Modern Real Estate Practice in Pennsylvania 12th Edition

Chapter 15 Quiz Real Estate Brokerage

1. For a salesperson to be viewed as an independent contractor, federal law requires

a. attendance at office meetings. b. a written employment contract with the broker that clearly states the terms of the

employment. c. salesperson’s income be based on hours worked. d. all of these

2. The amount of commission due to a salesperson is determined by

a. state law. b. the local real estate board. c. mutual agreement. d. court decree.

3. A real estate broker was responsible for a chain of events that resulted in the sale of a

client’s properties. This is referred to as a a. pro forma. b. procuring cause. c. private offering. d. proffered offer.

4. In Pennsylvania, salespeople may advertise a property for sale only if they

a. personally listed the property. b. use the employing broker’s name in the advertisement. c. personally pay for the advertisement. d. are members of the local real estate board.

5. A parcel of vacant land 80 feet wide and 200 feet deep was sold for $200 per front foot.

How much money would a salesperson receive for her 60 percent share in the 10 percent commission? a. $640 b. $960 c. $1,600 d. $2,400

6. A real estate salesperson who is an independent contractor receives

a. a monthly salary or hourly wage. b. company-provided health insurance. c. a company-provided automobile. d. negotiated commissions on transactions.

©2012 Kaplan, Inc.

Modern Real Estate Practice in Pennsylvania 12th Edition

7. Upon discovering a latent defect in the property, the licensee should discuss the problem with the seller and then a. notify the seller that the defect must be repaired. b. arrange for the repairs. c. inform any prospective buyers of the defect. d. contact the city building inspector about the defect.

8. To be entitled to collect a real estate commission, brokers must be able to prove all of the

following EXCEPT a. that they have a valid real estate broker’s license. b. that they were the procuring cause. c. that they are employed to perform certain activities. d. that they belong to a real estate board.

9. A broker lists a property for sale at $100,000 with a 5 percent commission, and he later

obtains a verbal offer to purchase the property from a prospective buyer. The seller indicates to the broker that the offer would be acceptable if it were submitted in writing. Before it can be put in writing, the buyer backs out and revokes the verbal offer. In this situation, the broker is entitled to a. a commission of $5,000. b. only a partial commission. c. no commission. d. the normal rate of commission.

10. A salesperson finally concluded difficult negotiations that resulted in the sale of a listed

parcel of property. For all of her extra efforts, the salesperson can legally demand a performance bonus from a. the seller. b. the buyer. c. her broker. d. no one.

11. Antitrust laws prohibit all of the following EXCEPT

a. property management companies standardizing management fees. b. brokers allocating markets based on the value of homes. c. real estate companies agreeing not to cooperate with a broker because of the fees

that broker charges. d. a broker deciding whether to join a multiple listing service (MLS).

©2012 Kaplan, Inc.

Modern Real Estate Practice in Pennsylvania 12th Edition

©2012 Kaplan, Inc.

12. There is a spectacular house that a salesperson from firm A has been trying for several weeks to list for sale. The owners have been interviewing salespeople from different firms. They tell A’s salesperson that firm B will charge 2 percent less commission for selling the house. What should A’s salesperson say to the owner to get the listing? a. Salespeople will not show B’s listings because of their commission fees. b. Most brokers in the area charge a standard rate of commission, including A. c. B cannot provide good services because they charge less. d. A provides excellent services to market their sellers’ properties.

13. A buyer who is shown properties listed for rent by a broker is the broker’s

a. client. b. principal. c. customer. d. fiduciary.

14. A licensed salesperson may receive compensation or commission from

a. only the employing broker. b. the principal. c. any broker. d. a landlord.

15. The broker informs the affiliate licensees that from now on, the minimum commission

they may charge a seller is 7 percent. In this situation, the broker is a. legally permitted to do this. b. guilty of price-fixing. c. exposing all of the affiliated licensees to antitrust allegations. d. unwisely defeating competition in the marketplace.