What type of agreement is most commonly used as a buyer representation agreement?
Exclusive right-to-represent
Exclusive right-to-sell
Net listing
Open listing
Which of the following is acceptable to include in an MLS listing?
Children home alone from 2 to 4 p.m. No calls during that time.
House includes an alarm system.
Owner works the night shift.
Valuable artwork located throughout.
Janice wanted to sell her townhome, and her neighbor was considering buying it. She wanted to put it on the market while she waited to find out if her neighbor was going to buy. In order to receive the best possible representation but avoid paying compensation if her neighbor buys the property, which type of listing agreement would best suit Janice’s needs?
Exclusive agency
Exclusive right to sell
Net
Open
Mardee represented condo owner Carol, and they signed an exclusive agency listing agreement. If Carol found her own buyer, would she owe Mardee compensation?
No, because Carol is not a real estate licensee.
No, because Carol procured the buyer.
Yes, because they have an exclusive agency listing agreement.
Yes, but she only owes the listing compensation.
Which of these choices best defines the legal doctrine of procuring cause?
A licensee brings a buyer and seller together and remains involved in the continuous negotiations that lead to the closing of the sales transaction.
A licensee enters into a representation agreement with a buyer or seller.
A licensee facilitates the closing of the sale.
A licensee introduces a buyer to a seller.
Among other things, what should a listing in the MLS always include?
A relatively vague description, so people want to come and see the details
At least one photo
The seller’s bottom-line sales price
The seller’s contact information
A buyer representation agreement establishes an agency relationship between which parties?
Buyer and broker
Buyer and salesperson
Seller and broker
Seller and salesperson
Commission disputes may occur after a property sold via an open listing when there is debate over who was the ______.
Buyer
First person to show the listing
Procuring cause
Seller’s agent
What is the MLS?
A database of real estate information
A list of buyers and their contact information
A server that records incoming data in a mirror image
Photo editing software for real estate licensees
Which of the following is a true statement about the MLS and sellers?
For most sellers, listing on the MLS is not cost effective.
It’s rare for sellers to decline advertising their property on the MLS.
Most sellers dislike advertising their property on an MLS.
Sellers are required to list their properties on the MLS if they’re working with a real estate licensee.
James, a seller, signed a listing agreement that allowed him to contract with multiple agents but only pay compensation to the agent who located a buyer. This type of listing agreement is called ______.
Exclusive agency
Exclusive right to sell
Open
Seller’s choice
Which of the following scenarios best describes a net listing?
A condo owner is selling her unit for $480,000 and is offering a 6% agreed compensation to the listing broker.
A duplex owner lists his property at $600,000 but reserves the right to find his own buyer and not pay compensation.
A seller wants to get $550,000 for her house and tells her listing agent he can keep anything above that amount.
The owner of a townhouse is selling it for $425,000 and paying a brokerage fee of $25,000.
What is a negative aspect of net listings?
The listing agent is guaranteed at least some compensation.
They don’t include compensation for the buyer’s agent.
They often involve a conflict of interest.
They’re legal in all 50 states.
Rick is a licensee who’s meeting with a prospective new client, Kate. Kate is looking to purchase a home, and would like Rick to represent her throughout the process. Which agreement should Rick and Kate enter into?
Exclusive right-to-represent
Exclusive right-to-sell
Net listing
Open listing
A buyer just signed a buyer agency agreement. The buyer likely did this so that ______.
They could avoid breaking the law
They could avoid paying compensation.
They would receive a higher level of service
They would receive more service while paying a bit more for that service
“I get why YOU want a buyer representation agreement,” your buyer tells you. “But what’s in it for me?” You answer ____________.
“It is required by law.”
“Without it, I owe you no duties.”
“Without it, I won’t work very hard for you.”
“Without it, you are unrepresented.”
Bernie represented Oscar in the sale of Oscar’s home. They signed an exclusive right-to sell-listing agreement. If Oscar were able to find his own buyer, would he owe Bernie compensation?
No, because he found his own buyer.
No, because Oscar retained his exclusive right to sell.
Yes, because “exclusive right to sell” means Bernie gets paid no matter who finds the buyer.
Yes, because Oscar is not a real estate licensee.
Which of the following is a recommended way for listing brokers to use the MLS?
To advertise their listings
To enhance their reputations
To promote themselves and their firms
To steal their competitor’s listings
What does MLS stand for?
Market listing service
Maximum listing service
Membership listing service
Multiple listing service
Although she was not part of writing up the sales contract between the seller and the buyer, Trisha believes she should be compensated for finding the buyer and shepherding the transaction to its conclusion. Her reason for making this assertion is likely based on ______.
The belief that the seller “stole” her client
The concept of procuring cause
The fact that she is a real estate licensee
The writ of habeas corpus
When working with a seller, you signed a listing agreement that ensured you’d receive compensation provided the property sold during the listing term. What type of listing agreement did you sign?
Exclusive agency
Exclusive right to collect commission
Exclusive right to sell
Net listing
What is an open listing agreement?
One in which anyone can find the buyer, but the listing agent still gets paid
One in which only the person who finds the buyer gets paid
One in which the price is negotiable within a specified range
One in which there’s no end date
Why might a licensee want a buyer to sign a buyer representation agreement?
It helps ensure buyer loyalty.
It provides the agent with bragging rights.
It’s required by law.
It will ensure that he’ll receive the standard compensation rate.
What is a major benefit to a buyer for signing a buyer representation agreement?
It costs less
It guarantees the agent will get a commission
It makes the buyer look better
Representation
Which of the following items can you expect to see on a buyer representation agreement?
Description of the property being sought and obligations of the seller to the buyer
Description of the property being sought, method and timing of the broker’s compensation, and obligations of the buyer and the buyer’s agent
Method and timing of the broker’s compensation and obligations of the seller to the buyer and agent
Obligations of the buyer, the seller, the buyer’s agent, and the seller’s agent
Which of the following best describes a net listing?
The seller agrees to a flat fee as agent compensation for the sale.
The seller reserves the right to sell the property and not have to pay compensation.
The seller specifies a desired price for the property and agrees to pay the broker any amount received that’s more than that price.
The seller works with many agents, and only the agent who procures the buyer is owed compensation.
From a buyer’s perspective, what’s the primary benefit of signing a buyer agency agreement?
It ensures a higher level of service.
It ensures that the buyer will find the right property at the right price.
The buyer cannot purchase real estate without one.
The buyer is on the hook for the entire commission without one.
11sect.unit4.CeSh.PreLic.Qonly.txt
Which of these statements best describes the information in the Florida property tax disclosure?
A caution for the buyers to not rely on the current year’s property tax as a way to predict what they’ll have to pay.
A prediction, based on the last five years of property tax, of what the new owner can expect to pay in property tax for the coming year.
A summary of the taxes paid on the property, if any, for the past 10 years.
The legal description of property taxes and a summary of Florida’s property tax law.
Which one of the following does NOT need to be part of the Florida homeowners association brochure that’s provided to potential buyers?
The approval rating that it has earned from its residents
Whether the association has been found guilty of building code violations
Whether the homeowners association allows pets
Whether there are any restrictive covenants
Which one of the following statements is true about radon disclosure in Florida?
If radon is present, the sales contract must include an estimate for the price of mitigation.
Real estate professionals must give buyer clients a list of professional radon mitigators.
Real estate professionals must provide to their buyer clients a written statement that describes what radon is.
Real estate professionals only have to disclose the presence of radon if their client asks about it.
How many days are sellers required to give buyers to conduct a risk assessment for lead-based paint or lead-based paint hazards?
10
21
30
Three
Cleo is selling her house because she’s sick of fighting with the county over the new addition that violates several building codes. What’s her responsibility, if any, to the future buyer?
None. The buyers should do their due diligence to uncover the violation.
She must pay off any fines or fees resulting from the building violation before she can sell the property.
She must provide a disclosure that defines building code violations.
She must provide a disclosure that details the building code violation or violations.
Contingencies normally include the responsible party’s name, the deadline for the contingency removal, and ______.
The actions required for removal
The date the contingency was added
The reason the contingency was added
Three reasons the contingency is required
Buyer Sal is about to sign the sales contract for his new Palm Beach condo. He asks his agent, Marie, if there’s any radon on the property. What’s her duty to him at that moment?
She has no responsibility to Sal regarding radon gas.
She’s required to advise Sal about the dangers of radon and how to detect it.
She’s required to provide a written statement that describes what radon is as part of the sales contract.
She was required to hire a radon professional to test the property and inform Sal of the results.
Federal law requires disclosures about what potential hazard in residential properties built prior to 1978?
Arsenic
Asbestos
Lead
Radiation
What information regarding the binder deposit does Florida law require on a purchase contract?
The account number in which the deposit will be held
The date and time earnest money was presented from the buyer
The name and address of the escrow agent
The name of the party who accepted the binder deposit from the buyer
Amy is about to complete her very first sales contract. What should she do to prepare?
Grab waters for herself and her clients.
Have a drink. It’s time to celebrate!
Nothing. The sales contract will write itself.
Review the contract and make sure she understands what each section means.
Which Florida court ruling stated that an as-is real estate contract did not protect sellers from fraudulent non-disclosure?
Ames v. Weiss
Johnson v. Davis
Rayner v. Wise Realty Co.
Tallahassee v. Citizens of Florida
Which one of the following options best describes the purpose of a sales contract?
It identifies the buyer’s agent/buyer agency relationship’s terms.
It identifies the landlord/tenant relationship’s terms.
It identifies the listing agent/buyer agency relationship’s terms.
It identifies the terms of a real estate sale between the seller and the buyer.
Your seller client Marvin wants to know which of the following items he should disclose. Which one must be disclosed?
A former owner committed suicide in the house.
Marvin has Alzheimer’s.
Marvin has tested positive for HIV.
The second bathroom was not permitted.
Licensee Raina is happy that her seller client’s home is under contract, and closing’s just a few days away. That is, until Raina discovers a material defect on the property that hasn’t been disclosed to the buyer. What should she do?
Ask her client if she wants to disclose the defect.
Notify her client of the defect and disclose it to the buyer.
Notify her sponsoring broker and ask the firm’s attorney to step in.
Say nothing, because once the property is under contract, it’s too late to make any property disclosures.
The appraisal on a seller’s property came in at $22,000 less than the agreed-upon sales price, so the buyer wants to renegotiate the terms. If they can come up with a new price that is satisfactory to both parties, what will they use to document this?
Addendum
Amendment
Annotation
Appendix
A buyer is ready to close on her new house, but her agent told her that they have to wait for the homeowner to fix the electrical box as agreed. What clause in her contract allowed her to request the repair?
Appraisal contingency
Financing contingency
Home sale contingency
Inspection contingency
Licensee Quinn is working with seller clients, the Swans, who have found buyers. The property belongs to a homeowners association. Which of the following actions must Quinn take?
Nothing. The buyers should research the association themselves so they know its requirements.
She must provide the buyers with a disclosure statement that outlines the association’s restrictions.
She must remind the association to send its financial information to the buyers, either via email or mail.
She must remind the Swans to mention the association to their buyers at closing.
Which one of the following is a true statement about a Florida real estate licensee’s duty to disclose?
It’s situational. If the licensee doesn’t represent a party to the transaction, no duty to disclose exists.
Licensees owe all parties and customers the duty to disclose material facts relating to the value of the property.
Licensees owe the duty to disclose material defects, not material facts.
Licensees owe the duty to disclose material facts, not material defects.
Rose, represented by Sandy, and Tina, represented by Julie, entered into a sales contract for Rose to purchase Tina’s home. Rose intended to ask Tina to repair the water heater, but the inspection deadline came and went. Now Rose has to buy the property as-is. Whose responsibility was is it to keep track of all buyer contingency deadlines?
Julie
Rose
Rose and Sandy
Sandy and Julie
Which of the following statements about the number of contingencies in a sales contract is TRUE?
Every sales contract should contain a minimum of three contingencies.
The inclusion of numerous contingencies makes it less likely that the buyer’s offer will be accepted.
The more contingencies, the better from the seller’s perspective.
The number of contingencies is directly related to the cost of the home. The higher the asking price, the greater number of contingencies.
The sales contract between the buyer and the seller has been signed. Whose responsibility is it to keep track of all of the buyer contingency deadlines?
The buyer and the buyer’s agent
The buyer and the seller
The seller
The seller and the seller’s agent
What’s the purpose of a sales contract?
To document the agreement between a buyer and seller in a real estate sales transaction
To notify the public that an offer has been made on a specific property
To serve as an agreement between the seller and the licensee that the seller intends to sell the house
To verify that the seller has the legal right to sell the property
In which of these situations does Florida licensee Marie have to present her client with an energy efficiency brochure?
Her buyer client Millie says she only wants to look at “green” houses.
Her buyer clients, the Henries, are about to sign a sales contract on a house.
Her client Thom wants to have the state rate his condo as energy efficient before he sells it.
Her landlord client is having major renovations done to 20 of his rental units.
The EPA-approved pamphlet, “Protect Your Family From Lead in Your Home,” provides buyers and renters with ______.
A list of health centers that can treat the effects of lead toxicity
A list of homes that have been confirmed as containing lead-based paint
Information about identifying and controlling lead-based paint hazards
Information about the presence of lead in heating and cooling systems
Which one of the following statements about the Florida property tax disclosure is false?
It can be included in the sales contract itself.
It cautions buyers not to rely on the current year’s tax to predict what they’ll have to pay.
It gives buyers a rough estimate of the property tax they’ll pay in the coming year.
It must be provided to sellers when they sign their agency agreement.
Beverly is a new licensee. She’s at a listing appointment and notices some stains on the ceiling and cracks in the basement walls. What should she do related to these items?
She should ask her seller clients to make sure that they tell potential buyers about the problem.
She should ask the sellers about these issues and ensure that they are disclosed to buyers.
She should hire an inspector to look into the issues.
She should ignore these so that if there are problems with the property later on, she can claim she didn’t know about them.
Which one of the following options best describes a sales contract?
A legally binding, oral contract between a property’s potential buyer and a listing agent
A legally binding, oral contract between a property’s potential buyer and seller
A legally binding, written contract between a property’s potential buyer and a listing agent
A legally binding, written contract between a property’s potential buyer and seller
Nate is selling his house, which has a leaky roof. Which of the following must he provide to the buyer?
A copy of all correspondence between him and the house’s builder
Copies of any pleadings, notices, and other documents that the seller received
The contact information for the county’s building inspector
The name and phone numbers of at least three roof repair specialists
Sellers, landlords, and real estate agents are required to include a ______ in the contract or lease if the real estate was built prior to 1978.
Denial of responsibility for lead-based hazards
Lead abatement discount
Lead warning statement
Notice of local lead renovators
What does the Florida Building Energy-Efficiency Rating Act require Florida licensees to do?
Provide a quick inspection of seller clients’ major appliances to see if the house qualifies for an energy efficiency rating.
Provide buyer clients with information about energy-efficient appliance providers in their area.
Provide buyers with a written notice about the option of receiving an energy efficiency rating on the property they’re buying.
Remind their seller clients that it’s mandatory for them to receive a one-to-five energy rating on their home before selling it.
When a seller received the purchase offer for his bungalow, he was surprised to see a page added to the contract requesting that an attorney review the contract. What is the seller looking at?
Addendum
Amendment
Annotation
Appendix