Question 1:

A safety clause is found in a:

Selection:

A. Deposit receipt

B. Lease

C. Loan broker’s statement

D. Listing agreement

Question 2:

A contract between the seller of real property and a licensee, in which the seller agrees to pay the licensee a commission if he produces a ready, willing, and able buyer and the licensee agrees to use due diligence in procuring the buyer, is called:

Selection:

A. A bilateral executory contract.

B. A unilateral executory contract.

C. A bilateral executed contract.

D. A unilateral executed contract.

Question 3:

Consideration may be which of the following:

Selection:

A. money

B. a commitment

C. All of the other options may be considered consideration

D. labor

Question 4:

In a real estate purchase contract, the liquidated damages clause is initialed and the buyer defaults. The deposit should be:

Selection:

A. no more than 3% of the selling price or the amount of the deposit, whichever is less.

B. given to the seller when escrow is opened.

C. used to pay any escrow expenses and the balance returned to the buyer.

D. used to cover liquidated damages for both the seller and listing broker.

Question 5:

By signing an exclusive right to sell listing, the seller is creating a contract between himself and the:

Selection:

A. The MLS

B. Broker

C. Sales Agent

D. Buyer

Question 6:

Broker Oscar brought in an offer but the listing agreement did not include an authorization to accept a deposit. Which of the following is correct?

Selection:

A. If Oscar accepts the deposit, he/she would do so as the agent of the buyer.

B. None of the other options are correct

C. The authorization is implied.

D. Oscar must accept the deposit.

Question 7:

Which of the following listing contracts authorizes a real estate agent to market a property during a specified time and allows that person to collect a commission if a buyer is found by anyone, including the owner?

Selection:

A. An exclusive agency listing

B. An open listing

C. A net listing

D. An exclusive right to sell

Question 8:

Carol signs a listing agreement. What is included under the section “Terms of the Sale” on Carol’s agreement?

Selection:

A. Terms of sale, personal property, and additional terms

B. Price, compensation to broker, and deposit

C. Loan amount, personal property, and compensation to broker

D. Price, method of payment, and personal property

Question 9:

The duration of a listing agreement is:

Selection:

A. 3 months

B. 90 days

C. 6 months

D. Whatever is negotiated between the Broker and seller

Question 10:

A contract in which all parties have fulfilled their promises is a(n):

Selection:

A. executory contract

B. completed contract

C. expired contract

D. executed contract

Question 11:

Regarding a promissory note when getting financing:

Selection:

A. A promissory note secures the deed of trust.

B. The promissory note is not part of the deed of trust.

C. The deed of trust secures the promissory note.

D. The grant deed secures the promissory note.

Question 12:

When a counteroffer is made:

Selection:

A. The original offeror cannot amend his terms;

B. It is considered a partial acceptance of the original offer.

C. The offeree becomes the offeror;

D. The original offer becomes a unilateral offer;

Question 13:

When zoning changes, but owners are allowed to continue with non-conforming uses, this is a(n):

Selection:

A. Grandfather clause

B. Subordination clause

C. Acceleration clause

D. Alienation clause

Question 14:

Under a lease for a commercial property, a tenant agrees to pay $4,000 per month plus 3% of the gross monthly sales. This type of lease is called a:

Selection:

A. ground

B. triple net

C. net

D. percentage

Question 15:

Susan is shown a home by her agent, Selwyn. She makes an offer and gives Selwyn a check. At what point does her offer become an enforceable contract to buy?

Selection:

A. As soon as the seller receives the offer and the check.

B. When the deposit check clears.

C. When Susan is notified the seller accepts the offer.

D. As soon as Selwyn receives her offer and her check.

Question 16:

Assume a broker took an open listing and made an oral agreement with another broker to share the commission on a property. The second broker procured an offer resulting in the sale of the property. If the first broker refused to share his commission on the sale, which of these statements is most accurate?

Selection:

A. He need not share the commission due to the statute of frauds

B. He need not share the commission, as it was an open listing

C. The second broker should appeal to the Department of Real Estate

D. The second broker would stand a good chance of winning a court suit for his share of the commission

Question 17:

A voidable contract is one which:

Selection:

A. Is valid now but can be voided by an interested party for due cause

B. Has no force or effect

C. Is binding on neither party and not subject to ratification

D. Is subject to disciplinary action

Question 18:

What is a “liquidated damages” clause in a contract and is it legal?

Selection:

A. It is a clause that specifies a certain dollar amount that will be paid in “damages” if a party breaches a contract. It is legal.

B. An amount the buyer of a new home may collect from a builder if a dwelling is not ready for occupancy within thirty days of the agree-upon closing date.

C. A legal insurance clause that protects the buyer in case a property becomes damaged before escrow closes and he or she can take possession.

D. An amount over and above the actual damages… [Text Cutoff]

Question 19:

Which of the following is an acceptable termination date for an enforceable exclusive listing of residential real property:

Selection:

A. whenever the loan is funded

B. 90 days after listing agreement is signed

C. 3 days after notice of rescission of the seller

D. 90 days from the completion of construction

Question 20:

All of the following are essential elements of every valid contract, except:

Selection:

A. the payment of money.

B. adequate capacity of parties.

C. a meeting of the minds.

D. a legal act.