NH Test Part 6 - Regulation of Agency Conduct - Practice Test A Already Graded A

NH Test Part 6 - Regulation of Agency Conduct - Practice Test A Already Graded A 1. In New Hampshire, real estate professional fees are: A. negotiable between the parties to the contract B. set by statutory law C. set by the New Hampshire Real Estate Commission D. determined by local groups of brokers by county ANSWER: negotiable between the parties to the contract 2. A listing broker has an exclusive right to represent a new subdivision. She shows properties in the subdivision to prospective buyers who are not working with other agents. She prepares offers for those who decide to buy. Which of the following statements best describes this situation? A. the buyers are represented by the listing broker in dual agency B. the buyers are not represented by a broker C. the broker owes these buyers the duties of obedience and confidentiality D. the broker owes half of his professional fee to the developer the buyers are not represented by a broker 3. Real estate licensees in New Hampshire may work as all of the following except: A. disclosed dual agent B. seller agent C. buyer agent D. principal agent Answer: principal agent 4. The buyer agent is responsible to do all of the following except: A. release confidential information after the close of the transaction to a third party B. present all offers to and from the buyer in a timely manner C. ministerial acts for the seller D. inform the buyer of laws and rules regarding seller property disclosures Answer: release confidential information after the close of the transaction to a third party 5. Several months after a closing, an associate broker received a thank you letter and a bonus check from the seller of the house. The associate broker felt he earned that money and cashed the check. In this situation, which of the following is correct? A. Accepting the money is allowed if more than 30 days have elapsed since the closing B. The associate broker may accept the money C. Accepting the money is a violation of commission regulations D. The associate broker may accept the bonus check because he is licensed as an associate broker Answer: Accepting the money is a violation of commission regulations 6. A licensee engaged by a principal broker, under authority of the seller to perform functions on behalf of the seller is a: A. Subagent B. Disclosed dual agent C. Undisclosed dual agent D. Facilitator Answer: Subagent - Subagency refers to a specific client representation relationship between a property listing broker or real estate agent and another real estate broker or agent who brings the buyer to purchase the property. 7. In New Hampshire, all written brokerage agency contracts shall include: A. The professional fee stated as a dollar amount or percentage B. The date the contract begins and expires C. The names and addresses of all parties D. All of the above Answer: All of the above (The professional fee stated as a dollar amount or percentage, The date the contract begins and expires, The names and addresses of all parties) 8. How long do you have to return the deposit to the buyer after all parties to the contract have signed the release? A. There is no time limit to holding escrow deposits B. The deposit can only be returned in this case with permission of the court C. The return of the deposit should have been on demand or no later than 30 days. Holding the escrow deposit longer than 30 days is evidence of conversion D. 10 calendar days Answer: The return of the deposit should have been on demand or no later than 30 days. Holding the escrow deposit longer than 30 days is evidence of conversion 9. The salesperson represents the seller in a transaction. When prospective buyers ask to look at the property, the salesperson must? A. Tell the buyers they must first enter into a buyer representation agreement with another licensee B. Show the buyers the property without making any disclosures about the salesperson's relationship to the seller C. Inform the buyers, either orally or in writing, that the salesperson represents the seller's interest D. Inform the buyers in writing that the salesperson represents the seller's interests Answer: Inform the buyers in writing that the salesperson represents the seller's interests 10. A New Hampshire real estate salesperson or associate broker may lawfully collect compensation from whom? A. either seller or buyer B. any licensed real estate broker C. the licensees sponsoring broker only D. any party to the transaction Answer: The licensees sponsoring broker only 11. The New Hampshire Real Estate Practice Act requires that the broker? A. Disclose all materials defects to the buyer even if the buyer does not ask for them B. Keep confidential all information provided by the seller C. Disclose all information provided by the seller to the buyer D. Keep confidential all information disclosed by the buyer Answer: Disclose all materials defects to the buyer even if the buyer does not ask for them 12. A listing agreement is an agreement between: A. seller and buyer B. seller and broker C. salesperson and broker D. seller and salesperson Answer: seller and broker 13. Three weeks before Jaxson begins his real estate pre-licensing class, he offers to help his neighbor sell her house. The neighbor agrees to pay Jaxson a 5% commission. An offer is accepted while Jaxson is taking the class, and closes the day before Jaxson passes the examination and receives his salesperson's license. The neighbor refuses to pay Jaxson the agreed commission. Can Jaxson sue to recover payment? A. yes, because Jaxson was formally enrolled in a course of study intended to result in a real estate license at the time an offer was procured and accepted, the commission agreement is binding B. no, in New Hampshire, a real estate salesperson must have a permanent office in which his or her license is displayed in order to collect a commission from the seller C. yes, while the statute of frauds forbids recovery on an oral agreement for the conveyance of real property, New Hampshire law permits enforcement of an oral commission contract under these facts D. no, state law prohibits a lawsuit to collect commission unless the injured party is a licensed broker and the license was in effect before the agreement was reach Answer: no, state law prohibits a lawsuit to collect commission unless the injured party is a licensed broker and the license was in effect before the agreement was reach 14. Which of the following provisions is not included in the New Hampshire Real Estate Commission's rules regarding listing agreements A. a listing agreement must state the exact fee the broker will earn B. a listing agreement must be accompanied by a qualified expert's report of the property's condition C. a listing agreement must be in writing and signed by both the broker and the seller D. the seller must receive an original copy of the listing agreement after signing it Answer: a listing agreement must be accompanied by a qualified expert's report of the property's condition 15. A selling agent is hired by A. a buyer customer B. a buyer client C. a seller customer D. a seller client Answer: buyer client 16. A real estate company has entered into agency agreements with both a seller and a buyer. The buyer is interested in making an offer on the seller's property. Can this occur? A. no, because the real estate company would then be a dual agent B. yes, as long as written agency agreements have been entered into with both parties C. yes, if the seller has agreed to pay the commission D. yes, if both the buyer and the seller give their written consent to dual agency Answer: yes, if both the buyer and the seller give their written consent to dual agency 17. A buyer contacts a real estate office and indicates an interest in purchasing a home in the area. Without entering into a buyer agency with the buyer, a salesperson from the real estate office can do all of the following except: A. provide the buyer with information on properties for sale in the area B. give the buyer information on mortgage interest rates and terms C. negotiate a purchase and sales agreement on behalf of the buyer D. explain to the buyer about buyer agency, seller agency and dual agency Answer: negotiate a purchase and sales agreement on behalf of the buyer 18. A buyer prospect is interested in seeing a house listed with the real estate company, but does not wish to enter into a buyer agency agreement. A salesperson from the real estate company can show the buyer an in-house listing if the: A. salesperson obtains the seller's permission B. buyer verbally agrees to buyer agency C. salesperson provides the buyer with an Brokerage Agency Relationships disclosure stating that the real estate company represents the seller D. salesperson provides the buyer with a dual agency consent form Answer: salesperson provides the buyer with an Brokerage Agency Relationships disclosure stating that the real estate company represents the seller 19. In a dual agency situation, a broker may collect a commission from both the seller and the buyer if: A. the broker holds a state license B. the buyer and the seller are related by blood or marriage C. both parties give their informed consent to the dual compensation D. both parties are represented by attorneys Answer: both parties give their informed consent to the dual compensation 20. What types of agency are recognized in New Hampshire? A. seller's, buyer's, undisclosed dual, transaction B. subagency, disclosed, dual, seller's C. seller's, buyer's, disclosed dual, subagency D. seller's, buyer's, full fiduciary, facilitator Answer: seller's, buyer's, disclosed dual, subagency 21. A seller told a broker that she wanted to clear $50,000 when whe sold her house. The broker accepted the listing and sold it for $160,000. He gave $50,000 to the seller and kept the rest. Which of the following is correct? A.the broker should have given the seller a better appraisal of the value of her house B. the broker's commission exceeds statutory and NAR guidelines C. the broker accepted an illegal net listing D. as the seller's agent, the broker has a duty to sell the house for as much as possible Answer: the broker accepted an illegal net listing 22. A broker signs a listing agreement with a seller. The agreement contains the following clause;"If the property has not been sold after three months from the date of this signing, this agreement will automatically continue for additional three month periods thereafter until the property is sold." Based on these facts, the agreement: A. is legal under New Hampshire law because it contains a references to a specific time limit B. is illegal in New Hampshire C. automatically receives a statutory six month listing period to this open listing in New Hampshifre D. is legal under New Hampshire law because the list periods are for less than six months each Is Illegal In New Hampshire 23. Under New Hampshire law, all listing agreements must: A. be in writing B. be for at least six months C. include a property inspection D. include a clause providing for the disposition of escrow funds in the event of a buyer's default on a purchase and sales agreement Answer: In Writing 24. Regarding listing agreements in New Hampshire, which of the following could result in the suspension or revocation of a licensee's license to practice real estate? A. a specified commission rate B. no specific termination date C. no broker protection clause D. a specific termination date Answer: no specific termination date 25. In a real estate transaction, the broker's commission: A. must be paid with cash or a cashier's check upon closing B. must be stated in the listing agreement and is negotiated between the broker and the client C. is determined according to the standard rates set by local real estate brokers D. will be determined through arbitration by the New Hampshire Real Estate Commission if there is any dispute Answer: must be stated in the listing agreement and is negotiated between the broker and the client