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32 Cards in this Set

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When the real estate commission pays a claim from the recovery fund, which of the following is true before a licensee may obtain a real estate license once again?

a. Licensee must pay back the amount the fund paid out
b. Licensee must work under probation for one year
c. Licensee will have a limited license for one year
d. Licensee must ask permission from the court to reinstate the previous license
a. Licensee must pay back the amount the fund paid out
When a broker secures a listing, which of the following actions would not require the owner's approval?

a. Placing a sign on the property
b. Advertising the property for sale
c. Assigning the listing to another salesperson
d. Assigning the listing to another brokerage firm
Assigning the listing to another salesperson
A real estate brokerage company has twenty listings. The company is sold to another local real estate company. What is the status of the listings?

a. Listings may be assigned to the new company
b. Property owner and new company msut sign a new listing
c. Listings remain valid and no aciton is necessary
d. The real estate department msut approve the sale and listing transfer
b. Property owner and new company must sign a new listing
The body of laws that governs listings are called:

a. Statute of Fraud
b. Statute of limitations
c. Federal Fair Housing
d. Law of agency
d. Law of agency
Which of the following can't fild a claim against the recovery fund?

a. A corporation harmed by a licensee
b. A single person that was harmed by a licensee
c. A husband and wife with expired real estate licenses that were harmed by a licensee
d. An out of state party that had earnest money stolen by a licensee
a. A corporation that was harmed by a licensee
The relationship between a broker and his salesperson is what type of agent?

a. General
b. Special
c. Ostensible
d. Fiduciary
a. General
A broker lists the Wilson's property, and only Mr. Wilson signs the listing. The broker finds a buyer who is ready and willing to buy the property under the terms of the listing. Mrs. Wilson refuses to sign the sales contract. Which of the following is true regarding the commission?

a. Mr. Wilson is responsible
b. Mr. And Mrs. WIlson are responsible
c. Mrs. Wilson only is responsible
d. Neither party is responsible
b. Mr. And Mrs. Wilson are responsible
A listing agreement is known as:

a. A sales contract
b. An agreement to sell
c. A real estate contract
d. A contract for personal and profesional services
d. A contract for personal and professional services
A real estate purchase contract must contain which of the following:

a. Date of prorations
b. Form in which earnest money is given
c. Method of taking title
d. Type of conveying instruments
b. Form in which earnest money is given
When a buyer enters into a lease-purchase, which of the following are true?

a. The buyer has an option to buy the property
b. The buyer is obligated to buy the property
c. The buyer would have the first right to refuse
d. The buyer would have a life estate
b. The buyer is obligated to buy the property
All of the following would be included in a listing except:

a. Zoning
b. Houses of worship
c. Property taxes
d. Property address
b. Houses of worship
A salesperson represents a seller in all real estate matters. This agency is called:

a. Specific
b. General
c. Universal
d. Implied
b. General
Puffing would mean:

a. Exaggerated illegal act
b. Exaggerated facts
c. Exaggerated opinion
d. Buyer beware
c. Exaggerated opinion
A seller gives a salesperson the right to sell and make other decisions regarding the property - this is called:

a. Special agent
b. Implied agent
c. Ostensible agent
d. General agent
d. General agent
A salesperson is working for a principal, but the salesperson exceeds the authority that was given in the agreement. The principal does nothing to correct the actions of the salesperson, and the public is lead to believe that the action were with authority. This type of agency is best called:

a. Dual
b. Limited
c. Estoppel
d. Voluntary
c. Estoppel
A broker lists a property for sale, but the broker has never advertised, shown the property, or communicated to the seller in any way. The seller has a right to conclude that the broker:

a. Has a busy schedule
b. Assigned the listing to another broker
c. Found the property overpriced
d. Has breached fiduciary and abandonded the listing
d. Has breached fiduciary and abandoned the listing
A salesperson's right to compensation is based on:

a. Obtaining a listing
b. Obtaining a signed contract
c. Closing of an escrow
d. Having a valid license
d. Having a valid license
Who does a salesperson represent?

a. Client
b. Customer
c. Employing Broker
d. Co-operating Broker
c. Employing Broker
When a salesperson works for brokerage company that is incorporated, which of the following is true?

a. The salesperson is the agent of the seller and the corporation is an agent of the salesperson
b. The salesperson is an agent of the corporation and the corporation is an agent of the seller
c. The corporation is a subagent of the seller
d. The corporation and the salesperson are considered dual agents
b. The salesperson is an agent of the corporation and the corporation is an agent of the seller
Broker A hires salesperson B who enters into a contract with a buyer and seller and opens escrow. Before the close of escrow, broker A's license is suspended. What is the status of the commission to be paid the salesperson on the opened escrow?

a. The salesperson may not receive a commission
b. The salesperson may receive a commission
c. No commission can be paid until the broker's license is reinstated
d. The seller would not be obligated to pay any commission
b. The salesperson may receive a commission
Under what condition would a listing not terminate?

a. Principal dies
b. Broker dies
c. Salesperson dies
d. Bankruptcy of the seller
c. Salesperson dies
The term procuring cause would need to be proven most in which of the following?

a. Exclusive agency
b. Open listing
c. Exclusive right to sell
d. Net listing
b. Open listing
An exclusive right to sell listing is what type of contract?

a. Expressed unilateral
b. Implied bilateral
c. Implied unilateral
d. Executory bilateral
d. Executory bilateral
Seller hires a broker, the broker makes decisions for the seller without authority and without notifying the seller. The broker is acting in which of the following types of agency:

a. Ratification
b. Ostensible
c. Special
d. Universal
b. Ostensible
Which of the following types of listings would be considered more uni-lateral than bi-lateral:

a. Exclusive right to sell
b. Exclusive agency
c. Exclusive agency coupled with a net dollar amount
d. Open
d. Open
A buyer asks the real estate agent if the property is located in a good area. The agent is aware that the property is located in the highest crime area in the city. The agent tells the buyer the property is located in a great area. This would be considered:

a. Innocent misrepresentation
b. Negligent misrepresentation
c. Puffing
d. Latent defect
b. Negligent misrepresentation
A listing can be terminated by which of the following:

a. Bankruptcy of the seller
b. Change in compensation
c. Change of salesperson
d. Broker's office is re-located
a. Bankruptcy of the Seller
Seller hires a broker, the broker makes decisions for the seller without authority and without notifying the seller. The broker is acting in which of the following types of agency:

a. Ratification
b. Ostensible
c. Special
d. Universal
b. Ostensible
Which of the following would be true regarding an exclusive agency listing:

a. Cannot go into multiple listing
b. Brokers can use subagents to find a buyer and still be paid a commission
c. The listing broker is paid on all circumstances
d. The property will be listed with more than broker
b. Brokers can use subagents to find a buyer and still be paid a commission
An open listing between a seller and broker would be considered:

a. Implied contract
b. Bilateral contract
c. Unilateral contract
d. Coupled with an interest
c. Unilateral contract
To ensure being paid a commission on an open listing the broker must:

a. Obtain a signed offer
b. Have a signed listing contract
c. Place the property in multiple listing
d. Obtain the highest offer
b. Have a signed listing contract
You have a listing that expires while a contract on the property is in escrow. Which of the following is true:

a. The listing turns into an open listing
b. You may continue to work on the contract even if the listing has expired
c. If you work on the contract you would violate the law
d. In order to work on the contract you would need a new listing
b. You may continue to work on the contract even if the listing has expired