MO real estate EXAM SMART
A house sold for $84,000 with commission rate of 6%. The listing broker received 50% of the commission. How much would the selling salesperson receive if the salesperson and the broker split their portion of the commission 40/60 $816 $1014 $1521 $2856
$1014
A broker sells a property receiving $8,400 by charging a 6% commission what was the sale price? $140,000 $157,000 $182,000 $302,000
$140,000
A buyer obtained a $60,000 loan at 11% interest for 30 years. with monthly principal and interest payments of $571.39. What was the total amount of interest paid over the 30 year term? $60,000 $145,700 $198.000 $205,702
$145,700
A building was to be constructed with the dimensions of 110 feet long and 25 feet wide and 20 feet high. Contractor A was going to build the building at $8.20 per square foot while Contractor B was going to build it at $.45 per cubic foot. How much could be saved by using Contractor A rather contractor B? $2,000 $2,200 $3,300 $3,750
$2,200
A licensee lists a 30 acre property for $10,000,000. The seller originally paid $5.50 per square foot for the property. How much per square foot has the property increased in value? $1.65 $2.15 $7.65 $9.15
$2.15
A home sold for $23,000. The buyers paid closing costs of 6% and taxes and insurance of $299. Upon what price was the commission rate computed? $23,000 $23,299 $24,468 $24,786
$23,000
A person brought a rental property for $43,750. It was assessed for tax purposes at a value of $39,950 with an assessment rate of $1.50 per $100 (15mills). What would be the monthly tax assessment amount to the nearest cent? $44.37 $49.94 $54.69 $59.99
$49.94 $39,950 x 1.5% = $599.25 divided by 12 =$49.94
A seller received $75,000 at closing after paying a 6.5% commission. What would have be the sale price? $79,875 $80,214 $82,570 $85,356
$80,214
A property was sold by a foreclosure sale. The sale did not produce enough money to satisfy all the debts on the property. What could the creditor who weren't paid now file? A deed in lieu of foreclosure An estoppel certificate A deficiency judgement A blanket Mortgage
A deficiency judgement
Which of following would be a violation of the Sherman Anti-Trust Laws? A group of brokers setting a common commission rate A broker establishing a commission split between the employer and employee An agent directing buyers toward areas based on race A lender limiting loans to certain geographical areas
A group of brokers setting a common commission rate
An investor investing in land needs to understand that this is: A limited liquidity investment An investment where the rate of return does not keep up with inflation An investment that is hardly ever profitable A very expensive investment
A limited liquidity investment
A city wanted to take land as the pace was needed to install a cloverleaf, allowing easer access to an interstate highway. The owner of the property refused to sell to the city. As a result of this, the city started the process of acquiring the property against the owner's wishes. This process is referred to as: Condemnation Eminent Domain Escheat Police Power
Condemnation
A salesperson has been accused of steering. Which of the following would HUD LEAST consider? Considering what other properties the agent had shown to the person in question Looking at the results from testers who had tested this same agent in the area of fair housing laws Considering that the sales person thought he was doing what was in the buyers best interest Whether there was a fair housing poster posted at the office
Considering that the sales person thought he was doing what was in the buyers best interest
A purchase agreement was accepted with earnest money given as part of the contract. The broker deposited the earnest money in the broker's escrow account. How would the earnest money appear on the closing statement? Debit buyer and not entry for the seller Credit buyer not entry for the seller Debit buyer and credit seller credit seller no entry for the buyer
Credit buyer no entry for seller
Which of following is an example of involuntary alienation? Will Foreclosure Dedication Deed
Foreclosure
A person has passed the pre-licensed test but has not yet received a license.Which of the following could that person NOT do? collect rent type advertising copy and call it into a local newspaper give the address of a listed property to a buyer deposit money into a broker's escrow account
Give the address to a listed property to a buyer
Someone sells real estate for another for a fee without a license. What could the MREC do in this case? Revoke the license File criminal penalties against the violator Go to court t get a restraining order Ask the attorney general for a restraining order to stop the person from acting as a licensee
Go to court to get a restraining order
A property did not abut a waterway. The owner established a beneficiary use through the state under prior appropriation. How could the owner gain access to the water? Apply for easement by necessity Apply for an easement by prescription Put an underground pipe across the neighbor's property with permission Go to the neighbor and negotiate an easement
Go to neighbor and negotiate an easement
A husband, wife and mother in law were looking at possible houses to by with a real estate agent. They asked the agent how they should take title to a property. The BEST response for the agent would be: joint tenancy tenancy in the entireties to have them consult an attorney to have them consult the broker of the office
Have them consult an attorney
A salesperson decided to sell her house. She did not want to list the house with her brokerage company. Instead, she wanted to sell her own house as a for sale by owner. Which of the following items would the salesperson have to do? List with her own brokerage company since she is licensed under that broker Put in all advertising owner agent including the yard sign Put in all advertising owner occupant including the yard sign Use her brokerage contacts forms even though she's selling the house herself
Put in all advertising owner agent including the yard sign
Which of the following deed would give the seller the LEAST amount of liability? Bargain and Sale Quitclaim Special Warranty General Warranty
Quitclaim
An item in a house that is usually easy and inexpensive to remedy is: A structural foundation issue A roof replacement Major water leaks in a basement Radon gas
Radon gas
Which approach to value would be best for an apartment complex? Market data approach Income approach Cost approach Sales comparison approach
Income approach
An agent took a listing in which the seller said to sell it in "as in" condition. The agent then found a major structural flaw in the property. Which would the following BEST describe what the agent should do? Tell the buyer the property is sold "as is" NOT reveal the flaw unless asked by the buyer Inform the buyer of the flaw NOT reveal the flaw as the agent is a fiduciary of the seller
Inform the buyer of the flaw
If an owner tells a licensee not to show the property to minorities, which of the following statements BEST describes the obligations of the agent? Obey the instructions since you are the sellers agent Take the listing but ignore the instructions regarding minorities Inform the owner that the licensee cannot legally accept the listing Report the seller to HUD
Inform the owner that the licensee cannot legally accept the listing
An offer to purchase contract has been presented to a seller. Which of the following statements is true regarding the offer? Any counter offer must be close to the terms of the original offer Any counteroffer must be in writing It could be withdrawn at anytime prior to conveyance of an acceptance or rejection The buyer would have a three day right of recession Even after acceptance by the seller
It could be withdrawn at anytime prior to conveyance of an acceptance or rejection
A child owns a life estate and sells the property to a friend. Which of the following statements is true regarding the friend's estate? It ends when the friend dies It ends when the child dies It becomes a free absolute when the child dies It becomes a free absolute when the friend dies
It ends when the child dies
A loan that is paid off either by the sale of property or death of the borrower is called an: Shared appreciation mortgage (SAM) Reverse annuity mortgage (RAM) Growing equity Package Mortgage
Reverse annuity mortgage (RAM)
An agent was working with a buyer. The agent explained agency to the buyer and presented the buyer with an agency disclosure form as part of a sales contract for the buyer to sign. However, the buyer refuses to sign. What should the agent do? Refuse to work with the buyer Inform the seller of the situation Make a note and give to the broker to be kept in the files Refer the buyer to another agent
Make a note and give the broker to be kept in the files
Water rights are generally covered under federal guidlines. Some states cover water rights under riparian and littoral laws. In the absence of specific guidelines, water rights are generally governed by Eminent domain Prior appropriation express reservation police power
Prior appropriation
A condominium development with a long standing established homes association would be governed by the: Long established tenants Association of unit owners developer of the condominium state license agency
Association of unit owners
A person owned a property next to a stream. The owners rights to use the stream are referred to as: Dower Curtesy Riparian Navigational
Riparian
A salesperson told a buyer that the air conditioner would stay with the house. However, he had not checked it out with the seller. After closing the seller took the air conditioner, which would happen? He would have to pay for the Air Conditioner The MREC would automatically revoke his license The MREC can take on disciplinary action or dismiss a complaint if filed The buyer would have to look to the seller for relief
The MREC can take on disciplinary action or dismiss a complaint if filed
A licensed Florida broker was trying to lease apartments in Florida while in Missouri. Which of the following is correct? She could do this as the appartments are in Florida She would need a Missouri license in order to try and lease the apartments in Missouri She could draw A COMMISSION FOR THIS IN BOTH STATES She could draw a commission for this in Missouri only
She would need a Missouri license in order to try and lease the apartments in Missouri
Two brokers from two different companies get together and decided to charge the same commission rate.This may be a violation of the: federal fair housing law sherman ant trust law equal credit opportunity act truth in lending laws
Sherman anti trust law
Why should a listing agent be aware of all the ownership documents that will be used in a real estate transaction? So the agent can know which documents the seller and buyer will have to sign to complete the transaction So the agent can give both parties advice on vesting So the agent can give the seller capital gains advice So the agent can give both parties inheritance advice
So the agent can know which documents the seller and buyer will have to sign to complete the transaction
A salesperson was showing a two bedroom house. What does the salesperson have to disclose? Times of the day the property may be shown Property is located in a flood plain Mortgage balance Commission they will receive
Property is located in a flood plain
An agreement between a property owner and property manager detailing the managers responsibilities in managing the property would be called a(n): Option contract Lease agreement Property management agreement Listing contracts
Property management agreement
An unlicensed secretary is the only one in the office as all the licensees are out to lunch. Broker Carr from another company calls requesting information on a property. The secretary may: Give him the sale price and address Take his name and number to have a licensee return the call Give any information necessary since it is another broker and not a member of the general public. Mail the broker the information
Take his name and number to have a licensee return the call
A listing agent is showing the listed property to a prospective buyer. The buyer tells the listing agent that a favorable zoning is coming with regard to the listed property. What should the listing agent do? Call the broker for help Tell the seller because of the fiduciary obligation to the seller Dont tell the seller as this violated confidentiality to the buyer Don't tell anyone as the buyer could sue the agent for damages if this info was disclosed
Tell the seller because of the fiduciary obligation to the seller
A seller's agent would be guilty of breach of fiduciary obligation by doing which of the following? Telling the buyer that the seller is in bad financial shape and would take less for the property that the asking price Telling the buyer about property defects Taking a full price offer of a friend to the seller taking a full price offer from the seller's agent himself with full disclosure of all materials and fiduciary facts
Telling the buyer that the seller is in bad financial shape and would take less for the property than the asking price
A corporation who purchased a piece of real estate as a co-owner with an individual would usually take title in which of the following manners? Joint tenancy Tenancy in common Tenancy by the entirety Community Property
Tenancy in common
When is a purchaser said to have "equitable title?" At the signing of the sales contract by both the buyer and the seller When the transference occurs When the purchaser gives the earnest money When the offer is submitted to the seller
At the signing of the sales contract by both the buyer and the seller
A person in Missouri attended a pre-license class, passed the test and received a license. After a few months the licensee decided to place their license on an inactive status. Two years later the licensee decided to reactive their license. What must the licensee do in order to reactivate? Do nothing, as two years automatically reinstates a licensee to active status Attend a pre-license class for their type of license and apply to the MREC within 90 days Attend a practice class and apply to the MREC within 6 months Take the required continuing education for the past two years and then apply to the MREC
Attend a practice c;ass and apply to the MREC within 6 months
How does a buyer become a client of a broker? By signing an agency agreement with a broker By looking at a broker's in house listings By writing a sales contract with a broker by looking at other companies' listing with a broker
By signing an agency agreement with a broker
After the Missouri Real Estate Commission and Administrative Hearing Commission have determined that a licensee has violated the law, which is most likely step for the government to take regarding discipline? The Real Estate Commission may revoke the license The Real Estate Commission must go to court in order to revoke a license The Administrative Hearing Commission may revoke the license The Administrative Hearing Commission must go to court in order to revoke the license
The Real Estate Commission may revoke the license
Under a Listing agreement, who would be the client? The Salesperson The broker The Seller They Buyer
The Seller
Which of following would a seller's agent have to disclose to a buyer? The seller had lived there for one year making no improvements to the property The seller had been convicted of a felony one year ago but has clean ever since a mental institution was located a mile away The roof on the seller's property is in bad condition
The roof on the seller's property is in bad condition
A seller called a salesperson asking the salesperson to list the seller's home for sale. The salesperson did so a submitted the listing to MLS after the salesperson's broker approved the listing. Another Broker within the MLS cooperated with the listing broker and found a buyer for the house. Which of the following best describes the relationship of the parties involved? The selling broker is an agent of the listing broker The selling salesperson is a subagent of the listing broker The selling broker is a subagent of the listing salesperson The selling broker is a contractor of the seller
The selling broker is a agent of the listing broker
After taking the pre-license class and passing the exam, in applying for a license, what type of documentation would be required? A Missouri driver's license a photograph personal references Letter about business background
a photograph
Broker Carr had a 90 day exclusive listing. One month after the listing began, Broker Dole contacted the seller and told him he had a buyer moving in one month after the listing terminates and asked the seller to sign an agreement to take effect the listing expires. This is: misrepresentation a violation of state law allowable as the listing would expire considered commingling of listing
a violation of state law
A mortgage where the interest rate is subject to adjustments periodically is: limited reduction wrap around graduated payment adjustable rate
adjustable rate
Which of the following does a broker NOT have to keep for the MREC auditors? Listings Contracts Advertising Copy Closing Statements
advertising copy
What does a standard title insurance policy insure against? water rights questions of survey adverse possessions claims any recorded title defects or liens
any recorded title defects or liens
A seller sold a property to a buyer with the seller also transferring the refrigerator to the buyer as a personal property item. The document needed for the transfer of the refrigerator would be a: Bill of sale assignment agreement transfer by deed contract for dded
bill of sale
To supervise a branch office, you must be a: full-time broker who does not sell or list licensed salesperson broker-salesperson, broker-partner or broker-officer licensed salesperson who is also a sales manager
broker-salesperson broker-partner or broker-officer
A buyer writes a contract with a contingency that says if a certain thing does NOT happen, the buyer does NOT have to purchase the property. The contract does not close due to this contingency, Normally, any earnest money should be given to the: buyer seller broker state
buyer
Which can an unlicensed secretary in a broker's office do? Collect rents submitted to her at her desk show properties to potential clients use the telephone to solicit new business tell person over the phone the list price and terms of the sale
collect rents submitted to her at her desk
Which approach to value would an appraiser be using when one adds the land value to the depreciated replacement cost of a property? Market Date Cost Income Gross Rent Multiplier
cost
A house with outdated plumbing fixtures would be an example of: physical deterioration economic obsolescence curable functional obsolescence incurable functional obsolescence
curable functional obsolescence
What is called when a person takes the cost of purchase and then recaptures this amount? a sinking fund escrow profit depreciation
depreciation
A property that contains asbestos insulation wrapped around pipes would be best remedied by: removing the insulation encapsulation replacing the pipes installing a water filtering system
encapsulation
If a tenant stays over without the landlord's permission, this is called: estate for years estate at sufferance periodic tenancy tenancy at will
estate at sufferance
How long does a salesperson have to deliver the earnest money to the broker? immediately 2 banking days 5 banking days 10 banking days
immediately
What is the purpose of earnest money being part of a real estate contract? without it there would be no consideration it gives the broker commission money in case the buyer does not close It establishes the intent of the buyer to carry out the contract It provides for payment of some of the buys's closing costs
it establishes the intent for the the buyer to carry out the contract
A lender expressing the amount of the loan to the estimated property value is called an: loan to income ratio loan to value ratio loan to debt ratio loan to equity ratio
loan to value ratio
A broker-salesperson is allowed to: manage an office hold salesperson's licenses personally accept commission from other brokerage companies give legal advice if it falls under the scope of the broker-salesperson expertise
manage office
A violation of the federal fair housing laws: may be a criminal act must involved actual damages is permissible under certain circumstances must be filed with HUD within three years of the act
may be a criminal act
An Agency agreement can always be terminated by: the seller unilaterally the broker unilaterally the salesperson and seller mutual agreement by all parties to the contract
mutual agreement by all parties to the contract
When a tenant pays taxes and insurance in addition to normal rent, this would be called a: Graduated lease percentage lease gross lease net lease
net lease
The broker tells a buyer that the broker thinks a particular house is the best in the neighborhood. The buyer purchases the property only to find another property later on this is more desirable. The broker is guilty of: misrepresentation fraud bait and switch puffing
puffing
The right of a person to regain title to a property after paying all debts is known as: Release reversion remainder redemption
redemption
An agent is working with buyers wishing to purchase and older home in a deteriorating neighborhood. Both of the buyers have good incomes and are well qualified. The buyers have been turned down by three lenders for a loan on the property. The lenders may be guilty of: Steering Blockbusting price fixing redlining
redlining
In order to keep a license or inactive status, one must: take the exam again and pay a renewal fee Wait two years before reactivating take the required continuing education and pay a renewal fee renew biennially and pay a renewal fee
renew biennially and pay a renewal fee
A Broker found a ready, willing, and able minority who offered full price for a house. The seller refused to sell because the buyer was a minority. the broker could legally do all of the following EXCEPT: Sue for commission inform the prospective buyer that help is available from HUD inform the seller that a violation of a federal fair housing law has occurred show the property to non-minorities only
show the property to non minorities only
Which statement would be true regarding a deed? a deed must be signed by the grantor and grantee the purpose of a deed is to convey title the grantee must be of legal age Acknowledgement and recording of a deed are required
the purpose of a deed is to convey title
A contract whereby either party is not able to sue the other party would be classified as: unenforceable void voidable enforceable
unenforceable
If a salesperson is an employee of a broker,. then the broker must: Give yearly vacation withhold FICA and federal tax Pay a commission Pay a salary instead of commission
withhold FICA and federal tax
A branch office under a principal broker: would have to have its own set of licenses would operate under its own broker's license would operate under a duly appointed salesperson would operate under the principal broker's license
would operate under the principal broker's license
A title insurance policy lists: All recorded defects against the title All owners any transactions that affected the title any mortgage ever against the property
All recorded defects against the title
Which of the following activities would be allowed under the Missouri License Law? A broker allowing an unlicensed secretary to take a listing A broker allowing an unlicensed secretary to show a listing Allowing a salesperson to close a transaction without a broker supervision Allowing a salesperson to accept earnest money with an offer on behalf of the broker
Allowing a salesperson to accept earnest money with an offer on behalf of the broker
Y offers X $60,000 for X's property. Which of the following terms BEST describes the role of X? Lessor Lessee Offeror Offeree
Offeree
A salesperson obtained an offer to purchase with earnest money from a buyer. The seller and buyer made offers and counteroffers back and forth to each other for 10 days. With regard to the earnest money, the salesperson should: Wait until acceptance of both parties to give the earnest money to the broker Deliver the earnest money to the broker upon receipt of the money Deposit the money in the sellers bank account due to fiduciary responsibility owed to the seller Hold the money personally for safe keeping
Deliver the earnest money to the broker upon receipt of the money
A listing agent was showing a buyer customer a property listed but the agent. While showing the property the agent noticed a crack in the basement wall that was covered by some boxes. The agent should: Not disclose this fact to the buyer as the agent is a sellers agent. Disclose this material fact to the buyer Disclose this fact to the seller and then see if the seller wants to tell this to the buyer call the broker for help
Disclose this material fact to the buyer
A buyer was considering purchasing a new home that the listing broker was aware had been built on a toxic waste dump. What duty does the listing broker owe to the buyer? Disclosure Accountability Loyalty Obedience
Disclosure
Which of the following would one normally depreciate? A building only land only land and a building The difference between land and a building
A building only
An agent owes care, obedience, accounting, loyalty disclosure and confidentiality to: principals lenders brokers customers
principals
When a real estate agent is preparing a competitive market analysis (CMA) for a client, how many comparable properties would make for a good evaluation of value? 1 other 2 3-5 a minimum of 5
3-5
An owner of an 8-plex wants to advertise for seniors only. The building foes have any special facilities for older persons. In order for the owner to do this, at least 80% of the units must be occupied by a person who is at least: 50 years old 55 years old 60 years old 65 years old
55 years old
A house sold for $39,379. The buyer paid 20% down. Monthly interest on the loan was $229.69. What was the annual interest rate on the loan? 6% 8 3/4% 14% 16%
8 3/4%
Which of the following would be an example of an impossibility of performance regarding a sales contract? A buyer could not qualify for a loan A seller died after signing the sales contract but before closing A seller had signed the contract without the consent and knowledge of the other owners who were joint tenants The property was destroyed by fire after the signing of the contract but before closing
A seller had signed the contract without the consent and knowledge of the other owners who were joint tenants
Under the federal fair housing laws, which of the following phrases would be illegal in advertising? Midtown property Seniors only Wheelchair accessible Adult Building
Adult Building
Who does a salesperson owe loyalty to? Buyer Seller Broker Bank
Broker
An agency relationship would most likely exist between which of the following parties? A salesperson and seller Broker and Salesperson MREC and brokers A listing broker and a cooperating broker
Broker and Salesperson
Who oversees and administers the provisions of the Real Estate Settlement Procedures Act (RESPA) FBI CIA CFPB SEC
CFPB
A non-licensed practicing real estate for a fee is guilty of: Fraud Class B misdemeanor a Felony Nothing
Class B misdemeanor
A property has had termite problems in the past. A broker tells a buyer that the termite problems have been taken care of knowing that the problems actually still exsitst. The broker is guilty of: Deceptive and fraudulent conduct Puffing Fraud only in skill and care Negligent misrepresentation
Deceptive and fraudulent conduct
Which of the following items would NOT always be part of a real estate purchase contract? Competent parties Offer and Acceptance Earnest Money Consideration
Earnest Money
A neighbor had encroached on a property but the owner did not complain within the specified time period. The neighbor would obtain rights to the land by: License Easement by necessity Easement by prescription Easement in gross
Easement by prescription
A person dies with no valid will and no heirs. The state government could claim ownership of this property though what government right? Eminent Domain Taxation Escheat Police Power
Escheat
What is the greatest type of interest an owner can receive in a condominium? Fee simple Leasehold Right of free use Stock
Fee simple
Which type of relationship is established between a principal and a broker? Trustor Trustee Blanket Fiduciary
Fiduciary
Mr. X bought a house in an area that restricted fences. He then bought a dog and began constructing a fence. What remedies do the neighbors have? Eminent Domain Police Power File a private suit in court Building code enforcement
File a private suit in court
A seller and buyer have agreed to a sales contract. The buyer backs out of the agreement. Which of the following could the seller NOT do? Sue for specific performance Rescind the agreement File for a writ of execution Sue for compensatory damages
File for a writ of execution
Which is true about a net listing? A written net listing is enforceable in court An oral net listing is enforceable in court It is legal in Missouri It is illegal in Missouri
It is illegal in Missouri
A person passed a pre-license class and ten took the exam. The person then gave to a broker the names of two friends who we're moving out of state. The person failed the exam and later moved from the town. Would this person be entitled to a referral commission? No, this person cannot receive a referral but the broker can give them a nice gift. No, this person was not license at the time of preforming the act Yes, since this person completed the exam and gave the referral to their broker Yes, this person could receive a referral as long as it was not a commission
No, this person was not license at the time of preforming the act
If an applicant is turned down for a license, the MREC must notify the applicant: Orally stating the reasons Of their right to file in writing a complaint with the AHC In writing within 10 days Of their right to appeal the decision to the MREC
Of their right to file in writing a complaint with the AHC
A property was purchased for $92,000 putting $11,000 down. A few years later, the property appraised for $116,000 while the loan balance was down to $79,000. What is the owners equity in the property? $11,000 $25,000 $32,000 None of the above
None of the above
A real estate deal fell though with the buyer and seller disputing what to do with the earnest money. the buyer and seller went to court to settle the matter. What should the listing broker do with the earnest money? Keep part of the earnest money for his commission and give the rest to the buyer Give the earnest money to the seller due to the fiduciary relationship Pay the earnest money to the court for disposition Split the earnest money between the buyer and the seller
Pay the earnest money to the court for disposition
The most useful way for a broker to receive commission is to have the seller pat as a: a flat fee percentage of the selling price non-refundable retainer fee option bonus
Percentage of the selling price
Which of the following would not be a valid way for an agent to take a listing? Receiving a percentage of the sale price as a commission Receiving a flat fee Receiving money for fixed expenses addition to a normal commission Receiving as commission anything obtained in sales price over a certain amount for the seller
Receiving as commission anything obtained in sales price over a certain amount for the seller
With the exception of real estate taxes, liens generally are repaid at a foreclosure sale based on the: Dollar amount of the lien Actual need go the creditors involved Recording date of the lien Original date of the agreement that led to the lien being filed
Recording date of the lien
If your license is inactive you must: Renew biennially to avoid cancellation of the license Wait 2 years before reactivating Take the required continuing education courses prior to reactivating Take the exam again in order to reactivate
Renew biennially to avoid cancellation of the license
Which of the following items is NOT required to be part of an exclusive agency agreement? Statements requiring owner to notify broker of the intention NOT to renew Statement that the listing is exclusive Proper identification of the property Commission rate to by paid
Statement requiring owner to notify broker of the intention NOT to renew
The direct sales or market data approach is based upon the principle of: Competition Anticipation Substitution Conformity
Substitution
A buyer obtained a $50,000 loan with a 9% interest rate. The loan was amortized over 30 years with a monthly payment of $403. Which of the following statements is true? The total amount of interest paid of the term was 145080 The Toal amount of interest paid over the term was 135650 The amount of principal in the first payment was 129 The amount of principal in the first month was 28
The amount of principal in the first month was 28
An offer to purchase contract was contingent upon the buyer receiving a loan. The buyer was not able to obtain financing. The buyer informed both the seller and the broker of the loan denial. Which of the following statements is true? The broker must pay cash for the property The broker must return the earnest money to the buyer The seller may have cause to sue the buyer for specific performance The seller may keep the earnest money as a form of liquidated damages
The broker must return the earnest money to the buyer
A broker and a non-licensee went together to buy a piece of property. What is the minimum that the broker must disclose to the seller? Nothing since the broker was only a part owner The exact percentage of the broker's interest in the property The broker would have an interest in the property The broker was acting as a middle-man in the transaction
The broker would have an interest in the property
H had a property for sale for $129,000 B made an offer for $123,000. H made a counter-offer of $127,000. Which of the following statements is NOT true regarding this situation? H's counteroffer terminated the first offer With the second offer, B would become the oferee The counteroffer would be binding on B In the original transaction, B was the offeror
The counteroffer would be binding on B
A person may receive continuing education credit if: The classes were received from an out of state school that has been approved by the MREC The person attended a minimum of 80% of the scheduled class time they had carried over accumulated hours from a previous licensure period the class is on sales training
The classes were received from an out of state school that has been approved by the MREC
A person decides to place their license inactive. Which of the following statements would be true? Their license would stay with their last broker of record Their license would be held by the MREC There is no fee charged for the licensee to go inactive While inactive, the licensee can only receive referral fees
Their license wold be held by the MREC
What is the purpose of a private deed restriction? To control the use of a property for a maximum of 25 years To control the zoning of the property in the future To control ownership of property in the future To control permitted uses of the property
To control permitted uses of the property
What is the primary purpose of Chapter 339 of the Missouri statutes? To protect the public by regulating the actions of brokers and salespersons To protect salespersons form actions caused by dishonest brokers To give a real estate licensees a code for good business practice To give the MREC rules to fine and discipline licensees
To protect the public by regulating the actions of brokers and salespersons
An agent showed a property. After writing an offer and presenting it, the seller accepted it. What date must be listed on the contract? Showing the property When any signatures or initials are obtained Only the date of writing the offer Presenting of the offer
When any signatures or initials obtained
A buyer contacts a listing broker about writing an offer on a property the broker has listed. The buyer wants to make an offer $40,000 b below the list price. What should the listing broker do? Write the offer as instructed by the buyer Tell the buyer that writing such a low offer would be a waste of time Pressure the buyer to raise the amount of the offer Qualify the buyer before presenting the offer
Write the offer as instructed by the buyer
A buyer makes an offer on a property with some earnest money now and some to follow later. What should the licensee do? Pay the difference ahead of time to the broker personally Encourage the seller to take the smaller amount of earnest money now Write the offer as is with the extra earnest money to follow later Not present the offer until the extra earnest money is received
Write the offer as is with the extra earnest money to follow later
There was a home listed under an exclusive right to sell agreement. Another broker went to show the house without notifying the listing broker. Was this a violation of the license law? Yes, because only the listing broker can show a property. Yes, because the selling broker must first contact the listing broker in order to show the property No, because the selling broker has an implied contract to show the property No, because under an exclusive right to sell listing, everyone is authorized to sell
Yes, because the selling broker must first contact the listing broker in order to show the property
One person who owned a company specializing in negotiating sales for buyers and sellers had incorporated the business with that person as the sole officer. The company does not list or sell properties. Does the at person need a real estate license to do this? Non, as the company was not listing property Non, as the corporation would have the brokers license Yes, the owner would need a broker-officer license Yes, the owner would need an individual brokers license
Yes, the owner would need a broker-officer license
Where would one look to find out what type of structure is allowed to be built on a certain pice of ground? Title policy Plat map Abstract Zoning Ordinances
Zoning Ordinances
Which of the following elements must be in a contract to have a valid contract? A clear description of the land A clear description of the land, house and improvements Earnest Money Good faith estimate of closing costs
a clear description of the land
Which of following items could be consider an encroachment? A note of estoppel a fence that crosses over the property line between two different owners An easement between 2 properties Verbal permission for one party to cross over another's property
a fence that crosses over the property line between two different owners
A broker talks to a seller about listing the property for sale. The seller won't list just with this one broker, but tells the broker that if he finds a buyer for the property, the seller will pay a commission. This would be a(n): exclusive right to sell listing exclusive agency listing open listing net listing
open listing
A contact that begins as uni-lateral but could end up being bi-lateral is a(n): sales contract option contract offer to purchase contract listing contract
option contract
A right to buy a property for a definite sale price with a definite time period is referred to as a(n): sales contract listing contract right of first refusal option contract
option contract
An amortized note left a loan balance to be paid off at the end of the term. This would be called a(n): a term loan straight loan fully amortized note partially amortized note
partially amortized note
Which of the following items would automatically transfer with the sale of property? trade fixtures Plumbing fixtures a free standing appliance Emblements
plumbing fixtures
