Real Estate Final Exam

When licensee Linda asks potential seller clients about their reasons for selling, what's her purpose? a. To create a data set about typical seller characteristics b. To develop a rapport with the customer c. To help her determine a suggested listing price d. To help her gauge the seller's motivation as part of her qualifying process

d. To help her gauge the seller's motivation as part of her qualifying process

Which of the following is a residential dwelling with attached walls, where the owner also typically owns the land on which the home sits? a. Apartment b. Condominium c. Single-family detached home d. Townhome

d. Townhome

In a life estate, all of the following apply during the term except ______. a. Control b. Ownership c. Possession d. Transferability

d. Transferability

Broker Alex learns that his friend Joann is frustrated with the broker who listed her home. Alex encourages her to break her existing agency agreement and sign with him instead. This violation is an example of ______. a. Contractual interference b. Failure to disclose an agency relationship c. Making a substantial and willful misrepresentation d. Performing services that would qualify as practice of law

a. Contractual interference

Last week, The Rialdis' listing agreement ended after months on the market and not even a single offer to show for it. Today, they received a call from Mindy, a real estate professional who would like to relist the property and has some new ideas for getting it sold. What approach is Mindy using to find listings? a. Expired listings b. Farming c. Owner sales d. Referral

a. Expired listings

How long must trust records be retained in Illinois? a. Five years b. One year c. Three years d. Two years

a. Five years

In accordance with the Illinois Real Estate License Act, sponsoring brokers must keep copies of all disclosures on file for ____________________. a. Five years b. One year c. Seven years d. Six months

a. Five years

A borrower makes the same monthly mortgage payment for the entire term of the loan. At the end of the loan period, all of the interest and principal is paid off. This is known as a ______ loan. a. Fully amortized b. Growing equity c. Negative amortization d. Reverse annuity

a. Fully amortized

Tim, a new buyer client, is pre-approved for a mortgage loan of as much as $250,000. This information can help to _______. a. Identify properties b. Inspect a property he has identified c. Research a property he is interested in d. Show him properties

a. Identify properties

Under what circumstances may a seller legally terminate an exclusive right-to-sell listing agreement before its listing term has passed? a. If the listing broker agrees in writing to the termination b. If the seller has found a ready, willing, and able buyer with no assistance from the listing broker c. If the seller loses his job d. Under no circumstances

a. If the listing broker agrees in writing to the termination

It's not a good idea to post photos of your clients' expensive belongings. Why is that? a. It can attract the attention of thieves. b. It will decrease the market value of the property. c. It will discourage criminals. d. It will make the property less attractive to potential buyers.

a. It can attract the attention of thieves.

Nina signed an exclusive buyer agency agreement with Ken, her client. Ken buys a property from another agent. What might happen? a. Ken may owe commission to Nina. b. Ken may void the transaction. c. Nina may void the transaction. d. Nothing; buyers are free to work with whomever they choose.

a. Ken may owe commission to Nina.

When does the licensee's duty of confidentiality to the client end? a. Never b. When the brokerage agreement terminates c. When the client becomes incapacitated or dies d. When the representation agreement expires

a. Never

What's the difference between an exclusive right-to-sell and an exclusive agency agreement? a. No commission is earned if the seller locates the buyer with exclusive agency. b. No permission is required for dual agency with an exclusive right to sell. c. One is for buyers, and one is for sellers. d. They are two names for the same thing (no difference).

a. No commission is earned if the seller locates the buyer with exclusive agency.

What happens to a joint tenant's share of property when the joint tenant dies? a. The joint tenant's interest goes to the remaining joint tenants. If only one joint tenant is left, that joint tenant owns the property in severalty. b. The property must be sold, with the proceeds from the joint tenant's share distributed to heirs. c. The tenancy remains, but the joint tenant's interest passes to heirs. d. The tenancy terminates, and the joint tenant's share goes to the state.

a. The joint tenant's interest goes to the remaining joint tenants. If only one joint tenant is left, that joint tenant owns the property in severalty.

What's the purpose of a short sale? a. To avoid foreclosure b. To avoid responsibility for taking the traditional route to selling property c. To replenish the local real estate market with fresh properties in a short amount of time d. To sell the property quickly when the real estate market is booming

a. To avoid foreclosure

Which of the following activities occurs before closing? a. The buyer and lender close on the mortgage loan commitment. b. The buyer obtains an insurance binder. c. The seller and buyer agents close on their cooperative brokerage agreement. d. The seller is paid the balance of the purchase price.

b. The buyer obtains an insurance binder. The buyer will need to obtain an insurance binder prior to closing, while the other activities listed here occur during closing.

Which agent role in Illinois is assumed by a licensee who assists a prospective customer in a transaction on behalf of a seller or buyer client? a. Buyer's agent b. Dual agent c. Non-agent d. Seller's agent

c. Non-agent

_________ occurs when the parties meet all terms of the contract. a. Impossibility of performance b. Partial performance c. Performance of contract d. Specific performance

c. Performance of contract

This statement is part of a promissory note attached to a security instrument: "I have the right to make payments of Principal at any time before they are due." What's the name of the clause where this statement is included? a. Lock-in clause b. Penalty clause c. Pre-payment clause d. Principal clause

c. Pre-payment clause

Agreeing to a specific price, price range, or minimum or maximum charges among competing firms is an example of which type of antitrust violation? a. Group boycotting b. Market allocation c. Price fixing d. Tie-in arrangement

c. Price fixing

In Illinois, when must the parties to the transaction reaffirm their original consent for dual agency? a. After the buyer has deposited earnest money b. Immediately after the brokerage agreement has been signed c. Prior to or at the time the parties sign the contract or lease for the transaction d. Prior to the inspection

c. Prior to or at the time the parties sign the contract or lease for the transaction Licensees must obtain consent for dual agency representation at the time they enter into a brokerage agreement with a client. That consent must be reaffirmed no later than at the time the purchase or lease agreement is signed.

At what point in a residential transaction must a seller's agent deliver a completed Residential Real Property Disclosure Report to a buyer? a. At least five days prior to closing b. Prior to showing the property to the prospective buyer c. Prior to the parties signing a purchase agreement d. Within three days after the parties sign a purchase agreement

c. Prior to the parties signing a purchase agreement

During a residential transaction, when must an Illinois seller's agent deliver a completed Residential Real Property Disclosure Report to a buyer? a. At least five days prior to closing b. Prior to showing the property to the prospective buyer c. Prior to the parties signing a purchase agreement d. Within three days after the parties sign a purchase agreement

c. Prior to the parties signing a purchase agreement

Which of these actions must the seller in a residential transaction take under the Illinois Radon Awareness Act? a. Perform a test for radon levels using an IEMA-approved test kit. b. Provide the buyer with a list of licensed radon-mitigation companies in the area. c. Provide the buyer with required forms related to radon hazards and their known presence on the property. d. Take approved measures to mitigate for radon if high levels are present.

c. Provide the buyer with required forms related to radon hazards and their known presence on the property.

What type of loan may be used if the buyer is obtaining seller financing? a. Graduated payment mortgage b. Pledged account mortgage c. Purchase money mortgage d. Wrap-around mortgage

c. Purchase money mortgage

Bart and Claire are under contract for Claire to buy Bart's house, but her financing fell through. They decide to cancel the contract just as if it never happened. Which termination method does this describe? a. Reformation b. Release c. Rescission d. Restraint

c. Rescission A rescission is a definitive end of the parties' commitments under an agreement—one in which the parties are returned to their pre-contract status.

Where can you find out what's not covered by a title insurance policy? a. The county clerk's office b. The Internet c. The lender's attorney d. The title insurance policy's schedule of exceptions

d. The title insurance policy's schedule of exceptions

Which act gives companies the right to sue a competitor for making deceptive ad claims? a. The Gramm-Bliley Act b. The Lanham Act c. The Privacy Act d. The Truth in Advertising Act

b. The Lanham Act

Which portion of a mortgage payment is the financial institution's charge for the use of its money? a. Insurance b. Interest c. Principal d. Tax

Interest is the amount charged for the use of someone else's money—in this case, the lender's.

Dominic's seller clients want him to lower his commission rate. What's the best way for him to reply? a. "I base my fees on my services. Which services would you like to give up?" b. "No way!" c. "Sure!" d. "This is the standard rate in this market."

a. "I base my fees on my services. Which services would you like to give up?"

Wyatt is selling his home to Kirk, and promises in writing to have a licensed professional repair the home's leaky roof. After closing, Kirk, who financed the purchase, discovers that Wyatt patched the roof poorly and it leaks whenever it rains heavily. Under the Illinois statute of limitations, if Kirk wishes to sue Wyatt, he must do so within ________ of the contract breach. a. 10 years b. Five years c. Three years d. Two years

a. 10 years

Sanjiv recently signed a brokerage agreement with a landlord client. To be considered a valid contract in Illinois, the agreement must have either a provision for the client's right to terminate annually with a 30-day written notice or ______________________. a. A firm expiration date b. An automatic renewal clause c. An option to renew clause d. A right to early termination waiver

a. A firm expiration date

Which of the following is appropriate to include in a buyer agency agreement? a. A list of duties the agent owes to the buyer b. An automatic renewal clause c. The buyer's age and number of children d. The buyer's preference for ethnic ratio of a neighborhood

a. A list of duties the agent owes to the buyer

Which of these photo descriptions may be a potential MLS violation? a. A photo of the master bedroom, including the bed, dresser, and jewelry armoire b. Multiple exterior photos, taken in different seasons c. Photos taken after a professional cleaning service and stager spruced it up d. Wide-angle photos of the recently updated bathrooms and kitchen

a. A photo of the master bedroom, including the bed, dresser, and jewelry armoire

What's it called when a person who has possession of a property through a life estate abuses the property or allows it to deteriorate? a. Act of waste b. Escheat c. Estate at sufferance d. Reversionary interest

a. Act of waste

When a prospective homebuyer isn't represented, what doesn't she have? a. An agency agreement b. A seller's agreement c. Responsibility to pay the seller's commission d. The legal right to purchase

a. An agency agreement

Homeowners can take several actions related to pest infestations, but ______ should be left to professionals. a. Applying pesticides b. Installing a vapor barrier c. Looking for signs of an infestation d. Removing moisture from the home

a. Applying pesticides

Which of these is an example of deceptive advertising in Illinois? a. Blake's listing closed on March 1, and he removed the listing from the MLS on April 15. b. Dan published his listing on the MLS with photos that showed professionally staged rooms. c. Jean described her listing's large back yard as, "Perfect for neighborhood barbecues!" d. Stav mailed postcards out to her farm area proclaiming, "Ready to sell your home NOW!"

a. Blake's listing closed on March 1, and he removed the listing from the MLS on April 15. Keeping advertised information current is a requirement of Illinois license law and the NAR Code of Ethics. Blake should have removed his listing from the MLS promptly upon the closing of the sale.

Appraiser Niles uses ______ to determine a range of values based on comparing a subject property to comparable sales. He makes sure to use some comparables that lack features of his subject property, and others that have even more desirable features, to balance out the comparison. a. Bracketing b. Competition c. Correlation d. Substituting

a. Bracketing

Which agent role in Illinois has a brokerage agreement with the buyer and exclusively represents the buyer's interests? a. Buyer's agent b. Dual agent c. Non-agent d. Seller's agent

a. Buyer's agent

A ______ is the expected rate of return on an investment. a. Capitalization rate b. Cash flow c. Income ratio d. Profit margin

a. Capitalization rate

Which federal lending act was introduced to combat lending discrimination in low- and moderate-income neighborhoods? a. Community Reinvestment Act b. Consumer Credit Protection Act c. Equal Credit Opportunity Act d. Home Mortgage Disclosure Act

a. Community Reinvestment Act

Zoning regulations must be aligned with an area's ______. a. Comprehensive plan b. Government plan c. Majority opinions d. Political jurisdictions

a. Comprehensive plan

Which of the following is an example of a metes and bounds description? a. 123 Roanoke Street Any Town, ST 98765 b. "Beginning at the iron pin 30 paces from the center of the brook that runs across the road Southwesterly from the dwelling ..." c. Lot 6 of Block 3 of the Meridian subdivision ... d. S ½ SE ¼ NW ¼ Section 2 ...

b. "Beginning at the iron pin 30 paces from the center of the brook that runs across the road Southwesterly from the dwelling ..."

Your Aunt Peggy works in another county and is thinking of buying a townhome. She's working with the seller's agent but isn't under an agency agreement. What should you tell her about this situation? a. "Make certain you don't have to pay the seller's commission." b. "Make sure you understand that you're not represented." c. "Tell the listing agent to give me a referral fee." d. "This is illegal. Report the listing agent to the commission."

b. "Make sure you understand that you're not represented."

Bob and Mary are financing $80,500 for a new home. Their lender will approve an interest rate of 6.5% if Bob and Mary pay three-and-a-half discount points at closing. How much is this? a. $2,415 b. $2,817.50 c. $5,232.50 d. $8,050

b. $2,817.50

George just applied for a conventional loan on a cottage he wants to buy. What percentage of the loan can he expect to submit as a down payment? a. 0% b. 20% c. 25% d. 5%

b. 20%

When an ______ is added to a sales contract, it changes the original terms of the contract. a. Addendum b. Amendment c. Annexation d. Appurtenance

b. Amendment

Federal fair housing laws prohibit ______. a. A 49-year-old, single woman from describing herself as such in an advertisement for a roommate b. An ad stating families with small children need not apply c. Evicting a tenant who sells drugs from the property d. Refusing to rent a property to smokers

b. An ad stating families with small children need not apply

In Illinois, when must licensees obtain consent for dual agency representation? a. As the situation arises b. Before entering into a dual agency transaction. c. In the first face-to-face meeting with a potential client d. Prior to entering into a contract for a specific transaction

b. Before entering into a dual agency transaction.

Which agency duties survive termination of an agreement? a. Accounting and loyalty b. Confidentiality and accounting c. Confidentiality, loyalty, and accounting d. Reasonable skill and care, confidentiality, and loyalty

b. Confidentiality and accounting

You helped Frasier buy his penthouse condo. He's just received the keys and you two have said your goodbyes after closing, and you're heading back to the office to close out the transaction file. Which of your fiduciary duties continue? a. Accounting and loyalty b. Confidentiality and accounting c. Confidentiality, loyalty, and accounting d. Reasonable skill and care, confidentiality, and loyalty

b. Confidentiality and accounting Loyalty doesn't survive agency termination, because you may end up representing the opposite side in a future transaction. But confidentiality and accounting survive agency termination.

Which agent role in Illinois is assumed by a designated agent who represents both the seller and buyer clients in the same transaction? a. Buyer's agent b. Dual agent c. Non-agent d. Seller's agent

b. Dual agent

The power of the state to claim property when the owner dies without a will and without locatable heirs or creditors is also known as ______. a. Eminent domain b. Escheat c. Life estate d. Taking

b. Escheat

What type of agency exists because a written or oral agreement is in place? a. Dual agency b. Express agency c. Implied agency d. Undocumented agency

b. Express agency

If a buyer you represent waives the inspection, what should you do? a. Congratulate yourself—this is going to be an easy deal b. Get the waiver in writing c. Hire an inspector anyway d. Perform it yourself

b. Get the waiver in writing

Bob wants an open listing agreement. Why might this not be in Bob's best interest? a. He'll have to pay multiple real estate commissions. b. He won't get full representation from any one licensee. c. It presents an inherent conflict of interest. d. It prevents him from selling the property himself and not paying a commission.

b. He won't get full representation from any one licensee.

With which approach to value does the appraiser analyze a property's ability to earn future income? a. Cost approach b. Income approach c. Sales comparison approach d. Taxable revenue approach

b. Income approach

The earth's surface, extending downward to the center of the earth and upward to infinity, including permanently-attached natural objects, is called ______. a. Estate b. Land c. Real estate d. Real property

b. Land

Which of the following items must be included in the security instrument used for a real estate transaction? a. Borrower credit report b. Legal description of the property c. Lender disclosures d. Title insurance abstract

b. Legal description of the property

Agents owe fiduciary duties to their clients. Among these are loyalty, reasonable skill and care, confidentiality, accounting, and disclosure. Which fiduciary duty is missing from this list? a. Kindness b. Obedience c. Profitability d. Strategy

b. Obedience

Why is it important for a buyer to know if an underground storage tank is present on a property? a. Buyers don't need to know. b. Older tanks may leak and contaminate the ground. c. The buyer may want to use the tank. d. The buyer will need to check if the tank is correctly sized.

b. Older tanks may leak and contaminate the ground.

After signing a purchase contract, buyer Pam and seller Waylon both realize that the address for Pam's newly-purchased home reads "344 Beverly Way" instead of the correct address: "334 Beverly Way." Which of the following is true about this situation? a. Pam has clear evidence that Waylon tried to trick her. b. Pam or Waylon can void this contract and present a new one with the correct address. c. The contract is invalid because there is no offer and acceptance. d. This is definitely a case of fraud.

b. Pam or Waylon can void this contract and present a new one with the correct address.

_______ can be defined as everything that's not real property. a. Land property b. Personal property c. Private property d. Real estate

b. Personal property

In order for you to earn compensation for brokerage activities, you must be employed as the agent of the client. How is this employment accomplished? a. The client must be a buyer. b. The client must make an express agreement to pay a commission to your broker. c. You must be employed by a broker. d. You must express an interest in representing the client.

b. The client must make an express agreement to pay a commission to your broker. Compensation is only protected through express agreement. Licensees receive their compensation only through their broker.

The zoning ordinances changed 10 years after Stan built his home, and it was grandfathered into the current zoning through nonconforming use. Now Stan is selling the home. Which of the following is true regarding the new owners' responsibilities to comply with zoning regulations? a. They'll have to apply for new zoning. b. They'll have to comply with the current zoning. c. They'll have to get an area variance. d. They're able to continue nonconforming use.

b. They'll have to comply with the current zoning.

What's the purpose of the Illinois Real Estate Recovery Fund? a. The allow licensees to pay a judgment without taking it from their personal finances b. To allow a consumer to be paid when they've been awarded a judgement for fraud, deceit, or misrepresentation c. To assist consumers in recovering from catastrophic events such as hurricanes, tornadoes, and fires d. To pay costs of investigating complaints

b. To allow a consumer to be paid when they've been awarded a judgement for fraud, deceit, or misrepresentation

How do licensees use the funnel? a. To calculate the number of homes sold in an area that the licensee may be able to list b. To calculate the number of leads required to generate a certain amount of income c. To calculate the number of transactions to close each year to reach a certain amount of income d. To sift through leads to find the clients worth spending time on

b. To calculate the number of leads required to generate a certain amount of income The funnel is a useful way to determine how your lead generation activities result in a calculated amount of income.

Violators of the Sherman Antitrust Act may be subject to fines. For what amount may corporations and individuals be liable? a. Up to $100,000 for corporations and $1,000 for individuals b. Up to $100 million for corporations and $1 million for individuals c. Up to $10 million for corporations and $1 million for individuals d. Up to $1 million for corporations and $100,000 for individuals

b. Up to $100 million for corporations and $1 million for individuals

How large is an acre? a. 10,000 square meters b. 43,560 feet c. 43,560 square feet d. 5,480 square feet

c. 43,560 square feet

In Illinois, how are commissions commonly split between the listing brokerage and brokerage that represents the tenant? a. 100% to the brokerage that finds the tenant b. 20% listing brokerage, 80% brokerage that finds the tenant c. 50% listing brokerage, 50% brokerage that finds the tenant d. 80% listing brokerage, 20% brokerage that finds the tenant

c. 50% listing brokerage, 50% brokerage that finds the tenant

Blake recently negotiated a net lease for space in an office building he owns. Under a net lease, the tenant pays ________. a. All of the property expenses b. All of the property taxes c. A portion of the property expenses d. No rent

c. A portion of the property expenses With a net lease, the tenant pays a portion of the property operating expenses, typically the utilities.

Your clients, the Meltons, found their dream home, which they will be financing with ABC Lending. What should they include with their offer? a. A letter describing their family's lineage b. A loan commitment c. A pre-approval letter from ABC Lending d. Cash (no checks)

c. A pre-approval letter from ABC Lending

What are the two categories of comparison when evaluating comparables to a subject property in the market comparison approach? a. Broad and specific b. Components and measures c. Elements and units d. General and detailed

c. Elements and units

Which laws does the Office of Fair Housing and Equal Opportunity uphold? a. Civil rights laws b. Equal opportunity laws c. Federal fair housing laws d. The Fair Housing and Equal Opportunity Act

c. Federal fair housing laws The Office of Fair Housing and Equal Opportunity (FHEO) provides administration and enforcement of federal fair housing laws.

_______ are artificial attachments to land that include items such as fencing, buildings, and walkways. a. Emblements b. Encroachments c. Improvements d. Levies

c. Improvements

Octogenarians Gertie and Frank met in Sunset Living, a skilled nursing center for people with advanced Alzheimer's disease, where they're both residents. They fell in love and get hitched, signing a marriage certificate. This is an example of a(n) ______ contract. a. Executory b. Implied c. Invalid d. Valid

c. Invalid

Which document provides an estimate of the costs a buyer is likely to pay at settlement? a. Closing Disclosure b. HUD-1 statement c. Loan Estimate d. Mortgage Servicing Transfer Disclosure

c. Loan Estimate

The ______ provides buyers with an approximation of the costs they're likely to pay at settlement. a. Closing Disclosure b. HUD-1 statement c. Loan Estimate d. Mortgage Servicing Transfer Disclosure

c. Loan Estimate The Loan Estimate provides buyers with the costs they are likely to pay at settlement and discloses the mortgage loan specifics, such as its key features, costs, and risks.

The courts use three primary tests to determine whether something is personal property or real property. What are the names of the three tests? a. Method of attachment, acknowledgement and adaptation b. Method of attachment, agreement, and accessory c. Method of attachment, agreement, and adaptation d. Method of reimbursement, agreement, and adaptation

c. Method of attachment, agreement, and adaptation

Which of these is a recommended best practice after any discussion between a licensee and a client or other party involved in a transaction? a. Allow no more than 48 hours to pass without additional contact. b. Enter notes about the discussion in the property's listing in the MLS. c. Send a follow-up email to create a written record of the discussion. d. Send a hand-written thank you note.

c. Send a follow-up email to create a written record of the discussion.

For a deed to be valid, which two elements are required? a. Habendum clause and habeus corpus clause b. Signature of the grantee and habendum clause c. Signature of the grantor and habendum clause d. Signatures of the grantee and grantor

c. Signature of the grantor and habendum clause

Illinois licensee Kristal is in a designated agency relationship with a seller client. As a seller's agent, what agent type is she? a. Assigned b. General c. Special d. Universal

c. Special

How may the commission specified in a listing agreement legally be changed, according to the Illinois Real Estate License Act? a. The agreement may be amended by crossing out the original entry and writing the new commission amount. b. The amount is automatically increased by 1% if the commission will be shared with a buyer's agent. c. The commission change must be made in writing and signed by the parties to the agreement. d. The commission may be changed on the purchase agreement, which supersedes the listing agreement.

c. The commission change must be made in writing and signed by the parties to the agreement.

What's a foreclosure? a. A property sale that occurs in less than one week b. A sale that fails to receive a high enough bid at auction and then falls to the bank's ownership c. The forced sale of a property due to the borrower defaulting on the mortgage loan d. The sale of a property when the market value of the home is less than what is owed, plus closing costs

c. The forced sale of a property due to the borrower defaulting on the mortgage loan

Whose consent and agreement are required to conduct a short sale? a. The buyer's attorney's b. The court's c. The lien holder's d. The seller's attorney's

c. The lien holder's

Which of the following statements best describes a mortgage broker? a. An institution that focuses on commercial lending b. An institution that specializes in taking in savings deposits then lends money out as loans and mortgages c. A person who works for a specific lender and can offer products from that particular institution d. A person who works with multiple lenders to find the product that works best for the client

d. A person who works with multiple lenders to find the product that works best for the client

When using the farming approach, diversity is a key factor when identifying a neighborhood. Which statement best describes diversity? a. An area that is not currently farmed by another licensee b. An area that the licensee likes c. An area with a fair amount of listings—not too many, not too few d. An area with a variety or home styles, sizes, features, price points, amenities, buyers, etc.

d. An area with a variety or home styles, sizes, features, price points, amenities, buyers, etc.

What type of agency exists because of the actions and behavior of the parties? a. Action agency b. Behavioral agency c. Express agency d. Implied agency

d. Implied agency

Which of the following best describes what an appraisal is? a. It's a broker price opinion. b. It's a comparative market analysis. c. It's an assessment of market value. d. It's an opinion of value.

d. It's an opinion of value.

What are the three most common forms of legal descriptions? a. Lot and block, rectangular government survey, and monument b. Metes and bounds, lot and block, and plat map c. Metes and bounds, lot and block, and point of beginning d. Metes and bounds, lot and block, and rectangular government survey

d. Metes and bounds, lot and block, and rectangular government survey

Carolyn is representing John in the sale of his home. Which listing agreement clause gives her additional authority and obligates her to distribute the listing to other brokers? a. Broadcast clause b. Broker extension clause c. Marketability clause d. Multiple listing clause

d. Multiple listing clause

In the conveyance of real property after death, what trumps any terms specified in the deceased person's will? a. Heirs' wishes b. Intestate c. Nothing d. Operation of law

d. Operation of law

With regard to contingencies, what responsibility does licensee Wanda have when representing buyers? a. She should avoid contingencies altogether because they tend to put sellers off. b. She should maximize the number of contingencies used to avoid being sued. c. She should use a standard set of contingencies with each buyer. d. She should use contingencies judiciously to protect her clients and the deal.

d. She should use contingencies judiciously to protect her clients and the deal.

Jamilynn violated antitrust law by engaging in price fixing. Which of these actions did she most likely perform? a. She agreed with licensees from other brokerages not to engage in business with licensees from a certain firm. b. She followed her brokerage's pricing policy. c. She sets her commission based on the services she performs. d. She told a consumer the commission rate is standard for the industry.

d. She told a consumer the commission rate is standard for the industry.

The Lanham Act gives companies the right to ______. a. A trial by jury b. Make misleading advertising claims less than 10% of the time, which is known as the Lanham Percentage Right c. Pursue clients by whatever means possible d. Sue competitors that are using deceptive claims in ads

d. Sue competitors that are using deceptive claims in ads

Which of the following statements about unlicensed assistants in Illinois is true? a. Unlicensed assistants can perform licensed activities under a managing broker's supervision. b. Unlicensed assistants can perform licensed activities under an affiliate broker's supervision. c. Unlicensed assistants can perform licensed activities under a sponsoring broker's supervision. d. Unlicensed assistants may not perform any activities for which a license is required.

d. Unlicensed assistants may not perform any activities for which a license is required.

Which term refers to a permitted deviation from current zoning restrictions that allows an owner to use land for a purpose that's otherwise prohibited, and requires the owner to prove the zoning creates an unnecessary hardship? a. Moratorium b. Property variance c. Special use permit d. Use variance

d. Use variance

In which of the following situations is it legal to receive compensation? a. You help a neighbor buy a foreclosed home, and in addition to your commission, your neighbor pays your rent for that month. b. You help your aunt sell her house as a for sale by owner, and she gives you a $5,000 savings bond. c. You refer a client to your favorite mortgage broker, who gives you 10% of the money earned. d. You refer a client to your sister, who works at another real estate agency. When she gets her commission check, she sends you a thank you note.

d. You refer a client to your sister, who works at another real estate agency. When she gets her commission check, she sends you a thank you note.