Review Quiz 4 (Ch 10 & 11)

Rescind means: (A) Revise. (B) Revoke. (C) annul. (D) None of the above

C

An offer was made on a property on December 26, 19XX. The seller has five days to accept the offer, but because of illness in the family, did not accept until January 2, next year. In this situation, which of the following is correct? (A) Buyer could demand return of deposit. (B) seller may keep buyer's deposit. (C) Buyer's deposit will be divided between the seller and broker. (D) Buyer must complete the purchase because he did not revoke the offer prior to the seller's acceptance.

A

A real estate broker is authorized to accept a deposit in a listing contract. An amount is not designated for the deposit. The broker received a $500.00 deposit from the buyer and later misappropriated it. Who is liable for the loss? (A) seller. (B) buyer. (C) the buyer because he could have made the deposit payable to escrow. (D) Seller and buyer will share the loss equally.

A

A real estate broker listed and negotiated the sale of a home for Mr. Baker, a young married man. At the time of the sale the broker was not concerned with the client's age. After the deed has been signed and the escrow closed, the title company informed the broker that the seller was under 18 years of age. The deed is: (A) valid. (B) void. (C) voidable. (D) illegal.

A

A real estate broker receives authorization from a seller to accept a deposit for a buyer: (A) from the listing. (B) from the deposit receipt. (C) from common practice. (D) by virtue of being an agent.

A

A broker obtained an exclusive listing to sell a property. He expended much time, money, and energy. The owner refused to allow the broker to proceed under the contract. In this situation, the broker should: (A) consider the seller's refusal a breach of contract and sue for damages. (B) construe the seller's refusal as evidence of impossibility to perform thus relieving seller of liability. (C) consider the seller's refusal to cooperate a breach of contract and claim a commission as liquidated damages. (D) ignore the seller and proceed.

A

A listing contract in which the owner promises to pay a commission under all circumstances of sale, except if he sells the property himself, is referred to as an: (A) exclusive agency listing. (B) exclusive right to sell listing. (C) open listing. (D) none of the above.

A

A prospective purchaser signed a deposit receipt and gave the broker a personal check made payable to the title company as a deposit. He stipulated that the broker is to hold the check until his offer is accepted by the seller. In this situation, the broker should: (A) submit the offer and hold the check. (B) Refuse to accept the offer if it does not conform to the terms of the listing. (C) Hold the check, but do not reveal to the seller that he has accepted the check until the seller accepts the offer. (D) Submit the offer and deposit the check with the title company.

A

An owner signed a listing contract with a broker authorizing a 6% commission. When the property is sold, neither the deposit receipt nor the escrow instructions contain any mention of compensation for the broker. In reference to the broker's commission: (A) Broker will receive commission in accordance with the listing contract. (B) Broker will not receive a commission because it is not mentioned in the deposit receipt. (C) Broker will not receive a commission because it is not mentioned in the escrow instructions. (D) Broker will receive a commission because the owner could not sell the property without his assistance.

A

At what point is an individual considered incapable of handling is own affairs because of mental incompetence? (A) A conservator is appointed by the court to oversee and individual's business affairs. (B) An individual voluntarily commits himself to a mental hospital for psychological treatment. (C) An individual goes to work everyday, visits a psychologist twice a week, but is unable to perform his duties. (D) After proper procedures are followed, an individual is committed to a mental hospital for psychological treatment.

A

Broker Blue and broker Brown each have an open listing on the same property. Each broker shows the property to the same buyer and each reported this to the owner. Broker Blue obtain the buyers deposit and signature to an offer which is accepted by the owner. In the situation, the seller is required to pay: (A) Broker Blue the entire commission. (B) Broker Brown the entire commission. (C) A share of he commission to each broker. (D) Both broker's commission, as specified in their respective listings.

A

James and Martha Black are husband and wife and own a listed property as joint tenants. Mr. Black signed the listing contract. Mrs. Black did not sign the listing contract. The broker brought in an offer on the exact terms of the listing and Mrs. Black refused to sell because she did not sign the listing contract. In this situation, the broker: (A) could bring action in civil court only against Mr. Black. (B) could bring civil action in civil court against the community property assets. (C) could force the sale of he property for payment of damages. (D) could do nothing because Mrs. Black did not sign the listing contract.

A

Since land is unique in character and often cannot be substituted for another parcel, the courts have made available the right to request performance. Hitch of he following can never request such action in court? (A) the broker acting as an agent of the seller. (B) the seller of a single family residence. (C) the buyer of a single family residence. (D) the seller of a large tract of land.

A

Some contracts are printed and others are handwritten. Most contracts are a combination of printed and handwritten terms and conditions. If litigation is initiated in reference to this type of contract, which of the following is correct? (A) the handwritten portion takes precedence. (B) the printed portion takes precedence. (C) written material copied from printed material takes precedence over written portions of the contract. (D) the written and handwritten portions are given equal consideration and are evaluated on their own merit.

A

The written employment agreement, required by the Real Estate Commissioner, between the broker and s salesperson, is an example of: (A) Bilateral executory. (B) Unilateral contract. (C) Implied contract. (D) ratification.

A

Under an exclusive agency agreement, the broker has a fiduciary relationship with: (A) the seller. (B) the buyer. (C) the buyer and seller. (D) primarily to the seller and secondarily to the buyer.

A

Which of the following contracts is not required to be in writing? (A) A partnership to buy and sell real property. (B) A contract to rent for more than one year. (C) A contract between a principal and an agent to buy or sell real property. (D) a contract which cannot be completed in one year.

A

A contract providing for the payment of commission no matter who sells the property is referred to as which of the following? (A) exclusive agency listing. (B) exclusive right to sell listing. (C) open listing. (D) net listing.

B

A real estate broker is not permitted to: (A) sell his own property. (B) use an exclusive right to sell listing without a termination date. (C) use an open listing without a final and definite termination date. (D) none of the above.

B

A real estate broker used the following phraseology in his listing contract. "In consideration of the execution of the foregoing, the undersigned broker agrees to use diligence in procuring a purchaser". This is best described as: (A) A required phrase in the creation of a unilateral contract. (B) A required phrase in the creation of a bilateral contract. (C) An agreement to advertise the property. (D) A superfluous phrase in such a contract.

B

After entering into a valid purchase agreement, the buyer wishes to take possession prior to the close of escrow. In order to do this: (A) Oral permission from the broker is sufficient. (B) Written permission from the seller must be obtained. (C) Broke must get a lease signed by the buyer. (D) Nothing is required because the buyer has the right of possession.

B

All of the following are essential for a valid contract, except: (A) Meeting of the minds. (B) Payment of money. (C) Legal object. (D) Capacity of the parties.

B

An executory contract is a: (A) Contract that has been fully performed. (B) contract that is to be performed. (C) Contract with an executor of an estate. (D) Written contract that cannot be altered by an oral agreement.

B

An owner listed a property with Broker "A" on a 90 day exclusive agency listing. The owner was dissatisfied with the broker and 30 days later he sent the broker a certified letter terminating the listing. The owner then gave listings on he property to Broker "B" and Broker "C" on on a nonexclusive basis. Within two weeks, Broker "B" sold the property. Which of the following is correct? (A) the owner did not have the right to resist the property. (B) The owner owes a full commission to both "A" and "B". (C) The owner owes one-half commission to "A" and one-half commission to "B" (D) The owner only owes a commission to "B"

B

In a listing contract, an owner instructed the broker not to accept a deposit that is less than $1,000. The broker received an offer with a $500 deposit. What should the broker do in this situation? (A) Accept the $500 deposit, but only if he obtains an irrevocable promissory note for the balance. (B) accept the offer, present the offer, and if the seller accepts the broker will be entitled to a commission. (C) accept a trust deed for $500 with the seller's approval, but if the seller accepts the offer and the buyer defaults, the broker is not entitled to a commission. (D) cannot accept e deposit for less than $1,000 because this is not within the terms of the contract.

B

Listings taken by sales licensees in the employment of a broker are the property of the: (A) salesperson. (B) broker. (C) salesperson and broker jointly. (D) the salesperson when he terminates employment with the broker.

B

Mr. Smith signed an offer to purchase Mr. Jones' property and gave it tongue real estate broker. The broker presented the offer to Mr. Jones, who immediately gave an unqualified acceptance to the offer. Before the broker could deliver the accepted offer back to Smith, Smith died in an automobile accident. Which of the following is correct? (A) The offer and unqualified acceptance constitutes a valid contract. (B) Smith's death creates a revocation of the offer. (C) the offer is void because the deed cannot be delivered to Smith. (D) delivery of the accepted offer to the administrator of Smith's estate will bind the heirs of Smith to purchase the property.

B

The licensee initiating court action to collect a commission will have to put all of the following, except: (A) that he was a licensed broker or salesperson at the time of the sale. (B) That he introduced the buyer to the seller if he had an exclusive right to sell. (C) That he was the procuring causep of the sale if he had an open listing. (D) That he had executed his agency.

B

The phrase "time is of the essence" is most likely to be found in a: (A) grant deed. (B) Deposit receipt. (C) Listing. D) Brokers Loan Statement.

B

The printed matter in a deposit receipt will usually include some mention or references of all of the following, except: (A) Assessment liens. (B) Discount points. (C) proration of taxes. (D) title insurance.

B

Thomas, a 15 year old minor, inherited some land which he gave to a non-profit organization. The organization recorded the deed and constructed a building on the land. At 18, Thomas changed his mind and decided he wanted the property back. Which of the following is correct? (A) Thomas may reclaim the property if he reimburses the organization for the cost of the building. (B) the deed was void because Thomas was a minor. (C) Thomas cannot reclaim the property because the time lapse between ages 15 and 18. (D) Recording created an estoppel and Thomas will be unable to reclaim the property.

B

Under contract law, the term "tender" means: (A) A fully executed contract. (B) An offer to perform as promised. (C) Actual payment of money or delivery of a deed. (D) a promise to perform such as to buy or sell.

B

William sold property to Harold. After the sale, William discovered that unknown to him, Harold had been declared judicially incompetent prior to the sale. In this situation, the purchase is: (A) Valid, if William can prove that Harold did not sign the contract under duress by himself or others (B) void. (C) voidable. (D) unenforceable.

B

A broker has a 60 Day listing in which he is given an option to buy the property. Prior to exercising his option, he must: (A) Receive written permission from the Real Estate Commission. (B) Make every effort to sell the property for 60 days before exercising his option. (C) Disclose the profit he makes it he exercises his option. (D) Do nothing because his right is implied in the contract.

C

A broker who has most likely earned a commission is the one who has: (A) secured an acceptance to an offer. (B) secured a substantial deposit with an offer. (C) Communicated acceptance by seller to buyer. (D) Communicated buyer's offer to seller.

C

A buyer made a $100,000 offer on a property and signed a deposit receipt. The broker takes the deposit receipt to the seller. The seller writes a counter offer of $110,000 on the back of the deposit receipt and gives it back to the broker who said he will contact the buyer to see if he will increase his $100,000 offer. The broker should take all copies of the deposit receipt: (A) to the buyer to see if he will accept the counter offer. (B) and tell the seller he will deposit all copies in escrow. (C) except one which he should leave with the seller. (D) and promise the seller that he will return one copy to him when the buyer signs the counter offer.

C

A contract is best defined as: (A) A deliberate agreement based upon a legal consideration between two or more parties to perform or abstain from doing an act. (B) A deliberate agreement between two or more persons to perform or abstain from an act. (C) A deliberate agreement based upon a legal consideration between two or more parties ho have legal capacity to perform or abstain from a legal act. (D) A deliberate agreement between two competent parties to perform or abstain from an act.

C

A property is sold in accordance with the listing contract. After the transaction is in escrow, the seller decides he does not wish to compete the purchase and refuses to complete the sale. Under the Statute of Limitations, the buyer must bring court action against the seller for failure to perform under the deposit receipt contract within: (A) Three months. (B) Three years. (C) four years. (D) Ten years.

C

A prospective purchaser submitted a written offer to buy a property through a real estate broker. The buyer refused to make a deposit with the offer. The written offer included all of the required terms and conditions, price, financing, possession, close escrow date, signatures, etc. In this it's ration, the broker should: (A) advise the buyer that a deposit is essential in order to create a valid offer. (B) Refuse to submit the offer because it is illegal to submit an offer without a deposit. (C) Submit the offer and tell the seller there is not a deposit. (D) Advise the seller that the other is invalid as there is not a deposit and that even if the offer is accepted, it is unenforceable

C

A young man, single, and unemancipated, sold his property and the transaction was completed and escrow closed. How old must the young man be for the sale to be valid? (A) 16 (B) 17 (C) 18 (D) 21

C

An owner listed his property with several brokers on open listings. Which of the following is correct in reference to payment of commission? (A) all brokers with an open listing will share in the total commission. (B) if owner sells himself, he must share commission with broker. (C) the selling broker is entitled to a full commission. (D) an open listing requires the selling broker to share his commission with the seller.

C

In an exclusive listing, an owner may: (A) revoke the contract but be liable for damages. (B) revoke the contract and not be liable for damages. (C) not revoke the contract because it is a binding contract. (D) revoke the contract as long as he sold the property himself.

C

In reference to a real estate brokerage, which of the following is correct? (A) Any agreement to divide commission between cooperating brokers must be in writing to be enforced. (B) A broker can never collect a commission after the listing has expired. (C) in an exclusive agency listing, a seller may sell without being liable for paying a commission. (D) The commission a broker may charge for the sale of a home is controlled by the regulations of the Real Estate Commissioner.

C

In reference to an oral listing to sell real property, the payment of commission to a real estate broker is: (A) illegal. (B) contrary to public policy. (C) permissible, if the seller elects to pay the commission. (D) prohibited by Real Estate Law.

C

Mr "A" purchase the property from Mr. "B" through broker "C" After taking possession, Mr. "A" discovered that the building is in a state of disrepair. Mr. "A" sought damages claiming that both Mr. "B" and broker "C" were aware of the conditions, but failed to inform him of these facts. Which of the following is true?(A) These situations can always be avoided by inserting a clause stating that the property will be purchased in "as is" condition. (B) Neither seller nor broker can be blamed if the deposit receipt contained a statement that the property was to be purchased "in its present condition". (C) If the withholding of the information materially affected the desirability of the property, it may be considered negative Fraud. (D) The seller may be guilty of misrepresentation, but the broker cannot be held responsible, even if the condition is known to him.

C

The customary valid exclusive authorization to sell: (A) must involve a seller who is able to convey marketable title to a buyer who is ready, willing, and able to purchase. (B) obligates the owner to sell and convey the property. (C) reflects a meeting of the minds of all parties. (D) any of the above.

C

The owner deleted the broker's authority to accept a deposit from the listing contract. In this situation, if the buyer wants to make a deposit with an offer to purchase, the broker should: (A) Not accept a deposit. (B) Accept the deposit acting as the seller's agent. (C) Accept the deposit acting as the buyer's agent in reference to the deposit. (D) Get verbal permission from the seller prior to accepting the deposit.

C

When the defense under the Statute of Frauds is raised, a licensee will be unable to enforce collection of a commission if he: (A) sells a business opportunity without written authorization. (B) Leases real property for eight months. (C) Exchanges real property with verbal authorization only. (D) Sells real property with written authorization.

C

Which of the following agreements is not required to be in writing under the Statute of Frauds? (A) An agreement by a partnership to sell real property. (B) An agreement appointing a real estate broker to sell real property for compensation. (C) A lease agreement of one year or less. (D) An agreement to purchase an interest in land.

C

Which of the following contracts, even though fully executed and performed, is unenforceable in California? (A) a verbal listing taken by a real estate broker for the sale of a business opportunity. (B) an oral listing obtained by a real estate broker for the lease of a residence for one year. (C) a net listing in which the broker failed to disclose in advance to the seller the amount of his commission. (D) An open listing signed by the seller that did not contain a definite and final termination date.

C

Which of the following is correct in reference to an net listing? (A) a real estate broker must notify the seller in writing, within one week of the closing, as to profit from the transaction. (B) a net listing can be used as long as the broker gives constructive notice to the owner. (C) the broker must notify the seller of the gross amount of the offer prior to the owner's acceptance. (D) The Real Estate Commissioner advocates the use of net listings.

C

Which of the following is not a consideration in creating a valid contractual agreement? (A) Promise to be performed. (B) Service already performed. (C) Money to be paid. (D) Service to be performed

C

Which of the following must be in writing in reference to the Statute of Frauds? (A) Employment of a real estate broker to negotiate one year leases on business properties. (B) employment of a real broker to sell stock-in-trade and good will of a business. (C) Any agreement not to be performed within one year. (D) employment of a real estate broker to find a business to purchase.

C

A buyer makes a deposit on April 17th with an offer to purchase. In the deposit receipt, the offer is described as "irrevocable for five days". The next day, before the seller has been told of the offer, the buyer calls the broker and demands return of the deposit. The broker: (A) Has until April 22nd to secure an acceptance. (B) Has until April 23rd to secure an acceptance. (C) Should hold the deposit in a neutral escrow for five days. (D) Must return the deposit upon demand by the buyer.

D

A buyer who knew what he was signing entered into a contract to purchase real property. However, his consent was induced by fraud on the part of the Real Estate broker. The fraud was effective to render the deposit receipt: (A) Void. (B) Illegal. (C) Irrevocable. (D) Capable of being accepted by the seller,must voidable by the buyer.

D

A licensed real estate broker takes a listing that does not authorize him to take a deposit. The broker finds a buyer who gives him a personal check as a deposit with an offer to purchase the property. In reference to the deposit, the broker is: (A) required to place the check in escrow. (B) The agent of the bank. (C)The agent of the seller. (D)The agent of the buyer.

D

A listing agreement stated that the broker should not accept an offer on behalf of the seller in which the seller receives more then 23% of the sales price in the year of the sale. The broker brought the seller an all cash offer. In this is tuition, the broker will: (A) receive a full commission. (B) receive one-half commission. (C) Be reimbursed for expenses incurred in the sale. (D) Not receive a commission

D

A provision for a "safety period" is most likely found in: (A) A deposit receipt. (B) A mortgage loan disclosure statement. (C) a real property security statement. (D) an exclusive authorization to sell.

D

A real estate broker received an offer that agree with the terms of the listing. As he is leaving his office, he is met by a broker with another offer on the same property with a larger down payment and more advantages to the seller, but the selling price is $1000 less. In the situation, what should the broker do? (A) Only submit the first offer. (B) Submit the offers in the order they were received. (C) Submit the second offer only if the first offer appears to be a poor risk. (D) Submit both offers at the same time.

D

An individual apartment house owner appointed a broker as his agent to collect the rental fees. All rents are due on the first of the month. On June 1, the broker had collected all of the rents except from one tenant. On June 2, the apartment house owner died. The broker called on the unpaid tenant on June 3. The tenant refused to pay the broker stating that the death of the owner revokes the brokers right to collect the rent. The tenant: (A) must pay the rent until the owner or his representative instructs him not to pay the rent. (B) Cannot refuse because the broker's authority continues until there is an appointment of an executory or administrator. (C) Cannot refuse because rent was due on June 1. (D) Does not have to pay the rent to the broker because he is correct in his statement that he that the death of the owner revokes the brokers right to collect the rent.

D

An oral agreement for the exchange of real estate is: (A) enforceable. (B) unenforceable. (C) illegal. (D) enforceable under specific provisions of the law.

D

And owner gave a broker a 60 day listing on a property and in the same contract agreed that the broker could purchase the property during the listing period. If the broker decided to purchase the property 57 days later, he is required to: (A) Disclose his anticipated gain or profit. (B) Disclose all material facts. (C) Disclose any outstanding offers received to date on the property. (D) All of the above

D

Consideration is an essential element for a valid contract. Which of the following is consideration? (A) service. (B) promise. (C) money. (D) all of the above.

D

If a buyer defaults on the purchase of property, one of the avenues open to the seller is rescission. If the seller decides to rescind on the contract, he must: (A) Publish notice of a rescission in a newspaper of general circulation. (B) immediately sue the buyer for damages. (C) sell the property as fast as possible to keep the damages to a minimum. (D) Restore the buyer all compensation paid by him with the understanding that the buyer will restore the seller's costs.

D

In the transfer of personal property under $500, which of the following written instrument must be used? (A) Deed (B) Chattel real. (C) Bill of sale (D) none of the above.

D

In writing a listing to sell a property, the broker did not have a legal description of the property. He wrote: "Mr. Martin's residence on 10th Street in Tustin". In this situation, which of the following is true? (A) The listing is void because it requires a legal description. (B) The listing is void because it must contain the entire address of the property. (C) The listing description is adequate if Mr. Martin resides in the premises. (D) The listing description is adequate if Mr. Martin does not own another property on 10th Street in Tustin.

D

Mr. Jones signed a listing with broker Benson stating that he will pay a 6% commission to Benson upon sale of the property. Broker Benson promised to use diligence in attempting to find a buyer. The contract is: (A) unilaterally executed. (B) unilateral executory. (C) bilateral executed. (D) bilateral executory.

D

The buyer withdraws his offer prior to acceptance by the seller. In this situation: (A) the broker is entitled to his full commission. (B) the broker is entitled to one-half of his commission. (C) the broker may sue for specific performance. (D) the broker is not entitled to receive a commission.

D

The term "rescind" in real estate most nearly means: (A) reword. (B) reject. (C) rewrite. (D) terminate.

D

The words "procuring cause" are important to a real estate broker. These words are most significant in: (A) An exchange. (B) A net listing. (C) an accusation against the licensee. (D) a dispute over a commission in an open listing.

D

Which if the following is required for a valid contract of sale in real estate? (A) an acknowledgement. (B) an insured title. (C) a recorded instrument. (D) an instrument in writing.

D

Which of the following may legally enter into a contract to purchase real estate? (A) an alien. (B) a convict (C) an unemancipated minor. (D) A minor as ward of the court.

D

Who can record a listing contract? (A) Broker (B) seller. (C) buyer (D) None of the above.

D