Unit Exams

Liz is creating a business plan and needs to know how much money she will need to run her business. Which of the following is true? A budget is a crucial component of a business plan. A budget is an annual event. A budget isn't required. A budget is only for the brokerage office to handle and maintain.

A budget is a crucial component of a business plan.

Which of the following choices best describes the value proposition? A description of benefits you bring to your customers and business A description of your administrative skills A description of your business planning skills A description of your managerial skills

A description of benefits you bring your customers and business

On his desk, Bob has client files, phone messages, and invoices from creditors. How would you classify a phone bill? A general record An ephemeral record A non-essential record A vital record

A general record

Which of the following statements best describes a sales contract? A legally binding, oral contract between a property's potential buyer and a listing agent A legally binding, oral contract between a property's potential buyer and seller A legally binding, written contract between a property's potential buyer and seller A legally binding, written contract between a property's seller and a listing agent

A legally binding, written contract between a property's potential buyer and seller

Which of the following is true of agency agreements? A landlord and an agent will sign an exclusive-right-to-sell listing agreement. A listing agreement is an express agreement. An open listing agreement provides the highest form of protection for the listing agent. A property management agreement is an agreement between a landlord and a tenant.

A listing agreement is an express agreement An express agreement is committed to writing. You can't list someone's property to sell without the seller's express written agreement

Jennifer is selling her property and hired Larry as her agent. Jane brings her prospective buyer client, Andrew, to see Jennifer's property. What is Larry's role in this scenario? A buyer's agent A dual agent A seller's agent A sub-agent

A seller's agent

Which of the following is a RESPA violation? Accepting a referral fee from a title company Broadcast emails Broadcast mailers Marketing to a specific ethnic group

Accepting a referral fee from a title company

Lydia and David, who work for different brokerages, both list properties on the same block and hold open houses on the same weekend. Which of the following is the best term for Lydia and David's relationship? Agents Competitors Co-workers Subcontractors

Competitors

Your buyer clients Jen and Tony really like the patio set and bedroom furniture in the house you've just shown them. Because the market is hot, what would you advise they do? Ask for the one thing they like best as part of their offer but not the other. Ask for those items and more as part of their offer. Ask for those items as part of their offer. Don't include those items in their offer

Don't include does items in their offer

Which of the following is often a seller's agent's duty? Decide the property's listing price. Ensure the earnest money deposit is collected from the buyer. Ensure the sale is profitable for the seller. Show buyers other houses for sale in their neighborhood.

Ensure ernest money deposit is collected from the buyer

In which type of listing agreement does a seller contract with one listing agent but reserve the right to locate the buyer and only pay the listing agent if an agent locates the buyer? Exclusive agency Exclusive right-to-sell OpenSeller prefers

Exclusive agency

Allows the listing agent to list the property and receive a commission, no matter who brings the buyer to the table Exclusive right-to-sell Open listing Exclusive agency

Exclusive right to sell

Which of the following is considered unauthorized practice of law? Explaining a clause in a contract to a client Interpreting the legal consequences of a client's actions Using existing forms an attorney has reviewed Using standard language for addenda

Interpreting the legal consequences of a client's actions

Your buyer clients Donna and Mike are submitting an offer on a home where the seller is moving to another state and wants to expedite the closing process. What would be a good strategy for structuring an offer in this case? Include an escalation clause. Make a full price offer. Offer a quick close. Waive the appraisal

Offer a quick close

Your buyer clients are submitting an offer on a newly built home in a very trendy part of town. The seller requires that the home be sold for at least $450,000. What is a good strategy for structuring the offer in this case? Offer a quick close. Offer full price or more. Waive the appraisal. Waive the escalation clause.

Offer full price or more

Brynn's listing agent told potential buyers that all offers on Brynn's property would be considered at 5 p.m. on May 3. By that date and time, there were four offers. The persons making these offers are the ______. Examiners Executors Offerees Offerors

Offerors

Allows the seller to contract with multiple agents but only pay a commission to the agent who locates a buyer Exclusive right-to-sell Open listing Exclusive agency

Open listing

Lucy wants to earn as many opportunities as she can while selling real estate. Which of the following best describes an opportunity? Opportunity is stealing business from the competition. Opportunity knows the newest technology that is on the market. Opportunity means ignoring the competition Opportunity optimizes your strengths for business gain.

Opportunity optimizes your strengths for business gain.

A closing agent has several duties to perform both before and after the closing. Which of the following is a task the closing agent must complete after the closing? Obtain title insurance Pay the existing loan off Perform a title search Prepare a closing statement

Pay an existing loan off

Jake wants to purchase a new office computer and hire additional employees to help run his business. Jake will need to ______. Call a temporary employment agency Obtain a business loan Plan a budget Receive approval from his broker

Plan a budget

You should try to have a face-to-face meeting with each person in your sphere at least how often? Daily Monthly Quarterly Weekly

Quarterly

The NAR Code of Ethics, Article 16, states REALTORS® should do which of the following? Discuss terms and conditions directly with sellers and buyers even when represented Market services that they may one day provide even if currently they're unable to do so Only show properties to prospects and clients that are listed with members of the NAR Respect the exclusive representation or brokerage relationship of others

Respect the exclusive representation or brokerage relationship of others

If a buyer makes an offer that the seller finds lacking, which of the following actions is the seller most likely to take? Ask the seller's agent to talk with the buyer's agent. Call the buyer to negotiate better terms. Increase the asking price. Respond with a written counter-offer.

Respond with a written counter offer

Close on the listing agreement Agents' brokerage firmsBuyer and title company rep.Seller and seller's agentBuyer and lend

Seller and seller's agent

The Yorks just received an offer on the home that is well below listing price. The offer states that there must be a response within a "reasonable time." However, the Yorks are having trouble making a decision and the "reasonable time" comes and goes. What does this mean for the Yorks? Nothing. An offer that does not specify a specific time for acceptance is not legally valid. The offer has expired. The offer is now irrevocable. They are legally bound to accept the offer.

The offer has expired revocable offers expire if they're not accepted with in a reasonable time

Before you're allowed to put a lockbox on a seller's property, what must occur? The neighbors should be given a chance to object. The seller must give you permission to do so. You must enter the property into an MLS. You must put up a for sale sign.

The seller must give you permission to do so

Close on the compensation agreement based on terms of their agreement Agents' brokerage firms Buyer and title company rep. Seller and seller's agent Buyer and lender

Agents' brokerage firms

Jay has a listing agreement with Maury. Even if Maury finds the buyer during the listing term, Jay has earned his listing commission. What type of listing agreement do they have? Exclusive agency Exclusive right-to-sell Full Open

exclusive right to sell

Identifies the date by which the seller will turn over the property to the buyer possession closing

possession

Which party at closing requires the property to be free and clear of encumbrances and requires title insurance and hazard insurance? The broker The lender The seller The title insurance rep

the lender

When a licensee represents a seller, which one of the following statements is true about the licensee's ability to list other properties that are for sale? The licensee isn't permitted to list other properties for sale. The licensee is permitted to list other properties for sale as long as they're not competing properties. The licensee is permitted to list other properties for sale, even if they're competing properties. The licensee must list the seller's property only for the first 90 days, after which the licensee may list other properties

the licensee is permitted to list other properties for sale, even if they're competing properties

Prior to signing the closing documents, what should the parties have already done? Assured themselves that the conditions and contingencies of the purchase agreement have been met. Moved locations. Paid the balance of the purchase price to the seller. Paid the title representative for the closing

Assured themselves that the conditions and contingencies of the purchase agreement have been met

When are the mortgage loan commitment and title insurance contract signed? At the closing The day after closing on the property to ensure proper transfer of title The day prior to closing Weeks prior to closing

At the closing

Which of the following is an example of a vision statement? Become a leading player in all our activities. Offer solutions to residential issues. We encourage our associates to develop their talents and excel in the home buying and selling processes. We maintain close ties to the clients we serve. We stand for the welfare of our clients, upholding the value of our corporate philosophy.

Become a leading player in all our activities. Offer solutions to residential issues.

Luke and Mary are real estate agents who work for different brokerages. They both have a listing appointment with the same customer. Which term best describes this situation? A legal violation Competition Cooperation Dual agency

Competition

Per RESPA kickback guidelines, which of the following items may be legally accepted? Cash Concert tickets Educational and promotional CDs Gift cards

Educational or PROMOTIONAL CDs

Chris is creating a business plan. What would abundance mentality in Chris's plan reference? How he can grown his market How much he plans to charge How much of a market share he needs to take from existing agents Who his main competitors are

How he can grow his market

Luis, a listing agent, wants to post an ad for his new listing. Which of the following phrases is acceptable under fair housing guidelines? Asian grocery nearby Catholic neighborhood Large fenced backyard Walking distance to mosque

Large fenced backyard

Which of these is a penalty for practicing law without a license in Florida? A brokerage fine of $1,000 A fine of $1,000 A sternly worded letter from your local real estate association Loss of license

Loss of license

Mario's business plan includes all of his operating expenses. Which of the following would be included in the budget? Competitor's brokerage fees Cost of living adjustments Marketing expenses Market rates

Marketing expenses

How often should licensees keep in touch with members of their sphere of influence? Annually At least monthly At least quarterly Weekly

Monthly

You represent only one party to a transaction. What form must be provided to the party you don't represent? Consent to Transition to Transaction Broker Dual Agency DisclosureExclusive Single Agency Form No Brokerage Relationship Notice

No brokerage relationship offer

Who's responsible for doing the final walk-through of a property? The buyer and the buyer's agent The lender The seller and the seller's agent The title insurance representative

The buyer and the buyer's agent

Who or what entity requires the property to be free and clear of encumbrances and requires that title insurance and hazard insurance be provided at closing? The broker The lender The seller The title insurance representative

The lender

Who reviews transactional documents for accuracy prior to or at closing and requires the property to be free and clear of defects before approving the buyer's loan application? The broker The lender's attorney The seller The title insurance rep

The lender's attorney The lender's attorney reviews transactional documents for accuracy prior to or at closing and requires the property to be free and clear of defects before approving the buyer's loan application

The two best places for licensees to spend their marketing dollars are in their sphere of influence and in ______. Downcycle survival kits High-end advertising Leads services Their farm area

Their farm area

Who delivers the evidence of a clear title at the closing? Buyer Lender's attorney Licensee representing the buyer Title insurance representative

Title insurance representative

Which of the following is a best reason to forecast financials? To know how much money is in your bank account To launch a business To meet current expenses To plan for future expenses

To plan for future expenses

Kendra made an offer on Sam's property. Sam rejected Kendra's offer, but made a counter-offer. Kendra is now considering the counter. What role does Kendra currently have in this scenario? Examiner Executor Offeree Offeror

offeree

Frankie is writing an advertisement for her new listing. Which of the following adheres to federal fair housing guidelines? "I just got a listing for a high-end home in a sophisticated neighborhood for upscale families." "My newest listing is located just two blocks from the largest Catholic church in the area!" "Want to live near top schools? Check out my new listing for an updated family home." "You won't believe the view from this three-story investment chateau tucked in the mountains."

"You won't believe the view from this three-story investment chateau tucked in the mountains."

Your business plan will leverage your vision, mission statement, and goals to generate three key strategies for your business. Which of the following is a strategy it will leverage? Disaster strategy Financial strategy Medical strategy Takeover strategy

Financial strategy

Trina is developing her business plan and needs to include some operational strategies. Which of the following would Trina need to include? A description of the services Trina provides The costs of Trina's office space The hours of business Trina will work The number of employees Trina will hire

A description of the services Trina provides

Jill is selling her property and hired David as her agent. David brings another client, Kirk, to see the property, which Kirk is interested in purchasing. What kind of agent is David acting as in this scenario? A buyer's agent A dual agent A seller's agent A sub-agent

A dual agent David initially represented Jill as a buyer's agent, but because he's now brought another client to the mix, he's acting as a dual agent. Dual agency is illegal in some states, and both parties need to agree to a dual agency relationship.

Who or what is a licensee's sphere of influence? A list of contacts, both personal and professional, who already know and trust the licensee Coworkers who work for the same brokerage as the licensee Family and friends to whom a licensee listens regarding business matters The code of ethics published by the National Association of REALTORS®

A list of contacts, both personal and professional, who already know and trust the licensee

What should be done if a buyer notes any issues during the final walk-through before closing? Contact the seller's agent immediately to resolve the issue before closing. Handle the issue on closing day. Note these issues in the closing statement and move on. Wait until after the closing to bring up any issues found in the final walk-through with the seller directly.

Contact the seller's agent immediately to resolve the issue before closing

Which of the following could a listing agreement be considered? A contract between a seller and a buyer A cooperative agreement between two brokerage firms An employment contract between a brokerage firm and a licensee An employment contract between a licensee representing the brokerage company and a seller

An employment contract between a licensee representing the brokerage company and a seller

Breanna signed a purchase offer stating she'd buy Kathy's home for $150,000. Kathy rejected that offer but said she'd sell it to Breanna for $200,000. Breanna agreed to these terms, and they added their signatures. Which of the following statements is correct? Breanna accepted the offer Kathy made. Kathy accepted the offer Breanna made. The contract is invalid. The contract is valid but unenforceable.

Breanna accepted the offer Kathy made.

Victor wants to know what his business will look like in the future. Which of the following will help him? Budget figures Employment or job market changes Housing market changes Stock market changes

Budget figures

At closing, who pays for and receives clear title for the property being purchased? Attorney Broker Buyer Seller

Buyer

Close on the mortgage loan commitment Agents' brokerage firms Buyer and title company rep. Seller and seller's agent Buyer and lender

Buyer and lender

Close on the title insurance contract Agents' brokerage firms Buyer and title company rep. Seller and seller's agent Buyer and lender

Buyer and title company rep

Which of these is most likely to be the list of individuals who attend a closing meeting? Buyer, seller, licensees who represent the buyer and seller, lender, appraiser, home inspector, attorney, closing officer Buyer, seller, licensees who represent the buyer and seller, lender, appraiser, lender, closing officer Buyer, seller, licensees who represent the buyer and seller, lender, closing officer Buyer, seller, licensees who represent the buyer and seller, lender, lender, underwriter, closing officer

Buyer, seller, licensees who represent the buyer and seller, lender, closing office

A real estate agent's budget should always include ______. Client's closing costs Cost of clothing Cost of office space Mortgage loan rates

Cost for office space

Which of the following is a component of creating your own vision when you run your own business? Creating something from nothing Following the dreams and visions of others Keeping within industry norms Making a set income

Creating something from nothing

Home inspector Murray is explaining to first-time buyers what he looks for during a home inspection. What is his primary goal? Document health and safety issues that may affect both the cost and enjoyment of the home. Estimate how much cosmetic upgrades may cost the buyers. Verify lot lines and acreage calculations. Verify the presence of any easements or encroachment on the property.

Document health and safety issues that may affect both the cost and enjoyment of the home

Allows sellers to work with an agent while still trying to locate the buyer themselves Exclusive right-to-sell Open listing Exclusive agency

Exclusive agency

Which of the following is the benefit of owning a business? Earning a set income Fewer working hours overall Following set rules and regulations Freedom to work a variety of hours

Freedom to work a variety of hours

Which of the following is your responsibility of running your own business? Delegating financial decision-making Generating income Knowing the ethnic makeup of the neighborhoods within your market Punching a time clock

Generating an income

In order to protect your commission, which of the following must you do regarding a listing agreement? File it with the county clerk. Get it in writing. Have it notarized. Use a form created by the National Association of REALTORS®.

Get it in writing

Jim wants to become a respected real estate professional in his market. For business planning purposes, what's this called? His mission His prospecting ability His unique selling proposition His value proposition

His mission

What's the role of the mortgage contingency in a sales contract? Describes seller financing options if the buyer isn't pre-qualified for a mortgage. Describes the lender and interest rates the buyer will use when purchasing the property. Documents the seller's credit rating and pre-approved purchase price. Documents the type of and timeline for financing, and outlines what to do if financing falls through.

Home inspector Murray is explaining to first-time buyers what he looks for during a home inspection. What is his primary goal? Document health and safety issues that may affect both the cost and enjoyment of the home.Estimate how much cosmetic upgrades may cost the buyers.Verify lot lines and acreage calculations.Verify the presence of any easements or encroachment on the property.

Industry regulations, such as RESPA, can affect your business by _______. Directly affecting your ability to conduct business in a reasonable and professional manner Directly impacting how a property may be used Indirectly affecting real estate and limiting how you may conduct business Indirectly devaluing property

Indirectly affecting real estate and limiting how you conduct business

Which of the following is a true statement about a real estate licensee's sphere of influence? It's primarily a client list. It's primarily a simple list of acquaintances. It's rare for a licensee to develop one for the first two or three years. It's where most marketing time should be spent.

It where most marketing time should be spent

Your buyers love the 1891 Victorian they have under contract, but they want to get both the water and the paint tested as soon as possible. What are they testing for in both water and paint? Asbestos Lead Mold Radon

Lead

Jan is working on the operational strategies of her business plan. Which of the following does this include? Advertising expenses Employee names Financial forecast Mission statement

Mission statement

What type of listing agreement provides the sellers with the opportunity to enter into listing contracts with multiple agents and still reserve the right to sell the property themselves, owing no commission? Exclusive agency Exclusive open Exclusive right-to-sellOpen listing

Open agency

Who are the parties to a listing agreement? A landlord and a tenant Property buyers and property sellers Property buyers and their agent Property sellers and their agent

Property sellers and their agent

What action does RESPA prevent brokers from performing? Making more than five sales per quarter in a given neighborhood Preparing a market analysis Providing kickbacks to settlement providers Releasing confidential client information to the public

Providing kickbacks to settlement providers

Irene and Harold are buying a home. Which document will be used to formalize this transaction? Buyer agency agreement Listing agreement Option contract Sales contract

Sales contract

Tim believes that the world has a fixed set of potential clients. What kind of perspective does Tim's belief describe? Abundance mentality Brokerage belief Business philosophy Scarcity mentality

Scarcity mentality

Who closes on the cooperative brokerage agreement? The agents for the buyer and seller The buyer and the title insurance representative The lender's attorney and the seller's agent brokerage The seller and the seller's agent

The agents of the buyer and the seller

Which of the following would be best to include in a business plan? Clothing allowances for employees Donut fund Salary for independent contractor licensees The amount of income required to meet objectives

The amount of income required to meet objectives

Who should review the settlement statement before closing? Only the buyer Only the seller The buyer and the lender's attorney The buyer and the seller

The buyer and the seller

It's closing day! Which of the following is likely to happen at this time? A preliminary title report will be issued to the buyer. The buyer's loan funds will be transferred. The buyer will receive loan approval. The seller will receive the buyer's pre-approval letter.

The buyer's loan funds will be transferred.

How is procuring cause related to a protection clause? The protection clause is invalidated if the licensee is the procuring cause. The protection period can be lengthened or shortened if the licensee is the procuring cause. The period of time in the protection clause is only applicable if the licensee is the procuring cause.

The period of time in the protection clause is only applicable if the licensee is the procuring cause.

What's the purpose of the appraisal contingency in a sales contract? The purpose is to protect the buyer. If the property doesn't appraise, the buyer may terminate and get their earnest money back. The purpose is to protect the buyer. If the property doesn't appraise, the buyer's appraisal fee is returned. The purpose is to protect the lender. If the buyer doesn't get an appraisal, the lender may charge a higher interest rate. The purpose is to protect the seller. If the property doesn't appraise, the buyer may not terminate.

The purpose is to protect the buyer. If the property doesn't appraise, the buyer may terminate and get their earnest money back.

A person who facilitates the paperwork, but doesn't actually represent either party to the transaction, may be a ______. Designated agent Dual agent Sub-agent Transactional broker

Transactional broker

Analyzing your current position involves four key areas, which together are called a SWOT analysis. What's one of these areas? Operating income Sales Taxes Weaknesses

Weaknesses

Jeff wants to strengthen his position when selling real estate. Answers to which of the following questions will allow him to set goals? What about business would be disadvantage? What are your competitive advantages? What are your personal vulnerabilities? What business resources do you lack?

What are your competitive advantages

Martin must provide the No Brokerage Relationship Notice in which situation? When accepting an offer on behalf of his seller by a buyer represented by another firm When facilitating a commercial property sale When helping a tenant find and lease an apartment for six months When his buyer client make an offer on a For Sale by Owner home

When his buyer client make an offer on FOR SALE BY OWNER The notice is required when the other party is unrepresented.

The difference between a dabbler and a professional is that a dabbler works in the profession of real estate; a professional ______.. Doesn't Hires others to do this Works in many areas Works on the business

Works on the business

Roberto, a licensee, filled in the blanks on a standard form used in his brokerage firm. Is this okay? No, because he's not an attorney, he shouldn't prepare contracts. No, he should have his client complete any forms. Yes, licensees can use standard forms provided by the brokerage or approved by an attorney. Yes, real estate licensees may draft contracts and fill in blanks on existing contracts.

Yes, licensees can use standard forms provided by the brokerage or approved by an attorney

Which of the following is a component of a business plan? Current home loan rates Current interest rates Goals and objectives Rental rates

goals and objectives

Jeffrey has accepted an offer of $310,000 for his house. The buyer is making a $50,000 down payment, and the buyer's appraisal came in at $300,000. On what number will the buyer's lender base the loan-to-value ratio? $249,000 $299,000 $300,000 There's no way to tell given the data provided.

$300,000

Lillie is developing a solid business plan with which to run her business. Lillie knows she will need to address her financial situation. Which of the following is the most important factor for Lillie to consider regarding her finances? Lillie will need to consider her monthly expenses to do business, including production and promotion costs. Lillie will need to consider how much it will cost to list a property. Lillie will need to consider how much money she will need in reserves to run her business. Lillie will need to consider the interest she will earn on her bank account.

Lillie will need to consider her monthly expenses to do business, including production and promotion costs

Which one of Gerry's statements to a client crosses the line into unauthorized practice of law? "I'd encourage you to have an expert look at the exceptions on your title insurance commitment." "Most couples take ownership of property as joint tenants, so that's what I'd advise." "The contingency clauses in your contract give you options to terminate the contract if, for example, your financing falls through." "We can add the brokerage firm's standard language into the 'additional provisions' section to cover what you're suggesting.

Most couples take ownership of property as joint tenants, so that's what i'd advise

Jerome is completing the worksheet for his personal budget. He should complete this worksheet ______. To determine how much he will need to cover his business overhead To determine how much income he will need for himself and his household To determine the costs of marketing his business To determine the pricing of various neighborhoods in which he works

To determine how much income he will need for himself and his household

A person who facilitates the paperwork, but doesn't actually represent either party to the transaction, may be a ______. Designated agent Dual agent Sub-agent Transactional broker

Transactional broker A transactional broker, also called a non-agent, facilitates transaction paperwork but doesn't act in a fiduciary capacity, provide representation, or advocate for the interests of either party.

Specifies the date on which the seller delivers the deed to the buyer in exchange for the purchase price possession closing

closing

In what type of market could a buyer's strategy be to ask the seller to pay closing costs? Cold market Hot market Neutral market Secondary market

cold market