FIN 310 T2

A property is being sold for $500,000. The broker is charging the seller a 6% commission and the purchaser is to recieve $5,000 from the seller as a closing cost credit. The seller will also have to payoff the loan on the property which is $375,000. What will the seller's proceeds be at closing?

$90,000

Which of the following instruments is used to change the terms of a ratified contract?

Amendment

Less than half her income was commission, with the rest an hourly wage paid by the broker. the IRS would classify her as

An employee

The sales contract says the buyer will purchase only if an attorney approves the sale by the following saturday. The attorney's approval is a

Contigency

All of the following reasons are valid bases for terminating a listing agreement EXCEPT

Death of a sales person

A buyer makes an offer on a seller's house and the seller accepts. Both parties sign the sales contract. At this point, the buyer has what type of title to the property?

Equitable

A buyer signed an agreement with a broker to compensate the broker even if the buyer purchases the property from a relative. This is called an

Exclusive buyer representation agreement

When bother parties promise to do something for the other and state the terms of an agreement in written words, they are using this type of contract

Express and Bilateral

Which statement BEST describes the covenant of quiet enjoyment in a general warranty deed?

Grantee will not be disturbed by unneccesary noise

Under that statute of frauds, all contracts for the sale of real estate must be

In Writing to be enforceable

A mortgage title policies protect which parties against loss?

Lenders

a real estate salesperson classified by the IRS as an independent contractor receives

Negotiated commissions on transactions

A middleman between a buyer and a seller who assists one or both parties with the transaction without representing either party

Non-Agent

A buyer and a seller sign a contract for the sale of real property. A few days later they decide to change many terms of the contract, while retaining the basic intent to buy and sell. The process by which the new contract replaces the old one is called

Novation

A listing contract in which payment of the commission is contingent on the broker being able to produce a buyer before the property is sold by the owner or another broker is called a(n)

Open listing

The person who is responsible for the activities of the firm and all of its licensees is the

Principal Broker

The principal in the fiduciary relationship created by a listing agreement is the

Seller

An option to purchase binds which of the following parties?

Seller only

Designated agency is MOST likely to occur when

The buyer and the seller are represented by the same company

After a challenging transaction finally closes, the client gives a sales associate a check for $500 "for all your extra work" . Which statement is accurate?

The sales associate may receive compensation only from the broker

A buyer and a seller sign a contract to purchase. The seller backs out and the buyer sues for specific performance. What is the buyer seeking in this lawsuit?

Transfer of the property

A sales contract was signed by a minor. Which term describes this contract?

Voidable

Which of the following would be considered dual agency

a broker representing both the buyer and the seller in the same transaction

The party to a transaction who has not entered into a brokerage relationship with a licensee is referred to as

a customer

A broker is permitted to represent both the seller and the buyer in the same transaction when

both parties have been informed and agree in writing to the dual representation

A real estate professional receives a check for earnest money from a buyer and deposits the money in the real estate professional's personal interest bearing checking account over the weekend. This action exposes the real estate professional to a charge of

commingling

Virginia Agency law requires a Limited Service Agent to do all of the following EXCEPT

disclose the agent's status as an independent contractor

The relationship of a broker to a client is that a(n)

fiduciary

A listing broker agreed to list a homeowners $250,000 home, regardless of its selling price, for a $3,000 commission. What type of broker listed the property?

flat fee

The clause in the deed that conveys the rights and priviledges of ownership is called the

granting clause

Which person must sign a deed for it to be valid

grantor or transferor

a buyer purchased a home under a land contract. Until the contract is paid in full, of the buyer meets statutory requirements, the buyer

has equitable title to the property

Title to a property may be transferred without the owner's consent by

involuntary alienation

Title to property may be transferred without the owner's consent by

involuntary alienation

The amount of commission that is paid to a salesperson is determined by

mutual agreement with her broker

This type of agreement is illegal in most states

net listing

Calculate how much the sales associate representing the buyer will receive from the following transaction: contract price = $250,000; buyer brokerage commision = 3% national franchise fee of 6%, agent split with the broker is 65%

none of these

The duties to a customer that are required by law for a listing agent include all of the following EXCEPT

not knowingly give an false information

If the real property owner is a corporation, then the individual authorized to sign the listing agreement is the

person named by corporate resolution

a quitcalm deed is frequently used to

remove a cloud on a title

All of the following will terminate an offer to purchase real estate EXCEPT

revocation by the offeror communicated to the offeree after acceptance and delivery

On July 1, 2012 a new law in Virginia required all brokerage relationships to be

single agency

Deeds that limit the liability of the grantors to their own acts and all person claiming by.

special warranty deeds

The law that requires real estate contracts to be in writing to be enforceable is the

statute of frauds

Laws enacted by legislature is this type of law

statutory law

A Virginia Brokerage Agreement Must include all of the Following EXCEPT

termination date

The record of a property's ownership is

the chain of title

A prospective buyer signs an offer to purchase a residential property. All of the following circumstances would automatically terminate the offer EXCEPT

the seller received a better offer from another buyer

If you purchase a property with cash and no financing, you may be required to purchase

you will not be required to purchase title insurance