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50 Cards in this Set
- Front
- Back
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31 A developer had a mortgage loan on his entire housing development. when he sold a lot to a buyer, he was able to deliver title to that lot free of the mortgage lien by obtaining a partial release. What type of loan did the developer have?
a. blanket mortgage b. purchase money mortgage c. package mortgage d. open-end mortgage |
A blanket mortgage
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32. The title to real property passes when a valid deed is:
a. signed and recorded b. delivered and accepted c. filed and microfilmed d. executed and mailed |
B. delivered and accepted
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33. the primary purpose of a deed is to:
a. prove ownership b. transfer title rights c. give constructive notice d. prevent adverse possession |
B. Transfer title rights
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34. Allof the following are required for a deed to be valid except the:
a. date b. legal description c. name of the grantee d. signature of the grantee |
D Signature of the grantee
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35. F bought acreage in a distant county, never went to see it, and did not use it, although he regularly paid the real estate taxes on it. L moved his mobile home onto F's property, drilled a well for water, and lived there for many years. L may have become the owner of the acreage if he complied with the state laws regarding:
a. intestate succession b. adverse possession c. the statute of frauds d. the statute of limitations |
B Averse Possession
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36. In order for a deed to be valid:
a. the grantor must be legally competent b. the signature of the grantor must be witnessed c. the deed must be recored d. the grantee must sign the deed |
A. The grantor must be legally competent
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37. The recordation of a Warranty deed:
a. guarantees ownership b. protects the interests of the grantee c. prevents claims of parties in possession d. provides defense against claims of adverse possession |
B. protects the interests of the grantee
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38. A document that protects against hidden risks such as forgeries and loss due to defects in title, subject to specific exceptions, is called a (n):
a. chain of title b. abstract of title c. certificate of title d. title insurance policy |
d. title insurance policy
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A buyer took delivery of the deed to his new house but forgot to record the deed. Under these circumstances:
a. the transfer of the property from the seller is ineffective b. the buyer's interest is not fully protected against thir parties c. the deed is invalid after 90 days d. the deed is invalid after 6 months |
B. The buyers interest is not fully protected against third parties
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40. Quieting a title refers to:
a. a title insurance company's search of the title b. a mortgagor relinquishing title after foreclosure c. the deposit of title with an escrow agent d. the removal of a cloud on the title by court action |
D. The removal of a cloud on the title by court action
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41. A parcel of vacant land 80 ft. wide and 200 ft. deep sold for $200.00 per front foot. How much money would a salesperson receive for her 60% share in the 10% commission:
a. $640 b. $960 c. $1,600 d. $2,400 |
b. $960
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42. Which of the folowing acts is NOT an example of an agency relationship?
a. listing a property b. leasing a property c. a broker selling his/her own property d. representing the purchaser |
c. a broker selling his/her own property
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43. A real estate broker acting as the agent of the seller:
a. is obligated to render fithful service to the principal b. can disclose the seller's minimum price c. should present to the seller only the highest offer for the property d. can bind a seller to a purchase contract |
a. is obligated to render faithful service to the principal
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44. The listing and selling broker's agree to split a 7% commission fifty-fifty on a $95,000 sale. the listing broker gives the listing salesperson 30% of his commission and the selling broker gives the selling salesperson 35% of her commission. How much does the selling salesperson earn from the sale after deducting expenses of $35.00?
a. $1,139.78 b. $1,174.78 c. $941.95 d. $1,183.88 |
A. $1,139.78
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45. All the following coul be considered fraudulent except:
a deceitful or dishonest practices b. exaggerated statements about the property c. omitted statements of material fact d. mis-statements about the property |
B. Exaggerated statements about the property
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46. A real estate salesperson who is an independent contractor receives:
a. a monthly salary or hourly wage b. company-provided health insurance c. a company provided automobile d. negotiated commissions on transactions |
d. negotiated commissions on transactions
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The type of listing agreement that provides for the payment of a commission to the broker even though the owner makes the sale without the aid of the broker is called a(n):
a. exclusive-right-to-sell listing b. open listing c. exclusive agency listing d. option listing |
A. exclusive right to sell listing
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48. The seller wants to net $65,000 on the sale of his house after paying the broker fee of 6%. What must be minimum gross selling price of the property be?
a. $69,149 b. $68,093 c. $67,035 d. $66,091 |
a. $69,149
answer by taking 65,000 divided by 94% |
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49. When dealing with risks, the options of the property manager includes all of the following except:
a. avoiding it b. retaining it c. ignoring it d. transfer it |
c. ignoring it
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50. Regulation Z applies to:
a. business loans b. real estate sales agreements c. commercial loans under $10,000 d. personal credit transactions under $25,000 |
d. personal credit transactions under $25,000
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51. It is the dduty of the agent to disclose to the principal every significant step taken in the transaction of the principal's business. this is because the:
a. commission can be adjusted up or down according to the agent's efforts b. agent has a fiduciary obligation to the principal c. terms of the listing contract require the agent to do so d. terms of the purchase contract require the agent do so. |
B. Agent has a fiduciary obligation to the principal
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52. Upon discovering a latent defect in the property, the licensee should disuss the problem with the seller and then:
a notify the seller that the defect must be repaired b. arrange for the repairs herself or himself c. inform any prospective buyers of the defect d. contact the city building inspector of the defect |
C. inform the prospective buyers of the defect
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53. A broker lists a property for sale at $100,000 with a 5% commission, and later obtains a verbal offer to purchase the proerty from a prospective buyer. The seller indicates to the broker that the offer would be acceptable if it were submitted in writing. Before the offer can be put in writing, the buyer changes their mind and revokes the verbal offer. In this situation the broker would be entitled to:
a. a commission of $5,000 b. only a partial commission c. no commission d. the normal commission rate |
C. no commission
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54. Salesperson N finally concluded some extremly difficult negotiations that resultedd in the sale of a listed property. For all her extra efforts sh can legally demand a performance bonus from:
a. the seller b. the buyer c. the broker d. no one |
D. no one
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55. A salesperson sells aproperty listed by another brokerage firm in the MLS. The salesperson has been working with the buyer for many months but does not have an agency contract with the buyer. This salesperson has a fiduciary obligation to:
a. the seller b. the buyer c. no one d. the public |
a. the seller
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56. It is illegal for a lending institution to refuse to make a reidential real estate loan in a particular area because of the:
a. questionable economic situatioon of the applicant b. physical location of the property c. applicant not being of legal age d. deteriorated condition of the property |
B. Physical location of the property
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57. A broker employs several salespeople, one of whom is a minority. the broker tells this salesperson to work only with minority buyers and solicit listings in only preominately minority neighborhoods. Which of the following is true?
a. The broker is entitled to direct the activities of this salesperson b. the fair housing laws do not apply to the broker's practices c. the salesperson's rights have been violated by the broker d. the salesperson should be satisfied with the broker's policy |
C. The salesperson's rights have been violated by the broker
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58. A tenant has a month to month lease for one-year. For the landlord to raise the rent, he must give the tenant:
a. 30 days notice b. 60 days notice c. no notice d. notice as of April 15th |
a 30 days notice
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59. G has defaulted in the payment of several of his debts, and the court has ordered his property sold to satisfy them. A title search reveled several outstanding liens against the property. Which of the following liens has priority?
a. the outstanding mortgage lien date and recorded one year ago. b. the current years real estate tax. c. the judgment lien rendered and recorded last month d. the mechanic's lien for work started two months before the mortgage was recorded |
b. the current years real estate tax. Real estate tax always takes presidence over all other liens.
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60. Reconcilliation is best described as:
a. selecting the highest value given by the three approaches to value b. comparing comparable properties and identifying their amenities c. determining the final value by selecting one value from those given d. analyzing the results obtained from the three approaches to value |
D. Analyzing the results obtained from the three approaches to value
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61. A real estate salesperson may have his/her license revoked for:
a. listing for less then the standard commission b. selling part time c. accepting compensation for brokerage services from someone other than their employing broker d. changing employment from one broker to another |
C. accepting compensation for brokerage services from someone other than their employing broker
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62. Which of the following is (are) regulated by the real estate licensing law?
a. the legal maximum listing commission rate b. a receiver in bankruptcy c. an individual charging finder's fees for referral of information leading to a listing d. the number of hours a broker is required to be on the job |
c. an individual charging a finder's fees for referral of information leading to a listing
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63. A license may be revoked upon proof of"
a. charging more than the usual rate of commission b. refulas to accept a listing c. being convicted of a felony d. having your automobile repossessed |
c. Being convicted of a felony
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64. As a salesperson involved in a real estate transaction, you may accept a commission from the:
a. grantee b. grantor c. employing broker d. mortgagee |
C. employing broker
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65. A salesperson may advertise a property for sale only
a. if he/she personally listed the property b. if the name of thebroker is included in the ad c. if the broker is entitled to use the term "Realtor" d. if the salesperson pays for the ad out of his/her commission |
b if the name of the broker is included in the ad.
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66. A licensing board or commission has jurisdiction to do which of the following?
a. establish the commission split between cooperating brokers b. regulate rates of commission charged by brokers c. regulate the minimum rate of compensation brokers pay salespeople d. none of the above |
D none of the above
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67. A broker may have his/her license revoked or suspended for:
a. taking an exclusive listing without an expiration date b. refusing to pay a referral fee to an unlicensed person c. refusing to accept a buyer's finder's contract d. terminating the employment of an independent contractor licensee |
A Taking an exclusive listing without an expiration date
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68. Which of the following is are entitled to a hearing befre the real estate licensing commission:
a. one who has failed the licensing examination three times b. one who has passed the licensing examination but is denied a license c. a licensing candidate who does not agree with the questions asked on the licensing examination d. all of the above |
B. One who has passed the licensing exam but is denied a license.
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69. A broker is guilty of commingling if he/she maintains clients monies:
a in a sealed envelope in the office safe b. in escrow to the credit of the broker c. in his her savings account d. all of the above |
D. all of the above
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70. Which of the following actions on the part of a licensed broker or salesperson could result in license revocation?
a. failing to show a property to an unqualifie buyer b. quoting a price to a buyer less then the listed price c. suggesting to a customer that they should consult an attorney before signing a sales agreement d. hiring an inspection company on behalf of t |
b. quoting a price to a buyer less than the listed price
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71. A licensee could have his or her license revoked for:
a. failing to devote full time to the real estate business b. listing the property at more than a 6% commission c. listing the property at less than a 6% commission d. none of the above |
D none of the above
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72. A broker's license can be revoked if they:
a. use a corporation in which the broker is the majority stockholder b. uses the corporation above to buy listed property without disclosing in writing his/her corporate interest to the seler c. showing the property to a salesperson (as a prospective buyer) in the brokers employ d. refusing to hire a newly licensed salesperson |
b. Uses the corporation above to buy listed property without disclosing their relatiuonship to that company in writing to the seller
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73. Which of the following is are true of each broker licensed to operate in the state?
a the broker may engage in the business of real estate other than full time b. the broker is entitled to use the ter "realtor" c. the commissions charged by the broker are regulated by the department of business regualtion d. to be a broker you must hae a bachelor's degree in real estate |
a. the broker may engage in the business of real estate other than full time.
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74. Which of the following are true?
a. the broker must submit only the highest written offer to the owner b. a broker may place a "for sale" sign on a listed property only with the owners permission c. a broker may place a lien on property that he sold and the seller refused to pay the agreed commissions d. all of the above |
b. a broker may place a for sale sign on a listed property only with the owners permission
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75. Which of the following can file suit to obtain an earned commission?
a. a broker who is now a salesperson, but was a broker at the time the commission was earned but not paid b. an inactive salesperson who wants to sue his her former broker for payment of an earned commission c. a broker who has not been paid an earned commission by a cooperating broker d. all of the above |
d. all of the above
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76. The license law usually prohibits which of the following activities?
a. collection of commissions from both buyer and seller b. asoliciting for listings c. offering free home inspections to the first ten people to list with you this month d. the owner of a proerty offering a "bonus" to the selling agent |
c. Offering free home inspections
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77. Which of the following does not constitute improper conduct on the part of a broker?
a. advising a principal against consulting an attorney b. acquiring a listing where the broker keeps all money above a certain sale price c. refusing to pay an earned commission to a salesperson because they are not working hard enough d. none of the above |
d. none of the above
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78. The real estate recovery fund may be used to settle which of the following?
a. a claim by a salesperson against a broker for unpaid commissions b. a monetary loss suffered by a person who sold property to a broker who has an undisclosed interest in the property c. a person who bought a home from a builder who will not complete the home as promised d. a claim by a broker who was not commission due from a client |
b. a monetary loss suffered by a person who sold property to a broker who has an undisclosed interest in the property
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79. If a salesperson makes a misrepersentation in selling land
a. the sales contract may be voided b. the salesperson may be discipline by the licensing agency c. the salesperson could be sued d. all of the above |
d. all of the above
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80. The purpose of the license law is to:
a. provide additional revenue for the state b. protect licensee's from unfair competition c. protect the general public d. regulate the number of individuals earning real estate licenses |
c. protect the general public
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