Unit 5 Exam
A buyer wants to make sure his child is in a "good school." As the buyer's agent, you only show homes in neighborhoods that you have determined to have "good schools." Which of the following statements apply?
A "steering" complaint could be charged against you.
The statute of frauds requires that all real estate contract must be in writing.
All real estate sales contracts
Which one of the following is NOT correct regarding the Sherman Antitrust Act:
Allows monopolies to be eliminated by lack of consumer demand
If Buyer Jennifer fails to apply for a loan on or before the time period stated within the sales contract and financing supplemental addenda, what will occur
She will have breached the contract
If you assist a buyer in his or her request to find a home in a neighborhood that matches the buyer's race you would be guilty of ____.
Steering
If a housing complex has a "no pets" rule ____.
Such rules do not apply to service animals
To create a binding contract between the buyer and seller, which one of the following must occur
notice must be given to the buyer that the buyer's offer has been signed by the seller
A buyer wants to make sure his child is in a "good school." As the buyer's agent, you only show homes in neighborhoods that you have determined to have "good schools." Which of the following statements apply? 1) A "steering" complaint could be charged against you. 2) As you are meeting the needs of the buyer, you cannot be charged with steering. 3) It is your fiduciary duty to meet the needs of your buyer and therefore not to show homes in neighborhoods with "bad schools". 4) A "blockbusting" complaint could be charged against you.
A "steering" complaint could be charged against you.
A broker is employed to find a ready, willing, and able buyer at the seller's asking price and terms. If he or she does so, and the seller then refuses to sell, the broker is entitled to ____.
A full commission
Which of the following oral contracts is NOT enforceable?
A lease for longer than one year
A cooperating broker selling a property listed with a Multiple Listing Service may be ____.
A sub-agent of the listing broker in some states, A buyer's agent, and An intermediary or facilitator
If a buyer chooses liquidated damages in a real estate purchase contract, the buyer has ____.
Agreed to forfeit only the earnest money in the event of buyer breach of the contract
A cooperating broker selling a property listed with a Multiple Listing Service may be _____.1. A sub-agent of the listing broker in some states 2. A buyer's agent 3. An intermediary or facilitator 4. All of the above
All of the above
If an agent breaches his or her fiduciary duties, there may be cause for ____. 1. Rescission 2. Forfeiture of commission 3. Damages 4. All of the above
All of the above
In any agency relationship, the agent must NOT ____. 1. Disclose any confidential information known about the principal 2. Accept additional money or compensation from the transaction without the principal's consent 3. Represent any interests adverse to those of the principal 4. All of the above
All of the above
In any agency relationship, the agent must NOT ____. Disclose any confidential information known about the principal 2. Accept additional money or compensation from the transaction without the principal's consent 3. Represent any interests adverse to those of the principal 4. All of the above
All of the above
Owners are exempt from some Fair Housing Laws ____. 1. If they are not using an agent 2. If they do not use discriminatory advertising 3. If they own 4 or fewer units 4. All of the above
All of the above
An example of a local protected class not covered in Federal or State laws is ____.
Sexual orientation
The following statement about service animals is true. Some service animals that are licensed or certified, unlike companion animals, _______.
Are trained to perform a certain task
According to contract law, the buyers may revoke their offer
At any time prior to the seller signing the buyer's offer
A person named in a written power of attorney document to act on behalf of the principal is called a(n) ____.
Attorney in fact
Mutual rescission means ____.
Both buyer and seller agree to cancel the contract and hold all parties harmless
Specific performance means that ____.
Both parties may force the other to perform or sue in court for damages or both
Ms. Daniel accepts an offer on her property which she has listed with Broker Weber. It took Broker Weber seven days to get the buyer to write the offer. Broker Weber had to help the buyer get financing, showed comparables to help the buyer determine what kind of offer to make, and wrote the purchase contract. Which of the following is TRUE? 1. Broker Weber did her job and acted within the law, so long as Broker Weber disclosed to the buyer that she was the seller's agent. 2. Broker Weber did too much for the buyer, and thus became an accidental buyer agent. 3. Broker Weber should have disclosed her dual agency, thus making her dual agency legal. 4. None of the above
Broker Weber did her job and acted within the law, so long as Broker Weber disclosed to the buyer that she was the seller's agent.
After reviewing a buyer's offer, the seller decides to counter the offer. In the counteroffer, what role will each party be respectively called ____.
Buyer is offeror and seller is offeree
If a sales contract is not able to close by the time specified in the contract, the buyer's agent must do which one of the following: 1. Buyer's agent must call the title company and ask them to reschedule the closing to a later date and get the verbal approval of both parties to the contract including the listing agent 2. Buyer's agent must immediately inform the listing agent that the buyer will need more time to close and the agents can agree verbally to extend closing so long as it occurs prior to the expiration of the time period in the contract 3. Buyer's agent must initiate an amendment to extend the closing date and have the parties sign the amendment prior to the expiration date of the closing date as stated in the Contract 4. Contact the buyers' lender directly to ask for an extension of time to close
Buyer's agent must initiate an amendment to extend the closing date and have the parties sign the amendment prior to the expiration date of the closing date as stated in the Contract
Exemptions to the Fair Housing laws and ordinances include all of the following EXCEPT ____. 1. Senior housing is exempted from the prohibition against discriminating on the basis of familial status 2. Rooms for rent in a single-family house occupied by the owner or lessee 3. Non-commercial housing operated by private clubs or religious organizations 4. Commercial condos
Commercial condos
A broker deposits earnest money in the form of cash to his personal account. He then writes his personal check to his trust account. This is an example of ____.
Commingling
In an option contract, the option _________.
Consideration is given to the seller
A _____________________ is a provision inserted by either the buyer or seller that must be fulfilled in order for the contract to continue and be binding on the parties.
Contract contingency
1988 Fair Housing Amendments familial status protects all of the following EXCEPT a ____. 1. 17 year old living with a parent 2. Father with legal custody of a 16-year-old girl 3. Pregnant woman 4. Couple with 3 dogs
Couple with 3 dogs
An agency agreement would automatically be terminated by all of the following EXCEPT ____.
Death of the corporate officer who entered into the agreement
A broker who receives an earnest money check from a buyer should ____.
Deposit the check in the broker's trust (escrow) account
What does the acronym ESIGN stand for
Electronic Signatures in Global and National Commerce Act
Exemptions of the Civil Rights Act of 1968 does not include ____.
Exemptions for real estate licensees
The facilitator is being paid by the seller. The buyer offers $180,000 for the seller's home, and tells the facilitator in confidence that if the seller counters at $190,000, the buyer would accept. Since the facilitator is being paid by the seller, he or she is obligated to inform the seller of the buyer's willingness to accept a counteroffer of $190,000. True or False?
False
Which of the following protected classes was NOT listed in the Fair Housing Act of 1968?
Familial Status
Which of the following protected classes were added in the Fair Housing Amendments Act of 1988?
Familial status and handicapped persons
The Civil Rights Act of 1866 ____.
Grants all citizens the same rights with regard to property
An agent owes all of the following to the principal EXCEPT ____. 1. Fiduciary duties 2. Loyalty 3. Reasonable care in performance of the agency duties 4. Guaranteed protection of the principal's assets
Guaranteed protection of the principal's assets
An agent owes all of the following to the principal EXCEPT ____. 1. Fiduciary duties 2. Loyalty 3. Reasonable care in performance of the agency duties4. Guaranteed protection of the principal's assets
Guaranteed protection of the principal's assets
A salesperson may be compensated for real estate services by ____.
His or her employing broker
"D" drives into a filling station and tops off her gas tank. She is obligated to pay for the fuel through what kind of contract?
Implied
If a listing broker inadvertently finds evidence of a hidden major structural problem on the property which is currently under contract, he or she should ____.
Inform both the buyer and the seller
A contract which creates an agreement in advance that earnest money is forfeited if the buyer reneges is called ____.
Liquidated damages
A listing contract is between the property owner and the ____.
Listing agent's brokerage firm
Which of the following is not essential to a real estate contract?
Mailing address
A facilitator or transaction broker ____.
Must disclose all known adverse material facts concerning the property to both buyer and seller
Commissions for selling property are determined by____
Negotiation
Reasons for termination of an agency contract include all of the following EXCEPT ____.
No contract was signed between seller and broker
Reasons for termination of an agency contract include all of the following EXCEPT ____.1. Expiration of the agency time period 2. Death of the principal or the agent 3. Incapacity or bankruptcy of either the principal or the agent 4. No contract was signed between seller and broker
No contract was signed between seller and broker
A licensee contacts a "For-Sale-by-Owner" who then gives the licensee a tour of the home to be sold. In any subsequent brokerage activity, the brokerage relationship between the seller and licensee is ____.
Non-agent
It would be proper to include in an ad that a property _____. 1. Is across the street from a Jewish temple 2. Is best suited for singles or empty nesters 3. Is in a very desirable Asian neighborhood 4. None of the above
None of the above
The power of attorney form must be ____ if real property is being conveyed.
Notarized and recorded
To create a binding contract between the buyer and seller, which one of the following must occur? 1. notice must be given to the buyer that the buyer's offer has been signed by the seller 2. upon the seller signing the buyer's offer it becomes a contract between the two parties 3. upon the seller signing the buyer's offer it creates a meeting of the minds and a contract is formed 4. both b and c are correct
Notice must be given to the buyer that the buyer's offer has been signed by the seller
A contract is most completely described as a(n) ____.
Offer and acceptance to do a legal act between competent parties for consideration
After reviewing a buyer's offer, the seller decides to counter the offer. In the counteroffer, what role will each party be respectively called ____.
Offeree and the seller is the offeror
A written legal document that authorizes a person to act on behalf of the principal is known as ____.
Power of attorney
An agent is employed to perform specific acts on behalf of a person or entity known as the ____.
Principal
In a buyer agency relationship, the buyer is considered the ____.
Principal
If a broker associate is classified as an independent contractor for income purposes, the employing broker must ____.
Provide a 1099 at the end of the year and the associate pays the total Social Security tax
All of the following are antitrust violations EXCEPT:
Redlining
All of the following are antitrust violations EXCEPT: 1. group boycott 2. price fixing 3. redlining 4. refusing to deal
Redlining
Under the 1988 Amendment to the Civil Rights Act of 1968, an apartment owner would be acting within the law by ____.
Refusing to pay for modifications to an apartment that would allow a handicapped person the full enjoyment of the unit
Which of the following would constitute a Federal Fair Housing violation? 1. Refusing to rent to a minor 2. Renting an apartment to a blind person with a dog when no other tenants may have pets 3. Refusing to rent to a 50-year old in an elderly housing development 4. Representing that a property is not available for rent when in fact it is
Renting an apartment to a blind person with a dog when no other tenants may have pets
Which of the following would constitute a Federal Fair Housing violation?
Representing that a property is not available for rent when in fact it is
The terms of an agency relationship have been violated. All of the following are court remedies EXCEPT ____.
Rescission
If a 15-year old buyer contracts to purchase a home from a 28-year old seller, which of the following is NOT true?
The 28-year old may void the contract if he or she believed the 15-year old was 18 years old
Terrance Joseph made an offer on a house at less than the asking price and gave the seller six days in which to respond. Terrance received a counteroffer from the seller on the third day. After making the counteroffer, the seller changed his mind and signed the original offer on the fourth day. What is the situation now?
The buyer was released from his offer when the seller made the counteroffer.
A broker would be obligated to inform all of the following individuals of the fiduciary responsibilities of the broker's firm under the law of agency EXCEPT ____.
The buyer's lender
If a buyer was shown the wrong property and then wrote a contract which was accepted, ____.
The contract could be deemed not valid because there was not mutual assent (mistake)
The Civil Rights Act of 1968 applies only to programs funded by ____ and does not apply to FHA or VA loans.
The federal government
Commingling is ____.
The mixing of trust funds with personal or general business funds
All of the following are ways a seller can handle multiple offer situations EXCEPT: 1. the seller accepts the most favorable offer out of the offers received 2. the seller counters the offer closest to the price and terms needed by the seller 3. the seller requests all buyers to make their highest and best offer by a certain time and date 4. the seller counters more than one buyer's offer at the same time
The seller counters more than one buyer's offer at the same time
After accepting an offer from a buyer, a seller discovers that her broker acted as an undisclosed buyer agent. Which of the following statements is TRUE? 1. The contract is void. 2. The seller may withdraw without paying a commission to the brokerage. 3. The buyer must pay the commission and sue for specific performance. 4. The seller may withdraw but may be subject to liquidated damages.
The seller may withdraw without paying a commission to the brokerage.
Mr. and Mrs. Seller signed an agency listing agreement with Broker Jones. Later the same day Mr. and Mrs. Buyer inquire about homes with features similar to the Seller's home. Broker Jones now has ____.
The sellers as clients and the buyers as customers
The Sherman Antitrust Act was enacted for what purpose:
To protect the process of competition
In order to create a valid lease, you must create a valid contract. True or false?
True
The Fair Housing Act of 1968, as amended in 1988, protects against discrimination for persons with a psychological disorder or mental illness.
True
The Fair Housing Act of 1968, as amended in 1988, protects against discrimination for persons with a psychological disorder or mental illness. True or false?
True
True or false, a valid contract may be assigned to someone else unless the contract states otherwise?
True
True or false, all contracts are either express contracts or implied contracts?
True
The relationship between a real estate agent and principal is best described as ____.
Trustee and beneficiary
An Option contract, where a buyer agrees to purchase a property if the seller decides to sell, is an example of a(n) ____.
Unilateral contract
The independent contractor agreement between an employing broker and a broker associate is a(n) ____.
Unilateral contract
The offering party can rescind (take back) the offer _____.
Until a contract is accepted
A voidable contract could be described as ____.
Valid unless voided
If a contingency provision in a contract is not completed or removed, within a stated time period, the contract is
Void
When a power of attorney has been given to the seller's brother, it can be used .
When the brother is acting as attorney- in-fact
You may be determined to be an agent in the eyes of the law when ____.
You act as an implied agent
To keep a contract valid, the amendment to the contract must
be signed by all parties to the contract prior to the existing expiration time period stated in the contract
If Joe and Susy Smith need to obtain a loan on the property they want to make an offer on, which one of the following would need to accompany their offer:
financing supplemental addenda
Acceptable words to use that do not discriminate include ____.
places of worship nearby
Mrs. Smith had to pay Mr. Jones $50,000 in excess of Mr. Joneses' out-of-pocket damages from a court order when Mrs. Smith breached her contract with Mr. Jones. What is the $50,000 called?
punitive damages
All of the following are ways a seller can handle multiple offer situations EXCEPT:
the seller counters more than one buyer's offer at the same time
If the seller wants to counter the buyers offer, which one of the following is a true statement:
the seller may request his agent prepare a counteroffer outlining provisions of the buyer's offer that the seller disagrees with
In real estate contracts, the ____________________ clause requires parties to the contract to fulfill their obligations by the stated time frame
time is of the essence
A real estate licensee prepares a buyer's offer and is ready to transmit the contract to the seller, what is the most important requirement to be aware of in regard to electronically transmitting the offer to the buyer
to ensure the buyer has affirmatively consented in writing to use electronic means prior to using the electronic process
