Q&A Hero

Q: Suppose you own a house that you are renting out to a group of college students for the 10 month academic year. You are charging $1000 per month in rent. You will collect the first rent payment today and then on the 1st of the month each month thereafter. What is the value of this investment opportunity to you today if you could reinvest your income at an annualized rate of 6%? A. $9,677.77 B. $9,730.41 C. $9,779.06 D. $11,677.03

Q: A property owner has set up a contract in which he agrees to sell a warehouse 5 years from now to the tenant who currently leases the space. The tenant has agreed to continue to pay $20,000 in rent at the end of each year, including year five, at which time he will purchase the building for an additional $1,500,000. Assuming the required rate of return on a similar investment is 10% (annual), how much is this deal presently worth to the original owner of the property? A. $1,007,197.20 B. $1,014,779.29 C. $2,281,452.80 D. $2,293,663.00

Q: Suppose your personal financial goal is to retire with a million dollars in your savings account. How much must you deposit monthly in an account paying 5% a year (with interest being compounded monthly and your deposits occurring at the end of the month), to accumulate $1,000,000 by your 65th birthday if you begin your deposits on your 22nd birthday? (Note: Assume that you started with no savings in the account prior to your first deposit at age 22 and you do not make a deposit on your 65th birthday) A. $552.13 B. $701.90 C. $21,282.95 D. $186,354.63

Q: Suppose you are starting a Ph.D. program with only $1,000 in your savings account. The university has agreed to waive your tuition, cover all of your living expenses, and pay you an additional stipend of $2,000 at the beginning of each month, as long as you teach one course per semester over the course of five years. If your savings account is able to earn 5.5% per year for the five years that you will be in this program, how much will you have accumulated in your savings account by the end of the program if interest is compounded on a monthly basis? A. $136,445.94 B. $137,708.75 C. $139, 077.35 D. $139,708.76

Q: Upon starting his first job after graduation, Jon has completed the necessary paperwork to set up direct deposit of his paycheck into his savings account. After taxes, medical benefits, and retirement account contributions have been taken out of Johns gross salary, he is left with a direct deposit of $4000 at the end of each month. If John started with no other savings in his account, how much will John have in his savings account at the end of 12 months if he is able to earn an annual interest rate of 3%, with interest being compounded monthly? A. $48, 665.53 B. $48,787.19 C. $56,768.12 D. $58,471.16

Q: Suppose that an industrial building can be purchased today for $2,500,000. If it is expected to produce cash flows of $180,000 for each of the next five years (assume CFs are received at the end of each year) and can be sold at the end of the fifth year for $2,800,000, what is the internal rate of return (IRR) on this investment? A. 0.09% B. 4.57% C. 9.20% D. 10.37%

Q: Suppose that a property can generate cash flows of $10,000 per year for eight years and can sell for $80,000 at the end of the investment period. Assuming a discount rate of 10%, what is the present value of this property (Assume end of period cash flows in your calculation)? A. $117,320 B. $160,000 C. $133,349 D. $90,670

Q: Suppose you have found a tenant who wishes to rent out your vacation home for the next twelve months. You are charging $800 per month in rent. You will collect the first rent payment today and then on the 1st of the month each month thereafter. What is the value of this investment opportunity to you today if you could reinvest your income at an annual rate of 3% with interest compounded on a monthly basis? A. $7,963.20 B. $8,202.10 C. $9,445.80 D. $9,469.42

Q: Suppose a bank decides to make a mortgage loan to an individual so that they may purchase a home. The homeowner will pay the bank $1500 per month in mortgage payments for the next 30 years. The bank will collect the mortgage payments at the end of the month. What is this promised stream of cash flows worth to the bank today if they could reinvest the monthly income at an annualized rate of 5% for the entire investment horizon? A. $23,058.68 B. $99,658.27 C. $279,422.43 D. $1,248,387.95

Q: An investor just purchased an office building for $100,000. He knows for certain that he can sell the building for $110,000 in 5 years. Approximately how much does he need to charge in annual rent in order to achieve a 15% annual return on the deal (rounded to the nearest hundred dollars)? A. $2,500 B. $8,000 C. $13,500 D. $20,500

Q: An investor originally paid $22,000 for a vacant lot 12 years ago. If the investor is able to sell the lot today for $62,000, what would his annual rate of return be on this investment (rounded to the nearest percent)? A. 5% B. 7% C. 9% D. 11%

Q: Assume that a piece of land is currently valued at $50,000. If this piece of land is expected to appreciate at an annual rate of 5% per year for the next 20 years, how much will the land be worth 20 years from now? A. $100,898.99 B. $112,633.09 C. $123,860.81 D. $132,664.89

Q: Assume that an industrial building can be purchased for $1,500,000 today, is expected to yield cash flows of $80,000 for each of the next five years (with the cash flows occurring at the end of each year), and can be sold at the end of the fifth year for $1,625,000. Calculate the internal rate of return (IRR) for this transaction. A. 3.14% B. 6.78% C. 9.20% D. 10.37%

Q: Suppose an investor is interested in purchasing the following income producing property at a current market price of $450,000. The prospective buyer has estimated the expected cash flows over the next four years to be as follows: Year 1 = $40,000, Year 2 = $45,000, Year 3 = $50,000, Year 4 = $55,000. Assuming that the required rate of return is 12% and the estimated proceeds from selling the property at the end of year four is $500,000, what is the NPV of the project? A. $8,829.96 B. $9,889.56 C. $428,113.65 D. $459,889.56

Q: The purchase price of an income producing property today is $570,000. After analysis of the expected future cash flows, expected sales price, and expected yield, the investor determines that the future cash flows have a present value (PV) of $580,000. Taking into consideration the price of the property today, what is the net present value (NPV) of this investment opportunity, and should the investor take the deal? A. $10,000; Yes B. $10,000; No C. -$10,000; Yes D. -$10,000; No

Q: Assume that an individual puts $10,000 into a savings account that pays 3% interest, with interest being compounded monthly. The individual plans to withdraw the balance in 5 years to buy a car. If he does not make any further deposits over this period, how much will the individual be able to put towards his purchase? A. $10,125.63 B. $11,592.74 C. $11,616.17 D. $58,916.03

Q: Assuming that an investor requires a 10% annual yield over the next 12 years, how much would she be willing to pay for the right to receive $20,000 at the end of year 12? A. $6,053.91 B. $6,372.62 C. $62,768.57 D. $136,273.84

Q: An investor agreed to sell a warehouse 5 years from now to the tenant who currently rents the space. The tenant will continue to pay $20,000 rent at the end of each year including year five in which he will purchase the building for an additional $150,000. Assuming the investor's required rate of return is 10%, how much is this deal presently worth to the investor who was willing to sell? A. $168,953.93 B. $241, 451.07 C. $363,678.50 D. $1,032,475.67

Q: Suppose that a landlord is interested in renting out a two-bedroom apartment for $1000 a month for the next year. The landlord requires rent to be paid at the beginning of the month, at which point he will deposit the rental check into a local savings account. If the annual interest that the tenant can earn on this account is 5% and interest is compounded monthly, how much will the tenant have in his savings account at the end of the year? A. $12,278.86 B. $12,330.01 C. $13,330.02 D. $15,917.13

Q: Suppose an investor deposits $2500 in an interest-bearing account at her local bank. The account pays 2.5% interest compounded annually. If the investor plans on withdrawing the original principal plus accumulated interest at the end of 7 years, what is the total amount that she should expect to receive assuming interest rates do not change? A. $2,971.71 B. $2,974.89 C. $3,532.43 D. $11,920.93

Q: Which of the following terms refers to a fixed amount of money paid or received at the beginning of every recurring period (i.e. a series of equal lump sums)? A. Future value B. Present value C. Ordinary annuity D. Annuity due

Q: You have just had a tenant sign a lease contract that guarantees you payments of $100,000 at the end of each year for the next five years. If you wish to determine the present value of these future cash flows (i.e. the value of this cash flow stream to you today), you would use which of the following time value of money processes? A. Compounding B. Discounting C. Amortizing D. Aggregating

Q: Uncertainty of cash flows can vary significantly across property types. Which of the following property types is often considered to have the most uncertain expected cash flows? A. Multifamily B. Industrial C. Office D. Hospitality

Q: The Real Estate Research Corporation (RERC) regularly surveys a sample of institutional investors and managers in order to gain insight into the required returns and risk adjustments used by industry professionals when making real estate acquisitions. Most of the properties that RERC examines are large, relatively new, located in major metropolitan areas and fully or substantially leased. These classifications of properties are commonly referred to as: A. investment grade properties B. speculative grade properties C. net-lease properties D. industrial properties

Q: The rate that is used to discount expected future cash flows can be thought of as the return the investor is forgoing on an alternative investment of equal risk. In this framework, the discount rate is being thought of as which of the following? A. Net present value B. Opportunity cost C. Closing cost D. Future value

Q: The internal rate of return (IRR) and the net present value (NPV) are tools that are widely used in real estate investment and finance decision making. An investor would most likely pursue an investment if which of the following circumstances was true? A. The going-in IRR exceeds the investors required rate of return B. The going-in IRR is less than the investors required rate of return C. The going-in IRR exceeds the NPV D. The going-in IRR is less than the NPV

Q: Assuming all else the same, the ___________ of an annuity due will be _____________ that of an ordinary annuity. A. future value; greater than B. present value; equal to C. future value; less than D. present value; less than

Q: With compound interest, the investor earns interest on the principal amount invested plus interest on accumulated interest. Which of the following compounding frequencies would yield the investor the greatest ending balance assuming all else is equal? A. Daily B. Monthly C. Quarterly D. Annually

Q: When discussing time-value-of-money it is necessary to understand some key terminology. Which of the following terms refers to a fixed amount of money paid or received at the end of every recurring period (i.e. a series of equal lump sums)? A. Future value B. Present value C. Ordinary annuity D. Annuity due

Q: Since investors prefer to have money now rather than later, money received next week, instead of today, is not worth as much to those receiving it, assuming the magnitude of the cash flow in each period is the same. Therefore an adjustment to the prospective cash flows is required. This process is referred to as: A. compounding B. discounting C. amortizing D. hedging

Q: Risk is the possibility that actual outcomes will vary from what was expected when the asset was purchased. If investors require a higher rate of return for undertaking more risk, the underlying assumption is that investors are: A. risk neutral B. risk averse C. risk taking D. hedging risk

Q: Suppose that you just sold a property that has annual property taxes of $2,427.22. If the closing occurred on March 13th, calculate your share (Sellers share) of the total property taxes. For this problem, assume that we are dealing with a 365 day calendar year. A. $482.26 B. $1990.17 C. $1,996.96 D. $2,479.22

Q: Suppose that you decide to purchase a property that has annual property taxes of $2,427.22. If the closing occurred on March 13th, calculate your share (Buyers share) of the total property taxes. For this problem, assume that we are dealing with a 365 day calendar year. A. $482.26 B. $1990.17 C. $1,996.96 D. $2,479.22

Q: Since hazard insurance premiums are paid up-front, the buyer will have to reimburse (credit) the seller a portion of the premium at the closing. Suppose that the insurance policys coverage began on December 15th of the prior year and the property transaction is set to close on March 16th of a 365-day year. The premium paid originally by the seller was $250. If the coverage will expire as of the end of day December 14th in the current year, what is the dollar amount that the buyer must credit the seller? A. $0.00 B. $62.33 C. $187.67 D. $250.00

Q: If a property transaction is scheduled to close on May 14th, calculate the individual tax responsibility for the buyer if the total tax owed at the end of the year is $5,000. For this problem, assume that we are dealing with a 365 day calendar year. A. $0.00 B. $1,821.92 C. $3,178.08 D. $5,000.00

Q: Since property taxes are paid in arrears, the buyer will be responsible for paying them after closing. Suppose that the closing date on the home for sale is February 28th of a leap year (e.g., 2012, 2016, etc.). How many calendar days would the seller be responsible for when calculating his/her share of the property tax owed for the year in which the home was sold? A. 58 days B. 59 days C. 307 days D. 308 days

Q: Certain closing costs will be prorated to account for the period of time during which the seller occupied the house. If a transaction is scheduled to close on May 17 (136 days into a 365-day year), calculate the amount that the buyer will be credited if the particular closing cost in question is estimated to be $1,000 for the entire year. A. $182.19 B. $372.60 C. $624.66 D. $1000

Q: While many closings are conducted as a live event in which both buyer and seller parties are present, a number of states have moved towards the practice of escrow closings as the primary mode of real estate transaction. Based on your understanding of an escrow closing, all of the following parties are able to be an escrow agent EXCEPT: A. Bank B. Attorney C. Broker D. Grantor / Grantee

Q: Which of the following contract elements is an additional requirement that must be satisfied in a contract for sale of real estate that isnt necessarily a part of other contracts? A. Competent parties B. Consideration C. Legal objective D. Proper description of the property

Q: When the seller in a contract for sale fails to perform (e.g. breach of contract, nonperformance, or default), the buyer has a variety of remedies. One such remedy is to appeal to the court to force the defaulting seller to carry out the contract. This remedy is most commonly referred to as suing for: A. Damages. B. Earnest. C. Recission. D. Specific performance.

Q: When a borrower (the buyer) applies for a loan, the lender will provide him/her with which of the following forms that includes details pertaining to specific loan information and an estimate of expenses that the borrower is likely to incur at the closing? A. Kickback agreeement B. Loan estimate C. Your Home Loan Toolkit booklet D. Certificate of occupancy

Q: At the closing, the buyer will be credited for a number of costs that have been paid up-front (or will be paid after closing) as well as a number of prorated expenses that account for the period of time during which the seller occupied the house. All of the following items detailed in the closing costs involve credits that are commonly passed on to the buyer EXCEPT: A. Earnest money B. Hazard insurance premiums C. Property taxes D. Mortgage interest

Q: The laws of some states require that real estate brokers provide buyers and sellers with a list of estimated closing costs before signing a contract for sale. At the closing, it is typically which of the following partys responsibilities to pay the full premium for an owners title insurance policy? A. Buyer B. Seller C. Lender D. Broker

Q: Recording documents in the public records informs anyone who may have a potential interest in a property of both the owner and lender. In so doing, it provides what is commonly referred to as ____________ of an interest in real property. A. mutual assent B. constructive notice C. consideration D. simultaneous issue

Q: If property owners fail to pay their taxes in a timely fashion, this can create a first lien on the mortgaged property. In order to protect against this, lenders often require that borrowers add what fraction of their estimated tax bill to their required monthly mortgage payments? A. 1/12 B. 1/6 C. 1/4 D. 1/2

Q: Since the seller often has utilized the property for a portion of the year in which the transaction is being made, certain costs associated with the property will be prorated at the closing. All of the following items are subject to being prorated EXCEPT: A. Broker commission B. Prepaid rent C. Property tax D. Mortgage interest

Q: When a buyer signs an offer to purchase a property, the broker receives a monetary amount from the purchaser of 5 or 10 percent of the purchase price. This deposit is commonly referred to as the: A. commission B. earnest money C. closing cost D. title insurance premium

Q: In accordance with RESPA, whenever a buyer obtains a new first mortgage loan from a chartered or insured lender, when the loan is insured by the FHA or guaranteed by the VA, or when the loan will be sold to one of the federally related secondary mortgage market agencies, an estimate of loan costs must be provided by the lender within: A. 3 business days B. 5 business days C. 30 calendar days D. 90 calendar days

Q: While fee splitting between cooperating real estate brokers is permitted, RESPA explicitly prohibits such actions as rebating part of the title insurance premium to the lender who recommended or required the title insurance. These unearned fees are commonly referred to as: A. commissions B. kickbacks C. damages D. specific performance dues

Q: Placed under the umbrella of the Consumer Financial Protection Bureau as part of the Dodd-Frank Act of 2010, the Real Estate Settlement Procedures Act (RESPA) requires loan settlement information to be prepared on a special form known as the: A. Closing Disclosure B. Servicing Agreement C. Your Home Loan Toolkit booklet D. Certificate of occupancy

Q: The final step in a real estate transaction is the closing. In most closings, which party is responsible for seeing that the closing is completed successfully? A. Escrow agent B. Lender C. Selling Broker D. Listing broker

Q: When a party in a contract fails to perform (e.g. breach of contract, nonperformance, or default) the other party has a variety of remedies. All of the following are remedies that an aggrieved seller may pursue EXCEPT: A. Sue for damages. B. Retain the earnest money deposit as liquidated damages. C. Agree to rescission of the contract. D. Sue for specific performance.

Q: In general, most contracts including a real estate contract can be assigned. All of the following statements regarding assignment are true EXCEPT: A. Any type of personal performance contracted by one party cannot be assigned without that partys permission. B. Land contracts are not assignable without the owners permission C. If buyers of real estate assign the contract, the new buyers may pay the agreed upon price and obtain title to the property. D. When buyers assign their rights to someone else, they escape liability under the original contract.

Q: Contracts for sale may contain sections that cause implementation of the contract to depend on the successful completion of some prior action such as the buyers ability to obtain financing on specified terms. This type of contract is commonly referred to as a(n): A. contract assignment B. equitable title C. contract with contingencies D. uniform settlement statement

Q: Since the issues in many transactions are similar, brokers often use standard preprinted contract forms. Generally, the best standard form contracts are those prepared and approved by which of the following parties? A. Office supply firm B. Seller C. Local Board of Realtors D. Web source of generic legal forms

Q: The distinction between legal title and equitable title is an important concept in the contract for sale of real estate. When the buyer obtains equitable title, the seller can no longer sell the property to someone else, even though the legal title has not officially passed on. In the contract for sale process, the creation of equitable title occurs when: A. The contract for sale is written. B. The contract for sale is signed. C. The contract terms are orally agreed upon. D. Each party is deemed legally competent.

Q: In certain circumstances, mutual assent between the contracting parties may be broken, thus invalidating the contract. Which of the following defects to mutual assent involves compelling a person to act by the use of force? A. One of the parties is under duress. B. One of the parties is under undue influence. C. One of the parties is under menace. D. One of the parties is committing fraud.

Q: Both parties to a valid and enforceable contract must provide consideration. In a contract for the sale and purchase of real estate, which of the following depicts the sellers consideration? A. A meeting of the minds with the buyer. B. The option to present a counteroffer. C. The property to be given up. D. The money or goods that constitute the purchase price.

Q: While the principal parties to a transaction must be legally competent for a contract to be valid, it is possible for a party acting on behalf of a principal to obtain this legal right. In order for personal representatives and trustees to be authorized to act on behalf of a principal, a legal instrument commonly referred to as ____________ must be in place. A. assignment B. power of attorney C. mutual assent D. consideration

Q: Any contract, whether it is for the sale of real estate or some other entity, must contain five basic elements. However, any contract for the sale of real estate must adhere to two additional requirements. Which of the following contract elements is an additional requirement that must be satisfied in a contract for sale of real estate that isnt necessarily a part of other contracts? A. No defects to mutual assent B. Consideration C. Offer and acceptance D. Written form

Q: The successful conveyance of real estate depends on a well-formed contract for sale since the contract dictates the rights and type of deed involved, as well as choreographs the entire transaction. Which of the following features of the contract for sale refers to the arrangements agreed to by the parties, such as price and date of closing? A. Contract terms B. Contract conditions C. Equitable title D. Contingency clause

Q: There are a number of different types of listing contracts that can be used when marketing a property. Which of the following types of listings requires the broker to be paid a commission if any other broker, or even the owner, sells the property during the contract period? A. Open listing B. Single listing C. Exclusive agency listing D. Exclusive right of sale listing

Q: Critical to any listing contract is the question of when the broker becomes entitled to a commission. Traditionally, the broker is still entitled to a commission in all of the following scenarios EXCEPT: A. If the seller refuses to sell upon being presented with an offer meeting the original terms and conditions B. If the seller cannot deliver the property for any reason due to his or her fault. C. If both the buyer and seller sign a contract but then agree to cancel it. D. If a contract is contingent upon the buyer obtaining financing and the buyer is unable to do so.

Q: Amy is trying to decide whether or not it would be beneficial to employ the services of a real estate broker in order to facilitate the sale of her home. She has estimated that the marketing costs and opportunity cost associated with time spent dealing with prospective buyers amounts to $5,000. If Amy were to sell the house on her own for $200,000, but a broker would have been able to negotiate a higher price of $206,350, what commission rate should Amy have been willing to accept from a real estate broker to make her indifferent between selling the house on her own and hiring a real estate broker? A. 2.4% B. 3.1% C. 5.0% D. 5.5%

Q: Blockbusting, which involves persuading an individual to sell her home by telling her that minority groups are moving into the neighborhood, is one form of discrimination in housing that is prohibited by which of the following acts of Congress? A. Riegle Community Development and Regulatory Improvement Act B. Secure and Fair Enforcement for Mortgage Licensing Act C. Fair Housing Act (Title VIII of the Civil Rights Act) D. Equal Credit Opportunity Act

Q: Jim has hired a real estate broker to help facilitate the sale of his home. If the broker requires a commission of 6%, how much will Jim clear from the sale (after the commission has been paid) if he is able to sell his house for $478,723 (Assume that Jim has already paid off his mortgage)? A. $424,528 B. $450,000 C. $478,723 D. $507,446

Q: Although the function of commercial brokerage is the same as that of residential brokerage, the activities of commercial brokers usually differ considerably from those of residential brokers due to fundamental differences in these two markets. All of the following statements regarding commercial brokerage are true EXCEPT: A. Relative to residential transactions, commercial transactions tend to be larger B. The parties in commercial mortgage transactions are typically less knowledgeable than those in residential transactions. C. An important part of the commercial brokers service is to provide the prospective buyer with reports that enable him to complete due diligence for the property D. Commercial brokers are often required to lower their commission in order to negotiate compromises between buyers and sellers when they reach an impasse over price.

Q: It is common for real estate firms to identify submarkets, such as property types or particular sections of a city, in which they can specialize and concentrate their transaction activity. This practice is referred to as: A. internet marketing B. open listing C. discount brokerage D. market segmentation

Q: Christopher has hired a real estate broker to help facilitate the sale of his home. Realizing that Christopher is most likely going to realize a loss on his investment due to the recent decline in housing values in his neighborhood, the broker has agreed to charge Christopher a lower commission rate as long as Christopher enters into an exclusive right of sale listing contract. If Christopher ends up selling his house for $364,583 and takes home $350,000 after paying the real estate brokers commission, what was the commission rate that the broker ended up charging? A. 4.0% B. 4.2% C. 8.0% D. 14.6%

Q: State licensing laws prescribe behavioral requirements with which licensees must comply to keep their licenses. Licensing laws generally seek to prevent brokers from partaking in all of the following activities EXCEPT: A. Handling money in trust for clients B. Taking kickbacks without the employers knowledge C. Offering the property at terms other than those specified by clients D. Failure to submit all offers to the client

Q: Suppose you are interested in selling your home and would like to clear a net value of $300,000. If you have agreed to pay your broker a commission of 5.5% (no matter who ultimately is responsible for finding the buyer), what price must you sell the home for in order to meet your net profit (rounded to the nearest dollar)? A. $282,540 B. $300,000 C. $316,500 D. $317,460

Q: One of the traditional requirements for individuals who wish to obtain a brokerage license has been to demonstrate financial capacity to cover damage judgments brought against them by clients. In order to address this concern, some states have required licensees to first obtain: A. Private mortgage insurance (PMI) B. Errors and omission insurance C. Deposit insurance D. Hazard insurance

Q: Suppose that a recent purchase of a residential home has been facilitated equally by a listing agent and a buyer broker. Based on your understanding of how commissions are determined, which of the following scenarios best describes who would be entitled a commission upon sale of the property (Note: For simplicity, you can assume the seller did not procure the buyer on their own)? A. Only the listing broker B. Only the buyer broker C. Both the listing broker and the buyer broker D. Neither the listing broker nor the buyer broker

Q: All 50 states have licensing laws that regulate persons and companies that engage in the brokerage business. Interpreting and enforcing state licensing laws falls under the responsibilities of which of the following parties? A. Broker B. Real estate commission C. National Association of Realtors D. Salesperson

Q: In an open-listing contract, an individual broker is entitled to a commission if: A. anyone, including the seller sells the property B. anyone, excluding the seller sells the property C. she procures the buyer of the property D. she markets the property, but it does not sell

Q: State licensing laws generally prescribe two levels of real estate brokerage licensing: the broker license and the salesperson license. Which of the following responsibilities is an individual with a salesperson license permitted to do? A. Own and operate a real estate brokerage business B. Handle money in trust for clients C. Negotiate listing contracts or contracts for sale D. Complete legal documents used in sales and leases in their own name

Q: There are three basic types of listing contracts. These include all of the following EXCEPT: A. Open-listing B. Exclusive agency listing C. Exclusive right of sale listing D. Multiple listing

Q: In dual agency, conflicts of interest may arise since a single broker has both the listing contract with the seller and a buyer agency agreement with the purchaser. One way that states have attempted to deal with this issue is to develop a new type of brokerage relationship in which the broker assists the buyer and seller, but does not represent either party. This type of brokerage relationship is commonly referred to as: A. unintended dual agency B. universal agency C. transaction brokerage D. multiple listing

Q: Which of the following duties refers to a brokers obligation to represent the interests of their principals to the best of their ability in the same way they would represent themselves, acquiring and applying the necessary knowledge and information about relevant laws and regulations, the market, and subject property? A. Disclosure B. Accounting C. Loyalty D. Skill and care

Q: Modern real estate brokerage normally relies on a multiple listing service (MLS) through which brokers have access to each others listings. Which of the following types of agency agreements is established with the use of a MLS? A. Single agency agreement B. Subagency agreement C. Dual agency agreement D. Designated agent agreement