Real Estate Mid Term Study Questions

And exaggeration of Michelle's ability to sell the property

"In this market, I can sell this house in two days!" Michelle said to her seller client. What does this type of statement likely represent? 1 A misleading statement about the properties condition 2 and exaggeration of Michelle's ability to sell the property 3 A misrepresentation of the number of offers that will be received 4 A true statement based on Michelle's extensive experience and skill

Ensure the buyer understands the importance of due diligence to include a professional inspection of the property

A licensee must perform which of the following tasks for a buyer client? 1 ensure the buyer understands the importance of due diligence to include a professional inspection of the property 2 review the seller's property disclosure's and show the buyer the ones that you believe are important 3 show the buyer properties that you are listing for other sellers 4 tell the buyer how much earnest money she should put down to ensure the deal goes through

Transfer ownership before death and avoid probate

A living trust differs from a testamentary trust in that a living trust is established to convey property as well as to ________. 1 transfer ownership before death and avoid probate 2. Hasten the probate process 3 Shelter income from taxation 4 dictate terms of care in the event the trust creator becomes incapacitated

Holdover tenant

A tenant who continues to occupy the property after lawful authority has expired is known as a: 1 holdover tenant 2 squatter 3 settler 4 vagrant

The Stinsons and Vera have an agency agreement

After a few meetings, the Stinsons sign a listing agreement with broker Vera so she can sell their house. The house has already generated interest from a potential buyer named Sergei, who has spoken with Vera about the house's sq ft and potential as an investment. Which of the following is true about this situation? 1 Bc Vera now has a subagency relationship with the Stinsons, she shouldn't talk to Sergei until the house is officially on the market. 2 The Stinsons and Vera have an agency agreement 3 Vera has an agency agreement with Sergei 4 Vera should encourage the Stinsons to talk to Sergei about the property's selling points

You should accept the outcome either way

After you have made a professional listing presentation and the seller has declined to use you as a listing agent, what is the best practice? 1 you should call the competing sales person to discuss the matter 2 you should except the outcome either way 3 you should ask the sellers for a second chance 4 you should pursue the sellers with questions about their decision

A start and end date for the listing period

An exclusive right to sell agreement must include_____. 1 The name of the attorney who drafted the agreement 2 The seller's requested closing date 3 A protection clause 4 A start and end date for the listing period

Customer

An unrepresented _______ who's a party to a transaction is known as a principal. 1 agent 2 client 3 customer 4 broker

The chandelier in the foyer

BART just toured his fourth patio home of the day. To help him remember what he saw in each one, he's making notes about decor, updates, and inclusions that will stay with the property. Which of the following items is not considered personal property and would therefore stay with a home? 1 The chimenea on the back patio 2 The area rug in the dining room 3 The bankers lamps in the den 4 The chandelier in the foyer

Personal property

Beneficiary interest in land that is part of a land trust is considered______. 1 Real property 2 personal property 3 protected from creditors 4 subject to partition

Obedience

Carrying out a client's instructions describes the duty of ________. 1 Reasonable skill and care 2 Loyalty 3 Accounting 4 Obedience

Campground membership

Clint was looking for alternatives to the traditional vacation condo rental for his family. He purchased the right to use a given set of facilities at any point throughout the year. What did Clint purchase? 1 campground membership 2 Condo estate 3 timeshare use 4. Time share estate

Probable Price

Getting the best price is always a factor for a seller, but the ________ that it actually would sell for must be another consideration. 1 highest price 2 probable Price 3 reduced price 4 guesstimate

10 days

How soon must the TN Real Estate Commission be notified after a broker becomes incapacitated for any reason? 1 2 days 2 5 days 3 10 days 4 14 days

Disclosure

If you fail to notify your client of a conflict of interest, in addition to the duty of loyalty, what other duty have you breached? 1 Obedience 2 Confidentiality 3 Disclosure 4 Reasonable skill and care

Affiliate broker

In Tennessee, the primary role of the ________ is to provide services to clients while under a broker's supervision. 1 affiliate broker 2 Real estate attorney 3 mortgage broker 4 Real estate counselor

Makes sure the terms of the trust are carried out

In a trust, the trustee is the person who _____. 1 Is empowered to void the trust for any reason 2 Creates the trust 3 Receives the benefits of the trust 4 Makes sure the terms of the trust are carried out

Open

James, a seller, signed a listing agreement that allows him to contact with multiple agents but only pay a commission to the agent who locates a buyer. This type of listing agreement is called ______. 1 Exclusive right to sell 2 Open 3 Seller's Choice 4 Exclusive agency

Pay an annual membership fee

Jillian, a real estate broker, wants to be a member of the national Association of realtors. To do so she must ________. 1 be initiated 2 Pay an annual membership fee 3 be nominated 4 pass an exam

Prepare a features list

Jonathan is a licensee who's just signed a listing agreement with his new client. Which of these actions should Jonathan plan to perform next, before he publishes the listing on the MLS? 1. Hold an open house 2. Schedule contractors for repair work 3. Prepare a comparative market analysis 4. Prepare a features list

Encroachment

Justin decided to build a privacy fence around his yard. He thought the fence was along the property line, but it turns out he built it one foot inside his neighbor's property. What will an inspector document as existing on the neighboring property? 1. Easement 2. Encroachment 3. Eminent domain 4. Necessity

Price the home below market value

Kurt is pricing a home for a client in a cold market. It's a great property, and he knows it would sell for above market value if the market were better. All things considered, what's the best pricing strategy for the home? 1 Price the home below market value 2 Price the home above market value 3 Price the home above market value and decrease the price after a month if it doesn't sell 4 Price the hoe at it's exact market value

Larry turns the check over to his broker for deposit into the firm's escrow acct

Larry, an associate broker, received an earnest money check from his buyer client. Which of the following actions is appropriate and would be in compliance with real estate law? 1 Larry misplaces the earnest money check 2 Larry stores the check in the buyer client's file in his car. 3 Larry turns the check over to his brother for deposit into the firm's escrow acct 4 Larry deposits the check into his personal acct

Assemble closing documents

Loretta is an unlicensed assistant. Which of the following tasks is she permitted to perform for her broker? 1 call prospective clients to solicit business 2 interpret contract information for a client 3 assemble closing documents 4 host an open house

Probate

Marcia Weinstein died, and her property wasn't held in a trust. Thus, her estate will go through________ to ensure her property is distributed to her beneficiaries in accordance with her will. 1 probate 2 an attorney 3 estate planning 4 A moderator

No, because Carol procured the buyer

Mardee Is representing Carol in the sale of her condo, and they have signed an exclusive agency listing agreement. If Carol finds her own buyer, does she owe Mardee a commission? 1 yes, but she only owes the listing commission 2 no, because Carol procured the buyer 3 yes, because they have an exclusive agency listing agreement 4. No, because Carol is not a real estate licensee

Alda tells Marge that she's hired an inspector to perform a property inspection

Marge is a licensee in a dual agency transaction with Steven, the seller, and Alda, the buyer. Which one is NOT an ex. of a conflict of offering loyalty to both parties in a dual-agency transaction? 1 Alda tells Marge that she's hired an inspector to perform a property inspection 2 During the home inspection, Marge hears the buyer tell the inspector several times, "That's no big deal, I can fix that" The buyer lists those as repairs they want the seller to make. 3 Steven tells Marge he can reduce his price, and Alda tells Marge she can increase her offer. 4 Alda tells Marge she wants to make an offer on Steven's property and asks Marge what she should offer.

This is a breach of confidentiality because confidentiality survives forever

Monica meets a colleague from another firm, Kate, for lunch and discovers that a former seller client, Ruben, is now Kates buyer customer. Kate represents the seller in this new transaction. Monica tells Kate, you know Ruben inherited a bunch of money right before he sold his house right? Which of these statements is true? 1 this isn't a breach of confidentiality because Ruben is no longer Monica's client 2 this is a breach of confidentiality because confidentiality survives forever 3 this isn't a breach of confidentiality because the information shared doesn't negatively impact the client 4 this is a breach of confidentiality because the information impacts Rubens negotiating ability with the seller

Sofia is Luciana's customer

Ned represents Sofia in the sale of her townhome. Luciana represents Sofia's buyer, Arturo. What is Sofia's relationship to Luciana? 1 Luciana is Sofia's fiduciary 2 Sofia is Luciana's customer 3 Sofia is Luciana's client 4 Luciana is Sofia's customer

Tenancy by the entirety

Once Greg and Kaitlyn were married, they decided to purchase a home together. The most likely form of coownership under which they would make this purchase is: 1 Estate in severalty 2 Tenancy by the entirety 3 joint tenancy 4 tenancy in common

Licensees or consumers

Only ________ may file a complaint with the Tennessee real estate commission 1 licensees 2 licensees or consumers 3 consumers 4 broker licensees

A customer

Rhonda, who's buying Tony's town home, is unrepresented. Gary, a real estate licensee, represents Tony in the sale of his property. What is Rhonda's relationship to Gary? 1 A fiduciary 2 A customer 3 A customer and client 4 A client and fiduciary

No, because in agent's duty of confidentiality never ends.

Shannon just helped Linda sell her property. When agency between Shannon and Linda terminates, can Shen and disclose confidential information that Shannon learned while Linda was a client? 1 yes, if the information is helpful to a future client 2 no, because agency continues between Shannon and Linda after the sale 3 yes, because agency has been terminated 4 No, because in agent's duty of confidentiality never ends

Stacey is Rebecca's customer

Stacey, a buyer, is working with Rebecca, a licensee, in a state that doesn't recognize or permit implied agency. Rebecca doesn't represent Stacey, however, and is performing only ministerial tasks for her. Which of these statements about this situation is correct? 1 Rebecca can't work with Stacey without an agency agreement 2 Stacey is Rebecca's customer 3 Rebecca is acting in an agency capacity for Stacey 4 Stacey is Rebecca's client

Untrustworthiness

The TN Real Estate Commission will only grant licenses to those people who have good reputations. Which trait would be inconsistent with a good reputation? 1 Honesty 2 Integrity 3 Untrustworthiness 4 Competence

Laches

The doctrine of "use it or lose it" is known as the doctrine of ________. 1 eminent domain 2 Escheat 3 Laches 4 Taking

Lessor

The landlord and owner is the ________ in a lease agreement. 1. Leasing agent 2. Lessee 3. Lessor 4. Leaser

A high rise with residential, retail, and entertainment space

The local planning and zoning commission is reviewing multiple applications at this week's meeting. Which of the following new developments is likely to be reviewed relative to a mixed-use zoning ordinance? 1 Four patio homes on six acres 2 A high rise with residential, retail, and entertainment space 3 A one-story building with retail and office space 4 A self-storage facility

The Sherman antitrust act of 1890

The two real estate firms in one small town, Vineyard realty and homestead homes, agree to charge the same commission rate to avoid clients selecting a firm based simply on price. What specific federal legislation prohibits this? 1 The Sherman antitrust act of 1890 2 The Federal Trade Commission act of 1914 3 The Clayton act of 1914 4 The restraint of trade act of 1894

He can search real estate sites and resources to find available homes in the area

Tom is an unlicensed individual helping his sister, Katie, find a new house, in return for a trip to Europe. Which of the following activities can tom legally perform? 1 he can purchase a new property for Katie at an auction 2 he can search real estate sites and resources to find available homes in the area 3. He can negotiate the sale of her old house 4. He can receive compensation from Katie for locating a new house

The agreement between the two firms

Two large local brokerage firm's agreed to lower their commission rates to the same amount, approximately 1% lower than any other firm in town. After extensive marketing of their new lower rate, these two firms began to see a big increase in the number of listings they received, costing their competitors substantial amounts of money. What about this situation makes it a per se antitrust violation? 1 The dollar amount the competitors lost 2 The marketing efforts the two firms used 3 The agreement between the two firms 4 The size of the two brokerage firms

Designated and standard seller

What are the two types of seller agency in TN? 1 Exclusive and non-exclusive 2 Exclusive and designated 3 Designated and standard seller 4 Designated and non-exclusive

Confidentiality

What duty can a seller still expect from an agent after agency terminates? 1 Loyalty 2 Disclosure 3 Confidentiality 4 Obedience

The attaching of personal property to real property, thereby making it a fixture.

What is annexation in real estate? 1. The detaching of a real property item from the land, thereby making it into personal property. 2. The payment made to the seller for the property 3. The attaching of personal property to real property, thereby making it a fixture. 4. The taking of public land and making it into personal property.

90 hours

What is the prelicensing education requirement for affiliate brokers in Tennessee? 1 30 hours 2. 60 hours 3 90 hours 4 120 hours

Servient Tenement

What type of tenement do you have when you give the right to another to cross your property? 1 Servient tenement 2 Service tenement 3 Dominant Tenement 4 Domain Tenement

Benchmark

What's the permanent marker used primarily for marking datums when measuring elevation? 1 Point of beginning 2 Sea level 3 Monument 4 Benchmark

Datum

What's the point from which elevation is measured? 1 Monument 2 Base line 3 Principal meridian 4 Datum

Planned unit development

When Emma turned 70 she sold her ranch home and moved to a senior living community. Her one bedroom apartment is on the third floor of a building that houses a fitness center, convenient shop, music room, and café on the first floor. What type of facility is this? 1. Planned unit development 2 timeshare estate 3. Gated community 4 cooperative

Special

When working with a client on a real estate sale, a real estate licensee is usually which type of agent? 1 Designated 2 Universal 3 Special 4 General

Broker

Which Tennessee real estate license requires that applicants have real estate experience? 1 broker 2 affiliate broker 3 timeshare sales person 4 acquisition agent

Tennessee real estate commission

Which entity administers and enforces laws regarding licensed real estate activities in Tennessee? 1 Tennessee licensing bureau 2 Tennessee real estate commission 3 Tennessee Bureau of planning 4 Tennessee Association of realtors

Representing the buyer's interests

Which of the following is a buyer's agent's task or duty? 1 Advocating for the seller 2 Negotiating for the seller 3 Representing the buyer's interests 4 Reviewing transactional documents with the seller

Depositing trust funds into a general business account

Which of the following is an example of commingling? 1 using client funds for your personal expenses 2 depositing client funds into a broker trust fund 3 giving trust funds to your broker 4 depositing trust funds into a general business account

Informing parties to the transaction of material facts related to the transaction

Which of the following is an example of the duty of disclosure? 1 informing parties to the transaction of material facts related to the transaction 2 keeping a client's confidential information confidential 3 Carrying out a client's instructions without question 4 keeping the client in the loop on all that is happening with the transaction

They require the seller's written permission to post.

Which of the following is true about 'for sale' signs? 1 They must be visible from the street 2 They must be visible from the sidewalk 3 They require the seller's written permission to post 4 They must be located at least 20 ft away from the mailbox

Marty is representing Dwayne in both the sale of his current home and the purchase of his new home

Which of these circumstances does not require agent disclosure? 1 Marty is representing Dwayne in both the sale of his current home in the purchase of his new home 2 As part of his corporation, Shawn, a licensee owns several investment properties. He's selling one. 3 Megan has listed her brother's townhome for sale 4 Gary represents the buyer. He is a shareholder in the title insurance company the buyer has selected

Tie-in arrangement

Which type of antitrust violation occurs when the providing of one service is made dependent on the customer or client obtaining another recommended service? 1 Group boycotting 2 Market allocation 3 Price fixing 4 Tie-in arrangement

Having an agency agreement to prevent you from wasting your time

Why might you opt out of working with a buyer unless you're working under an agency agreement? 1 and agency agreement is required by law 2 it would be dual agency 3 having an agency agreement prevents you from wasting your time 4 it commits the buyer to a two-year contract

Both easements and encroachments affect the properties lot size, enjoyment, and use, which can affect a properties value

Why would a buyer want to know if any easements or encroachments exist on a property? 1 both easements and encroachments are illegal. The buyer could end up in court. 2 both easements and encroachments affect the properties lot size, enjoyment, and use, which can affect a properties value. 3 The buyer will have to remove these before the property can be resold. 4 The buyer may need this information to provide evidence for litigation.