Question

1.) Each of the following actions would be considered a "ministerial act," EXCEPT:

a.) calling the client to obtain some information necessary for a contract

b.) Making arrangments for a home inspector to access the property

c.) answering a question about the definition of a particular word in a contract

d.) setting the listing price

2.) When proposing a brokerage relationship with a prospective client, the licensee must advise the client of each of the following issues, EXCEPT:

a.) the type of brokerage relationship proposed

b.) the nature of the fiduciary relationship created

c.) the broker's compensation

d.) whether the compensation can be shared with other brokers

3.) If a brokerage agreement does not include a termination date, it will automatically terminate after:

a.) 90 days

b.) 6 months

c.) 9 months

d.) 12 months

4.) A brokerage agreement would be terminated upon each of the following circumstances, EXCEPT:

a.) The expiration date is reached

b.) default by either party to the agreement

c.) the presentation of an offer to the client

d.) the client's refusal to consent to a disclosed dual agency relationship

5.) Under what circumstances could a licensee reveal a client's confidential information?

a.) Under no circumstances

b.) when required by law or authorized by the client

c.) only when required by law

d.) only when authorized by the client

6.) In order to receive compensation form the seller, whether directly or indirectly, a licensee:

a.) must be an agent or representative of the seller

b.) need not be an agent or representative of the seller

c.) must have written agreement with the seller

d.) must be a standard agent

7.) A licensee who is acting as agent of the seller makes an intentional misrepresentation of a material fact to a buer.The seller was unaware of the misrepresentation. Who would be liable for any losses incurred by the buyer due to this misrepresentation:

a.) only the licensee

b.) only the seller

c.) both the seller and the licensee

d.) neither the seller nor the licensee

8.) Broker Betty has a listing on a home and is acting as agent of the seller. Broker Bob is acting as agent of the buyer. If broker Bob makes an intentional misrepresentation to the buyer, without Betty's knowledge, who would be liable for losses incurred by the buyer:

a.) Broker Betty only

b.) Broker Bob only

c.) Both Broker Bob and Broker Betty

d.) Broker Bob, Broker Betty and the seller

9.) Clients and licensees can be held responsible for:

a.) imputed knowledge only

b.) actual knowledge only

c.) both actual and imputed knowledge

d.) neither actual now imputed knowledge

10.) A seller is represented by one broker and a buyer is represented by another broker (with a different firm). If the buyer's agent is grossly negligent in the performance of his duties, who can be held liable for this negligence?

a.) only the buyer's agent

b.) only the seller's agent

c.) Both the buyer's agent and the seller's agent

d.) Neither the buyer's agent nor the seller's agent

Answer 1

Q1 : setting the listing price

The acts which does not involve application of any logic or judgement and are routine in nature which are performed by the licensee are ministerial acts. From the given option, setting up of listing price would involve application of a certain logic or judgement and hence would not be a ministerial act.

Q2 : the nature of the fiduciary relationship created

As there is no fiduciary relationship created, when proposing a brokerage relationship with a prospective client the same need not be disclosed. All the other things mentioned in other options need to be mandatorily disclosed.

Q3 : 90 days

The default date for the contract termination is 90 days if nothing about the termination date is specified in the brokerage agreement.

Q4 : the presentation of an offer to the client

Just because the offer is presented to the client it does not constitute the completion of transaction and therefore would not terminate the brokerage agreement.

Q5 : when required by law or authorized by the client

There are 2 scenarios which can lead to confidential information being disclosed. First is when it is legally required by the law and the second is when the client had authorized the release of the information.

Q6 : need not be an agent or representative of the seller

In order to be eligible to receive the compensation the agent need not a representative of the seller. There are instances when the agent receives the compensation from the seller without having any established relationship with the seller.

Q7 : only the licensee

Sellers are liable in such cases only when they are aware of the misrepresentation by the agent or they should have known about the misrepresentation. In the given case as the seller is not aware of the misrepresentation, only the licensee is liable.

Q8 : Broker Bob only

Brokers are liable in such cases only when they are aware of the misrepresentation by the other brokers or they should have known about the misrepresentation. In the given case as the Broker Betty is not aware of the misrepresentation, only the buyer's broker. Broker Bob is liable.

Q9 : actual knowledge only

Clients and licensees are held responsible only for the things of which they have actual knowledge. Imputed knowledge or inferred knowledge is something for which the clients and licensees are not held responsible

Q10 : only the buyer's agent

In such case only the party or broker who is responsible for gross negligence is held liable. In the given case as only the buyer's broker is grossly negligent in the performance of his duties, only this broker is to be held liable.