Hey there, smarty pants! School is back in session and a great way to get in the spirit is by taking our little real estate pop quiz. It is designed to make you think, help you learn and celebrate what you already know. So, if a train is traveling north at 50 mph and a second train is headed south at 20 mph… just kidding.
Take your best shot and then go to our on-line adobe pdf answer sheet to view or print out the answers and explanations!
1. My agency relationships end….
A. When the deal closes
B. If the buyer or seller ‘fires’ me [although I’m sure this never happens] C. When the listing agreement or buyer agreement expires
D. Agency relationships don’t end.
E. A and C
F. A, B and C
2. I should check ‘Side Agreement’ on the MLS input form when
A. The seller pays a different / lower commission to me if I sell it in-house and there is no cooperating REALTOR®
B. Some buyers are excluded from my exclusive contract and offer of compensation
C. There are variable commission rates.
D. All of the above
3. If I have a listing with a side agreement and a buyer’s agent asks me about it, what do I have to say?
A. Say nothing, it could burn me.
B. Confirm that there is a side agreement, but do not disclose the details without the sellers permission
C. Disclose the differential that would result in a sale through an in-house buyer versus a cooperating broker
4. If I am a buyer’s agent, a side agreement is
A. Something that I should ask the listing agent about
B. Critical information needed to fulfill my fiduciary duties to the buyer
C. Not at all relevant to the buyer as it deals with commission
5. As a listing agent, I should ask cooperating brokers for a copy of their licensee-consumer (agency) disclosure form.
A. True
B. False
6. I see a great multi-family listing in the MLS and although I don’t want to contact the seller for the listing, I do want to offer my services as a property manager. That’s okay because I’m not soliciting the listing
A. True
B. False
7. I should check ‘yes’ for the field titled ‘INTERNET’ on the input form if the property listed can get internet access.
A. True
B. False
8. The Code of Ethics mandates that I have an obligation to not only ask a potential client if the property is subject to a current, exclusive agreement but also to ‘make reasonable efforts’ to make sure they are not, before entering into an agreement.
A. True
B. False
9. The Purchase and Sale Agreement’s standard language indicates that deposit money will be held in what type of escrow account.
A. Non-Interest Bearing
B. Interest Bearing Account with interest to be paid to the buyer
C. Interest Bearing Account with interest to be paid to the seller
10. Who can determine if an escrow account shall be an interest or non-interest bearing account?
A. The Seller
B. The Buyer
C. The Seller’s Agent
D. The Buyers Agent
E. The Buyer and Seller in mutual agreement
11. If I use an interest-bearing escrow account for a deposit, I must get a W-9 form filled out by the buyer
A. Only if the buyer wants the interest paid to them at closing
B. At any time before interest over $10 is paid to the buyer, so that withholdings can be determined and a 1099 can be generated at the year’s end
C. Before the deposit check is put into escrow
D. Only if the buyer allows the seller to keep the interest.
12. I need to deliver the following forms to the board office along with the 3 pages of the listing agreement when I take a new listing.
A. A fax coversheet indicating the documents sent and the number of pages
B. The Mandatory Licensee-Consumer Relationship (agency) Form
C. The dual/designated agency addendum
D. The sub-agency addendum, if signed by the seller
E. NONE OF THE ABOVE {pick me, pick me. Please!}
13. When I call a listing agent to make an appointment for a showing, I should
A. State my name and my firm’s name
B. Disclose the relationship I have with the prospective buyer (buyers agent, sub-agent, facilitator.)
C. My buyer’s name and the amount they are pre-qualified for.
D. That I accept the offer of compensation listed in the MLS
14. As a sales agent I can accept a trip to Fiji as a bonus, but I can’t accept commission or referrals without a brokers license.
A. True
B. False
15. The difference between a customer and a client is:
A. A client has a contract with me, a customer does not
B. A customer has not signed an agency disclosure form yet whereas a client already has
C. A client is someone I represent, and a customer is someone I work with but do not represent
D. Potato, Po-tah-to. There is no difference because I have to treat all parties honestly.
16. My seller client’s septic system has failed the Title 5 inspection and now the buyer is demanding that my seller fix the system. He says that state law requires that the seller upgrade the system before closing. My seller says she doesn’t have to upgrade the system and that she told the buyer (and me) that the house is being sold “as is”. She also stated that the buyer is free to pay for an engineer come out and design and install the system but that she will not pay for it. Who’s right?
A. The seller
B. The buyer
C. Let the Lawyers figure it out
17. How much do I pay the Board everyday for services?
A. $0.46 for Board Dues and $0.99 for MLS Services
B. $12.64 for Board and MLS services combined including tech support
C. As the commercial says, ‘Priceless’
18. Right after my seller made a counteroffer, I received another offer on the property by a 2nd buyer
A. I should present the offer only after the counter-offer is rejected by the first buyer
B. I should present the second offer immediately
C. I should call the first buyer and tell them the deal is off the table because another offer came in and they should submit their ‘best and final’.
19. Legally, I must provide to my clients loyalty, disclosure, confidentiality, accounting, reasonable care and skill, an advertising plan and information about how I am to get paid.
A. True
B. False
20. I can act in much the same way when working with a buyer client and a buyer customer, as long as I don’t give specific information about pricing to my customer and don’t divulge confidential information about my client.
A. True
B. False
21. My brokerage firm must keep copies of every single agency disclosure form I sign (or as now known, ‘Massachusetts Mandatory Licensee-Consumer Relationship Disclosure) for…
A. Seven Years
B. What? Hun? A form I sign? Not me, no paper trace is my motto.
C. Three years.
D. In a fireproof safe, in the basement, forever.
22. I just learned information about a seller that could affect the price they would be willing to accept for their home,
A. I must tell my buyer client
B. I must tell my buyer customer
C. I should tell my buyer client, but only if I think if it’s really credible
D. I should tell my buyer customer, but only after if I confirm it is accurate.
E. Like my mother said, if you don’t have something nice to say, don’t say anything at all.
23. If I write up an offer for a buyer client, I’m automatically entitled to compensation.
A. True
B. False
24. If I make a mistake in my electronic forms packet, then I must
A. Start over with a new form, darn it.
B. Manually make the change after I print it out
C. Make sure I tab out of the corrected field to update all of the forms
25. I can show property in New York as long as my broker is licensed, even if I am not.
A. True
B. False
26. I can tell a buyer that I will represent them on properties listed by other firms, but not on in-house listings so that I never have to become a dual agent.
A. True
B. False
27. Knowing that dual agency occurs when there is a conflict in duties promised to a buyer and a seller, the only ways to eliminate the potential for dual agency are..
A. If an office never represents buyers.
B. If an office never represents sellers.
C. If an office refers buyers interested in firm listing to another office
D. If a designated agent refers buyers interested in their own listings to another agent who was not designated to represent the seller.
E. All of the above
28. My listing expired and another office re-listed it. Now I have a buyer interested in the property, so I have to be a dual agent because I have confidential information about the property.
A. True
B. False
How did you do? Go to our pdf answer sheet to view or print out the answers and explanations!