In a single agent relationship, a sales associate
working for a broker will
Detailed Answer
D. Sales associates will become subagents of brokers in a single agency situation and will owe all fiduciary
duties to the principal.
2
A broker acting on behalf of a seller as a single
agent receives two offers on a property. One offer
is all cash at less than the asking price. The other
offer is a for full asking price but involves the
buyer obtaining a VA loan. What should the broker
do with the offers?
Detailed Answer
D. The broker is required to present both offers to the seller as soon as possible.
3
Which of the following relationships does not
require agency disclosure when working with a
residential customer or client?
Detailed Answer
D. The no-brokerage relationship might be the only confusing choice, but it also requires disclosure.
4
Which of the following is true about a nobrokerage relationship?
Detailed Answer
A. A broker in a no-brokerage situation can work with either buyer or seller with no agency representation and
can be paid by either party.
5
Advance listing fees
Detailed Answer
B. This is statutory. The opposite is true of each of the other choices.
6
Exaggerating characteristics of the property that
can easily be verified is a good definition of
Detailed Answer
C. Puffing would become false or fraudulent advertising if the statement were untrue as opposed to merely
exaggerated.
7
The primary requirement for a person to run a sole
proprietorship real estate brokerage is
Detailed Answer
D. A board of directors is generally required for a corporation. Trade names are optional. Liability insurance is a
good idea but not required.
8
The unauthorized use of another person’s personal
property—such as client’s funds entrusted to the
broker—is called
Detailed Answer
B. The tricky answer choice here is commingling, which means mixing client’s funds and the broker’s own
business funds. Conversion occurs if the broker actually uses the client’s money for his own interests.
9
Who or what reviews the charges in the case of a
complaint about a law violation by a real estate
licensee to determine if there is sufficient cause to
proceed to a hearing?
Detailed Answer
D. This is statutory.
10
A formal hearing on a violation of law involving a
real estate licensee is
Detailed Answer
C. An informal hearing is held before the commission if the licensee agrees with the charges.
