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Exam 12: The Brokers Role in the Transfer of Real Estate

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Question 61

True/False

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Brokers must communicate all offers made prior to acceptance to the seller.

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Question 62

Multiple Choice

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A broker who buys a client's property through a third party:

A) Need not disclose the purchase so long as the client agreed to a dual agency.
B) Need not disclose the purchase so long as the broker qualifies for financing.
C) Need not disclose the purchase as long as the broker paid asking price.
D) Must disclose the purchase.

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Question 63

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An agency relationship exists between brokers and sellers.

Rouster has not yet taken the examination for real estate salespersons in his state, but has the opportunity for a listing. Rouster says he has all the knowledge, and the examination is simply routine. Can Rouster take the listing and collect a commission?

A net listing:

Sheree Demming contacted Cheryl Underwood, a real estate broker in the Bloomington, Indiana area. Ms. Demming discussed with Ms. Underwood her strategy for investing in properties in and around Indiana University and then developing them. They had agreed to a 7% commission for Ms. Underwood on any properties purchased. Ms. Deming then asked Ms. Underwood to pursue the purchase of several properties. The owners were not interested in selling initially, but Ms. Deming told Ms. Underwood to keep trying. Ms. Underwood purchased one of the properties Ms. Deming was interested in for herself and then failed to tell Ms. Deming that the seller of one of the other properties was inviting written offers. What if the agreement between Ms. Demming and Ms. Underwood were oral?

In an exclusive agency, the seller retains the right to sell the property without the listing agent and not be responsible for a commission to that listing agent.

In an exclusive right-to-sell listing, a sale by the owner relieves the owner of the duty to pay the broker's commission.

A broker/agent has a duty to warn clients of potential issues and exposure in a transaction.

Antisolicitation statutes cannot be specifically directed at real estate agents and brokers.

Rod Webster is a licensed real estate agent. The state licensing board has discovered that Rod embezzled earnest money deposits over the past three years. The state agency, as an appropriate remedy:

A broker who fails to disclose a buyer's financial difficulties to the seller has breached his fiduciary duty.

A co-operating broker relationship is a subagency relationship.

A nonagent broker:

In all states, brokers must disclose information on sex offenders if a buyer asks about it specifically.

A no deal, no commission clause is the assumed standard for listing agreements.

Disclosure statutes may prohibit brokers/agents from discussing certain issues related to a property.

Rachel Finnegan is a broker who specializes in selling small homes. She has a listing for a small home with a list price of $90,000. When a prospective buyer comes through the house, he tells Rachel he is interested but the $90,000 is too high of a price. Suppose that the buyer tells Rachel that he can buy the house for $90,000 if he can get financing. He explains to Rachel that he has bad credit from some "dumb" business transactions. Rachel offers to have her daughter act as a purchaser because her daughter can qualify for financing. Her daughter will then convey the house to the buyer. Rachel:

Tri City Multilist only allows brokers to become members who use only exclusive right‑to‑sell listings. Any antitrust implications?

A broker has a duty to inspect the listed property.