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Real estate 4

Under a standard listing contract, a broker is considered to he a

Special agent

General agent

Procuring cause

Universal agent

The real estate license law is administered by the

Council on Housing Matters

Real Estate Commission

Connecticut Association of REALTORS®.

Department of Housing.

The essential elements of a contract include all of the following EXCEPT

Signatures of the parties

Consideration

Competent parties

Offer and acceptance

A listing contract in which payment of the commission is contingent on the broker's being able to produce a buyer before the property is sold by the owner or another broker is called

Net listing

Open listing

Exclusive agency listing

Exclusive right to sell listing

A special warranty deed differs from a general warranty deed in that the grantor's covenant in the special warranty deed

Covers the time back to the original title

Is implied and is not written in full

Protects all subsequent owners of the property

Applies only to a definite limited time

Which appraisal method uses a rate of investment return

Sales comparison approach

Cost approach

Income approach

Gross income multiplier method

There are two vacant adjacent lots in an area zoned for commercial use, each worth approximately $50,000. If their owner sells them as a single lot, however, the combined parcel will be worth $120,000. What principle does this illustrate?

Substition

Plottage

Regression

Progression

The amount of money a property is likely to command in the marketplace is its

Intrinsic value

Market value

Subjective value

Book value

A homeowner contracts a five bedroom brick house with an indoor pool in a neighborhood of modest two bedroom and three bedroom frame houses on narrow lots. The value of this house is MOST likely to be affected by what principle?

Progression

Assemblage

Change

Regression

The owners of a modest ranch house in a neighborhood of larger, more expensive homes may find that the value of their homes is affected by what principle?

Progression

Increasing returns

Competition

Regression

The term reconciliation refers to which of the following

Loss of value due to any cause

Separating the value of the land from the total of the property to compute depreciation

Analyzing the results obtained by the different approaches to value to form an opinion of value

The process by which an appraiser determines the higher and best use for a parcel of land

If a property's annual net income is $24,000 and it is valued at $300,000, what is it capitalization rate?

10.5%

12%

15%

An appraiser applying the cost approach to value will consider which of the following?

Annual net operating income

Capitalization rate

Accrued depreciation

Annual gross income

An appraiser asked for an opinion of the value of an existing shopping center would probably give the MOST weight to which approach to value?

Cost approach

Sales comparison approach

Income approach

Index method

The market value of a parcel of real estate is

An estimate of its future benefits

The amount of money paid for the property

An estimate of the most probable price it should bring

Its value without improvements

Capitalization is the process by which annual net operating income is used to

Determine cost

Estimate value

Establish depreciation

Determine potential tax value

From the reproduction or replacement cost of a building, the appraiser deducts depreciation, which represents

The remaining economic life of the building

Remodeling costs to increase rentals

Loss of value due to any reason

Costs to modernize the building

Which of the following is an important factor in comparing properties under the sales comparison approach to value?

Mortgage balance

Potential market rent

Differences in appearance and condition

Differences in original cost

Which principle of value indicates that a developers very profitable real estate project will attract others to engage in similar activity in the same area and thus drive down profits?

Anticipation

Competition

Value

Progression

Which transaction is BEST described as involving a ground lease

A landowner agrees to let a tenant drill for oil on a property for 75 years

The tenant agrees to pay a proportionate, increased rental based on annual appraisals of the rented property

A landlord charges a commercial tenant for the land use and the tenant erects its own building

The tenant pays a base amount for the property plus a percentage of business-generated income

If a tenant moved out of a rented store building because of access to the building was blocked as a result of the landlords negligence?

The tenant would have no legal recourse against the landlord

The landlord may be liable for the rent until the expiration date of the lease

The landlord may have to provide substitute space

The tenant may be entitled to recover damages from the landlord

A tenant moves a pet into an apartment community that has a no pet policy. The landlord wishes to remove the tenant due to the breach. The legal process to remove a tenant is known as

Constructive eviction

Eminent domain

Actual eviction

Partial eviction

Under the negotiated terms of a commercial lease, the landlord is required to maintain the water heater used in a health club. If the tenant is unable to get hot water because of a faulty water heater that the landlord has failed to repair after repeated notification, the tenant's best recourse for staying in business would be to

Stop paying rent

Order a new water heater and deduct the payment from the rent

File a criminal compliant against landlord

Seek a refund of all lease payments

A lessee has a one-year leasehold interest in a house. The lease automatically renews itself at the end of each year. The lessee's interest is referred to as a tenancy

For years

From period to period

At will

At sufferance

Under the terms of a net lease, a commercial landlord would usually be responsible for paying which of the following property expenses

Mortgage debt service

Maintenance expenses

Fire and extend coverage insurance

Real estate taxes

Which of the following describes a net lease

An agreement in which the tenant pays all taxes, insurance, and expenses related to the property

A lease in which the tenant pays rent, plus some or most of the operating expenses related to the property

A lease in which the tenant pays the landlord a percentage of the monthly income derived from the property

A tenants right to possess real estate for definite period with a specific starting and end date is

An estate for years

An estate at will

An estate at sufferance

An estate from period to period

Which of the following describes a gross lease

An agreement in which the tenant pays a fixed rent and some or all of the utilities and the landlord pays all the taxes, insurance, and expenses related to the property

A lease in which the tenant pays the landlord a percentage of the monthly income derived from the property

A lease in which the tenant pays rent plus some of the operating expenses related to the property

A tenant signs lease that includes the following clause; "the stated rent under this agreement will be increased or decreased every three months based on the percentage change in the consumer price index(CPI) for that period." What kind of lease has this tenant signed

Percentage

Net

Graduated

Index

The death of either the landlord or the tenant will terminate the lease under which of the following tenancies

Tenancy for years

Periodic tenancy

Tenancy at will

Tenancy at sufferance

The tenant leases a heated apartment during a bitterly cold winter, but soon after the tenant moves in, the landlord fails to provide heat because of a defective central heating unit. The tenant vacates the premises and refuses to pay any rent. This is an example of

Abandonment

Actual eviction

Constructive eviction

Lessor negligence

Housing that qualifies for exemption from familial status provisions

Includes housing intended for persons 50 or older

Includes a restriction that 80% of the units be occupied by persons 55 or older

Is not permitted under the federal fair housing act

Is permitted for owner occupied buildings with four or more units

Which statement best describes the supreme court's decision in the case of Jones v. Alfred H. Mayer Company?

Racial discrimination is prohibited by any party in the sale or rental of real estate

Sales by individual residential homeowners are exempted, provided the owners do not use real estate professionals

Laws against discrimination apply only to federally related transactions

Persons with disabilities are a protected class

A suit may be filed in federal court by a person aggrieved by an alleged act of discrimination under the fair housing Act

Within two years of the discriminatory act

No later than one year after the discriminatory act

With the approval of the state or county nondiscrimination officer

Which of the following is legal ?

Charging a family with children a higher security deposit than those with no children

Requiring a person with a disability to establish an escrow account for the costs to restore a property after it has been modified

Picturing only white people in a brochure as the "happy residents" in a housing development

Refusing to sell a house to a person who has a history of mental illness

The landlord's lease prohibits tenants from altering the property in any way. A young woman who uses a wheelchair cannot maneuver over the doorstep into her apartment by herself. In addition, she cannot access the bathroom facilities in her wheelchair. Which of the following is TRUE?

The landlord is responsible for making all apartments accessible to people with disabilities

The tenant cannot remedy these conditions because of the terms of the lease

The landlord should not have rented this apartment to the tenant

The tenant is entitled to make the necessary alterations

Avoid, control, transfer, or retain are the four alternative techniques of

Tenant relations

Acquiring insurance

Risk management

Property management

Adaptions of property specifications to suit tenant requirements are

Tax-exempt improvements

Tenant improvements

Prohibited by most nonresidential leases

Generally not a good idea

A property manager is offered a choice of three insurance policies with different deductibles. If the property manager selects the policy with the highest deductible, which risk management technique is being used

Avoiding risk

Retaining risk

Controlling risk

Transferring risk

Which of the following would be considered a variable expense when a manager develops an operating budget

Employee wages

Utilities

Building repairs

Basic operating costs

An apartment complex is severely damaged by a tornado, making it uninhabitable. What type of insurance covers the landlord against the resulting loss of rent ?

Fire and hazard

Liability

Consequential loss, use, and occupancy

Casualty

A property manager hires a full time maintenance person. While repairing a faucet in one of the apartments, the maintenance person steals some jewelry and the tenant sues the owner. The property manager could protect the owner against this type of loss by purchasing

Liability insurance

Workers compensation insurance

A surety bond

Casualty insurance

A statement sent to an owner that reflects the entire debt service as an expense is called

A profit service as an expense is called

A cash flow report

A variable expense report

An operating budget statement

An insurance policy package that includes standard commercial property coverage such as a fire, hazard, public liability, and casualty is called what kind of policy

Coinsurance

Multiperil

Universal

Surety

Title III of the Americans with disabilities Act(ADA) impacts which type of property?

Residential

Industrial

Commercial and public accommodations

Privately owned

A subdivision declaration reads, "No property within this subdivision may be further subdivided for sale or otherwise, and no property may be used for other than single-family housing" This is an example of

A restrictive covenant

An illegal reverter clause

R-1 zoning

A conditional-use clause

A landowner who wants to use property in a manner that is prohibited by a local zoning ordinance but which would benefit the community can apply for which of the following?

Conditional use permit

Prescriptive easement

Occupancy permit

Property allowance

Private land-use controls include

Subdivision regulations

Covenants, conditions, and restrictions

Environmental protection laws

Comprehensive plan specifications

Under its police powers, a municipality may regulate

Resident occupations

Ethnicity of owners

Building uses

Familial status

The purposes of a building permit is to

Indicate the property is suitable for habitation

Maintain municipal control over the amount of building

Provide evidence of compliance with municipal regulations

Show compliance with restrictive covenants

The use of borrowed money to finance an investment is called

Leverage

Appreciation

Depreciation

Capital gain

Another name for depreciation is

Cost recovery

Leverage

Capital gain

Inflation

To determine whether a location can be put to future use a retail store, one would examine

The building code

The list of permitted nonconforming uses

The housing code

The zoning ordinances

A restriction in a sellers deed may be enforced by which of the following?

Court injunction

Zoning board of appeal

City building commission

State legislature

A property owner owns a large tract of land. After an adequate study of all the relevant facts, the owner legally divides the land into 30 lots suitable for the construction of residences. In this situation, the property owner is acting as

A subdivider

A developer

A land planner

An urban planner

A map illustrating the sizes and locations of streets and lots in a subdivision is called

A gridiron plan

a survey

A subdivision plat map

A property report

In one city, developers are limited by the zoning law to constructing no more than an average of three houses per acre in any subdivision. What does this restriction regulate?

Clustering

Gross density

Out-lots

Covenants

Permitted land uses and set-asides, housing projections, transportation issues, and objectives for implementing future controlled development would all be found in a community's

Zoning ordinances

Comprehensive plan

Enabling act

Land-control law

The difference between the cost basis of property and its net selling price is

Cost recovery

Appreciation

Leverage

Capital gain

A plat for a proposed subdivision is submitted to

The municipality

The property owners

The developer

The state

Restrictive covenants

Are no longer effective when the title is transferred

Apply only until the developer has conveyed the title

Can be removed by a court of competent jurisdiction

Apply to and bind successive owners of the property

To protect the public from fraudulent interstate land sales, a developer involved in interstate land sales of 25 or more lots must

Provide each purchaser with a printed report disclosing details of the property

Pay the prospective buyer's expenses to see the property involved

Provide preferential financing

Allow a 30- day cancellation period

When is a certificate of occupancy issued ?

When the owner of a multifamily residential property wishes to limit the number of individuals who may live in a single unit

At the time a property owner applies for a building permit

After building construction work has been inspected and found satisfactory by the municipal inspector

When an application for a variance or conditional-use permit has been granted by the zoning board

All encumbrances and liens shown on the report of title, other than those waived or agreed to by the purchaser and listed in the contract, must be removed so that the title can be delivered free and clear. The removal of such encumbrances is typically the duty of

The buyer

The seller

The real estate professional

The title company

Legal title ALWAYS passes from the seller to the buyer

On the date of execution of the deed

When the closing statement has been signed

When the deed is placed in escrow

When the deed is delivered and accepted

Which item would a lender generally require at the closing

Title insurance commitment

Market value appraisal

Application

Credit report

A buyer purchases a home in an area where closings are traditionally conducted in escrow. Which item would a buyer deposit with the escrow agent before the closing date?

Deed to the property

Title evidence

Estoppel certificate

Cash needed to complete the purchase

At closing, the earnest money left on deposit with a real estate broker is

A credit to the seller

A credit to the buyer

A balancing factor

A debit to the buyer

Security deposits should be listed on a closing statement as a credit to

The buyer

The seller

The lender

The real estate professional

Which charge noted on the closing disclosure must be the same or less than the charge noted on the Loan Estimate Form ?

Cost of settlement services when the lender selects the provider

Lender charges for taking and underwriting the loan

Cost of settlement services when the borrower selects the provider from the list provided by the lender

Cost of homeowners insurance

At closing, an item prepaid by the seller is

debited to the seller

Evenly divided between the buyer and the seller

Credited to the buyer

Credited to the seller

Under the TILA-RESPA Integrated disclosure rule (TRID), a lender must extend the closing how many days if the annal percentage rate (APR) has changed more than 0.125% before closing?

Two business days

Three business days

Four business days

Five business days

Which of the following requires that all advertising that references mortgage financing terms contain certain disclosures?

Equal Credit Opportunity Act

Fair Housing Act

Community Reinvestment Act

Truth in Lending Act (Regulation Z)

The law requires lenders to find ways to help meet the housing needs of those of low and moderate incomes is

The Dodd-Frank Act

The Equal Credit Opportunity Act

The Community Reinvestment Act

The Real Estate Settlement Procedures Act

The document that sets forth the maximum loan guarantee to which a veteran is entitled is

The funding statement

The certificate of eligibility

The certificate of reasonable value

The certificate of discharge

The buyers of a residence in a Happy Hollow have a mortgage that allows them to borrow additional funds that will be secured by the home at any time. They have

A closed-end loan

An open-end loan

A provisional loan

A fully adjustable loan

The federal Equal Credit Opportunity Act allows lenders to discriminate against potential borrowers on the basis of

Preferred neighborhood

Martial status

country of national origin

Amount of income

The primary activity of Freddie Mac is to

Guarantee mortgages with the full faith and credit of the federal government

Buy and pool blocks of conventional mortgages

Act in tandem with Ginnie Mae to provide special assistance in times of tight money

Buy and sell VA and FHA mortgages

The buyers purchased a model home and all its furnishings and appliances by using

A package loan

A blanket loan

A FHA insured loan

A buydown

What is the position of a home equity line of credit(HELOC) in relation to the original lien?

Equal

Junior

First in priority

No relationship

Regulation Z generally applies when a credit transaction is secured by

A commercial property

A residence

A business

An agricultural property

Funds for FHA-insured loans are usually provided by

The FHA

The federal reserve

Approved lenders

The seller

A developer received a loan that covers five parcels of real estate and provides for the release of the mortgage lien on each parcel when certain payments are made on the loan. This type of loan arrangement is called

The purchase money loan

The blanket loan

The package loan

The wraparound loan

What is the source of the rules that govern the use of real estate advertisements in all media, if they include mortgage financing terms

Equal Credit Opportunity Act

Fair Lending Act

Community Reinvestment Act

Regulation Z of the Truth in Lending Act

The conservatorship of Fannie Mae and Freddie Mac is the responsibility of

The federal housing finance agency

The federal housing authority

The office of the comptroller of the currency

The federal reserve system

States are required to license mortgage loan originators by

HUD

The SAFE Act

FHA

The OCC

One of the federal laws requiring disclosure to a loan applicant who is rejected for a loan on the basis of a credit report is

The real estate settlement procedures act

The commitment reinvestment act

The fair credit reporting act

The truth in lending act

Which of the following is a participant in the primary mortgage market?

Fannie Mae

Ginnie Mae

Credit Union

Freddie Mac

A buyer purchased a new residence from a builder for $350,000. The buyer made a down payment of $30,000 and obtained a $320,000 mortgage loan. The builder of the house paid the lender 3% of the loan balance for the first year and 2% for the second year. This represented a total savings for the buyer of $16,000. What type of mortgage arrangement is this?

Open-ended

Package

Blanket

Buy down

The buyers purchased a residence for $395,000, making a down payment of $79,000 and obtaining a loan for the balance. The loan is

A nonconforming loan

A package loan

A ballon note

A purchase money mortgage

a prospective buyer needs to borrow money to buy a house. The buyer applies for and obtains a real estate loan from a mortgage company. Then the buyer signs a note and a mortgage. In this example, the buyer is called

The mortgagor

The beneficiary

The mortgagee

The vendor

A prospective buyer needs to borrow money to buy a house. The buyer applies for and obtains a real estate loan from a mortgage company. Then the buyer signs a note and a mortgage. In this example, the mortgage company is called

The mortgagor

The beneficiary

The mortgagee

The vendor

The borrower under a deed of trust is known as

The truster

The trustee

The beneficiary

The vendee

A loan in which the borrower makes only interest payments is called

A fixed-rate loan

An adjustable-rate mortgage

A straight loan

A reverse mortgage

What type of law limits the interest rate that is allowed to be charged

Trustee law

A usury law

The statue of frauds

Contract law

After a foreclosure sale, the borrower who has defaulted on the loan may seek to pay off the mortgage debt plus any accrued interest and costs under what right ?

Equitable redemption

Defeasance

Usuary

statutory redemption

Which clause would give a lender the right to have all future installments become due upon default

Escalation

Defeasance

Alienation

Acceleration

What document is available to the mortgagor when the mortgage debt is completely repaid?

Satisfaction of mortgage

Defeasance certificate

Deed of trust

Mortgage estoppel

The provision in a financing instrument that requires the lender to execute a satisfaction of mortgage when a note has been fully paid is

A due-on-sale clause

A defeasance clause

An acceleration clause

An alienation clause

Which of the following allows a mortgagee to proceed to a foreclosure sale without going to court first?

Wavier of redemption right

Power of sale

Alienation clause

Possession rights

The mortgagee foreclosed on a property after the borrower defaulted on the loan payments. The unpaid balance of the loan at the time of the foreclosure sale was $140,000, but at the foreclosure sale, the house sold for only $129,000. If permitted by state law, what must the lender do to recover the $11,000 the borrower still owes?

Sue for damages

Sue for specific performance

Seek a judgment by default

Seek a deficiency judgement

In one state, a lender holds a lien on real property offered as collateral for a loan. The borrower retains both legal and equitable title to real property. If the borrower defaults on the loan, the lender must go through formal foreclosure proceedings to recover the debt. This state can be BEST characterized as what kind of state?

Lien theory

Mortgage theory

Intermediate theory

Title theory

A junior lien may become first in priority if the original lender agrees to execute

A deed of trust

A subordination agreement

A second mortgage agreement

A call clause

A buyer purchased a home under an agreement that made the buyer personally obligated to continue making payments under the sellers existing mortgage. If the buyer defaults and the court sale of the property does not satisfy the debt, the buyer will be liable for making up the difference. The buyer has

Purchased the home subject to the seller's mortgage

Assumed the sellers mortgage

Benefited from the alienation clause in the seller's mortgage

Benefited from the defeasance clause in the seller's mortgage

A legally enforceable agreement under which both parties promise to do something for each other is called

An escrow agreement

A legal pledge

A bilateral contract

An option agreement

A person approaches an owner and says, "I'd like to buy your house. The owner says, "sure", and they agree on a price. What kind of contract is this?

Implied

Unenforceable

Void

No contract

A contract is said to be bilateral if

One of the parties is a minor

The contract has yet to be fully performed

Only one party to the agreement is bound to act

Both parties to the contract exchange binding promises

During the period after a real estate sales contract is signed, but before title actually passes, the status of the contract is

Voidable

Executory

Unilateral

Implied

A contract for the sale of real estate that does not state the consideration and provides no basis on which the consideration could be determined is considered

Voidable

Executory

Void

Enforceable

A buyer and a seller sign a contract to purchase. The seller backs out, and the buyer sues for specific performance. What is the buyer seeking in this lawsuit

Money damages

New contract

Deficiency judgement

Transfer of the property

In a preprinted sales contract, several words were crossed out or inserted by the parties. To eliminate future controversy as to whether the changes were made before or after the contract was signed the usual procedure is to

Have both parties initial or sign in the margin near each change

Write a letter to each party listing the changes

Have each party write a letter to the other approving the changes

Redraw the entire contract

A buyer makes an offer on a seller's house and the seller accepts. Both parties sign the sales contract. At this point, the buyer has what type of title to the property ?

Equitable

Voidable

Escrow

Contract

The sales contract says the buyer will purchase only if an attorney approves the sale by the following Saturday. The attorney's approval is

A contingency

A reservation

A warranty

A consideration

A real estate broker uses earnest money placed in the company trust account to pay for the rent owed on the brokerage's office. Using escrow funds for this purpose is

Illegal, unless the client has approved the expenditure

Legal if the trust account is reimbursed by the end of the calendar month

Legal if the seller gives consent in writing

Illegal

An option to purchase binds which of the following parties

Buyer only

Seller only

Neither buyer or seller

Both buyer and seller

A buyer and a seller enter into a real estate sales contract. Under the contracts terms, the buyer will pay the seller $2,000 a month for 10 years. The seller will continue to hold legal title, while the buyer will live in the home and pay all real estate taxes, insurance premiums, and regular upkeep costs. What kind of contracts do the buyer and seller have ?

Option contract

Contract for mortgage

Unilateral contract

Land sales contract

The purchaser of real estate under an installment contract

Generally pays no interest charge

Receives title immediately

Is not required to pay property taxes for the duration of the contract

Has an equitable interest in the property's title

Under the statue of frauds, all contracts for the sale of real estate must be

Originated by a real estate professional

On preprinted forms

In writing to be enforceable

Accompanied by earnest money deposits

If, upon the receipt of an offer to purchase a property, the seller makes a counteroffer, the prospective buyer is

Bound by the original offer

Not able to counter the counteroffer

Bound by whichever offer is lower

Relieved of the original offer

A buyer makes an offer to purchase certain property listed with a real estate professional and leaves an escrow deposit with the real estate professional to show good faith. The real estate professional should

Immediately apply the deposit in an account, as provided by state law

Put the deposit in an account, as provided by state law

Give the deposit to the seller when the offer is presented

Put the deposit in the real estate professionals personal checking account

While suffering from a mental illness at caused delusions, hallucinations, and loss of memory, a person signed a contract to purchase real estate. Which statement regarding the contract to purchase is TRUE

The contract is voidable

The contract is void

The contract lacks consent

The contract is fully valid and enforceable

A buyer and a seller agree on a purchase price of $300,00 for a house. The contract contains a clause stating that "time is of the essence". Which statement is TRUE?

The closing must take place within a reasonable period before the stated date

A "time is of the essence" clause is not binding on either party

The closing date must be stated as a particular calendar date, and not simply as a formula such as "two after loan approval"

If the closing date passes and no closing takes place, the contract may be rescinded by the party who was ready to settle on the scheduled date

A buyer signs a contract under which he is given the right to purchase a property for $230,000 anytime in the next six months. The buyer pays the current owner $3,000 at the time the contract is signed. Which of the following BEST describes this agreement ?

Contingency

Option

Installment

Sales

A property listing taken by a real estate sales associate is technically an employment agreement between the seller and

The broker

The local multiple listing service service

The sales associate

The sales associate and broker together

Which of the following is a similarity between an exclusive agency listing and an exclusive right-to-sell listing?

Under each, the seller retains the right to sell the real estate without the broker's help and without paying the broker a commission

Under each, the seller authorizes only one particular sales associate to show the property

Both types of listings give the responsibility of representing the seller to one broker only

Both types of listings are open listings

The listing agreement on a residential property states that it expires on May 2. Which event would terminate the listing before that date?

The agreement is renewed before May 2

The owner becomes ill on April 29

On April 15, the owner and agent cancel the agreement

The house is destroyed by fire on May 3

A seller listed a property with a broker under an exclusive agency listing agreement. If the seller finds a buyer, the seller will owe the broker

No commission

The full commission

A partial commission

Only reimbursement for the broker's costs

A broker sold a residence for $485,000 and received $26,675 as commission in accordance with the terms of the listing agreement. What was the broker's commission rate?

5.5%

6.5%

Under a brokerage agreement with a property owner, the broker is entitled to sell the property for any price, as long as the seller receives $85,000. The broker may keep any amount over $85,000 as a commission. This type of listing might be illegal and is called

An exclusive right-to-sell listing

An exclusive agency listing

An open listing

A net listing

Which of the following is a similarity between an open listing and an exclusive agency listing?

Under each, the seller avoids paying the broker a commission if the seller sells the property to someone the broker did not procure

Each grants a commission to any broker who procures a buyer for the seller's property

Under each, the broker earns a commission regardless of who sells the property, as long as it is sold within the listing period

Each grants the exclusive right to sell to whatever broker procedures a buyer for the seller's property

The final decision on a property's asking price should be made by

The seller's broker

The appraised value

The seller

The seller's attorney

Which statement is TRUE of a listing agreement

It is an employment contract for the professional services of the broker

It obligates the seller to transfer the property if the broker procures a ready, willing, and able buyer

It obligates the broker to work diligently for both the seller and the buyer

It automatically binds the owner, the broker, and the MLS to its agreed provisions

A broker sold property sold a property that was owned by a bank that had acquired it through foreclosure, and the broker received a 6.5% commission. The broker gave the listing sales associate $3,575, which was 30% of the firm's commission. What was the selling price of the property?

$55,000

$95,775

$152,580

$183,333

A seller hired a broker under the terms of an open listing agreement. While that agreement was still in effect, the seller, without informing the first broker, hired another broker from a separate firm under an exclusive right-to-sell listing for the same property. If the first broker produces a buyer for the property whose offer the seller accepts, the seller must pay a full commission to

Only the first broker

Only the second broker

Both brokers

Neither broker

A seller listed a residence with a broker. The broker Brough an offer at full price and terms of the listing agreement from a buyer who is ready, willing, and able to pay cash for the property, but the seller rejected the buyer's offer. In this situation, the seller

Must sell the property

Owes a commission to the broker

Is liable to the buyer for specific performance

Is liable to the buyer for compensatory damages

A buyer signed an agreement with a broker to compensate the broker even if the buyer purchases the property from a relative. This is called

An open buyer representation agreement

An exclusive agency buyer representation agreement

An exclusive buyer representation agreement

An invalid agreement

A prospective buyer signs an agreement with a broker to find a property for the buyer, and the buyer agrees to work only with that broker. While this agreement is in effect

Only one sales associate of the broker can work with the buyer

The broker can represent other buyers

The broker cannot show the buyer a property that is listed by the broker

The sales associate working with the buyer cannot work with other buyers

A seller sold property to a neighbor without the services of a real estate broker; however, the seller still owes a broker a commission because the seller signed

An exclusive agency listing agreement

An open listing agreement

An exclusive right-to-sell listing agreement

A net listing agreement

Most states require that a real estate listing agreement contain

A multiple listing service(MLS) clause

A definite contract termination date

An automatic extension clause

A broker protection clause

By executing a listing agreement with a seller, a real estate broker becomes

A procuring cause

Obligated to open a special trust account

The agent of the seller

Responsible for sharing the commission

The provision in a contract with a property seller that gives additional authority to the broker and obligates the broker to alert other brokers to the availability of the property is

A joint listing clause

A multiple listing clause

A net listing clause

An open listing clause

A valid reason for terminating a buyer representation agreement is

The desire of the buyer to see properties in an expanded area

The death of the broker

The agreement of the parties on increasing the price range of the buyer

The death of the sales associate who worked with the buyer

A broker is permitted to represent both the seller and the buyer in the same transaction when

The principals are not aware of such action

The broker is a subagent rather than the agent of the seller

Commissions are collected from both parties

Both parties have been informed and agree in writing to the dual representation

Which of the following is considered dual agency

A broker acting for both parties in the same transaction

Two brokerage companies cooperating with each other

A broker representing more than one principal

A broker listing a property and then, after it is resisted with another broker, selling the same property

A real estate broker's responsibility to keep the principal informed of all the facts that might affect a transaction is the duty of

Care

Disclosure

Obedience

Accounting

A real estate sales associate represents a buyer. At their first meeting, the buyer reveals plans to operate a dog-grooming business out of the purchased house. The sales associate did not check the local zoning ordinances to determine in which parts of town such a business could be conducted. Which common law duty did the sales associate violates

Care

Obedience

Loyalty

Disclosure

Designated agency is MOST likely to occur when

There is a client-buyer and a customer-seller

The seller and the buyer are represented by different companies

Both the buyer and the seller are customers

The buyer and the seller are represented by the same company

Which event event will terminate an agency in a broker-seller relationship?

The broker discovers that the market value of the property is such that an adequate commission will not be earned

The owner declares personal bankruptcy

The owner abandons the property

The broker appoints other brokers to help sell the property

Abandonment

Actual eviction

Constructive eviction

Lessor negligence

The federal fair housing act would permit

A hotel renting rooms only to celebrities

The owner of a 20-unit residential apartment building renting to men only

An apartment next to a catholic college refusing to furnish housing for jewish man

An owner refusing to rent the other side of the duplex in which she lives to a family with children

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