Real Estate Practice, Seventh Edition Quizzes - firsttuesday

[Pages:13]Quizzes 645

Real Estate Practice, Seventh Edition Quizzes

Instructions: Quizzes are open book. All answers are True/False or Multiple Choice. Answer key is located on Page 657.

Quiz 1 --Chapters 1-6, Pages 1-52 ____ 1. When testing the conduct of an agent while engaged in real estate related activities,

the independent contractor (IC) provision in the broker-agent employment agreement cannot and does not change the sales agent's classification as: a. an agent of the client. b. an agent of the broker. c. Both a and b. d. Neither a nor b. ____ 2. An outside salesperson is defined as a person who regularly works: a. more than half of their time away from their place of employment. b. less than half of their time away from their place of employment. c. Both a and b. d. Neither a nor b. ____ 3. An agent needs to collect income data during an interview with a prospective broker, including: a. the number of sales the agent is likely to close during their first year. b. the share of the gross broker fees the agent will receive under the fee-sharing

schedule offered by the broker. c. Both a and b. d. Neither a nor b. ____ 4. The best time for a sales agent to renegotiate their share of broker fees is: a. at the height of a booming market. b. during the slowdown following the boom. c. just prior to an upswing in sales. d. None of the above. ____ 5. To keep claims from clients and others under control, a broker needs to maintain a: a. multiple listing service (MLS). b. risk reduction program. c. low turnover rate. d. All of the above. ____ 6. Agents are required to be members of the trade association that owns a multiple listing service (MLS) to post listings and access the MLS database. ____ 7. A ____________ relationship is created between a seller and a buyer's agent when the seller pays the buyer's agent's fee. a. subagency b. dual agency c. Both a and b. d. Neither a nor b. ____ 8. When a dual agency is established on a one-to-four unit residential sales transaction, the dual agent may pass on any pricing information from the buyer to the seller without the buyer's prior consent.

646 Real Estate Practice, Seventh Edition

____ 9. A broker must disclose to their seller the existence of an indirect interest one of the broker's agents holds in the property.

___ 10. A Compensation Disclosure form is used to inform sellers/buyers of the broker's ownership interest in an affiliated business.

Quiz 2 --Chapters 7-10, Pages 53-96 ____ 1. The content of the Agency Law Disclosure form is not dictated by statute. ____ 2. An Agency Law Disclosure form needs to be presented to all parties by an agent when

listing, selling, buying or leasing for a term greater than one year: a. commercial property. b. mobilehomes. c. Both a and b. d. Neither a nor b. ____ 3. A separate agency confirmation provision is not mandated for inclusion in purchase agreement forms. ____ 4. An open listing does not need to contain an expiration date. ____ 5. A seller's broker needs to disclose to the seller the broker fee they will receive on a net listing: a. before the close of escrow. b. before the seller signs the listing agreement. c. before the seller accepts a buyer's offer. d. None of the above. ____ 6. A broker is prohibited from including an advance fee provision in a guaranteed sale listing. ____ 7. An exclusive right-to-sell listing agreement entitles a broker to collect a fee when they locate a ready, willing and able buyer and submit the buyer's full listing offer to the seller. ____ 8. A client's oral promise to pay a broker fee entitles the broker to enforce collection of the fee. ____ 9. The diligent effort of a broker under an exclusive listing includes: a. analyzing the property. b. marketing the property. c. Both a and b. d. Neither a nor b. ___ 10. A right-to-buy listing supersedes a replacement property provision in an exclusive right-to-sell listing.

Quiz 3 --Chapters 11-17, Pages 97-160 ____ 1. A broker will be paid a full listing fee on the further leasing of the listed property

without the broker's consent when a(n) ____________________ is included in the listing agreement. a. withdrawal-from-sale clause b. termination-of-agency clause c. exclusive right-to-sell clause d. None of the above.

Quizzes 647

____ 2. A broker can require a seller to relist with them if the seller decides to sell within the cancellation period.

____ 3. The safety clause period commences on: a. the expiration of a listing agreement by its own terms. b. a seller's termination of the agency before the listing period expires. c. a seller's withdrawal of the property from the market before the listing period expires. d. Any of the above.

____ 4. A properly worded and perfected safety clause is enforceable: a. only when a seller relists with the original agent. b. only in a seller's listing. c. even when a seller relists with another broker. d. None of the above.

____ 5. The price agreed to in a purchase agreement is based on the property conditions "as disclosed."

____ 6. A broker needs to keep all advance cost accounting records for at least: a. one year. b. three years. c. five years. d. ten years.

____ 7. Placing a "For Sale" sign ___________ is a misdemeanor public nuisance. a. on private property with the owner's permission b. on public property with the city's permission c. Both a and b. d. Neither a nor b.

____ 8. Special agency duties owed to a buyer by a broker arise when the broker enters into an exclusive right-to-buy listing agreement with the buyer.

____ 9. The exclusive right-to-buy listing agreement is the agent's offer to render services for a fixed period of time.

____ 10. A cooperating broker is used as the title for: a. the exclusive agent of the seller. b. the subagent of the seller. c. the exclusive agent of the buyer. d. None of the above.

Quiz 4 --Chapters 18-23, Pages 161-226 ____ 1. Broker fee provisions in a purchase agreement are to be placed:

a. above the buyer's signature. b. within the four corners of the contract. c. Both a and b. d. Neither a nor b. ____ 2. Brokers become third party beneficiaries when both seller and buyer enter into an agreement with a provision calling for the payment of broker fees.

648 Real Estate Practice, Seventh Edition

____ 3. When a buyer has orally agreed to pay a broker fee and the seller knowingly interferes by inducing the buyer to breach their promise to pay, the seller owes the broker the promised fee.

____ 4. The best protection a broker has against the alteration of broker fee instructions is to dictate that escrow prepare unilateral fee instructions.

____ 5. A bona fide employee finder of a broker may not be compensated for referrals under the Real Estate Settlement Procedures Act (RESPA).

____ 6. Records of an agent's activities on behalf of a buyer during the listing period need to be retained by: a. the agent. b. the buyer's broker. c. the buyer. d. the seller's broker.

____ 7. A seller's agent does not have a duty to investigate the accuracy of any information provided by the seller before passing it on to a prospective buyer.

____ 8. A seller's agent's visual inspection of a one-to-four unit residential property needs to include defects: a. known to the seller's agent. b. readily observable by the seller's agent. c. Both a and b. d. Neither a nor b.

____ 9. A seller's agent's opinion given to a buyer becomes a statement of fact due to their fiduciary relationship with the buyer.

____ 10. An inexperienced seller can rely on an agent's opinion as a positive statement of truth when the agent holds themselves out to be specially qualified in the subject matter.

Quiz 5 --Chapters 24-27, Pages 227-258 ____ 1. The use of an "as-is" clause in a purchase agreement to make the buyer waive delivery

of a Transfer Disclosure Statement (TDS) is void as it is against public policy. ____ 2. A buyer has ________ from the close of escrow to recover losses caused by the

negligent failure of the seller's agent to disclose a property's observable and known material defects. a. one month b. six months c. one year d. two years ____ 3. A seller's agent is exempt from conducting a visual inspection of a one-to-four unit residential property when the seller is exempt from using the Transfer Disclosure Statement (TDS). ____ 4. An automatic reverse safety device is required for all automatic garage doors installed after: a. January 1, 1990. b. January 1, 1991. c. January 1, 1992. d. January 1, 1993.

Quizzes 649

____ 5. A separate form is required to be filled out if the water heater is marked as being in compliance on a TDS form.

____ 6. The use of a home inspection report (HIR) does not relieve a seller's agent of their duty to visually inspect the property.

____ 7. If a buyer discovers an error in an HIR which affects the property's value or desirability, they have ________ after the date of the inspection to file a legal action to recover money losses. a. one year b. three years c. four years d. five years

___ 8. A home inspector may not pay a referral fee to a licensee for the referral of any home inspection business.

___ 9. When a seller has refused to authorize the preparation of an HIR prior to entering into a purchase agreement, the buyer is advised to order one: a. on entering into a purchase agreement. b. after the expiration of any contingent cancellation period. c. after escrow has closed. d. on opening escrow.

___ 10. A buyer is able to enforce a reduction of the purchase price before closing for defects undisclosed to the buyer if the purchase agreement contains a price adjustment provision.

Quiz 6 --Chapters 28-31, Pages 259-302 ____ 1. A Natural Hazard Disclosure (NHD) needs to disclose whether the listed property

is located within _________ of a proposed airport when the NHD is prepared by an NHD expert. a. one mile b. two miles c. three miles d. None of the above. ____ 2. A flood zone designated with the letter(s) ___ is subject to mandatory flood insurance requirements. a. A b. V c. Both a and b. d. Neither a nor b. ____ 3. An NHD requires a seller and the seller's agent to disclose to a buyer whether they have any knowledge that the property is in an earthquake fault zone. ____ 4. Section I items on a Structural Pest Control report (SPC) are conditions which will likely lead to infestation. ____ 5. Areas that do not need to be inspected during an SPC inspection include: a. attics with inadequate crawl space. b. floors covered by carpet. c. Both a and b. d. Neither a nor b.

650 Real Estate Practice, Seventh Edition

____ 6. A federally mandated Environmental Hazards Disclosure form is used to give a buyer notice of environmental hazards on or near the listed property.

____ 7. A seller is required to investigate or have a survey conducted to determine the existence of asbestos on the property.

____ 8. A seller has a duty to investigate whether their property contains toxic mold. ____ 9. Unless a seller agrees to eliminate any lead-based paint (LBP) hazards, the seller does

not have a duty to clean up a hazard. ___ 10. Lead-based paint was banned by the Federal Consumer Product Safety Commission

in: a. 1940. b. 1973. c. 1978. d. 1996.

Quiz 7 --Chapters 32-35, Pages 303-338 ____ 1. Annual increases in the dollar amount levied as regular assessments by a

homeowners' association (HOA) are limited to a _____ increase over the prior year's assessments. a. 5% b. 10% c. 20% d. None of the above. ____ 2. A buyer is advised to request a list of defects from an HOA to get a better idea of the probability of regular and special assessment increases in the near future. ____ 3. An HOA is obligated to provide the documents requested by a seller within ______ of the seller's written request. a. 3 days b. 5 days c. 10 days d. 21 days ____ 4. On one-to-four residential dwellings, a seller's agent has an affirmative duty to disclose their knowledge of possible tax consequences. ____ 5. To avoid misleading a client, a broker or agent is advised to: a. disclose the full extent of their tax knowledge regarding the transaction. b. advise the client to seek the advice of a tax professional. c. disclose how the broker or agent acquired their tax knowledge. d. All of the above. ____ 6. As a matter of basic competency, brokers and agents will possess an understanding of fundamental tax concepts regarding: a. the separate profit and income categories for different types of real estate. b. the ?1031 profit reporting exemption. c. Both a and b. d. Neither a nor b.

Quizzes 651

____ 7. A seller's agent has an affirmative duty to voluntarily disclose to a buyer information regarding a death on the property which occurred more than three years prior to the purchase offer.

____ 8. On direct inquiry by a buyer or their agent, a seller's agent must disclose their knowledge of any deaths on the property.

____ 9. Deposits into an impound account are considered operating expenses. ___ 10. After receiving an Annual Property Operating Data sheet (APOD) from the seller's

agent, the buyer is advised to: a. review tenant files. b. confirm utility payments. c. get quotes on hazard insurance premiums and taxes. d. All of the above.

Quiz 8 --Chapters 36-40, Pages 339-409 ____ 1. The use of a _______________ requires a written carryback disclosure form on one-to-

four unit residential property when the seller will partially finance the sale. a. land sales contract b. lease-option c. an unexecuted purchase agreement with interim occupancy d. All of the above. ____ 2. A carryback seller is concerned with: a. receiving no more than the fair market value (FMV) of the property. b. their loan-to-value (LTV) ratio of the purchase price. c. Both a and b. d. Neither a nor b. ____ 3. Adjustments and prorates for unpaid and prepaid items are noted on a seller's net sheet. ____ 4. During a buyer's market of declining prices and increasing inventory, a sales agent's main objective is to create buyers. ____ 5. To form a contract, an agreement needs to be accompanied by: a. an offer and acceptance. b. consideration. c. capable parties and a lawful purpose. d. All of the above. ____ 6. To be definite and certain in its terms, an offer to purchase needs to include: a. a description of the property. b. the time for performance. c. Both a and b. d. Neither a nor b. ____ 7. An offer to purchase needs to be on a standardized form to be enforceable. ____ 8. An option to buy agreement is a bilateral contract.

652 Real Estate Practice, Seventh Edition

____ 9. A seller who is not represented by a broker forms a binding contract with a buyer when: a. they are handed a copy of the buyer's signed counteroffer. b. they receive a faxed copy of the buyer's signed counteroffer. c. Both a and b. d. Neither a nor b.

____ 10. _______________ terminates an offer to purchase. a. Death of the offeree b. Revocation by the offeror before an acceptance is submitted c. Destruction of the property before acceptance d. All of the above.

Quiz 9 --Chapters 41-43, Pages 411-444 ____ 1. A seller's counter to an unacceptable offer to purchase can be written on:

a. a new purchase agreement form. b. a counteroffer form. c. the original offer using the change-and-initial method. d. All of the above. ____ 2. The change-and-initial counteroffer technique is proper even after the original document has been signed. ____ 3. Contingency provisions included in purchase agreements are eliminated by: a. approval of the information identified as the subject of the provision. b. waiver of the right to cancel by the person authorized to cancel. c. Both a and b. d. Neither a nor b. ____ 4. Written contingency provisions include: a. who has the right to cancel the purchase agreement if the event does not occur. b. a description of the event addressed in the contingency. c. the time period in which the event has to occur. d. All of the above. ____ 5. The primary user of contingency provisions in purchase agreements is the buyer or buyer's agent. ____ 6. A condition which a buyer needs to perform without concern for whether the seller is performing is called a: a. condition precedent. b. condition concurrent. c. condition subsequent. d. None of the above. ____ 7. The person with the right to cancel due to the failure of a contingency to occur may only exercise their right if they have a reasonable basis for the cancellation. ____ 8. Mutual-benefit contingencies cannot be waived except by mutual consent. ____ 9. Checking the availability of fire insurance is an activity addressed by an eventoccurrence contingency. ___ 10. Personal-satisfaction contingencies are identical to event-occurrence contingencies.

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download