Real Estate Principals Chapters 11 and 12 Quiz

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  1. The amount of the earnest money in a sales contract should

    A) cover any expenses the buyer might incur if the seller defaults.
    B) pay the broker’s commission.
    C) discourage the buyer from walking away from the agreement.
    D) pay for any required inspections.
    C) discourage the buyer from walking away from the agreement.
    (this multiple choice question has been scrambled)
  2. What kind of listing agreement is illegal in many states because of the potential for conflict of interest between a broker’s fiduciary responsibility to the seller and the broker’s profit motive?

    A) Exclusive-right-to-sell
    B) Net listing
    C) Exclusive-agency listing
    D) pay the broker’s commission.
    B) Net listing
    (this multiple choice question has been scrambled)
  3. The term statute of limitations is BEST described as the limitation on the

    A) time period in which parties to a contract may bring a lawsuit to enforce their rights.
    B) cover any expenses the buyer might incur if the seller defaults.
    C) Net listing
    D) Exclusive-agency listing
    A) time period in which parties to a contract may bring a lawsuit to enforce their rights.
    (this multiple choice question has been scrambled)
  4. All of these are essential to a valid real estate sales contract EXCEPT

    A) discourage the buyer from walking away from the agreement.
    B) cover any expenses the buyer might incur if the seller defaults.
    C) an earnest money deposit, held in an escrow account.
    D) consideration.
    C) an earnest money deposit, held in an escrow account.
    (this multiple choice question has been scrambled)
  5. A broker just explained the value of signing an exclusive-agency listing with a broker who is a member of the multiple listing service. The broker is trying to overcome the misconceptions of the seller who asked about

    A) Exclusive-agency listing
    B) Exclusive-right-to-sell
    C) an open listing.
    D) discourage the buyer from walking away from the agreement.
    C) an open listing.
    (this multiple choice question has been scrambled)
  6. An example of personal property that a seller may leave with the property and, therefore, must be identified on the listing agreement is

    A) a ceiling light fixture.
    B) Exclusive-agency listing
    C) a built-in dishwasher.
    D) stacked firewood.
    D) stacked firewood.
    (this multiple choice question has been scrambled)
  7. A woman is buying a man’s house and wants to take over the mortgage. The lender releases the man from the obligation, substituting the woman as the party liable for the debt. This new agreement is called

    A) cover any expenses the buyer might incur if the seller defaults.
    B) a consideration.
    C) a novation.
    D) discourage the buyer from walking away from the agreement.
    C) a novation.
    (this multiple choice question has been scrambled)
  8. In most states, a broker’s license can be suspended or revoked if the broker

    A) consideration.
    B) Exclusive-right-to-sell
    C) takes a listing that does not include a date on which the listing expires.
    D) cancels the listing agreement without cause.
    C) takes a listing that does not include a date on which the listing expires.
    (this multiple choice question has been scrambled)
  9. What information is NOT needed for a listing agreement?

    A) pay for any required inspections.
    B) the age of the seller
    C) takes a listing that does not include a date on which the listing expires.
    D) The most recent property taxes
    B) the age of the seller
    (this multiple choice question has been scrambled)
  10. When may a broker’s agreement to represent a property buyer be terminated?

    A) the age of the seller
    B) cancels the listing agreement without cause.
    C) The broker and buyer mutually agree to cancel the agreement.
    D) discourage the buyer from walking away from the agreement.
    C) The broker and buyer mutually agree to cancel the agreement.
    (this multiple choice question has been scrambled)
  11. The buyer and seller agreed to a closing date of September 7 and that time is of the essence. Which of these is the closest meaning of the phrase?

    A) an earnest money deposit, held in an escrow account.
    B) The most recent property taxes
    C) Closing must be on or before September 7.
    D) consideration.
    C) Closing must be on or before September 7.
    (this multiple choice question has been scrambled)
  12. A buyer and a seller enter into a sales contract for the sale of a home. The seller changes his mind at the last minute, and the buyer suffers a financial loss of $1,500 and must rent a home in which to live. Unless the contract provides otherwise, all of these are legal actions that are likely to succeed EXCEPT

    A) the seller is not liable because the buyer should not have incurred the $1,500 cost before the sale.
    B) a ceiling light fixture.
    C) a consideration.
    D) pay for any required inspections.
    A) the seller is not liable because the buyer should not have incurred the $1,500 cost before the sale.
    (this multiple choice question has been scrambled)
  13. Which of these is an example of a unilateral contract?

    A) an earnest money deposit, held in an escrow account.
    B) Lease
    C) consideration.
    D) Option
    D) Option
    (this multiple choice question has been scrambled)
  14. A listing agreement is

    A) an employment agreement between the broker and the sales associate.
    B) Exclusive-right-to-sell
    C) an employment contract between the seller and the broker.
    D) time period in which parties to a contract may bring a lawsuit to enforce their rights.
    C) an employment contract between the seller and the broker.
    (this multiple choice question has been scrambled)
  15. A seller accepted all of the terms that the buyer offered, making only one small change in the amount of the earnest money. At the moment, these agreements constitute

    A) a counteroffer.
    B) Lease
    C) an employment agreement between the broker and the sales associate.
    D) pay for any required inspections.
    A) a counteroffer.
    (this multiple choice question has been scrambled)
  16. A buyer makes an offer on a house, and the seller accepts in writing. What is the current status of this relationship?

    A) Net listing
    B) The buyer and seller have an express, bilateral executory contract.
    C) Lease
    D) Option
    B) The buyer and seller have an express, bilateral executory contract.
    (this multiple choice question has been scrambled)
  17. In a buyer representation agreement, the broker acts as the agent of the buyer and must protect the buyer’s interests

    A) The buyer and seller have an express, bilateral executory contract.
    B) at all points in the transaction.
    C) only during property showings.
    D) the seller is not liable because the buyer should not have incurred the $1,500 cost before the sale.
    B) at all points in the transaction.
    (this multiple choice question has been scrambled)
  18. It is the broker’s office policy that salespeople keep 60% of the firm’s share of any commission earned from any property they list. The salesperson listed a property that was later sold by a cooperating broker for $285,000. If the two brokers agree to split the 6.5% commission equally, what will the sales person receive?

    A) $5,557.50
    B) $7,654.00
    C) $7,235.25
    D) $6,092.00
    A) $5,557.50
    (this multiple choice question has been scrambled)
  19. Any of these will terminate a listing agreement EXCEPT

    A) performance.
    B) expiration.
    C) an offer to purchase.
    D) abandonment by broker.
    C) an offer to purchase.
    (this multiple choice question has been scrambled)
  20. Additional conditions that must be satisfied before a sales contract is fully enforceable are called

    A) contingencies.
    B) binders.
    C) addenda.
    D) amendments.
    A) contingencies.
    (this multiple choice question has been scrambled)
  21. If a man allows a woman to back out of a contract, returns the earnest money to her, and both are back to the positions they held before the contract, the contract has been

    A) executed.
    B) assigned.
    C) rescinded.
    D) cancelled.
    C) rescinded.
    (this multiple choice question has been scrambled)
  22. A 14-year-old comes into a brokerage office and says, “I want to make an offer on this property. Here is a certified check for 10% of the asking price. Please help me with the paperwork.” Why should the broker be concerned?

    A) Because one of the parties is a minor, the contract is illegal.
    B) The sales contract will be void because the minor’s age is a matter of public record.
    C) The earnest money deposit must be at least 20% of the asking price when a minor is involved in the transaction.
    D) The sales contract may be disaffirmed by the minor.
    D) The sales contract may be disaffirmed by the minor.
    (this multiple choice question has been scrambled)
  23. If a contract does NOT contain a time or date for performance, the act should be done within

    A) one week.
    B) a reasonable time.
    C) one month.
    D) two weeks.
    B) a reasonable time.
    (this multiple choice question has been scrambled)

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stephanie0107
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323968
Filename:
Real Estate Principals Chapters 11 and 12 Quiz
Updated:
2016-10-02 18:38:55
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Chapters 11 and 12
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