FINC 371 LATEST EXAMS SCRIPT QUESTIONS
AND ANSWERS SURE A+
✔✔In the typical agency relationship between sellers and brokers, brokers are the
________ of sellers, and must protect their clients' best interest at all times. -
✔✔fiduciary
✔✔Under what conditions does one agent normally receive all of the commission in a
transaction?
a. When the same person is both listing agent and selling agent
b. Never
c. With permission of the seller
d. With permission of the buyer - ✔✔A
✔✔A local brokerage firm that pays a fee and a percentage of gross receipts in order to
be affiliated with a national brokerage firm is called a - ✔✔franchise
✔✔A sales contract specifies a 6 percent commission. 40 percent of this commission
goes to the listing agent, 20 percent goes to the selling agent and 40 percent goes to
the brokerage firm. How much commission will the listing agent receive on a $65,000
sale? - ✔✔$1,560
✔✔The commission paid in the real estate brokerage industry is usually
,A. included as discount points paid at the closing.
B. a fixed dollar amount per transaction.
C. percentage of the gross sales price.
D. a percentage of the mortgage. - ✔✔C
✔✔Which of the following notions best explains the continued existence of the real
estate brokerage industry?
a. Common public knowledge of markets and law
b. Need for standardization of commissions
c. Frequency and ease of sales of individual properties
d. Complexity, size, and long-term nature of transactions - ✔✔D
✔✔When the parties agree to terms on a specific property, a contract spelling out the
agreement is drawn up and signed by
A. the broker and the buyer.
B. the sales associate and the seller.
C. the buyer and the seller.
D. the broker and the seller. - ✔✔C
✔✔A multiple listing is most often used in conjunction with a(n)
A. exclusive right-to-sell listing.
B. exclusive agency listing.
C. by-owner listing.
D. open listing. - ✔✔A
✔✔an agent does NOT owe the duty of
A. following directions of the principal.
B. informing the client of all known facts and rumors regarding the property.
C. loyalty to the principal's best interests.
D. loyalty to the customer's best interests. - ✔✔D
✔✔The most common type of listing agreement used today is the
A. exclusive-agency listing.
B. net listing.
C. exclusive right-to-sell listing.
D. open listing. - ✔✔C
✔✔If you were the listing broker, which of the various listings would you most prefer?
, a. Open listing
b. Exclusive right-to-sell listing
c. Exclusive-agency listing
d. Multiple listing - ✔✔B
✔✔Which of the following terms refers to the illegal practice of showing minority buyers
only those properties that are located in areas dominated by minorities?
a. Qualifying
b. Steering
c. Blockbusting
d. Redlining - ✔✔B
✔✔The commission on a buyer broker agreement may be either a percentage of the
transaction amount or
A. an amount set by state law.
B. paid by the seller.
C. a fixed fee.
D. paid by the broker. - ✔✔C
✔✔Which of the following statements is not true about brokers?
a. Brokers take ownership of the item being transferred (at least for a brief moment in
time).
b. Brokers often receive compensation in the form of a commission.
c. Brokers serve as an intermediary in a transaction
d. Brokers may represent prospective buyers or sellers of real estate. - ✔✔A
✔✔Carl is a real estate broker who has agreed to act as an agent for Sandra and help
her sell her home. They sign an exclusive agency listing agreement that gives Carl 90
days to search for a buyer. After 75 days, no buyer has signed a contract to purchase
the property and Sandra asks Carl to cancel the listing agreement. Reluctantly, Carl
agrees and they go their separate ways. Two days later, Carl learns that Sandra has
just signed a contract with a buyer who viewed the home with Carl while the listing
agreement was active. Is Carl entitled to compensation if he pursued this matter through
the legal system?
a. Only if he is a licensed real estate sales associate.
b. Only if Sandra is herself a real estate broker.
c. Most likely, yes.
d. Most likely, no. - ✔✔C
AND ANSWERS SURE A+
✔✔In the typical agency relationship between sellers and brokers, brokers are the
________ of sellers, and must protect their clients' best interest at all times. -
✔✔fiduciary
✔✔Under what conditions does one agent normally receive all of the commission in a
transaction?
a. When the same person is both listing agent and selling agent
b. Never
c. With permission of the seller
d. With permission of the buyer - ✔✔A
✔✔A local brokerage firm that pays a fee and a percentage of gross receipts in order to
be affiliated with a national brokerage firm is called a - ✔✔franchise
✔✔A sales contract specifies a 6 percent commission. 40 percent of this commission
goes to the listing agent, 20 percent goes to the selling agent and 40 percent goes to
the brokerage firm. How much commission will the listing agent receive on a $65,000
sale? - ✔✔$1,560
✔✔The commission paid in the real estate brokerage industry is usually
,A. included as discount points paid at the closing.
B. a fixed dollar amount per transaction.
C. percentage of the gross sales price.
D. a percentage of the mortgage. - ✔✔C
✔✔Which of the following notions best explains the continued existence of the real
estate brokerage industry?
a. Common public knowledge of markets and law
b. Need for standardization of commissions
c. Frequency and ease of sales of individual properties
d. Complexity, size, and long-term nature of transactions - ✔✔D
✔✔When the parties agree to terms on a specific property, a contract spelling out the
agreement is drawn up and signed by
A. the broker and the buyer.
B. the sales associate and the seller.
C. the buyer and the seller.
D. the broker and the seller. - ✔✔C
✔✔A multiple listing is most often used in conjunction with a(n)
A. exclusive right-to-sell listing.
B. exclusive agency listing.
C. by-owner listing.
D. open listing. - ✔✔A
✔✔an agent does NOT owe the duty of
A. following directions of the principal.
B. informing the client of all known facts and rumors regarding the property.
C. loyalty to the principal's best interests.
D. loyalty to the customer's best interests. - ✔✔D
✔✔The most common type of listing agreement used today is the
A. exclusive-agency listing.
B. net listing.
C. exclusive right-to-sell listing.
D. open listing. - ✔✔C
✔✔If you were the listing broker, which of the various listings would you most prefer?
, a. Open listing
b. Exclusive right-to-sell listing
c. Exclusive-agency listing
d. Multiple listing - ✔✔B
✔✔Which of the following terms refers to the illegal practice of showing minority buyers
only those properties that are located in areas dominated by minorities?
a. Qualifying
b. Steering
c. Blockbusting
d. Redlining - ✔✔B
✔✔The commission on a buyer broker agreement may be either a percentage of the
transaction amount or
A. an amount set by state law.
B. paid by the seller.
C. a fixed fee.
D. paid by the broker. - ✔✔C
✔✔Which of the following statements is not true about brokers?
a. Brokers take ownership of the item being transferred (at least for a brief moment in
time).
b. Brokers often receive compensation in the form of a commission.
c. Brokers serve as an intermediary in a transaction
d. Brokers may represent prospective buyers or sellers of real estate. - ✔✔A
✔✔Carl is a real estate broker who has agreed to act as an agent for Sandra and help
her sell her home. They sign an exclusive agency listing agreement that gives Carl 90
days to search for a buyer. After 75 days, no buyer has signed a contract to purchase
the property and Sandra asks Carl to cancel the listing agreement. Reluctantly, Carl
agrees and they go their separate ways. Two days later, Carl learns that Sandra has
just signed a contract with a buyer who viewed the home with Carl while the listing
agreement was active. Is Carl entitled to compensation if he pursued this matter through
the legal system?
a. Only if he is a licensed real estate sales associate.
b. Only if Sandra is herself a real estate broker.
c. Most likely, yes.
d. Most likely, no. - ✔✔C
