Question 1

When would a broker be legally required to reveal the amount of commission under a net listing?

Accepted Answer

A)  when the property is listed 
B)  after the close of escrow 
C)  whenever the seller asks 
D)  before the seller accepts the buyer's offer 
A)  when the property is listed 
B)  after the close of escrow 
C)  whenever the seller asks 
D)  before the seller accepts the buyer's offer D

Question 2

When a buyer backs out of a home sale, the most common outcome is:

Accepted Answer

A)  buyer gets back the deposit; seller hopes to find another buyer 
B)  seller sues for dollar damages 
C)  seller sues for specific performance 
D)  broker expects the seller to still pay the commission 
A)  buyer gets back the deposit; seller hopes to find another buyer 
B)  seller sues for dollar damages 
C)  seller sues for specific performance 
D)  broker expects the seller to still pay the commission A

Question 3

Under an option agreement, the grantor/owner of the property is the:

Accepted Answer

A)  optionee 
B)  option holder 
C)  option owner 
D)  optionor 
A)  optionee 
B)  option holder 
C)  option owner 
D)  optionor D

Question 4

An agency may not be terminated by

Accepted Answer

A)  death 
B)  agreement 
C)  expiration 
D)  estoppel 
A)  death 
B)  agreement 
C)  expiration 
D)  estoppel

Question 5

A properly signed exclusive right-to-sell listing agreement is an:

Accepted Answer

A)  implied contract 
B)  unilateral contract 
C)  bilateral contract 
D)  purchase contract 
A)  implied contract 
B)  unilateral contract 
C)  bilateral contract 
D)  purchase contract

Question 6

Six separate co-buyers of a parcel of land signed a deposit receipt contract at different times and places. A copy must be:

Accepted Answer

A)  given to the first signer only 
B)  given to each at the time they sign 
C)  given to the first and last signers only 
D)  be sent to each one after the last one signed 
A)  given to the first signer only 
B)  given to each at the time they sign 
C)  given to the first and last signers only 
D)  be sent to each one after the last one signed

Question 7

A broker's commission is most likely earned when the broker:

Accepted Answer

A)  secures acceptance of an offer 
B)  secures a substantial deposit with an offer 
C)  communicates acceptance to the offeror 
D)  communicates offer to seller 
A)  secures acceptance of an offer 
B)  secures a substantial deposit with an offer 
C)  communicates acceptance to the offeror 
D)  communicates offer to seller

Question 8

A buyer makes an offer on a lot for $150,000 and the seller counter offers for $158,000. The buyer is:

Accepted Answer

A)  bound by the original offer 
B)  bound by the counter offer 
C)  relieved from any further liability 
D)  prevented from making another offer 
A)  bound by the original offer 
B)  bound by the counter offer 
C)  relieved from any further liability 
D)  prevented from making another offer

Question 9

What is a contract called whereby the seller agrees to pay a commission and the broker agrees to use diligence in finding a buyer?

Accepted Answer

A)  bilateral executory contract 
B)  unilateral executory contract 
C)  bilateral executed contract 
D)  unilateral executed contract 
A)  bilateral executory contract 
B)  unilateral executory contract 
C)  bilateral executed contract 
D)  unilateral executed contract

Question 10

When the owner of a piece of leased property gives the lessee an option to buy, the option:

Accepted Answer

A)  requires the optionee to complete the sale 
B)  is a lien on the seller's title 
C)  requires no consideration or fee 
D)  is not a purchase contract until exercised 
A)  requires the optionee to complete the sale 
B)  is a lien on the seller's title 
C)  requires no consideration or fee 
D)  is not a purchase contract until exercised

Question 11

According to the exclusive right to sell CAR Residential Listing Agreement, a real estate broker is entitled to the commission if the property is:

Accepted Answer

A)  withdrawn from the market with the mutual consent of the seller and the listing agent 
B)  sold during the listing period 
C)  destroyed due to a natural hazard 
D)  found to be unmarketable by a title company 
A)  withdrawn from the market with the mutual consent of the seller and the listing agent 
B)  sold during the listing period 
C)  destroyed due to a natural hazard 
D)  found to be unmarketable by a title company

Question 12

Real estate commissions are:

Accepted Answer

A)  established by the California Association of REALTORS® 
B)  limited per the Commissioner's Code of Ethics 
C)  determined by local Associations of REALTORS® 
D)  negotiable 
A)  established by the California Association of REALTORS® 
B)  limited per the Commissioner's Code of Ethics 
C)  determined by local Associations of REALTORS® 
D)  negotiable

Question 13

Which of the following indicates the greatest progress toward completion of a sale?

Accepted Answer

A)  buyer advised broker that buyer would sign acceptance of seller's counter offer 
B)  broker notified buyer of seller's signed acceptance of buyer's offer 
C)  seller informed broker that seller would accept the lower price offered by buyer 
D)  broker advises principal that broker has a signed offer to buy per the listing terms 
A)  buyer advised broker that buyer would sign acceptance of seller's counter offer 
B)  broker notified buyer of seller's signed acceptance of buyer's offer 
C)  seller informed broker that seller would accept the lower price offered by buyer 
D)  broker advises principal that broker has a signed offer to buy per the listing terms

Question 14

A broker receives a deposit from a buyer with no instructions to hold the check uncashed pending the seller's acceptance of the offer. After the offer is accepted, the broker decides to put the check in a safe in the office for security purposes until the broker can get to the bank in two weeks. The broker is:

Accepted Answer

A)  guilty of conversion 
B)  innocent of any wrongdoing 
C)  guilty of commingling 
D)  required to place the deposit into a trust fund 
A)  guilty of conversion 
B)  innocent of any wrongdoing 
C)  guilty of commingling 
D)  required to place the deposit into a trust fund

Question 15

All of the following are essential for a valid real estate contract, except:

Accepted Answer

A)  lawful object 
B)  mutual consent 
C)  capable parties 
D)  parole evidence 
A)  lawful object 
B)  mutual consent 
C)  capable parties 
D)  parole evidence

Question 16

There are some basic provisions that should be included in a contract. Which one of the following is one of those provisions?

Accepted Answer

A)  Names of the sellers only. 
B)  What is the buyer's income. 
C)  Consideration. 
D)  All of the above. 
A)  Names of the sellers only. 
B)  What is the buyer's income. 
C)  Consideration. 
D)  All of the above.

Question 17

Receiving a commission from both the buyer and seller without full disclosure and approval is called:

Accepted Answer

A)  dual agency 
B)  single agency 
C)  divided agency 
D)  implied agency 
A)  dual agency 
B)  single agency 
C)  divided agency 
D)  implied agency

Question 18

An owner gives ABC Realty an exclusive agency listing for 60 days. Thirty days later the owner finds a buyer and sells the property without the services of ABC Realty. The:

Accepted Answer

A)  owner owes ABC Realty a commission 
B)  owner does not owe a commission 
C)  the sale is invalid 
D)  two of the answers are correct 
A)  owner owes ABC Realty a commission 
B)  owner does not owe a commission 
C)  the sale is invalid 
D)  two of the answers are correct

Question 19

At what minimum age is a civilian single person, who has not had any court or guardianship intervention, legally capable of entering into an enforceable real estate contract?

Accepted Answer

A)  21 years 
B)  18 years 
C)  19 years 
D)  16 years 
A)  21 years 
B)  18 years 
C)  19 years 
D)  16 years

Question 20

A unilateral contract is:

Accepted Answer

A)  created by actions. 
B)  a completed contract. 
C)  a promise for a promise. 
D)  a promise for an act. 
A)  created by actions. 
B)  a completed contract. 
C)  a promise for a promise. 
D)  a promise for an act.

When would a broker be legally required to reveal the amount of commission under a net listing?

When a buyer backs out of a home sale, the most common outcome is:

Under an option agreement, the grantor/owner of the property is the:

An agency may not be terminated by

A properly signed exclusive right-to-sell listing agreement is an:

Six separate co-buyers of a parcel of land signed a deposit receipt contract at different times and places. A copy must be:

A broker's commission is most likely earned when the broker:

A buyer makes an offer on a lot for $150,000 and the seller counter offers for $158,000. The buyer is:

What is a contract called whereby the seller agrees to pay a commission and the broker agrees to use diligence in finding a buyer?

When the owner of a piece of leased property gives the lessee an option to buy, the option:

According to the exclusive right to sell CAR Residential Listing Agreement, a real estate broker is entitled to the commission if the property is:

Real estate commissions are:

Which of the following indicates the greatest progress toward completion of a sale?

All of the following are essential for a valid real estate contract, except:

There are some basic provisions that should be included in a contract. Which one of the following is one of those provisions?

Receiving a commission from both the buyer and seller without full disclosure and approval is called:

An owner gives ABC Realty an exclusive agency listing for 60 days. Thirty days later the owner finds a buyer and sells the property without the services of ABC Realty. The:

At what minimum age is a civilian single person, who has not had any court or guardianship intervention, legally capable of entering into an enforceable real estate contract?

A unilateral contract is:

Introduction to Real Estate

Part I: Legal Description, Method of Acquiring Title , and Deeds

Encumbrances, Liens, and Homesteads

Real Estate Agency

Practical Real Estate Mathematics

Introduction to Real Estate Finance

Part I: Real Estate Lenders

Real Estate Appraisal

The Role of Escrow and Title Insurance Companies

Landlord and Tenant Relations

Land-Use Planning, Subdivisions, Fair Housing, and Other Public Controls

Introduction to Taxation

Single-Family Homes and Mobile Homes

A Career in Real Estate

Filters

Exam 5: Real Estate Contracts and Mandated Disclosures

When would a broker be legally required to reveal the amount of commission under a net listing?

When a buyer backs out of a home sale, the most common outcome is:

Under an option agreement, the grantor/owner of the property is the:

An agency may not be terminated by

A properly signed exclusive right-to-sell listing agreement is an:

Six separate co-buyers of a parcel of land signed a deposit receipt contract at different times and places. A copy must be:

A broker's commission is most likely earned when the broker:

A buyer makes an offer on a lot for $150,000 and the seller counter offers for $158,000. The buyer is:

What is a contract called whereby the seller agrees to pay a commission and the broker agrees to use diligence in finding a buyer?

When the owner of a piece of leased property gives the lessee an option to buy, the option:

According to the exclusive right to sell CAR Residential Listing Agreement, a real estate broker is entitled to the commission if the property is:

Real estate commissions are:

Which of the following indicates the greatest progress toward completion of a sale?

All of the following are essential for a valid real estate contract, except:

There are some basic provisions that should be included in a contract. Which one of the following is one of those provisions?

Receiving a commission from both the buyer and seller without full disclosure and approval is called:

An owner gives ABC Realty an exclusive agency listing for 60 days. Thirty days later the owner finds a buyer and sells the property without the services of ABC Realty. The:

At what minimum age is a civilian single person, who has not had any court or guardianship intervention, legally capable of entering into an enforceable real estate contract?

A unilateral contract is:

Introduction to Real Estate

Part I: Legal Description, Method of Acquiring Title , and Deeds

Encumbrances, Liens, and Homesteads

Real Estate Agency

Practical Real Estate Mathematics

Introduction to Real Estate Finance

Part I: Real Estate Lenders

Real Estate Appraisal

The Role of Escrow and Title Insurance Companies

Landlord and Tenant Relations

Land-Use Planning, Subdivisions, Fair Housing, and Other Public Controls

Introduction to Taxation

Single-Family Homes and Mobile Homes

A Career in Real Estate

Filters