, Kentucky’s residential segregation laws (block-by-block segregation) were unconstitutional because they violated _________________________________.
a. Block parties
b. New home construction
c. The equal protection clause of the Fourteenth Amendment
d. A landowner’s right to collect rent
4) The Equal Credit Opportunity Act was passed by Congress in what year?
a. 1866
b. 1974
c. 1919
d. 2019
5) After the assassination of Dr. Martin Luther King, Jr., President Lyndon Johnson pushed for swift passage of the:
a. Title VIII of the Civil Rights Act of 1968 (Fair Housing Act)
b. Executive Order, “Gender Rights”
c. Kerner Commission Report
d. All of the above
6) The first legislation to ban discrimination in most types of housing, not just public accommodations, was the:
a. Housing and Community Development Act
b. Equal Opportunity in Housing Act
c. Fair Housing Act of 1968
d. Fair Housing Amendments Act of 1988
7) In the case of ____ , the court ruled segregation was unconstitutional.
a. Brown v. Board of Education
b. Roe v. Wade
c. Hahn v. State of Kansas
d. Kramer v. Kramer
8) In 1974, Congress passed the Housing and Community Development Act, which added ______ as another prohibited basis for discrimination.
a. Sex
b. Race
c. Creed
d. National origin
9) In which area did Title VI of the Civil Rights Act of 1964 NOT prohibit discrimination?
a. Public accommodations
b. Private housing market
c. Employment
d. All federally assisted programs
10) President Reagan strengthened the Fair Housing Act in 1988 with the addition of:
a. Federal civil rights protection to families with children
b. Tougher enforcement policies by HUD, plus additional sanctions and remedies
c. Federal civil rights protection to persons with physical and mental disability
d. All of the above
11) The basic intent of Fair Housing laws is to:
a. Offer equal protection to everyone
b. Offer special protection to certain individuals
c. Get your buyer a better deal on the home of their dreams
d. Take care of Baby Boomers
12) In determining a state’s population for congressional representation, Article 1 (1787) of the U.S. Constitution quantified that slaves were counted as:
a. Double
b. 1/8th of a white
c. Three-fifths of a person
d. Equal
13) Properties with some sort of a negative history such as homes with well-known murders, suicides, or other traumatizing situations are known as ______________ properties.
a. Traumatized
b. Haunted
c. Tainted
d. Stigmatized
14) What guideline did the Supreme Court create in its decision on the case Plessy v. Ferguson, which enabled segregation in society?
a. “Free and Clear”
b. “Church and State
c. “Separate but Equal”
d. “Best Practices in Real Estate”
15) The Civil Rights Act of 1866 made improvements in official conduct, but was mostly ineffective when it came to combatting which type of discrimination?
a. State
b. Governmental
c. Private
d. Public
16) The 1988 Fair Housing Amendments Act removed the cap on punitive damages and allowed for monetary awards for noneconomic injuries such as:
a. Humiliation
b. Mental anguish
c. Embarrassment
d. All of the above
17) The “separate but equal” era ended in 1954 with the Supreme Court decision in the case of _______________________.
a. Hurd v. Hodge
b. Buchanan v. Warley
c. Brown v. Board of Education
d. Reitman v. Mulkey
18) The Thirteenth Amendment to the Constitution was passed in 1865. This amendment:
a. Abolished slavery and involuntary servitude, except as punishment for a crime
b. Granted voting rights to all
c. Revised presidential election procedures
d. Prohibited discrimination of any form
19) In rendering a decision in the Dred Scott case, the Supreme Court held that persons of African descent were not ________, and therefore were not entitled to rights.
a. Citizens
b. Equal
c. People
d. Free
20) Which of the following is specifically cited in the 1988 Amendment to the Fair Housing Act as a disability?
a. Chronic migraine headaches
b. Asthma
c. Hay fever
d. Chronic Alcoholism
21) The Equal Credit Opportunity Act prohibits credit discrimination in housing based on:
a. Race
b. Religion
c. Age
d. All of the above
22) The ruling of what court case allowed white deli owners to use a “white counter” and a “black counter” in order to serve each race separately?
a. Roe v. Wade
b. Plessy v. Ferguson
c. Marbury v. Madison
d. Brown v. Board of Education
23) In a Supreme Court case in 1883, the Court held that the Fourteenth Amendment did not prohibit which types of discrimination?
a. Federal acts
b. Real Estate transaction
c. Private acts
d. All forms of discrimination were prohibited
24) The decision in Plessy v. Ferguson (1896) created a major divide in society that was not overturned until almost 60 years later. This policy is better known as:
a. “Alone but together”
b. “Separate but equal”
c. “Blockbusting”
d. “Carpetbaggers and scalawags”
25) Which of the following cases featured the U.S. Supreme Court striking down a local zoning law that limited African Americans and other minorities to specific areas of town?
a. Roe v. Wade
b. Buchanan v. Warley
c. Kramer v. Kramer
d. Marbury v. Madison
26) In 1962, President Kennedy signed Executive Order 11063, better known as what?
a. Truth in Lending Act
b. Equal Opportunity in Housing
c. Housing and Community Development Act
d. Equal Credit Opportunity Act
27) To be “fair” is to be:
a. Free of bias
b. Consistent with rules
c. Equitable
d. All of the above
28) You can easily violate Fair Housing laws by:
a. Hitting people
b. Filling out paperwork incorrectly
c. Misinterpreting the law
d. Jaywalking
29) As a real estate agent, you have a particular responsibility to:
a. Act properly and protect yourself from liability
b. Bring violations to the attention of others
c. Know both federal and your state’s Fair Housing laws
d. All of the above
30) It is unlawful to refuse to sell or rent after a(n) _____ has been made or to refuse to negotiate for the sale or rental of a dwelling because of race, color, national origin, religion, sex, familial status or disability.
a. Inspection report
b. Bona fide offer
c. Expired listing
d. None of the above
31) It is unlawful to refuse to negotiate for the sale or rental of or otherwise make unavailable or deny a dwelling to a person because of race, color, national origin, religion, sex, familial status or disability. Prohibited actions would include:
a. Only showing a buyer homes in his or her stated price range
b. Showing a buyer homes based on his or her stated needs
c. Showing a buyer homes only in neighborhoods with lots of children
d. Showing a buyer homes within the school district he or she has selected
32) Under New York Real Property Law, which type of “stigmatized property” situation below is exempt from agency disclosure laws?
a. A former owner with HIV or AIDS
b. A previous murder / suicide situation
c. A former owner with a serious disease virus that is not easily transmittable through the home structure
d. All of the Above
33) How many actions are specifically prohibited under the Fair Housing Act?
a. 0
b. 1
c. 3
d. 8
34) If a real estate agent has an agency relationship with a seller who refuses to sell to a protected class after receiving a fair offer, the agent should:
a. Respect the seller’s wishes
b. Tell the seller to ask for more money
c. Record the events and discontinue the agency relationship
d. None of the above
35) Which of the following would NOT be a violation of Fair Housing laws?
a. Prohibiting a live-in service animal for a disabled resident
b. Prohibiting smoking inside the home
c. Refusing to sell to a family with children
d. Withholding offers from minorities
36) The Fair Housing Act does not apply to rooms or units in dwellings containing living quarters occupied by ______ families living independently of each other, if the owner lives in one of the living quarters at the residence.
a. 5
b. 4 or fewer
c. 3 or more
d. 2
37) If your seller asks you the race of a prospective buyer, the best response is:
a. As long as the buyer is qualified to purchase your home, race does not matter.
b. The buyers are financially qualified to purchase your home. Fair Housing laws prohibit you from discriminating against protected classes when selling your home.
c. Don’t worry about that, they seemed awesome!
d. They are the same race as you, so no worries.
38) Any building, structure, or portion thereof which is occupied as, or designed or intended for occupancy as, a residence by one or more families, and any vacant land which is offered for sale or lease for the construction or location thereon of any such building, structure, or portion thereof is defined as a _________.
a. Home
b. Shelter
c. Dwelling
d. Property
39) Now that Janice’s children have grown and moved out, she has decided to renovate her basement into an efficiency apartment. Because she lives alone, Janice only feels safe renting the apartment to women. Is Janice in violation of Fair Housing?
a. Yes. Janice cannot discriminate based on sex.
b. No. Because the home will be occupied by four or fewer families, and Janice still occupies the residence, she is exempt from Fair Housing.
c. Yes. Because the home is now a multi-family dwelling, Janice must give men or women the opportunity to rent.
d. No. Gender discrimination only applies to discrimination against women.
40) Federal Fair Housing Laws prohibit specific actions based on:
a. Race, color, national origin, religion, sex, familial status, or disability
b. Race, color, occupation, religion, sex, familial status, or disability
c. Race, color, national origin, religion, sex, disability, or mental capacity
d. Race, color, national origin, religion, exercise, familial status, or disability
41) Based on Fair Housing laws, the following individuals are protected:
a. A newly divorced white male with full custody of his two children
b. A 25 year-old Muslim man
c. A 60 year-old white man
d. All of the above
42) The practice of inducing, or attempting to induce for profit, any person to sell or rent any dwelling by conveying to that person that a neighborhood is undergoing, or about to undergo, a change in the number of persons of a protected class is known as:
a. Steering
b. Blockbusting
c. Puffing
d. Redlining
43) For a person to be “in the business of selling or renting real estate,” he or she would have participated as principal in ________ or more transactions involving the sale or rental of any dwelling within the preceding twelve months.
a. 0
b. 1
c. 25
d. 3
44) Which of the following would be considered a “residential real estate-related transaction” under the Fair Housing Act of 1968?
a. Making loans
b. Appraising residential real estate
c. Brokering residential real estate
d. All of the above
45) Which of the following statements would NOT be true? The Fair Housing Act of 1968:
a. Prohibits blockbusting
b. Prohibits falsely denying that housing is available
c. Prohibits negotiating for the sale or rent of property
d. Prohibits discrimination in residential real estate transactions
46) What is the least number of people that can be considered a “family,” as defined by the Fair Housing Act of 1968?
a. One
b. Four
c. Five
d. Six
47) The most likely agency to help provide relief for victims of housing discrimination is through ______________.
a. Department of Justice
b. Federal courts by means of a private lawsuit
c. HUD
d. None of the above
48) Broker John had fallen on hard times. John hadn’t been able to secure a new listing for a couple of months so he decided to go back and speak with some people he had represented as buyers to see if they were now looking to sell. After a few calls with no luck, John came across the record for Susan. John remembered Susan well because she always had a Confederate flag hanging in her home or on her vehicle. Susan at first said that she was happy and didn’t want to sell but John, feeling desperate, told her that based on recent sales in the MLS, there were a number of African Americans buying homes in her neighborhood. Susan immediately decided to put her home up for sale with John as the listing agent. What illegal practice did John participate in?
a. Blockbusting
b. Steering
c. Puffing
d. Redlining
49) The Fair Housing Act does have some exemptions, such as:
a. Single-family housing when sold/rented without the use of a broker
b. Owner-occupied housing with no more than 4 units
c. Housing operated by organizations or private clubs that limit occupancy to members only
d. All of the above
50) In the case of the United States v. Matusoff Rental Company, Roger Matusoff was found guilty of discrimination based on ______.
a. Race and age
b. Gender and religion
c. Familial status and race
d. Familial status and gender
51) For an owner of a single-family house to be exempt when selling without the use of a broker and when the owner does not live in the house themselves, the exemption will be granted:
a. To one such sale within a 24-month period
b. For 7 sales only
c. For owners renovate
d. To one such sale every 5 years
52) Brad has decided to sell his single-family home. After interviewing several brokers about the listing, Brad decided to sell the home without the use of a broker. This is the only property that Brad owns, and he has never sold a home before. Brad has two interested potential buyers, the Smiths and the Hernandezes. Both buyers have submitted the same offer, but Brad decides to give the property to the Smiths because he doesn’t want Hispanics in the neighborhood should he decide to return someday. Has Brad violated Fair Housing laws because his decision was based on the national origin of the potential buyers?
a. No. National origin is not a protected class.
b. Yes. Because Brad spoke with a broker prior to putting the home up for sale, he should be aware of Fair Housing laws.
c. No. Because this is Brad’s first sale, he cannot be reasonably expected to understand the ramifications of Fair Housing laws.
d. No. Brad sold the home without the use of a broker, and only owns a single property, so he is exempt from Fair Housing laws.
53) Randy is a white tester who has been going to various brokerages to see if they are in compliance with Fair Housing. Randy came into Ruth’s office and said that he was interested in buying a home. Ruth printed a list of properties from the MLS and immediately crossed two homes off the list because they were “in a Hispanic neighborhood.” Realizing what she had said, Ruth asked Randy if he was a tester. Randy assured her that he wasn’t, and they proceeded with the meeting. Randy left saying that he would be in touch. Ruth later received a notice that she had violated fair housing in her meeting with Randy and that her license had been suspended. Ruth appealed saying that Randy had lied when he said that he wasn’t a tester and that she had been deceived. Is Ruth’s argument valid?
a. No. Testers are not required to reveal that they are testers, even when asked directly.
b. Yes. Randy was obligated as a tester to reveal that information if asked.
c. No. Because Ruth didn’t ask Randy before making the comment that was in violation.
d. Yes. Since Ruth had not entered into an agency relationship with Randy, she was not obligated to follow fair housing.
54) According to the text, the key to getting each agent to strictly follow fair housing rules is to employ:
a. Property Managers
b. Office managers who strictly enforce rules
c. Consistent policies
d. A real estate attorney
55) A single-family house sold or rented by an owner without the use of a broker is considered exempt when:
a. The owner does not own more than 3 such single-family houses at once
b. The owner does not know the law
c. The owner means well
d. The owner is a real estate agent
56) Which question should NOT be included as part of the standard questions about income and financial resources?
a. What is your price range?
b. Do you wish to rent or buy?
c. Do you have a preference for the ethnic makeup of the neighborhood?
d. Do you have a location preference?
57) Prohibited actions under fair housing laws would include which of the following?
a. Evicting tenants because they are members of a protected class
b. Evicting tenants because they have guests who are members of a protected class
c. Imposing different rental charges because the tenants are members of a protected class
d. All of the above
58) A person is persuaded to rent or sell a dwelling in a specific neighborhood because members of a particular race, religion, or national origin are moving into that neighborhood and his/her property value will likely decline; this scheme is called _______.
a. Commingling
b. Placement
c. Directing
d. Blockbusting
59) If a seller refuses to sell to a buyer based on the buyer’s race, who can file a federal lawsuit against the seller?
a. The broker
b. The federal government
c. The buyer
d. All of the above
60) HUD issued a proposed rule that takes certain measures aimed at protecting LGBT renters and homeowners from discrimination on January 20, 20__.
a. 01
b. 03
c. 06
d. 11
61) The 1988 Amendments to the Fair Housing Act also granted:
a. Enhanced enforcement capabilities for HUD
b. Newly expanded and stiffer penalties for violations
c. Neither A nor B
d. Both A and B
62) How many people per bedroom is considered reasonable by HUD?
a. 1
b. 2
c. 3
d. 4
63) HUD allows landlords to develop occupancy standards based on:
a. Size of the unit
b. Number of children
c. Age of children
d. Size of children
64) \
65) Occupancy standards must be based on things such as:
a. The number of bedrooms and their dimensions
b. The ages of allowable children
c. The number of closets in a bedroom
d. The distance to shopping and other amenities
66) Any mental or psychological disorder, such as mental retardation, organic brain syndrome, emotional or mental illness and specific learning disabilities are all considered ______.
a. Buyers
b. Mental impairment
c. Dangerous
d. Psychologically unstable
67) Housing for older persons is exempt from the prohibition against familial status if:
a. It is specifically designed for and occupied by elderly persons
b. It is occupied solely by persons that are 62 and older
c. It houses at least one person who is 55 or older in at least 80% of the occupied units, with significant services and facilities for older persons and adheres to a published policy that demonstrates an intent to house older persons
d. All of the above
68) In a 1978 HUD study, a survey of 79,000 rental units indicated that about ______% banned children entirely.
a. 75
b. 90
c. 25
d. 3
69) The Fair Housing Act as amended says it is illegal to _______, ________, or _________ any notice, statement or advertisement with respect to the sale or rental of a dwelling that indicates any preference, limitation or discrimination of a protected class.
a. Make, print or publish
b. Write, read or record
c. Create, video or post
d. Draw, record or create
70) In the Advertising Guidelines published by HUD in 1989, they categorize discriminatory advertising into three groups:
a. Advertising that contains words, symbols or visual aids to indicate a discriminatory preference or limitation
b. Fair Housing policies and practices in discriminatory advertising that are prohibited
c. Advertising that selectively uses media or content such as human models or logos to indicate a discriminatory preference or limitation
d. All of the answers shown
71) The advertising rules even apply to advertisements where the underlying property may be exempt from the provisions of the Fair Housing Act, but where the ______ violates the act.
a. Printer
b. Publisher
c. Advertisement
d. None of the answers shown
72) Specifically cited as examples of disabilities are:
a. Hearing, mobility, or visual impairments
b. Chronic alcoholism
c. Cerebral palsy, epilepsy, or AIDS
d. All of the above
73) Which comment(s) could raise suspicion of discrimination against families with children?
a. “Our building for children is full.”
b. “A parent and child may share a bedroom at this facility.”
c. “We rent to families with children at no extra charge.”
d. “All are welcome here”
74) Common restrictions regarding families with children that violate the FHAA are:
a. Segregating families with children in certain areas
b. Charging higher security deposits or rental rates
c. Denying families access to recreational and other facilities
d. All of the above
75) HUD’s provisions for protection from discrimination for LGBT individuals defines gender identity as:
a. “Falsely identified gender-related characteristics”
b. “Perceived gender-related characteristics”
c. “Actual or perceived gender-related characteristics”
d. “Medically documented gender-related characteristics”
76) HOPA stands for:
a. Happiness for Older People of America
b. Housing for Older Persons Act
c. Homeownership in an Older America
d. Homes for People Always
77) In the definition of disability, which of the following is specifically excluded?
a. Chronic alcoholism
b. People who use service dogs
c. Transvestites
d. People with AIDS
78) The Fair Housing Act prohibits discrimination against:
a. A person in the process of securing legal custody of children under 18
b. Persons who are pregnant
c. Neither A nor B
d. Both A and B
79) BOCA guidelines require a minimum of how many square feet for the first occupant of a unit?
a. 50 square feet
b. 65 square feet
c. 150 square feet
d. 200 square feet
80) A 1978 HUD study of 79,000 rental units showed that about 25% banned ___________ entirely.
a. Pets
b. Substance Abuse
c. Children
d. Bunnies
81) Housing providers can still take action against families for other reasons, such as:
a. Evicting a family for property damage or failure to pay rent
b. Evicting a family for using the sauna
c. Evicting a family for having too many children
d. None of the above
82) The Fair Housing Amendments Act of 1988 added _____ new protected class(es) of people.
a. 0
b. 1
c. 2
d. 3
83) Rooms, spaces or elements inside or outside of a building that are made available for the use of residents or their guests are known as:
a. Public grounds
b. Private property
c. Shared property
d. Common areas
84) HUD takes the position that it is illegal for real estate agents to make unsolicited disclosures that a current or former occupant of a property has _____.
a. Been evicted
b. Left town
c. HIV/AIDS
d. Allergies
85) If you have a disability, your landlord may not refuse to let you _____ your dwelling or common use areas (at your expense).
a. Have sleepovers in
b. Make reasonable modifications to
c. Work from home in
d. Redecorate
86) A person with a record of or being regarded as having a physical or mental impairment which substantially limits one or more of a person’s major life activities is considered to be _____.
a. Ill
b. Old
c. disabled
d. Special
87) When reviewing cases for discrimination, what will HUD consider along with any discriminatory statements made and discriminatory advertising done?
a. Size of the bedrooms
b. Size of the dwelling
c. Age of the children
d. All of the above
88) 1972, in United States v. Hunter, the Court of Appeals stated that even though a homeowner or landlord may have a dwelling that is exempt from coverage under the Fair Housing Act, they are not free to employ discriminatory advertising. This particular case is important because it helped to establish:
a. RESPA
b. HUD’s advertising rules
c. HUD’s compliant process
d. HUD’s courtroom dominance
89) In a seller agency situation, who is the listing agent’s customer, but not the client?
a. Seller
b. Buyer
c. Both the Buyer and Seller
d. Buyer’s Agent
90) Who has the most responsibility to guard a buyer’s trust funds?
a. The agent who collected the buyer’s earnest money deposit check
b. Seller
c. Buyer’s agent
d. Listing agent
91) An agent’s primary obedience must be to which party in a listing transaction?
a. Employing broker
b. Agent
c. Seller
d. Buyer
92) Who is the buyer’s agent’s client below in a single agency relationship?
a. Customer
b. Both Buyer and Seller
c. Seller
d. Buyer
93) The word “trust” is a root definition for which English word based upon a Latin translation of the same word?
a. Title
b. Fiduciary
c. Escrow
d. Justice
94) An owner / broker who merges or combines his or her funds with the client trust funds is _____________.
a. Commingling
b. Converting
c. Rebating
d. All of the above
95) “Landlord” means the __________ in a residential real property transaction.
a. Lessee
b. Client
c. Leasehold agent
d. Lessor
96) In the legal case of Berger-Vespa v. Rondack Building. Inspections, Inc., what was the plaintiff’s main allegation against the defendants?
a. Non-disclosed home defect fraud
b. Non-disclosed dual agency fraud
c. Mortgage fraud
d. Contingency fraud
97) “A licensee joins the agency relationship already established between another licensee and his/her principal” is the definition for ______________.
a. Intermediary
b. Dual Agency
c. Subagency
d. Single Agency
98) An Implied Agency relationship can be one in which _____________.
a. Agent and principal verbally agree
b. Broker doesn’t realize that his agent’s actions make him or her liable and responsible to a client
c. The agent unintentionally takes actions that make them responsible to a client
d. All of the above
99) Which of the three scenarios below would provide the highest obligation of obedience on the real estate agent?
a. When the client hires another agent
b. When the client makes an illegal request
c. After the client signs the listing agreement
d. None of the above
100) An agent who is acting as a buyer’s agent and a seller’s agent or a tenant’s agent and a landlord’s agent in the same transaction is a (n) _______________ agent.
a. Double
b. Dual
c. Two-Way
d. Illegal
101) Under the COALD acronym for agents, a careless agent is violating their __________.
a. Duty of obedience
b. Accounting
c. Loyalty
d. Duty of care
102) “The care that an ordinarily reasonable and prudent person would use under the same or similar circumstances” is an agent’s ____________.
a. Fiduciary Care
b. Due Care
c. Normal Care
d. Ordinary Care
103) Which punishment can the Department of State impose on brokers and salespersons if found guilty of fraudulent activities?
a. Fines up to $25,000
b. Revocation or suspension of license
c. Community service
d. There is no penalty
104) What is an agent required to do in relation to third parties?
a. Worry only about Owner / Broker’s profit
b. Gain the advantage over third parties by any means
c. Act honestly, fairly, and ethically
d. All of the above
105) Who must the agent be the most loyal to in a buyer’s agency relationship?
a. Seller
b. Buyer
c. Agent’s owner broker
d. Agent
106) When a court rules on behalf of a third party – and creates a relationship between an agent and principal that was never agreed to – which type of agency is created?
a. Agency by Ratification
b. Implied Agency
c. Judicial Agency
d. Agency by Estoppels
107) A listing agent who acts alone or acts as a broker’s agent to find or obtain a buyer for residential real property, is the definition of a ____________________.
a. Buyer’s agent
b. Seller’s agent
c. Dual agent
d. None of the above
108) Who can be financially and legally at risk in a “Vicarious Liability” listing situation?
a. Listing Agent
b. Seller
c. Owner / Broker
d. All of the above
109) What is the best example of the act of conversion by a broker?
a. Dual Agency
b. Spending client funds on personal expenses
c. Not providing the required disclosure forms
d. Discrimination against a client
110) Which relationship below is the least likely to be considered as a fiduciary one?
a. Wealth Advisor
b. Mortgage Broker
c. Listing Agent
d. Home Inspector
111) Who is the least likely to receive a commission payment based upon the sales price in an apartment sale in Brooklyn?
a. Dual Agent
b. Listing Agent
c. Buyer’s Agent
d. Intermediary
112) Who can be financially and legally at risk in a Respondeat Superior case that ends up in a local New York district court over claims of real estate fraud committed by the principal?
a. Listing Agent
b. Broker
c. Principal
d. All of the above
113) Residential real property” means real property used or occupied, or intended to be used or occupied, wholly or partly, as the home or residence of one or more persons improved by any of the following EXCEPT ____________________.
a. A one-to-four family dwelling
b. a Cooperative
c. Unimproved real property yet to be constructed
d. A condominium
114) Under the Standard of Care philosophy: “The degree of care or competence that one is expected to exercise in a particular circumstance or role” applies to which party?
a. Listing Agent
b. Buyer’s Agent
c. Dual Agent
d. All of the above
115) Which agency relationship below has the least protection for agents?
a. Express
b. Signed listing agreement
c. Implied
d. Buyer’s Agency
116) A client in a real estate transaction most likely has which relationship to the real estate agent?
a. Fiduciary
b. Customer
c. Principal
d. Subagent
117) When a broker is acting as a dual agent, but assigns two agents to specifically represent each side of the transaction – the agents are working as __________ agents.
a. Supervised
b. Associated
c. Intermediate
d. Designated sales
118) Which type of agency relationship occurs when a principal agrees to be held in an agency relationship because the agent led others to believe there was a relationship.
a. Agency by Ratification
b. Agency by Estoppel
c. Dual Agency
d. Agency by Default
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