PSI PSI Real Estate Agency and Property Management 2

Question 1

Which of the following actions would constitute a breach of the agent's duty of disclosure?

Accepted Answer

Hiding a known structural problem from a buyer

Answer

Telling a buyer about a material defect in the property

Answer

Informing a seller about a buyer's financing contingency

Answer

Revealing the listing price to prospective buyers

Question 2

What is the primary purpose of a property management agreement?

Accepted Answer

To define the scope of the manager's authority and responsibilities

Answer

To transfer ownership of the property to the manager

Answer

To establish the sale price of the property

Answer

To create a landlord-tenant relationship

Question 3

A property manager who collects rents and security deposits must keep these funds in a:

Accepted Answer

Trust account separate from operating funds

Answer

Personal savings account

Answer

Business checking account

Answer

Money market account at the manager's bank

Question 4

Under a gross lease, who is responsible for paying most operating expenses of the property?

Accepted Answer

The landlord

Answer

The tenant

Answer

Both parties equally

Answer

A third-party property manager

Question 5

Which type of lease requires the tenant to pay a base rent plus a percentage of their business sales?

Accepted Answer

Percentage lease

Answer

Gross lease

Answer

Net lease

Answer

Ground lease

Question 6

When an agent's authority is terminated by operation of law, which of the following events would cause this?

Accepted Answer

The bankruptcy of the principal

Answer

The principal decides to reduce the commission rate

Answer

The agent takes a temporary leave of absence

Answer

The property fails to attract any offers