PRACTICE #1
Two brokers agreed to split a 4 1⁄2 % commission on a 50-50 basis on the sale of a property for $162,500. The listing salesperson agreed to a 50-50 split with his employing broker. What would be the commission amount for the listing salesperson? A. $3,626.20 B. $1,828.13 C. $5,400.00 D. $4,860.00
B. $1,828.13 $162,500 x 4.5% = $7,312.50 $7,312.50 x 50% = $3,656.25 $3,656.25 x 50% = $1,828.13
Morrison receives a net income of $675 per month at an annual return rate of 7 1⁄2 %. Morrison's Investment amounted to: A. $8,100 B. $108,000 C. $10,000 D.$110,000
B. $108,000 $675 X 12 = $8,100 $8,100 / 7 1⁄2 % = $108,000
A property sold for $150,000 in a county which had established a documentary transfer tax rate of $.55 for each $500. Of the purchase price of $150,000, only $125,000 was subjected to tax. Which of the following is nearest to the tax amount that would have to be paid? A. $165 B. $138 C. $27 D. $139
B. $138 $125,000 / 500 =250 $.55 x 250 =$137.5
The hardest and yet the most important part in the market data method of appraising is: A. Establishing the value multiplier B. Adjusting for the differences between the comparable properties and the subject property C. Collecting neighbor data D. Finding the unit of comparison
B. Adjusting for the differences between the comparable properties and the subject property
The purpose of the Truth-in-Lending Act is to: A. Regulate charges for credit B. Assure a meaningful disclosure of credit terms C. Establish the maximum monthly payments on a trust deed D. Establish the maximum annual percentage rate
B. Assure a meaningful disclosure of credit terms
An agency relationship may be terminated by: A. Lis pendis B. Completion C. Estoppel D. Tour de force
B. Completion
In order to operate a competitive, yet profitable business, a real estate broker needs to be concerned with "desk cost." Which of the following most nearly represents the correct way to calculate the desk cost? A. Divide the total operating expenses of the firm, plus commission B. Divide the total operating expenses of the firm, including salaries, rent, insurance, etc., by the number of salesperson C. Calculate the total monthly gross income and divide by the number of salesperson D. Calculate the total monthly gross income and subtract any losses
B. Divide the total operating expenses of the firm, including salaries, rent, insurance, etc., by the number of salesperson
An offer to purchase a real estate could be terminated in all of the following ways, except: A. Acceptance with a counter offer to the offeror B. Failure to communicate notice of revocation before the other party has communicated his acceptance C. Death of offeree or offeror D. Expiration of time to accept an offer
B. Failure to communicate notice of revocation before the other party has communicated his acceptance
Leland uses an 8% capitalization rate for a 40-unit apartment building that generates $174,000 net income. Which of the following is the most appropriate value of this property? A. $1,400,000 B. $1,566,000 C. $2,175,000 D. $2,170,000
C. $2,175,000 $174,000 / .08 =$2,175,000
A broker obtained a 6% listing commission fee on a selling price of $108,000. The seller incurred additional closing costs of $1,450. Based on the preceding information, the seller's total cost of sale would amount to: A. $10,780 B. $7,500 C. $7,930 D. $6,500
C. $7,930 $108,00 x 6% = $6,480 + $1,450 = $7,930
Buyer Parker paid $4.40 per square foot to purchase a 20,000 square foot lot. If the parcel is in rectangular shape and 200 feet deep, the approximate cost per front foot would be: A. $200 B. $440 C. $880 D. $960
C. $880 20,000 / 200 =100 front ft. 20,000 x $4.40 = $88,000 purchase price $88,000 / 100 = $880
A real estate salesman went into a neighborhood to obtain listings of residential property. He made a presentation that the property value would be reduced by a decline in the quality of schools, and an increase in the crime rate because of the entry of minority groups into the neighborhood. His action was: A. Permissible as long as values do not decrease B. Not illegal as long as the statement is true C. A disciplinary action D. Unlawful only when the Real Estate Commissioner finds out about the representation.
C. A disciplinary action
For Federal Income Tax purpose, the capital expenditures for improvements are: A. A percentage depreciated B. Subtracted from the cost basis of the property C. Added to the cost basis of the property and depreciated D. Cannot be depreciated
C. Added to the cost basis of the property and depreciated
When an owner refuses to pay the broker an earned commission, the broker may properly seek relief by: A. Filing a complaint with the Department of Real Estate B. Filing a vendor's lien C. Court action D. All of the above
C. Court action
A person who wishes to purchase a home using the Cal-Vet program would send his application to: A. Department of Real Estate B. Real Estate Commissioner C. Department of Veterans Affairs D. Veterans Administration
C. Department of Veterans Affairs
Which of the following rights of ownership in real property do individuals normally not have? A. Severance damages B. Riparian rights C. Eminent domain rights D. Financing rights
C. Eminent domain rights
Land that is subject to an easement is said to be: A. Prescriptive easement B. Appurtenant to the land C. Encumbered D. An encroachment
C. Encumbered
A mortgage loan may be insured by: A. Beneficiary B. California Finance Act C. FHA of private mortgage insurer D. Borrower
C. FHA of private mortgage insurer
Which of the following is acceptable response for the agent to seller who has indicated their home is not to be shown to sales of prospects who are members of the ethnic minority group? A. I can show it to anyone I want B. With this condition, we will get a better price and value won't drop C. I cannot accept the listing for your property because of prohibited discrimination D. With unacceptable terms, they won't be interested
C. I cannot accept the listing for your property because of prohibited discrimination
Broker Knot advertised in the newspaper that anyone who buys a property listed with the broker would receive a free microwave oven valued at $500. Such action is: A. Illegal B. Unethical C. Legal, if provided full disclosure is made to all interested parties D. No prices are allow in real estate transactions
C. Legal, if provided full disclosure is made to all interested parties
The provision of the Subdivision Map Act is enforced by the: A. Real Estate Commissioner B. Subdivision Land Act C. Planning Commission D. Contractor License Board
C. Planning Commission
When comparing condominiums and rented apartments, which of the following is true? A. Each will receive a separate tax bill. B. The occupier has a fee estate. C. The person who occupies each unit would have an estate in real property. D. None of the above.
C. The person who occupies each unit would have an estate in real property.
Which of the following statements is most nearly true concerning the activities of mortgage companies? A. They prefer to negotiate commercial loans B. They are not regulated by the States C. They prefer negotiating loans which are salable in the secondary market D. They do not insure government loans
C. They prefer negotiating loans which are salable in the secondary market
The Federal Housing Administration (FHA) was created primarily: A. To provide insurance for home loans in the secondary market B. To insure the borrower C. To provide insurance for home loans made by approved lender D. To improve the economy for mortgage bankers
C. To provide insurance for home loans made by approved lender
Jose is an unlicensed employee of a licensed real estate broker. The broker pays him to distribute door hanger fliers to homes in the immediate neighborhood and to make telephone solicitations for potential buyers and sellers. This activity by Jose is: A. Unlawful for the broker but not Jose. B. Merely unethical for Jose and the broker. C. Unlawful for both the broker and Jose. D. An acceptable business practice.
C. Unlawful for both the broker and Jose.
George Carson is selling time-shares in his Wildacre subdivision. He mailed advertisements to 10,000 people offering them the chance to win a prize, but did not reveal that the person must visit Wildacre and listen to a sales presentation in order to be eligible. All of the prize winners became the owners of Wildacre. Is there anything wrong with this situation: A. No; prizes may be offered at any presentations related to real estate B. Yes; property owners are excluded C. Yes; anyone offering prizes or gifts must reveal any requirements such as an attendance of a sales presentation D. No; if winners become property owners at Wildacre
C. Yes; anyone offering prizes or gifts must reveal any requirements such as an attendance
A broker is negotiating a 25-year commercial lease at a straight annual rental of $30,000. The broker is to receive a compensation for negotiating this lease as follows: 7% of the annual rental for the first year, 5% of the annual rental for the next four years, 3% of the annual rental for each of the next fifteen years; and 1% of the annual rental for every year thereafter during the term of the lease. By the end of the 19th year, the broker will have received a total commission of most nearly: A. $25,000 B. $20,800 C. $20,500 D. $20,700
D. $20,700 $30,000 x 7% = $2,100 x 1 = $2,100 $30,000 x 5% = $1,500 x 4 = $ 6,000 $30,000 x 3% = $ 900 x 14 = $12,600 TOTAL $20,700
Half a mile by half a mile represents how many acres? A. 80 acres B. 120 acres C. 140 acres D. 160 acres
D. 160 acres
If no notice of non completion is recorded on an improvement project, anyone can record a mechanics lien within; A. 10 days B. 30 days C. 60 days D. 90 days
D. 90 days
If two parties want to create an enforceable broker-principal relationship concerning a right, title, or interest in real property, the most essential element to do so would be: A. A purchase agreement B. A commission agreement C. A contract to accept a deposit D. A written employment contract
D. A written employment contract
A title company could make a title search by searching the records of the: A. County Clerk's Office B. County Recorder's Office C. Federal Land Office D. All of the above
D. All of the above
Broker Smith took a listing on commercial acreage and also received the right to purchase the property within 30 days. On the 28th day of the listing, the broker decided to buy the property. Before buying the property, he must: A. Disclose any outstanding offers B. Give the owner any material information C. Obtain written consent from the owner which acknowledges any profit or anticipated Profit D. All of the above
D. All of the above
If a real estate licensee misrepresents a property to a buyer while he is acting as an agent, he may subject himself to: A. Disciplinary action by the licensing authority B.Civil action C. Criminal action D. All of the above
D. All of the above
Local government laws for the regulation and control of land-use include which of the following? A. Building codes B. Zoning ordinances C. Subdivision ordinances D. All of the above
D. All of the above
Which of the following is considered real property? A. Land and buildings B. Artificial items which are immovable by law C. Easements that convey rights of-way over adjoining land D. All of the above
D. All of the above
Which of the following notices could be important to the filing of a mechanic's lien? A. Notice of non-responsibility B. Notice of cessation C. Notice of completion D. All of the above
D. All of the above
In which of the following contract will apply if one of the parties agrees not to revoke an offer for a certain period of time: A. Exclusive right to sell listing B. Exclusive agency listing C. Net listing D. An option
D. An option
An easement could be created for what length of time: A. Perpetual B. For years C. Lifetime D. Any of the above
D. Any of the above
What is the best way to create an agency relationship? A. By actions B. By opinion C. By experience D. By written agreement
D. By written agreement
Under the Subdivision Map Act, the subdivision reports must be filed with the: A. County Assessor's Office B. Real Estate Commissioner C. Department of Construction Subdivision D. City or County where the land is located
D. City or County where the land is located
Who is more likely to earn a sale commission? The broker who: A. Attempted to bind the principal to the contract. B. Secured an offer with a deposit. C. Secured acceptance to an offer. D. Communicated acceptance of the offer from the buyer to the seller.
D. Communicated acceptance of the offer from the buyer to the seller.
A buyer relied upon the fraudulent statement of the seller's agent and was damaged. The seller was unaware of the agent's false statement, and he tried to enforce the agreement. The buyer: A. Could sue the seller for fraud B. Could sue the seller's agent for fraud C. Has sufficient grounds for rescission D. Could do any of the above
D. Could do any of the above
Harrison and David, single people, owned a parcel of real property as joint tenants. Harrison encumbered his interest for $10,000 and borrowing the amount to pay medical bills without the acknowledgement or consent from David. Shortly thereafter, Harrison died with the debt still unpaid. Which of the following would be true? A. David becomes the owner but subject to pay the $10,000 B. Beneficiary and David become joint tenants each paying $5,000 C. Beneficiary and David as tenants in common each paying $5,000 D. David would own all of the property free and clear of the encumbrance
D. David would own all of the property free and clear of the encumbrance
Interest rates on trust deed loans are primarily determined by which of the following: A. International market B. Federal reserves C. Demand for federal government loans D. Demand for supply of money
D. Demand for supply of money
The maximum commission a broker may charge for the sale of residential property is: A. Set by the Real Estate Code of Ethnics B. Six percent of the sales price C. Determined by the number of monthly sales D. Determined by the broker's contract with his principal
D. Determined by the broker's contract with his principal
Lenders know that the lower the loan-to-value ratio, the higher the: A. Interest Rate B. Risk C. Loan to Value Ratio D. Equity
D. Equity
Carter bought 10 acres of vacant land for $20,000 per acre; making a cash down payment of $20,000 and executing a straight note and a blanket deed of trust for the balance. As a part of the note, the lender agreed that when Carter makes an additional payment of $20,000 on the principal, the trustee would issue a partial reconveyance for one acre. Carter has paid a total of $40,000 on the note and now owned two acres free and clear. The percentage of his equity in the encumbered property: A. Is variable B. Has decreased C. Remains the same D. Has increase
D. Has increase
The mortgage insurance on a FHA loan: A. Protects the lender in the event of the trustor's death B. Protects the borrower from a fire loss C. Is paid by the lender D. Protects the lender in the event of default
D. Protects the lender in the event of default
Of the following types of deeds, which one would contain no warranties and expressed or implied: A. A will deed B. Grant deed C. Warranty deed D. Quitclaim deed
D. Quitclaim deed
A high price, high quality home surrounded by lower price, lower quality properties will suffer loss in value due to: A. Stability B. Conformity C. Progression D. Regression
D. Regression
A broker's ads in a local newspaper says that if a buyer or seller will bring this ads to his office and either list or buy a property through him, he will give that person $50. Which of the following is true? A. The broker is not allow to give referrals B. Illegal under the real estate law C. Commission are paid only to license individuals D. The broker can give $50 to the buyer or seller
D. The broker can give $50 to the buyer or seller
The decline of mortgage interest rates would occur when: A. The Fed increases the reserve requirements B. The Fed decreases the reserve requirements C. Inflation increases D. The mortgage money supply increases
D. The mortgage money supply increases
Of the following, which is the best definition of a balloon payment? A. Late interest payments of a 30 year loan due at the end B. An additional payment to avoid prepayment penalties C. Principal payments D. The require payment of the entire balance due
D. The require payment of the entire balance due
An appraiser's narrative appraisal report of a single-family residence probably would contain no reference to: A. Appraiser's qualifications B. Neighborhood data C. Market analysis D. Type of financing available
D. Type of financing available
A broker was able to make a sale to an interested buyer based on false information which seller provided to the broker. The broker acted in good faith and in a reasonable manner in relying on the false information. Thereafter, the buyer rescinded the contract because of the fraud. Given these circumstances, the broker is normally entitled to: A. A full commission and indemnity for any loss caused by related legal action by the defrauded buyer against the broker B. Only expenses related to property advertising C. Half commission D. No commission
A. A full commission and indemnity for any loss caused by related legal action by the defrauded buyer against the broker
Walker hired a construction company to install a swimming pool on their residential premises. In the event of the construction company was unpaid and it was necessary for them to file a lien for the payment of construction, the encumbrance created would be: A. A specific lien B. A general lien C. Attachment lien D. Contractors lien
A. A specific lien
A trust deed can have a provision that allows future loans on the property to have priority. This would be called: A. A subordination clause B. Acceleration clause C. Or more clause D. Prepayment penalty clause
A. A subordination clause
Which of the following is not a lien? A. An encroachment B. Mortgage C. Trust deed D. Property taxes
A. An encroachment
The rights granted by an owner of real property to a telephone company for the purpose of erecting poles to support telephone wires over the property creates: A. An encumbrance B. Restriction C. Specific lien D. General lien
A. An encumbrance
If the owner of a property thinks that his property has been over-assessed by the county assessor, he would contact the: A. Assessment Appeals Board B. The controller C. Tax collector D. Department of Appraisals
A. Assessment Appeals Board
A title was recorded for a parcel of real property vested in the name of Johan Wilson, a single woman. After her marriage to William Roberts, she executed a deed to the property only in the name of Johan Roberts, a married woman. The discrepancy in the grantor's name is: A ____ which may cause a ____ on the ____
A DEFECT which may cause a CLOUD on the TITLE
A salesman was to receive a 45% share of a 6% gross commission. He received $8,100. The property was sold for: A. $300,000 B. $200,000 C. $280,000 D. $400,000
A. $300,000 $8,100 / 45% = $18,00 $18,00 0/ 6% = $300,000
If a broker is an agent for a seller, he owes to the buyer: A. A duty of fair and honest dealing B. Same fiduciary obligation to the buyer as the seller C. Questions from the buyer related to the sales price D. Answer questions about the monthly payment
A. A duty of fair and honest dealing
Which of the following is least correct about in-house sales? A. Brokers cannot sell their own in-house listings B. The broker always works for the seller C. May sell it only to a buyer D. May be sold only from broker to broker
A. Brokers cannot sell their own in-house listings
Which of the following State Agencies is empowered to prevent acts of discrimination in housing accommodations in California because of race, color, sex, national origin, or ancestry? A. Department of Fair Employment and Housing Act B. Discrimination Act C. Department of Real Estate D. Labor and Construction Department
A. Department of Fair Employment and Housing Act
A deed: A. Does not have to be recorded to transfer title B. Has to be recorded to be valid C. Has to be acknowledged D. Can only be recorded by the lender
A. Does not have to be recorded to transfer title
A contractor was building a new home. Before completion, he received several offers to rent the property. Just right before the completion, the city announced that it was taking 10 feet off the front of the property to widen the street to facilitate the traffic. Thereafter, offers to rent were for approximately 10% less. This would be an example of which of the following types of depreciation: A. Economic obsolescence B. Functional obsolescence C. Functional and economic obsolescence D. Depreciation
A. Economic obsolescence
When the governmental body takes a private real property necessary for public use, the certain legal processes must be followed. Taking a real property such as above is exercising the right of: A. Eminent domain B. Police power C. Escheat D. Zoning laws
A. Eminent domain
Under which of the following listings, a commission must be paid by owner even though he sells entirely through his own efforts: A. Exclusive right to sell listing B. Exclusive agency listing C. Open listing D. Net listing
A. Exclusive right to sell listing
A real estate broker sent all of his title business to a Title Company. In appreciation of the business, the title company paid the broker $10 for each transaction. According to the Real Estate Settlement Procedures Act, "RESPA," this practice is: A. Forbidden B. Permissible C. Acceptable if buyer and seller are told about it D. Permissible if seller pays for the title services
A. Forbidden
Brokers, Andrew and Benson, both have an open listing on a property. Broker Andrew showed the property to a prospective buyer and carried on negotiations, but the buyer decided not to buy. Two weeks later, Broker Benson contacted the same buyer and arranged a sale of the property. The seller would be obligated to pay a commission as follows: A. Full amount to Benson only B. Full amount to Andrew only C. Half to Benson and Half to Andrew D. Full amount to both Brokers
A. Full amount to Benson only
Each owner in a tenancy in common: A. Has the right in possession of all the properties B. Cannot divide the property C. Has no right in possession of all the properties D. Only one may have possession of the entire property
A. Has the right in possession of all the properties
If roof slopes on all four sides, it is called a: A. Hip roof B. Gable roof C. Grabble roof D. Solar roof
A. Hip roof
Broker Hudson had a house listed for sale for nine months without selling it. He knows that the building needs major structural repairs, and he has listed at 10% above its fair market value. He runs an advertisement in a newspaper that says, "Three bedrooms and Victorian Style. You won't believe the price! Move right in. Hudson - XXX- XXXX." This advertisement is bad because: A. It's deceptive and misleading since Hudson knows that the property needs major repairs. B. It is illegal to advertise a property that is over priced C. An overpriced property is a misleading price D. The advertising is misleading and the broker will be liable
A. It's deceptive and misleading since Hudson knows that the property needs major repairs.
Which contract would be the most difficult for a buyer to obtain financing? A. Land Contract B. FHA C. VA D. Conventional
A. Land Contract
When making a loan, amortization tables are used in order to determine the: A. Monthly payment B. Annual percentage rate C. Interest rate D. Beneficiary's right
A. Monthly payment
The basis of the market data approach appraisal is found in: A. Principle of substitution B. Principle of progression C. Principle of stability D. Principle of conformity
A. Principle of substitution
The item that would appear on the debit side of a buyer's closing statement would be: A. Purchase Price B. Prepaid Rents C. Mortgage Interest D. Down Payment
A. Purchase Price
The word "time is of the essence" can be found in which of the following contract? A. Real estate purchase contract and receipt for deposit B.Real estate listing agreement C. Grant deed D. Escrow instructions
A. Real estate purchase contract and receipt for deposit
A voidable contract remains binding upon the parties until the contract is: A. Rescinded B. Cancel C. Voided D. Disqualify
A. Rescinded
Broker Gutierrez had a listing to sell a seller Smith's house. Broker Gutierrez received an offer on the house and presented it to seller Smith who hesitated in accepting the offer. The broker promised Smith to find another suitable residence before close of escrow. On the basis of that, the seller accepted the offer. If broker Gutierrez failed to perform in finding another suitable residence during the time period, which of the following is most nearly correct? A. Seller Smith could initiate a civil suit and the broker would be responsible for damages B. Cancel the acceptance C. Smith has no recourse against the salesperson since it was a verbal agreement D. Salesperson is liable and may be sue for criminal action
A. Seller Smith could initiate a civil suit and the broker would be responsible for damages
The appraisal of an income-producing property is made with an as of "given date" to indicate: A. The Market conditions influencing the value of the property at that point in time B. The effective age of the property C. The date of inspection D. The assessed value
A. The Market conditions influencing the value of the property at that point in time
When depreciation is taken on real property: A. The basis is reduced B. Value increase C. Value is stable D. Has no value
A. The basis is reduced
A broker receives an offer from a buyer for a specific property. The deposit was in the form of a personal promissory note for $2,000 payable to seller in 60 days plus 10% interest. Which of the following is true? A. The broker may accept the promissory note but must notify the seller that the deposit is in the form of a promissory note before seller accepts the offer B. All deposits to purchase real estate must be in the form of personal check C. Personal promissory note is acceptable if it is $1,000 or less D. Personal promissory note are to risky and the broker may return the offer
A. The broker may accept the promissory note but must notify the seller that the deposit is in the form of a promissory note before seller accepts the offer
Which of the following is the most difficult for the mortgage lender to evaluate? A. The degree of risk B. Credit of borrower C. Interest return D. Cost of financing
A. The degree of risk
A Chicano prospective purchaser asks to be shown homes but does not specify that he wants to see homes located in a neighborhood where there are no Chicanos. How should a licensee decide what properties to show him? A. The licensee may select homes for showing as he would for any other prospect B. The licensee could assume that the prospective buyer is not interested in that neighborhood C. The licensee may decided not to provide service to the buyer D. Show him homes only in a Chicano neighborhood
A. The licensee may select homes for showing as he would for any other prospect
When an air conditioning unit has a higher energy efficiency ratio (EER), it means that: A. The unit is more efficient B. The unit is less efficient C. The unit needs more electricity to operate D. The unit needs less electricity to operate
A. The unit is more efficient
When title is transferred, the grantee in the deed may have the title insured by a: A. Title insurance policy B. Hazard insurance C. Homeowners insurance D. Chain of title
A. Title insurance policy
Which of the following loans on a home would probably be made without requiring a down payment from the borrower? A. VA Loan B. CAL-VET C. FHA D. Conventional
A. VA Loan
Which of the following is the reason that a real estate agent must keep his principal informed of material facts concerning a pending real estate transaction? A. When the agent is a fiduciary B. When it's printed on the purchase agreement C. When the agent concerned with the commission which seller is paying D. When the broker works only for the seller
A. When the agent is a fiduciary
A real estate broker presented an offer to seller which met the terms of the listing. The offer was from a financially qualified black person. Later, his salesperson presented the seller an offer that was at a lower price from white prospect. The seller did not accept either offer, but instead, sold the property to a neighbor through the same salesperson. The neighbor wanted to buy the property to prevent minority person moving into the neighborhood. Which of the following parties has not violated the Civil Rights Act of 1968? A. White prospect B. Seller C. Salesperson D. Both salesperson and seller
A. White prospect
A joint tenant can dispose an interest held in real property by all of the following ways, except: A. Will B. Sell C. Lease D. Transfer
A. Will
When financing a home with a long-term loan, if equal payments are made, the amount of the principal will: A. Decrease while the interest payment decreases B. Increase while the interest payment decreases C. Remain the same along with the interest D. Increase at a constant rate for the life of the loan
B. Increase while the interest payment decreases
If a real estate licensee was trying to persuade people to list or to sell their property by telling them that members of another ethnic group were moving into their neighborhood and it would be their advantages to list or to sell. This would be an example of all of the following, except: A. Blockbusting B. Legitimate conduct C. Panic selling D. Illegal conduct
B. Legitimate conduct
Broker Hays took a 90-day exclusive agency listing to sell a property that was owned by Wilson. After 30 days, Hays had not sold the property, so Wilson sent him a certified mail letter canceling the listing. One week later, Wilson listed the property with several brokers using open listings. Two weeks later, one of the brokers who had an open listing on the property completed a sale to new owner. In this situation, Wilson most likely: A. Not to cancel the listing and he owes commission to Hays only B. Liable for payment of commission to Hays as well as to the selling broker C. Liable to Broker Hays D. Has the right to list his property with another company
B. Liable for payment of commission to Hays as well as to the selling broker
When a broker runs an advertisement, the broker must disclose: A. Last name of the broker B. Name of the broker C. Name of broker and salesperson D. Name of the salesperson
B. Name of the broker
When dealing with the public, a broker may not: A. Disclose any of his duties to other agents B. Remain silent concerning material facts about a property known only by himself C. Reject a listing if it is discriminatory or overpriced for minorities D. All of the above
B. Remain silent concerning material facts about a property known only by himself
Following in-house sales are true, except: A. The listing agent can act as a dual agent B. The listing broker can act as a buyer's agent only C. The broker may purchase the property himself D. The seller may represent the seller only
B. The listing broker can act as a buyer's agent only
Lee made an offer to purchase Wilson's property. As part of the offer, Lee agreed to take title "subject to" an existing VA loan which Wilson obtained when they purchased the property in approximate amount of $39,000. If Wilson sells to Lee under these conditions, which of the following is true concerning liability for a loss suffered by the government after a foreclosure on the VA loan? A. Lee will be primarily liable B. Wilson will be primarily liable C. Both Lee and Wilson are liable D. Neither is liable
B. Wilson will be primarily liable
Which of the following is the legal method that City uses to implement its general plan? A. Building codes B. Zoning C. Variance D. Safety zones
B. Zoning