Practice Chapter 1

Lauren has just acted as the real estate salesperson for the seller on successfully selling a $450,000 home, with a 6% commission. The buyer's broker on the sale had agreed to a 50/50 split, and Lauren has a 50/50 split with her own broker. How much money will Lauren receive from this transaction?

$13,500

If the seller's broker received a commission of $8,600, what is the sales price if a 5% commission rate was paid?

$172,000

A property recently sold for $480,000. What is the commission owed if the seller agreed to a 4% commission rate?

$19,200

If a real estate salesperson and their sponsoring broker agreed to s 40/60 split (60% going to the broker), how much would the salesperson earn if their broker received a commission of $11,600?

$4,640

An agent who works from home may use which of the following for mailing purposes....? A. P.O. box B. Virtual assistant C. Professional website D. All answers are correct

A

Because a salesperson is an independent contractor, the broker is prohibited from which of the following? A. All answers are correct B. Setting work hours C. Setting location of work D. controlling the activities of the salesperson

A

Cindy lives in an area where it is necessary to drive a car to take customers to show homes. She hasn't received a commission for some time when her car is damaged while she is showing a home to customers, requiring expensive repairs. Which is true? A. Cindy is responsible for all payments related to her car. B. The broker should pay for the repairs to the car. C. The broker and Cindy should split the repair costs because they have a 50/50 split. D. Cindy should request payment from the owner of the house she was selling, as she was working as their agent when the accident happened.

A

Martha is a broker in charge of running her office. Which of the following should Martha ensure is strictly monitored......? A. Office keys B. Office lights C. Alarm system D. Audio recorders

A

Real estate offices should include which of the following......? A. Security cameras B. Audio recorders C. Bright lights D. Voice recorders

A

Which if the following should notify law enforcement if there is a break-in at real estate office.....? A. Alarm system B. Security cameras C. Audio recorder D. None of the above

A

Which is true about independent contractor agreements? A. It lays out both obligations of the broker and the duties of the salesperson. B. It solely lays out the obligations of the broker. C. It solely lays out the duties of the salesperson to the broker. D. It solely lays out the duties of the salesperson to the client.

A

Which of the following should be strictly monitored......? A. Office keys B. Office lights C. Alarm system D. Audio recorders

A

Which of the following will most likely be covered under an agent's liability insurance? A. Non-intentional acts B. Discrimination C. Failure to disclose a material fact about the property D. Ethics violation

A

Interest rates are changing. If they are going up, this has a direct impact on buyers and the supply and demand of properties because....?

A higher interest rates means the cost of borrowing money increases, reducing the amount borrowers can afford.

A property was sold, and the buyers want to make sure it is in good shape before they close on it. They want someone to go through the house from top to bottom, examine the physical exterior and interior including appliances, electrical, plumbing, and more. The person they are looking for would be?

A home inspector

An agent's liability typically involves which of the following? A. All answers are correct B. Disclosures C. Ethics D. Discrimination

A.

Which statement is true about real estate commissions? A. All answers are correct. B. The seller's broker might have to split their commission with the buyer's broker. C. It is usually calculated as a percentage of the sale price, but can also be a flat rate. D. It is spelled out in the listing agreement.

A.

A family going to build their dream home, and they've looked at several house plans, but they haven't found the right one this exactly right. They'd like to take some parts from one plan and combine it with parts from another, with some additional innovations of their own. They want someone who can design and plan their home and work with the contractors to build it. The person they are looking for is?

An architect

One way to lesson the likelihood of assaults is to have the client meet the agent.....?

At the agent's office

David recently obtained his real estate salesperson license and started working for a broker. What type of insurance should David obtain? A. Liability insurance B. Workers compensation C. Homeowners insurance D. All answers are correct

D

In construction there are hard costs and soft costs, and hard costs include....?

Excavation, grading, cost of materials.

To become a real estate broker, a person must have...?

Experience as an agent, a broker's license, and additional education.

In order to lease and sell properties, real estate brokers and agents must....?

Hold an active real estate license

A real estate salesperson works as an ............ Under their sponsoring broker.

Independent contractor

What happens when an independent contractor agreement does not lay out the financial agreement between the salesperson and the broker?

It is a poorly constructed agreement that fails to properly protect both parties, and opens them to legal disagreements down the road.

The effect of the first-time homebuyer's tax credit was to...?

Motivate people to buy homes.

Sarah was recently contacted by a prospective buyer. What should Sarah have the buyer do before viewing any properties?

Obtain a pre-approval from a lender

Single family homes are.......?

Private freestanding residential houses.

A person or an organization acting as the agent for others in negotiating the purchase and sale of real property for a fee is known as?

Real estate broker

In her real estate business, Leah discovers she likes working with first-time buyers and wants to make it her specialty. That means....?

She will become an expert in this niche and build her reputation around it.

The amount of certain good or service that is available in the market is known as?

Supply

Zoning definitions can be different depending on...?

The community, county, or state the property is in.

In real estate, an example of supply and demand would be.....?

The number of potential properties available and the number of potential buyers respectively.

Who pays for any expenses involved with getting a real estate license?

The real estate salesperson

In economics, demand is...?

The supply of willing and able consumers which can be few or numerous.

If a broker has agents working for them...?

They are responsible for the agents and their actions.

A real estate salesperson is a licensed agent who negotiates and arranges real estate sales. Agents must.....?

Work under a real estate broker.

Property types are generally categorized by the ............ that applies to that property.

Zoning laws

The majority of real estate agents work with.....?

residential properties

A lack of supply is known as.....?

scarcity