Brokerage Relationships Act Exam Questions

1. When did the Oklahoma Brokerage Relationships Act go into effect?

a. 1 January 2000

b. 1 January 2001

c. 1 November 2000

d. 1 July 2000

2. Under what circumstances can a licensee function as an agent?

a. as a buyer broker

b. as a listing broker

c. only with the approval of a buyer or seller

d. none of the above

3. What two brokerage relationships are allowed under the new Brokerage Relationships Act?

a. agent and subagent

b. transaction broker and single party broker

c. transaction broker and buyer’s agent

d. single party broker and listing agent

4. Which relationship by law requires a written agreement?

a. single party brokerage

b. transaction brokerage

c. buyer agency

d. seller agency

5. Which relationship is allowed for the same company to perform in the same transaction under the new Brokerage Relationships Act?

a. disclosed dual agency

b. transaction broker for the buyer and transaction broker for the seller

c. single party broker for the buyer and single party broker for the seller

d. transaction broker for the buyer and listing agent for the seller

6. Which action is not allowed under the new Brokerage Relationships Act?

a. collecting a commission that is a percentage of the sales price while working as a Single party broker for the buyer

b. performing as a transaction broker without a written agreement

c. performing as a single party broker for both the buyer and seller in a transaction with the informed consent of both parties

d. performing as a single party broker with a written agreement

7. Who would have a duty of loyalty to the party for whom the licensee is performing services?

a. single party broker

b. transaction broker

c. agent

d. none of the above

8. Who would not have a duty of obedience to the party for whom the licensee is performing services?

a. transaction broker

b. single party broker

c. agent

d. disclosed dual agent

9. The party for whom services were being provided would not be vicariously liable for the actions of the licensee in which type of relationship?

a. transaction broker

b. single party broker

c. agent

d. disclosed dual agent

10. Who is not authorized to accept delivery of a contract between the parties to a transaction without written approval in the brokerage agreement?

a. single party broker

b. transaction broker

c. both

d. neither

11. Who below is the only one who can determine brokerage relationships with buyers, sellers, tenants, and landlords?

a. principal broker of the company

b. associate broker

c. sales associate

d. provisional sales associate

12. The new Brokerage Relationships Act applies to which of the below:

a. commercial brokers

b. residential brokers

c. property managers

d. all the above

13. The new Brokerage Relationships Act does not apply to which of the below:

a. commercial brokers

b. lawyers doing their normal legal work

c. apartment locators

d. tenant representatives

14. A transaction broker may not:

a. make suggestions regarding the value of a property

b. work without a written agreement

c. tell a party they may not be held vicariously liable for his actions

d. be an advocate for the party he is providing services for

15. If a broker from another company wants to sell one of your company’s listings, then the agreement must be one of:

a. agency between brokerages

b. sub-agency between brokerages

c. disclosed dual agency

d. co-operative broker without agency

16. Which duty does a broker owe a party from whom he is performing as a transaction broker:

a. duty of loyalty

b. duty of obedience

c. duty to perform all brokerage services for the benefit of the party

d. duty of confidentiality

17. As a Single Party broker for the seller and transaction broker for the buyer, which of the below would you have to keep confidential and not tell the seller?

a. the buyer is willing to pay more money for the property than he is offering to pay

b. the buyer would accept a higher interest rate on a loan form the seller and still buy the property

c. the buyer is a in big hurry to buy because he is running out of time to buy a house to avoid paying big taxes on the sale of his last home

d. all of the above must be kept confidential

18. As a Transaction broker for the seller and Single Party broker for the buyer, which of the below would you have to keep confidential and not tell the buyer?

a. the seller is willing to sell for less money than the listed price

b. the seller would accept a lower interest rate on a loan made to the buyer and still sell the property the property

c. the seller is a in big hurry to sell because he is also making house payments on a new home he has purchased

d. all of the above must be kept confidential

19. The use of the word "Agent" is specifically allowed under the new Brokerage Relationships Act under what circumstances:

a. when the company represents only buyers

b. when the word "Agent" is part of the company’s trade name

c. when the company is incorporated and also does business in at least one additional state

d. this is never allowed under the new law

20. The common law of agency was partially abrogated under the new Brokerage Relationships Act in what way:

a. all conditions

b. in regard to the duties and responsibilities of a broker specified in the law.

c. in regard to real estate activities performed by non-licensed individuals

d. in regard to licensees acting as principals on their own behalf

21. If a party to a transaction pays the broker’s commission that makes the broker:

a. a single party broker

b. a transaction broker

c. an agent

d. is not determinative of any particular relationship

22. After the termination of transaction, a broker does not owe which responsibility to the party he performed services for:

a. a duty to account for all monies and property relating to the transaction

b. a duty to keep confidential all confidential information received by the broker during the broker’s relationship with a party

c. a duty to remain loyal to the party served

d. a duty that was required by the written broker agreement now ended

23. Which duty does a Single Party broker owe a party that a transaction broker does not:

a. confidentiality

b. loyalty

c. obedience

d. timely presentation of all written offers and counteroffers

24. Which duty does a Single Party broker owe a party that a transaction broker does not:

a. duty to treat all parties with honesty

b. timely accounting for all money and property received by the broker

c. duty to perform all activities for the benefit of the party for whom he is performing services

d. duty to disclose information pertaining to the property as required by the Residential Property Condition Disclosure Act

25. When a broker refers a party form whom the broker is no longer providing services to another broker, the broker can receive a referral fee under what conditions:

a. the other broker agrees to pay the fee

b. oral disclosure is made to all parties of the arrangement

c. written disclosure is made to all parties of the arrangement

d. this is never allowed under the new law

26. If a company has the occasion to represent a buyer as a single party broker and the seller as a single party broker in the same transaction, what might happen:

a. the buyer agrees to change to transaction status

b. the seller agrees to change to transaction status

c. both buyer and seller agree to change to transaction status

d. all the above could happen and be legal

27. If a company has the occasion to represent a buyer as a single party broker and the seller as a single party broker in the same transaction, what might happen:

a. the buyer may refuse to change to transaction status

b. the seller may refuse to change to transaction status

c. both buyer and seller may refuse to change to transaction status forcing the broker to resign one of the parties

d. all the above could happen and be legal

28. In which brokerage relationship would a broker have to tell the party he is performing services for that he may be held vicariously liable for the broker’s actions:

a. transaction broker

b. single party broker

c. dual party broker

d. none of the above

29. Under the new Brokerage Relationships Act, which of the below must be associated with a real estate broker:

a. broker associate

b. sales associate

c. provisional sales associate

d. all the above

30. Broker Jones of ABC realty and broker Smith of XYZ realty made an agreement to only offer Transaction broker services if the other would do so. This is an example:

a. broker co-operation

b. commingling

c. an illegal anti-trust violation

d. co-opetition

31. Which of the below company policies would be considered legal and proper:

a. Single Party broker for all sellers and transaction broker for all buyers

b. Single party broker for all buyers and transaction broker for all sellers

c. Transaction brokerage for all parties

d. all the above are acceptable

32. Which of the below company policies would not be considered legal and proper:

a. Single Party broker for all sellers and buyer agency for all buyers

b. Single party broker for all buyers and seller agency for all sellers

c. Disclosed Dual "Single-Party" brokerage – representing both buyers and sellers in the same transaction as Single-Party brokers

d. none of the above are allowed

33. You are a Single Party broker for the seller and a transaction broker for the buyer. You read in the business news of the local newspaper that the buyer has just been promoted to vice-president of a big company in town. Can you tell the seller this?

a. no, because it is a motivating factor

b. yes, because it was made public without the brokers’ help

c. no, because it would not be honest and you must be honest in all dealing

d. yes, because you are working for the benefit of the seller and can always disclosure motivating factors that were not strictly told to you in confidence by the buyer

34. A transaction broker can give an opinion of the value of a property as long as:

a. the information is correct

b. the broker has an appraisal license

c. the broker is not an advocate for either party

d. the value supports the listed price

35. Who is authorized to accept delivery of a contract between the parties to a transaction?

a. single party broker

b. transaction broker with written authorization to accept contracts

c. both

d. neither

36. Which duty does a broker owe all parties in a transaction?

a. fairness

b. honesty

c. loyalty

d. to always work for the benefit of all parties

37. You work for a company that allows all forms of brokerage relationships. You want to help your mother buy a home. Which relationship would be best in this case?

a. transaction broker for both buyer and seller

b. single party broker for buyer, transaction broker for seller

c. single party broker for both buyer and seller

d. buyer agent for buyer and transaction broker for seller

38. You are a seller and you don’t want to be vicariously liable for the actions of the broker listing your home. Which brokerage relationship should you choose?

a. transaction brokerage

b. single party brokerage

c. seller agency

d. it cannot be done; vicarious liability cannot be avoided

39. You are a seller and you want your broker to have a duty of obedience to your lawful instructions. Which brokerage relationship should you choose?

a. transaction brokerage

b. single party brokerage

c. either of the above

d. neither; there is no longer a duty of obedience

40. You are a buyer and you want your broker to owe you a duty of loyalty. Which brokerage relationship should you choose?

a. transaction brokerage

b. single party brokerage

c. either of the above

d. neither; there is no longer a duty of loyalty

41. Your real estate company, The Buyer’s Best Friend, advertises itself as always working for the benefit of buyers. Which brokerage relationship should it practice?

a. single party for buyers; transaction broker for sellers

b. single party for both buyer and sellers

c. buyer agency for buyers, transaction broker for sellers

d. transaction broker for both buyers and sellers

42. Your real estate company, Home Marketing Specialists, advertises itself as always working for the benefit of sellers. Which brokerage relationship should it practice?

a. single party for sellers; transaction broker for buyers

b. single party for both buyer and sellers

c. buyer agency for sellers, transaction broker for buyers

d. transaction broker for both buyers and sellers

43. Your real estate company, The Friendly Real Estate Company, never wants to be in a situation where it has to resign a buyer or seller or ask them to accept a lower level of service. Which brokerage relationship should it practice?

a. single party for sellers; buyer agency for buyers

b. single party for both buyer and sellers

c. seller agency for sellers, transaction broker for buyers

d. transaction broker for both buyers and sellers

44. In which case does a Single Party broker have no duty to obey the directives of the party form whom he is providing services?

a. when the order violates the Code

b. when the order violates the Residential Property Condition Disclosure Act

c. when the order violates the terms of the brokerage contract between the parties

d. all the above cases

45. Which brokerage relationships are allowed for real estate brokers under the new Brokerage Relationships Act?

a. single party broker and transaction broker

b. agency and sub-agency

c. disclosed dual agency and transaction brokerage

d. transaction brokerage and sub-agency

46. Under the new Brokerage Relationships Act, the term "broker" can be applied to which of the below:

a. principal brokers only

b. brokers and associate brokers only

c. brokers, associate brokers, and sales associates only

d. brokers, associate brokers, sales associates, and provisional sales associates

47. To which of the below does the new Brokerage Relationships Act not apply:

a. licensed apartment locators

b. licensed tenant representative

c. licensed appraisers

d. licensed realty exchangers

48. You are going to act as the broker in the sale of your brother’s house to your sister who is the buyer. Which relationship should be selected?

a. transaction broker for both buyer and seller

b. single party broker for both buyer and seller

c. disclosed dual agency

d. it is illegal to do the above transaction

49. You once had a house listed as a transaction broker. The listing expired unsold. You now have a buyer in a Single Party relationship who wants to buy that same house which is now listed with a different company. Do you have a duty to keep the negotiation positions held by the seller confidential from your new buyer?

a. no, because you were only a transaction broker for the seller

b. no, because your duties end when the brokerage relationship ends

c. yes, confidential information must be kept confidential even after the relationship ends

d. yes, if it is within 1 year of the termination of the brokerage relationship

50. Which brokerage relationship would be the most unlikely for a broker who is also a builder to take when selling his own homes?

a. transaction broker for the seller, single party broker for the buyer

b. transaction broker for both buyers and seller

c. single party broker for the seller and transaction broker for the buyer

d. all the above are just as unlikely