Gold Coast Real Estate Homework Chapter. 4 Exam Questions And Answers Verified 100% Correct

Gold Coast Real Estate Homework Chapter. 4 Exam Questions And Answers Verified 100% Correct Which of the following statements best describes policy and procedure manuals? (a) Policy and procedure manuals are maintained by all real estate offices. (b) Policy and procedure manuals are required by law. (c) Policy and procedure manuals are a major cause of arguments. (d) Policy and procedure manuals are useful in maintaining good relations within a brokerage office. - ANSWER (d) Policy and procedure manuals are useful in maintaining good relations within a brokerage office. (a) This is an illegal dual agency. (b) The sales associates are referred to as designated sales associates. (c) Buyer and seller must have combined assets of $1 million. (d) The FREC will revoke the licenses of the broker and both sales associates. - ANSWER (b) The sales associates are referred to as designated sales associates. Each of the following relationships is adversarial, EXCEPT: (a) Arm's length (b) Buyer beware (c) Caveat emptor (d) Fiduciary - ANSWER (d) Fiduciary Fairness and honesty are required of all licensees in which brokerage relationship? (a) Single agency only (b) Transaction brokerage only (c) Nonrepresentation only (d) Any real estate transaction - ANSWER (d) Any real estate transaction According to the Brokerage Relationship Disclosure Act, which is the only brokerage relationship form that must be signed or initialed? (a) Single Agency Disclosure A broker has appointed two sales associates to act as agents in a nonresidential transaction, one for the seller and one for the buyer. Which statement is correct? (b) Transaction Broker Disclosure (c) Consent to Transition to Transaction Broker (d) Important Information Disclosure - ANSWER (c) Consent to Transition to Transaction Broker Which of the following statements is correct regarding a broker's authority to act on behalf of the principal? (a) A broker can refuse offers on behalf of the principal. (b) A broker can buy the listed property without consent of the principal. (c) A broker must follow all legal instructions of the principal or withdraw. (d) A broker must ignore the instructions of a principal when the instructions are not in the best interests of the principal. - ANSWER (c) A broker must follow all legal instructions of the principal or withdraw. In many brokerage relationship situations, the broker gives permission for the sales associate to work directly with a principal. Which of the following is true in this situation? (a) The broker gives up the fiduciary relationship with the principal. (b) The broker has a fiduciary relationship with the sales associate, but not with the principal. (c) The sales associate is no longer under the supervision or direction of the broker. (d) The sales associate has a fiduciary relationship with both the broker and the principal. - ANSWER (d) The sales associate has a fiduciary relationship with both the broker and the principal. In regards to agency relationships, which statement is most correct? (a) A special agent is only authorized to perform a single act on behalf of the principal. (b) A dual agency is the preferred relationship in Florida. (c) A sales associate is a general agent of the broker's principals. (d) A fiduciary relationship cannot be created without the payment of compensation. - ANSWER (a) A special agent is only authorized to perform a single act on behalf of the principal. Sal, a properly licensed Arizona broker, forms a relationship with Betty, a properly licensed Florida broker. Sal agrees to refer potential buyers to Betty, and in return, Betty agrees to pay Sal 25% of her commission as a referral fee. Jorge, a competitor of Betty's, discovers the relationship and files a complaint with DBPR. What will an investigation of the complaint most likely determine? (a) The Florida real estate license law was not violated. (b) Broker Betty violated F.S. 475 by paying the commission to Sal. (c) Since Sal accepted the commission, both brokers violated F.S. 475. (d) Sal violated Florida's real estate license law by asking Betty to pay a referral fee. - ANSWER (a) The Florida real estate license law was not violated. Which of the following best describes the practice of dual agency in Florida? (a) Dual agency is legal, provided it is disclosed to both parties. (b) Dual agency is another name for Transaction Brokerage. (c) Dual agency is a violation of Florida Statute 475. (d) Florida law creates a presumption of dual agency unless another relationship is formed. - ANSWER (c) Dual agency is a violation of Florida Statute 475. A prospective purchaser made a written offer to purchase a home listed by broker Ben. Before Ben presented the offer to the seller, a second prospective purchaser made a verbal offer of $180,000, but did not put the offer in writing, and did not provide any earnest money. Which statement correctly describes Ben's situation? (a) Ben is not required to submit the oral offer. (b) Ben must only present the written offer since the law requires him to present offers in the order they are received. (c) Ben should not present the oral offer because oral offers not accompanied by an earnest money deposit are worthless. (d) Ben is required to present both offers to the seller. - ANSWER (d) Ben is required to present both offers to the seller. A real estate licensee who is working with a seller receives a call from another broker stating that, "I am representing a buyer as the buyer's broker. I'm standing in front of one of your listed properties with my buyer." What can the licensee infer from this conversation?