Chapter 1 - 4

Which of the following is required to hold a real estate license? a. A person who, for compensation, helps sell his neighbor's home. b. A government employee selling land owned by the government. c. A property manager leasing property in the course of his employment for the owner. d. All of these choices.

a. A person who, for compensation, helps sell his neighbor's home.

Owner Kelly is leaving the area for a one year period. She asks salesperson Boren to manage her rental house for $45 per month while she is gone. Which of the following is true in this situation? a. Boren must work through her broker. b. Boren must put the $45 in an interest bearing escrow account. c. This is OK because the compensation is less than $1,000. d. This is OK because the time element is not more than one year.

a. Boren must work through her broker.

Carla, through her broker, is representing a buyer. Carla finds a house and the sale is made. Carla will receive her commission from which of the following? a. The broker that holds her license. b. The broker that listed the house that Carla sold. c. The settlement attorney handling the closing. d. The buyer, per his or her agreement with Carla.

a. The broker that holds her license.

Price is the amount paid for a parcel of real estate in an actual transaction. a. True b. False

a. True

When pricing is allowed to react to the principles of supply and demand, the free enterprise system determines what will be produced. a. True b. False

a. True

A real estate license of some kind would be required by each of the following individuals, EXCEPT: a. An individual who locates tenants for a property in return for a fee from the landlord. b. A homeowner selling his or her personal residence. c. An individual who only works with buyers looking to purchase a residence and who is compensated only by those buyers. d. An individual who negotiates options to purchase properties for clients in return for a fee.

b. A homeowner selling his or her personal residence.

A salesperson represents the: a. Seller b. Broker c. Buyer d. Lender

b. Broker

An associate broker who sells a house for a client is paid a commission by the: a. Employing client only. b. Broker only. c. Customer. d. Either by the client or the broker.

b. Broker only.

A salesperson may receive compensation from any broker, not only his or her employing broker. a. True b. False

b. False

In an ideal market, the forces of supply and demand are always chaotic. a. True b. False

b. False

Our free enterprise system is free from government economic controls. a. True b. False

b. False

Realtors determine the price of land. a. True b. False

b. False

The actual amount of money paid for a particular parcel of real estate is said to be that property's: a. Value. b. Price. c. Market value. d. Settlement value.

b. Price.

Sam has obtained his broker's license but is not functioning in a supervisory capacity. Instead, he is acting in the capacity of a salesperson. Sam is a(n): a. Principal Broker. b. Salesperson. c. Associate Broker. d. None of these choices.

c. Associate Broker.

Economic controls on the economy in general are enacted by: a. The federal government only. b. State governments only. c. Both federal and state governments. d. Neither federal nor state governments.

c. Both federal and state governments.

A licensed real estate salesperson may legally accept an extra commission for a difficult sale from: a. An appreciative seller. b. A thankful buyer. c. His or her broker-employer. d. The mortgage lender.

c. His or her broker-employer.

Which of the following is NOT an economic control on the free enterprise system? a. Power of taxation. b. Control of the money supply. c. Granting of tax shelters or tax credits to spur investments. d. Allowing voters to decide by referendum if they want a bond issue to pay for a new school.

d. Allowing voters to decide by referendum if they want a bond issue to pay for a new school.

Meredith "fell in love" with and made an offer to purchase a beautiful Cape Cod style house. When she learned that the seller had accepted her offer, she was so happy that she agreed to pay the selling agent an extra commission for her effort. How will the sales agent receive her "extra" commission, when the sale is consummated? a. From the buyer b. From the seller and buyer as agreed c. From the settlement attorney handling the closing d. From her employing broker

d. From her employing broker

The purpose of a state real estate regulatory board is to protect. a. The real estate industry. b. Home sellers. c. Home buyers. d. The general public.

d. The general public.