Rockwell Real Estate Exam WA 2

Any changes to a purchase and sale agreement must be approved and signed by the: A. seller and buyer B. seller, seller's agent, and buyer C. seller only D. buyer only

A. Seller and buyer Once the purchase and sale agreement has been signed, changes to it can be made only with the approval and signature of both the buyer and the seller.

An agency relationship may be terminated by: A. notice from the agent B. notice from the principal C. mutual agreement D. Any of the above

C. Any of the above An agency relationship may be terminated by the unilateral action of either the buyer or the agent, or by mutual agreement between the parties.

In a VA transaction, who pays the points? A. The buyer B. The seller C. As negotiated between the buyer and seller D. The government

C. As negotiated between the buyer and seller Discounted points paid in a VA loan transaction may be paid by the buyer, the seller, or a third party, depending on what the parties negotiate.

Disclosure of and consent to a dual agency: A. are not required in a transaction where both agents work for the same brokerage B. must occur only after the parties sign the purchase and sale agreement C. must be in writing D. allow the agent to promote the interest of one party over that of another party

C. must be in writing Dual agency is legal in Washington only if it disclosed and consented to in writing.

All written offers must be: A. signed by the agent B. notarized C. presented to the seller D. All of the above

C. presented to the seller All written offers must be presented to the seller, even if the seller has already accepted another offer.

In Washington, which type of listing must have a definite termination date? A. Open listing B. Exclusive agency C. Exclusive right to sell D. None of the above

D. None of the above Under Washington law, a listing agreement does not need a termination date, but certainly best practice is to include one in an exclusive agency agreement. If no date is started, the agreement will terminate after a reasonable amount of time.

A conventional loan can be: A. an ARM B. a 15-year loan C. a 30-year loan D. All of the above

D. all of the above A conventional loan is one that is not insured or guaranteed by a government agency. A conventional loan does not have a set term and it may have an adjustable rate.

The amount of earnest money deposit: A. is always equal to 5% of the purchase price B. may never exceed $5,000 C. represents two months' salary from the buyer D. depends on the circumstances

D. depends on the circumstances There is no standard earnest money deposit; its size depends on the circumstances.

Fee packing, equity stripping, and balloon payment abuses are all examples of: A. preapproval techniques B. derogatory credit information C. rate lock-ins D. predatory lending practices

D. predatory lending practices These are all examples of predatory lending practices.

The law requiring a purchase and sale agreement to be in writing is the: A. statute of frauds B. license law C. Federal Fair Housing Act D. RESPA

A. Statute of frauds The statute of frauds contracts involving the sale of property to be in writing

Which of the following is a material fact that an agent would be required to disclose? A. The roof leaks during rainy weather B. The house was once the site of a suicide C. The house was once rented by gang members D. The house was once the headquarters for a doomsday cult

A. The roof leaks during rainy weather A leaky roof is a material fact that an agent would be required to disclose. But it would not be a material fact that the home had been rented by gang members, the site of a suicide, or used as headquarters by a cult.

Which party to a purchase and sale agreement usually benefits from a contingency? A. buyer B. seller C. designated broker D. second buyer

A. buyer A contingency in a purchase and sale agreement usually benefits the buyer, by protecting the buyer from having to complete the purchase if something doesn't work out.

Unless specified in writing, all deposits to a brokerage of $10,000 or less will be held: A. in the brokerage firm's pooled trust account or by the closing agent B. in the brokerage firm's operations account C. in the designated broker's personal account D. in a trust account set up specifically for the individual client

A. in the brokerage firm's pooled trust account or by the closing agent Trust fund deposits of $10,000 or less must be held in the brokerage's pooled trust account, with interest on the account paid to the state. Earnest money deposits may also be passed directly to the escrow agent.

All of the following should be taken into account in choosing a closing date, except: A. the due date of the next installment of the property taxes B. how long the seller needs to make any necessary repairs C. whether the buyer needs to sell her current home D. the time needed to clear way any liens

A. the due date of the next installment of the property taxes In choosing a closing date, it's important to consider how long it will take for the seller to make any necessary repairs, for the buyer to sell her current home, and for any liens to clear. The property tax due date is irrelevant, since this expense is prorated between the parties at closing

Prior to acceptance, an offer may legally be terminated by: A. the offeree B. the offeror C. the agent D. the seller

B. the offeror At any point until the offer is accepted, the offeror is permitted to terminate the offer. This is true even if the offer has a stated termination date.

Pest inspections are usually required when: A. Once every few years there is water in the basement B. there is sawdust-like material below parts of the foundation's wooden structure C. the home has a crawl space D. All of the above

B. there is sawdust-like material below parts of the foundation's wooden structure Evidence of wood-boring insects in the property's structure usually means that a pest inspection is required. A pest inspector looks for damage caused by wood-eating insects as a well as wood-damaging organisms such a fungi.

The "included items" paragraph is used to: A. list the documents being attached to the agreement B. determine how closing costs will be allocated C. specify which fixtures and/or personal property items will be part of the sale D. disclose the encumbrances on the property

C. specify which fixtures and/or personal property items will be part of the sale The "included items" paragraph lists items that are included in the sale unless otherwise noted.

A bathroom contains a toilet, a sink, and a stand-up shower. This would be considered a: A. one-quarter bath B. half bath C. three-quarter bath D. full bath

C. three-quarter bath A bathroom with sink, toilet, and stand-up shower is a three-quarter bath

Which of the following is not a step in preparing a competitive market analysis? A. Choosing comparable properties B. Making adjustments to comparable properties C. Gathering information about the subject property's neighborhood D. Calculating the replacement cost of the subject property

D. Calculating the replacement cost of the subject property A CMA does not inquire into the replacement cost of the subject property. It is based on the sales comparison approach to value, rather than the cost approach.

Once a veteran has used his VA loan entitlement, he can get another VA loan: A. if the house is sold and the old loan is paid in full B. If another veteran substitutes his or her entitlement C. under no circumstance D. Either A or B

D. Either A or B A veteran's loan entitlement is restored if he sells the property and pays off the VA loan balance, or if the property is sold to another eligible veteran who substitutes her/his entitlement for the seller's entitlement.

If a contingency is not fulfilled despite a good faith effort to fulfill it, what may the person who benefits from the contingency do? A. Terminate the agreement and have the earnest money deposit returned B. Waive the contingency and continue with the agreement C. Sue the other party for a breach of contract D. Either A or B

D. Either A or B The party who benefits from a contingency may, if the contingency is not fulfilled, terminate the agreement or waive the contingency and complete the purchase anyway

Which of the following is not usually a cost to the buyer? A. Origination fee B. Purchase price C. Appraisal D. Excise tax

D. Excise tax The excise tax on the sales price of the property is paid to the state by the seller.

Which of the following would be considered a design deficiency in newer, high-end construction? A. More bathrooms than bedrooms B. Kitchen too close to the garage C. Bedrooms not visible from living room D. There's no comfortable area in the kitchen where the family can eat

D. There's no comfortable area in the kitchen where the family can eat It's considered a design deficiency if a kitchen is too cramped to allow even a small area for eating.

Which of the following is the duration of a listing agreement in the state of Washington? A. 30 days B. 90 days C. 180 days D. Whatever the broker and seller agree upon

D. Whatever the broker and seller agree upon There is no standard listing period according to law or convention. The real estate firm and seller should agree upon a period that takes into account real estate market activity and the listing price of the property.

Which document should be prepared if the buyer plans to take possession before the closing date? A. Rental agreement B. Sale of buyer's home contingency C. Bump notice D. Backup offer

A. Rental agreement If the parties plan to transfer possession of the property either before or after the closing date, they should sign a rental agreement that includes the rental terms and the amount of rent.

Under which type of listing will an agent receive a commission only if he is the procuring cause of the sale? A. Open listing B. Exclusive agency C. Exclusive right to sell D. Net listing

A. Open listing Under an open listing, the seller pays a commission only if the agent is the person responsible for bringing about the agreement between buyer and seller. No commission is owed if another agent or seller is responsible for the sale.

Which of the following statements in an advertisement is most clearly discriminatory? A. "Close-knit Asian neighborhood" B. "Desirable and prestigious location" C. "Neighborhood with traditional values" D. "Safe neighborhood with hard-working people"

A. "Close-knit Asian neighborhood" An ad should never specifically reference a neighborhood's racial composition; this may suggest a discriminatory preference.

The Hutchinsons own a house that is currently appraised at $545,000. The owe $397,000 on the deed of trust and would have $65,000 in selling expenses. What is their net equity in the property? A. $83,000 B. $148,00 C. $213,000 D. $480,000

A. $83,000 To calculate net equity, subtract outstanding liens and estimated selling costs from the appraised value of the home ($545,000-$397,000-$65,000 = $83,000)

Once the buyer receives the seller disclosure statement, she may rescind the purchase and sale agreement within: A. 3 days B. 4 days C. 5 days D. 7 days

A. 3 days The buyer has three days from receiving the seller disclosure statement to either approve and accept the statement and continue with the transaction, or rescind the purchase and sale agreement. If the buyer decides to rescind the agreement, he must notify the seller in writing within that three-day window.

Which of these loans would present the greatest level of risk to a lender? A. 97% LTV B. 95% LTV C. 90% LTV D. 80% LTV

A. 97% LTV A higher loan-to-value (or LTV) indicates a smaller downpayment relative to the sales price. This creates a higher risk for the lender.

If a seller wants to help a prospective buyer qualify for an institutional loan, which of the following options will reduce the buyer's interest rate? A. Buydown B. Equity Exchange C. Lease/option D. Silent wrap

A. Buydown With a buydown, the seller can lower the interest rate on the buyer's loan, which may allow the buyer to get a loan he might not otherwise qualify for.

To determine an appropriate listing price for a property, an agent will perform a/an _______, which is related to but less rigorous than a/an _________. A. CMA/appraisal B. Appraisal/CMA C. CMA/reconciliation D. Valuation/CMA

A. CMA/appraisal An agent may perform a competitive market analysis ( or CMA), which is based on the principles of appraisal but is not as rigorous a process.

Which of the following will not be covered by a standard homeowner's hazard insurance policy? A. Earthquake B. Fire C. Vandalism D. Electrical overload

A. Earthquake Most hazard insurance policies do not cover earthquakes or floods. Homeowners at higher risk for these phenomena should be advised to purchase separate coverage.

What document does the escrow agent rely on in deciding how to disburse funds? A. Escrow instructions B. Loan agreement C. Listing agreement D. Contingency addendum

A. Escrow instructions An escrow agent will follow the escrow instructions, a contract that buyer and seller sign at the beginning of the escrow process.

The seller disclosure statement should be filled out by the: A. seller B. seller's agent C. inspector D. Any of the above

A. Seller The seller disclosure statement should be filled out by the seller and not by the agent or anyone else.

A typical listing agreement does NOT authorize the listing agent to: A. accept an offer to purchase the property B. submit offers to purchase the property C. accept earnest money deposits from prospective buyers on behalf of the seller D. act as the seller's agent

A. accept an offer to purchase the property Under a typical listing agreement, the listing agent may present offers to the seller, but only the seller can accept an offer.

A counteroffer: A. acts as a rejection of the initial offer B. is used to rescind a previously existing contract C. is used only to make an offer contingent on a particular event D. is used when a buyer wants to make an offer where the seller has already accepted an offer

A. acts as a rejection of the initial offer A counteroffer is a rejection of the previous offer. Either a buyer or a seller may make a counteroffer, in response to either the initial or previous counteroffer.

The cash price for a property and APR may be advertised. However, if other terms such as the downpayment or interest rate are stated in the as, then: A. all the important terms of the loan must be included in the ad B. the APR is all that is necessary to include in the ad C. the lender's phone number must be included D. the ad violates the fair housing laws

A. all the important terms of the loan must be included in the ad If a real estate advertisement contains "trigger" terms such as the downpayment amount or interest rate, the Truth in Lending Act applies and the ad must also disclose the downpayment amount, the terms of repayment and the annual percentage rate.

If a prospective buyer is adamantly opposed to an adjustable-rate or graduated payment mortgage, the agent should: A. condition the agreement upon the buyer's ability to obtain a fixed-rate loan B. explain that any reasonable person would accept such financing C. represent to the buyer that interest rates have not increased in the past five years D. Any of the above

A. condition the agreement upon the buyer's ability to obtain a fixed-rate loan Making the contract contingent on the buyer's ability a fixed-rate loan ensures that the buyer will not have to complete the transaction unless he can get the type of financing he wants.

Which of the following responsibilities is NOT part of the duty of accounting? A. disclosing the terms of the listing agent's compensation B. reporting to clients on the status of trust funds C. accounting for all money and valuables held by the brokerage on the client's behalf D. avoiding commingling trust funds and operating funds

A. disclosing the terms of the listing agent's compensation Under the duty of accounting, an agent must avoid commingling, account for funds and valuables held in trust, and report to clients on the status of such trust funds.

An agent representing the seller cannot disclose any confidential information from or about the seller: A. even after representation ends B. unless it will not harm the seller C. Either of the above D. unless instructed to by her/his designated broker

A. even after the representation ends A seller's agent owes the seller the duty of confidentiality, and cannot disclose any confidential information about the seller, even after the agency ends.

Your buyers have found their dream home. The market is currently very active, and the home has already received two offers. The buyers want to make their offer more attractive, without increasing their risk or expense, so you recommend that they: A. include a personal statement with their offer B. waive all contingencies C. offer a smaller earnest money deposit D. All of the above

A. include a personal statement with their offer In a multiple offer situation, a written statement from a buyer may make the offer more personal, and therefore more appealing to the seller.

Which of the following items is likeliest to cause title to be unmarketable? A. recorded CC&Rs B. Adverse possession C. An encroachment that does not materially affect the property's value D. Reserved mineral rights

B. Adverse possession Adverse possession would typically cause title to be unmarketable. The purchase and sale agreement from states that CC&Rs of record, easements, and encroachments that do not interfere with the property's use or value, and reserved oil or mineral rights do not render title unmarketable.

Regulation Z requires the lender to provide the buyer with an estimate of loan costs within: A. 2 days after the loan application is submitted B. 3 days after the loan application is submitted C. 5 days after the loan application is submitted D. 10 days after the loan application is submitted

B. 3 days after the loan application is submitted In a residential mortgage transaction, the lender must give the loan applicant an estimate of finance charges within three days of receiving the written loan application.

In order to disclose all material facts, a real estate licensee must: A. physically inspect the property B. disclose latent defects the licensee knows about C. actively search for material facts D. investigate both parties' financial positions

B. Disclose latent defects the licensee knows about An agent is required to disclose any material facts of which she is aware, but she is not required to independently investigate the parties or the property.

Which of the following items is not a part of the escrow process? A. ordering a preliminary title report B. Making a counteroffer C. Paying off the remainder of the seller's loan D. Recording mortgage documents

B. Making a counteroffer The escrow process is used to close the sale, so it does not begin until the buyer and seller have signed off on a purchase and sale agreement. The process of offer and counteroffer come earlier than that.

Which party is usually responsible for the costs of modifications or repairs made a as a result of unsatisfactory inspection results? A. Buyer B. Seller C. Listing agent D. None of the above

B. Seller Typically, if a buyer deems an inspection report unsatisfactory, he will give the seller an opportunity to make repairs. If the seller chooses to make the repairs, the work is usually paid for by the seller.

Which of the following would not be an adequate property description in a purchase and sale agreement? A. Lot and block description B. Street address C. Attached photocopy of description from deed D. Government survey description

B. Street address A property description in a purchase and sale agreement should be a legal description, such a lot and block description or a government survey description. A street address is insufficient.

A listing agreement is a contract between the seller and: the licensee taking the listing B. the firm the licensee taking the listing works for C. the multiple listing service D. Any of the above

B. The firm the licensee taking the listing works for Even though an affiliated licensee is the person who actually takes the listing agreement is always between the seller and the brokerage firm.

APR refers to: A. area property report B. annual percentage rate C. agency passing rate D. actual percentage rule

B. annual percentage rate The "APR" is the annual percentage rate: all of the charges involved in a loan, expressed as an annual percentage of the loan amount.

A large earnest money deposit A. guarantees the buyer's performance B. indicates the buyer's good faith in making an offer C. provides full compensation to the agent if the buyer defaults D. All of the above

B. indicates the buyer's good faith in making an offer A significant earnest money deposit indicates to the seller that the buyer is serious about the purchase. It does not, however, guarantee the buyer's performance or provide full compensation to the agent should the buyer default.

A dual agent must: A. disclose each party's negotiating position to the other party B. keep each party's negotiating position confidential C. act only as a facilitator, with no agency duties to either party D. receive equal compensation from the two parties

B. keep each party's negotiating position confidential Under Washington law, a dual agent must not disclose either principal's confidential information to the other. Information about each party's negotiating position (for example, the highest price the buyer would actually be willing to pay) does not fall within the definition of material facts; as a result, a dual agent can and must keep that information confidential.

A homeowner preparing his home for sale should do all of the following except: A. fi any broken fences and railings B. repaint interior walls in a bright primary color C. replace old, stained carpeting D. mow lawn and prune trees and shrubs

B. repaint interior walls in a bright primary color When showing a home, neutral colors are considered best for interior paint and décor.

Excise tax is usually paid by the: A. buyer B. seller C. lender D. borrower

B. seller the excise tax is tax imposed on the sale of the property

The legal description in a purchase and sale agreement: A. is the street address of the property B. should be inserted, attached, or corrected as soon as possible, if not available at the time the agreement was signed C. should always include the lot size or acreage D. need not mention any personal property included in the sale, but only if the personal property was mentioned in the agreement

B. should be inserted, attached, or corrected as soon as possible, if not available at the time the agreement was signed If the legal description is not included at the time the purchase and sale agreement is signed, it should be added as soon as possible

When a listing agent transfers his affiliation to another brokerage: A. the agent automatically takes his listing with him B. that agent's listings remain with the brokerage, since the listing agreement is a contract between the seller and the firm C. the listing agent is entitled to a referral fee if the listing sells after the transfer D. None of the above

B. the agent's listings remain with the brokerage, since the listing agreement is a contract between the seller and the firm A listing agreement is a contract between a seller and a brokerage, and will remain with the brokerage firm even if the licensee who obtained the listing goes to work for another brokerage.

Which of the statements about an offer to purchase real estate is true? A. The offer must be in writing but the acceptance may be oral B. The offer need not be in writing but the acceptance must be written C. Both the offer and acceptance must be in writing D. Neither the offer nor the acceptance need by in writing

C. Both the offer and acceptance must be in writing Under the statute of frauds, an offer to purchase real property must be in writing. The acceptance must also be in writing.

Which of the following is not a duty owed to every party in a transaction? A. Reasonable care and skill B. Honesty and good faith C. Confidentiality D. Present all written communications to either party in a timely manner

C. Confidentiality In a transaction, an agent owes only her principal the duty of confidentiality. However, the agent owes the duties of reasonable care and skill, honesty and good faith to all of the parties. Also, the agent must present communications promptly.

Under which type of listing will the seller owe a commission to the listing agent regardless of who is the procuring cause of the sale? A. Open listing B. Exclusive agency C. Exclusive right to sell D. Net listing

C. Exclusive right to sell Under an exclusive right to sell listing, the listing agent will earn a commission if the property sells during the listing period, even if another agent or the seller finds the buyer

Prior to looking for a house, a potential buyer approaches a lender in order to obtain a promise of a loan up to a certain amount. This is known as: A. prequalification B. predetermination C. preapproval D. prepayment

C. Preapproval A buyer who would like to be preapproved will go directly to a lender and submit a loan application. Prequalification, by contract, can be performed by a real estate agent and is merely a determination of an appropriate price range. (Today, preapproval is much more common than prequalification.)

Which of the following is not an important component of an inspection report? A. Identify signs that the property may require a specialized type of inspection (such as environmental) B. Projecting a future budget for repair or remodeling work C. Providing an estimated valuation for the property D. Summarizing areas that need or will need repairs

C. Providing an estimated valuation for the property It is not the job of an inspector to estimate a value for the property; that is the job of an appraiser. An inspector looks for problems that will require repairs and notes if there are red flags indicating that a specialized inspection is needed.

Which of the following practices would not be an illegal discriminatory action? A. Always assigning minority buyers to work with minority agents B. Referring all Spanish-speaking buyers to Spanish speaking colleagues C. Referring a buyer to a Spanish-speaking colleague after the buyer expressed a preference to work with a Spanish-speaking agent D. Failing to transmit an offer from an Asian buyer to the seller of a property in an all-white neighborhood

C. Referring a buyer to a Spanish-speaking colleague after the buyer expressed a preference to work with a Spanish-speaking agent It is unlawful to treat certain types of buyers differently from others based on discriminatory reasons. However, there is nothing illegal about honoring a buyer's request to work with an agent of a particular ethnicity or national origin.

When a buyer is ready to make an offer, who may OT prepare the offer? A. The buyer B. The buyer's lawyer C. The buyer's agent, writing the terms of the contract himself D. The buyer's agent, using a pre-printed purchase and sale agreement form

C. The buyer's agent, writing the terms of the contract himself A real estate agent is not permitted to draft all the provision of a contract for a buyer (this would constitute the unauthorized practice of law). However, a real estate agent can fill out a pre-printed purchase and sale agreement.

All of the following should be included in every purchase and sale agreement, except: A. identification of the parties B. purchase price and method of payment C. agent's commission D. dates when the title and possession will pass to buyer

C. agent's commission A purchase and sale agreement should always include the parties' names, the purchase price and method of payment, and the date that possession will transfer. The agent's commission rate is typically included in the listing agreement.

A seller offers to pay six discount points on behalf of the buyers. This will reduce the buyers' interest rate from 9% to 8%. This is known as a: A. lease/option B. seller second C. buydown D. two-step mortgage

C. buydown In a buydown, the seller pays points to the lender. The lender will then charge a lower interest rate to the buyer, perhaps enabling them to afford a house they would otherwise not be able to purchase.

In a request for consideration of value, you should use: A. exactly the same comparables as the appraiser B. only currently listed properties as comparables C. comparable sales that are at least as similar to the subject property as the appraiser's comparables D. the income approach to value

C. comparable sales that are at least as similar to the subject property as the appraiser's comparables To persuade the lender to accept your estimate of value over the appraiser's, select comparables that are at least as similar to the subject property as the appraiser's comparables.

On a settlement statement, the debits represent: A. the amount of financing in the transaction B. money to be paid to the party C. costs that the party must pay at closing D. costs that the buyer must pay to the seller

C. costs that the party must pay at closing Debits are a cost that a party must pay at closing, either to the other party or to a third party.

PMI is private mortgage insurance that protects the lender in case of A. fire B. water damage C. default by the borrower D. None of the above

C. default by the borrower PMI is private mortgage that protects the lender in the event that the borrower defaults on the loan.

If a seller does not want to sell to a member of a protected class, the agent should: A. take steps to accommodate the seller's wishes B. include this information in the Comments section of the listing C. explain the fair housing laws to the seller D. All of the above

C. explain the fair housing laws to the seller If a seller indicated an intent to discriminate, the agent should explain the fair housing laws and if necessary, decline to take the listing. Anything the agent does to accommodate discriminatory behavior by the seller may be construed as discriminatory behavior on the part of the agent.

Advertisements for residential property should always include: A. models of a different ethnic origin than the residents of the neighborhood you are advertising in B. models from the same ethnic group as the residents of the neighborhood you are advertising in C. the Equal Housing Opportunity logo or slogan D. a specific explanation of the standards of the community

C. the Equal Housing Opportunity logo or slogan Regardless of the type of advertising used to market a home, it should always include the Equal Housing Opportunity logo or slogan.

A principal is not liable for the act of an agent or subagent unless: A. the agent acted without authority B. the act had serious financial consequences for the principal C. the principal participated in or authorized the act D. None of the above

C. the principal participated in or authorized the act A principal usually won't be held liable for the act of an agent or subagent unless the principal authorized or participated in the act. The principal may also be held liable if she benefited from the agent's act and the injured party wont be able to obtain compensation from the agent.

A licensee who represents neither party in a transaction and acts as a neutral facilitator is a/an: A. Dual agent B. Subagent C. Interagent D. Non-agent

D. Non-agent A non-agent represents neither party and owes no agency duties other than the general duties that a licensee owes to any party.

For a property to be useful as a comparable, it should: A. be in the same neighborhood as the subject property B. be of a similar age and quality as the subject property C. have sold within the last six months D. All of the above

D. All of the above A comparable should be in the same location and of similar age, style, and quality as the subject property. Comparables should have sold in the last six months, although older sales may be used if no better options are available and adjustments for changing market conditions are made.

The licensee owes to all parties whom the licensee renders real estate brokerage services the following duties: A. to exercise reasonable care and skill B. to deal in honesty and good faith C. to present all written offers D. All of the above

D. All of the above A licensee owes to all parties in a transaction the duties to exercise reasonable care and skill, to act with honesty and good faith, and to present written communication in a timely matter.

Which of the following is a method commonly used by agents to generate listings? A. Cold Calling B. Referrals C. Farming D. All of the above

D. All of the above Cold Calling, farming, and referrals are all methods frequently used by real estate agents to generate listings.

Servicing the listing involves: A. obtaining keys and installing a lockbox B. advertising the property C. giving the seller weekly activity reports D. All of the above

D. All of the above Marketing the property, installing a keybox, and the seller with weekly activity reports are all part of servicing the listing.

Potential environmental hazards to be concerned with include: A. empty oil tank on property B. urea formaldehyde C. asbestos D. All of the above

D. All of the above Oil storage tanks, urea formaldehyde, and asbestos are all potential environmental hazards that an agent should be familiar with.

When taking a listing, the agent should: A. let the seller know what to expect regarding open houses, signs, and the escrow process B. give instructions on preparing the house for sale C. explain how the keybox works D. All of the above

D. All of the above Servicing the listing involves showing the seller how the keybox works, giving instructions on preparing the home for sale, and explaining to the seller how open houses, showings, and escrow will work.

The federal Fair Housing Act prohibits discrimination on the basis of: A. race, religion, color, national origin B. mental/physical disability C. familial status D. All of the above

D. All of the above The federal Fair Housing Act prohibits discrimination on the basis of race, religion, color, sex, national origin, disability, or familial status.

Unless otherwise agreed, a licensee owes no duty to: A. conduct an independent investigation of the property B. conduct an independent investigation of either party's financial condition C. independently verify the accuracy or completeness of any statement made by either party D. All of the above

D. All of the above Unless the agent agrees otherwise, the agent owes no duty to independently investigate the property or either party's financial condition, or to independently verify statements made by either party.

At what point in a transaction must you disclose your agency status in writing? A. at closing B. when first meeting any potential party to the transaction C. when a party signs an offer D. Before a party signs an offer

D. Before a party signs an offer You must disclose your agency status to each party in a transaction as soon as practicable. However, the initial disclosure may be oral - the law doesn't require written confirmation of the agency disclosure until each party is about to sign an offer.

it is a good idea to give an estimated net proceeds worksheet to the seller" A. to show the seller what the bottom line will be as a result of the sale B. to educate the seller that there are costs involved with the sale of a home C. because the license law specifically requires the use of net proceeds worksheets D. Both A and B

D. Both A and B The estimated seller's net proceeds informs the seller of the costs and profit anticipated in the sale of his home. The license law doesn't mention net proceeds worksheets.

All of the following are necessary elements of a contingency, except: A. the deadline by which point the condition must be met or waived B. the rights of the parties if the condition isn't met or waived by the deadline C. a clear description of how the condition can be met D. the damage that the party unable to fulfill the contingency will pay the other party

D. the damage that the party unable to fulfill the contingency will pay the other party A contingency usually benefits the party who is trying to fulfill it, by allowing that party to terminate the agreement if the condition cannot be met. The benefiting party won't be required to pay damages if the condition is not met.