Dubai RERA Exam 2023 - Real Estate Agent Broker Mock Test Questions Real Estate Broker Practice Test Exam Questions and Answers General Operation of a Real Estate Brokerage
- With regard to the general operation of a real estate brokerage, which of the following activities of ABC
Brokerage, Inc. is illegal under federal law?
Statement #1: ABC Brokerage, Inc. advertises that, at the close of escrow, it will refund $500 of the commission to every buyer and seller the firm represents.
Statement #2: While golfing together, the managing licensees at ABC Brokerage, Inc. and DEF Brokerage, Inc.divide up a particular geographic area between themselves.
Statement #3: ABC Brokerage, Inc. lays off a long-term licensee who, because of illness, performed poorly during the last two fiscal quarters.
- Statement #1
- Statement #2
- Statement #3
- Statements #1 and #2
- A real estate broker should educate clients to protect the client's best interests and ensure a knowledgeable
negotiating position. However, client education involves a certain amount of risk, because whatever information the broker (or salesperson in the firm) conveys must be accurate and reliable. With regard to managing the risk associated with client education, all of the following statements are true EXCEPT:
- Agents should refrain from educating clients about matters beyond their scope of authority.
- If a client makes a harmful decision because the agent did not provide the client with the appropriate
information, the client might have grounds for a negligence charge.
- Depending on the market, the client's negotiating position may be more powerful if the client "treads lightly"
with regard to contractual demands.
- Agents should avoid discovery of facts, because the more facts an agent knows, the more facts the agent must
disclose to the client; and the agent runs the risk of conveying inaccurate information.
- Consider why a brokerage experiences financial difficulty even in prosperous times. One of the main reasons
financial difficulty for a brokerage occurs is that the broker fails to stay abreast of the economic climate and direction of the real estate market. With regard to financial planning for a real estate brokerage, which of the following statements is (are) TRUE?
Statement #1: Even in prosperous times, the economic climate changes daily. Brokerages need to plan expenditures based on factual assessment of the economic climate.
Statement #2: The competitors may reduce commission levels, and thus to compete, a brokerage may need to reduce commission levels within the firm.
Statement #3: Advertising is vital to the success of a brokerage. A broker should take advantage of all products
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designed to promote real estate sales.
- Statement #1 only.
- Statement #2 only.
- Statements #1 and #2 only.
- Statements #1, #2 and #3.
Agency Concepts and Managerial Duties
- A _____ agency particularly exists when there is a delegation of authority to do a single act.
- universal agent
- general agent
- special agent
- ostensible agent
- Legally, what is the nature of agency relationships between listing brokers and sellers?
- General agency.
- Specific agency.
- Universal agency.
- Limited power of attorney.
- A legally-competent, wealthy investor is selling a large commercial property. The 35-year-old investor is
represented by a one of the busiest, most successful brokerage firms in the state. The closing date for the transaction coincides with an important overseas business trip the investor cannot postpone or cancel. Prior to leaving on the business trip, the investor executes a document authorizing a trusted friend to sign all documents related to the sale of the commercial property. After accepting the appointment, the investor's friend owes fiduciary duties to the investor. Of the following choices, what is the name of the document executed by the investor?
- Listing Agreement
- Purchase and Sale Agreement
- Power of Attorney
- Conservatorship (or guardianship)
Contracts and Contract Law
- Which of the following lists the essential elements of an enforceable real estate contract?
- acceptance, consideration, performance, lawful object
- lawful object, competency, offer and acceptance, consideration
- tender, consideration, deposit, performance
- signatures, consideration, mutuality, competence
- A listing agreement did not include an authorization to accept a deposit. Which of the following is correct?
- The authorization is implied.
- The broker cannot accept the deposit.
- If the broker accepts the deposit, he/she would do so as the agent of the buyer.
- None of the above
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