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QUIZ #2 - CHAPTERS 4 & 5

Choose the BEST answer

1. A real estate salesperson may be compensated for real estate services by: 

               a. the owner 
               b. another broker
               c. another salesperson 
               d. the salespersonís broker 

2. A real estate broker started a chain of events that resulted in the sale of one of his
    clientís properties. This is referred to as a: 

               a. pro forma 
               b. procuring cause
               c. private offerings 
               d. proffered offer 

3. The relationship of a broker to his or her client is that of a(n): 

               a. trustee 
               b. sub agent
               c. fiduciary 
               d. attorney in fact 

4. A company agency policy statement must be presented to a potential customer or client: 

               a. before giving them any information 
               b. before any personal contact 
               c. prior to reviewing any confidential information
               d. after they come into your office 

5. The Real Estate Commission: 

               a. may not have a non-resident member 
               b. may not have members who hold an elective office 
               c. must have only district members who have been residents of their district
                   for at least one year 
               d. all of the above are true 

6. The following are true concerning the Real Estate Commission EXCEPT: 

                a. a majority of the current members of the commission constitutes a
                    quorum to conduct business 
                b. a majority of those members present is required to bind the commission 
                c. the chairperson is required to give reasonable notice to all members of the
                     time and place of each meeting 
                d. each member is entitled to the minimum salary per diem 

7. Which of the following best defines the ďlaw of agency?Ē 

                a. the selling of anotherís property by an authorized agency 
                b. the rules of law that apply to the responsibilities of a person who acts for
                    another 
                c. the principles that govern oneís conduct in business 
                d. the rules & regulations of the state licensing agency 

8. Statements by a real estate licensee exaggerating the benefits of a property are
    called? 

                a. polishing 
                b. puffing
                c. prospecting
                d. marketing 

9. The relationship between broker and seller is generally what type of agency? 

                a. special 
                b. general
                c. implied 
                d. universal 

10. A real estate broker hired by an owner to sell a parcel of real estate must comply
      with: 

                a. the common law of agency, even if a state agency statute exists that
                    abrogates common law 
                b. dual agency requirements 
                c. the concept of caveat emptor 
                d. all lawful instruction of the owner 

11. The listing and selling broker agree to split a 7% commission fifty-fifty on a
      $95,900 sale. The listing broker gives the listing salesperson 30% of his commission
      and the selling salesperson 35% of his commission. How much does the selling
      salesperson earn from the sale after deducting expenses of $35.00? 

                 a. $1,139.78 
                 b. $1,174.78
                 c. $ 971.95
                 d. $1,183.88 

12. By executing a listing agreement with a seller, a real estate broker has: 

                a. a procuring cause 
                b. obligated to open a special trust 
                c. become an agent of the seller
                d. responsible for sharing 

13. J has a basis of $30,000 in her primary residence. She sells the house for $45,000. The
      brokerís commission was 6.5% and other selling expenses amounted to $400. What is
      Jís gain on this transaction? 

               a.$11,450 
               b. $11,500
               c. $11,675 
               d. $14,025 

14. The real estate brokerís responsibility to keep the principal informed of all of the facts
      that could affect a transaction is the duty of: 

               a. care 
               b. disclosure
               c. obedience
               d. accounting 

15. Which of the following would be considered to be a dual agency? 

              a. the broker acting for both the buyer and the seller in the same transaction 
              b. broker representing different principals 
              c. the broker listing and selling the same property 
              d. brokers cooperating with each other 

16. Broker J was accused of violating antitrust laws. She was probably accused of: 

              a. not having an equal housing opportunity sign in her office window 
              b. undisclosed dual agencies 
              c. allocation of customers or price fixing 
              d. dealing in unlicensed exchange services 

17. All of the following could be considered fraudulent EXCEPT: 

              a. deceitful or dishonest practices 
              b. exaggerated statements about the property 
              c. omitted statements of material fact
              d. misstatements about the property 

18. A real estate person who is an independent contractor receives: 

              a. a monthly salary or hourly wage 
              b. company-provided health insurance 
              c. a company provided automobile
              d. negotiated commissions on transactions 

19. Upon discovering a latent defect in the property, the licensee should discuss the
      problem with the seller and then: 

              a. notify the seller that the defect must be repaired 
              b. arrange for the repairs himself or herself 
              c. inform any prospective buyer of the defect 
              d. contact the city building inspector about the defect 

20. A brokerís salesperson lists a unit for sale in a condominium building. The salesperson
      in this transaction: 

             a. has a direct contractual relationship with the owners of the unit 
             b. acts on behalf of the broker 
             c. acts on behalf of the condominium association 
             d. must find a buyer for the unit to obtain a share of the commission 

21. Which of the following statements is/are true? 

             a. corporation and partnership brokerís license expire June 30th of each even
                 numbered year. 
             b. an expired brokerís licenses may be reinstated within 120 days after
                 expiration by paying all unpaid license fees plus $100 
             c. to reinstate a license that has lapsed more than 120 days, the person must
                 pay all the past due fees plus $20 
             d. to reinstate a brokerís license after 180 days has elapsed, the person must
                 repeat the required Brokerís education course 

22. To obtain a real estate brokers license a partnership must: 

             a. have all partners that are residents of the State of Indiana 
             b. pay a license fee of $50 per partner 
             c. have only partners that hold real estate brokers licenses 
             d. both A & B are true 

23. A broker who has a written contract with both the buyer and seller in the same
      transaction may: 

            a. assign a salesperson to represent the interests of the seller and another
                 salesperson to represent the buyer 
            b. notify both the buyer and seller of the Limited Agency relationship and get
                the consent of both parties to proceed under those terms 
            c. both A & B 
            d. none of the above 

24. The Real Estate Commission may conduct business without a meeting, provided: 

            a. all members orally consent to the action 
            b. all members confirm that action in writing at a later date 
            c. a simple majority of the members consent to the action taken 
            d. both A & B 

25. All of the following are categories of the uses of real property EXCEPT: 

            a. residential 
            b. developmental
            c. agricultural 
            d. industrial 

Quiz #2 - Chapters 4 & 5
ANSWERS

1. D 11. A 21. C 31. 41. 51.
2. B 12. C 22. C 32. 42. 52.
3. C 13. C 23. C 33. 43. 53.
4. C 14. B 24. D 34. 44. 54.
5. D 15. A 25. B 35. 45. 55.
6. C 16. C 26. 36. 46. 56.
7. B 17. B 27. 37. 47. 57.
8. B 18. D 28. 38. 48. 58.
9. A 19. C 29. 39. 49. 59.
10. D 20. B 30. 40. 50. 60.
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