Unit 10

A sales contract must include a statement describing the ________________________ and the telephone number of the Commission where the seller can receive further information. A. Real Estate Reimbursement Act B. Professional and Vocational Recovery Fund C. Real Estate Recovery Fund D. Pennsylvania Human Relations Act

C. Real Estate Recovery Fund

Any agreement between a broker and a seller, if the seller is committed to paying a commission, must be in writing and contain a statement describing the ________________________ and the telephone number of the Commission where the seller can receive further information. A. Real Estate Reimbursement Act B. Professional and Vocational Recovery Fund C. Real Estate Recovery Fund D. Pennsylvania Human Relations Act

C. Real Estate Recovery Fund

The Commission's required comparative market analysis disclosure states that this analysis has NOT been performed in accordance with the A. Statute of Frauds. B. Professional and Vocational Act. C. Uniform Standards of Professional Practice. D. Federal Interstate Full-Value Disclosure Act.

C. Uniform Standards of Professional Practice.

An exclusive-right-to-sell agreement must contain A. a disclosure of the listing agent's relationship with the employing broker. B. a statement of when the agreement will automatically renew. C. a statement that the broker earns a commission on a sale during the listing period no matter who sells the property. D. a statement of the broker's authority to sign contracts on behalf of the seller.

C. a statement that the broker earns a commission on a sale during the listing period no matter who sells the property.

A ________________________ must include a statement which says to the prospective tenant that this is a service and does not include a guarantee that the consumer will find a satisfactory rental through the service. A. time-share sales contract B. buyer's agent agreement C. rental listing referral agreement D. campground membership purchase contract

C. rental listing referral agreement

The Estimated Cost and Return statement clearly states that some estimates are subject to change, particularly such escrow charges as A. recording fees. B. the credit report. C. taxes, water and sewage. D. the Pennsylvania Realty Transfer Tax.

C. taxes, water and sewage.

An Exclusive Listing Agreement may not contain:

A listing period exceeding one year; An automatic renewal clause; A cancellation notice to terminate the agreement at the end of the listing period; Authority of the broker to execute a signed agreement for the owner or lessor; An option by the broker to purchase the listed property.

must be printed in bold face if they are part of the agreement of sale:

a provision relieving the seller from responsibility for defects involving the sale property, or a provision requiring the buyer to execute a release to that effect at the time of settlement, or a provision of similar import. a provision reserving the builder-seller the right to change or depart from, the building specifications for the sale property.

A purchaser of a time share or campground membership has the right to cancel the purchase until

midnight of the 5th day following the date on which the purchaser executed the purchase contract.

Sales contract

terms of agreement for finalizing the transaction. It also includes important legal language regarding inspections and insurance

The required form to be given to each buyer before the execution of a sales contract is called A. a Statement of Estimated Cost and Return. B. an exclusive right-to-sell disclosure. C. a rental listing referral agreement. D. a Statement of Estimated Costs of the Buyer at Settlement.

A. a Statement of Estimated Cost and Return.

A comparative market analysis is always performed by A. a real estate licensee. B. an appraiser for the lender. C. an insurance adjuster for homeowner's insurance. D. a loan officer for a savings and loan.

A. a real estate licensee.

A comparative market analysis helps the real estate professional work with the seller by A. providing a price range for deciding a listing price for the home. B. setting the sale price of the home. C. revealing the competition for the property. D. establishing the amount a buyer will need to borrow.

A. providing a price range for deciding a listing price for the home.

A sales contract must include a statement about the zoning capacity of the property unless the property is solely or primarily a(an) A. single-family dwelling. B. time-share unit. C. multiple use industrial property. D. campground parcel.

A. single-family dwelling.

How does a buyer cancel a campground membership? A. Notify the seller by phone B. Notify the seller by certified mail C. Send the seller an email D. Inform the seller in person

B. Notify the seller by certified mail

All sales contracts must contain a statement about the existence and purpose of the A. Pennsylvania Fraud Fund. B. Real Estate Recovery Fund. C. Real Estate Reimbursement Fund. D. Professional and Vocational Recovery Fund.

B. Real Estate Recovery Fund.

What is the function of the required statement of Estimated Cost and Return given to buyers? A. To guarantee the expenses associated with the sale that the party may pay B. To provide the buyers an estimate of reasonable expenses associated with the sale that the party may be expected to pay. C. determines the expenses associated with the sale that the lender will pay. D. legally caps the expenses associated with the sale that the party can pay.

B. To provide the buyers an estimate of reasonable expenses associated with the sale that the party may be expected to pay.

The Commission requires an agency agreement between a broker and buyer to contain A. a disclosure that the broker's commission will be determined by the broker. B. a disclosure of any potential for the buyer's broker to act as a disclosed dual agent. C. a disclosure of any potential for the buyer's broker to act as an undisclosed subagent. D. a statement that the broker's commission must be paid by the buyer.

B. a disclosure of any potential for the buyer's broker to act as a disclosed dual agent.

A broker is preparing an exclusive listing agreement with the seller. All of the following items may be included EXCEPT A. the sale price. B. an automatic extension clause. C. . the amount of commission or fee the broker charges. D. a statement that the broker will be paid, no matter who sells the property.

B. an automatic extension clause.

The Commission requires that a statement of Estimated Cost and Return be prepared by the ________ before a sales contract is completed. A. seller's attorney B. broker C. lender D. closing attorney

B. broker

The required statement of Estimated Costs of the Seller at Settlement, A. determines the final net proceeds for IRS Form 1099. B. gives the seller an estimate of net proceeds from the sale. C. determines the final net proceeds the seller will receive at closing. D. guarantees the seller a net amount at closing.

B. gives the seller an estimate of net proceeds from the sale.

Provisions relieving the seller from responsibility for defects involving the sale property or requiring the buyer to execute a release to that effect at the time of settlement A. are illegal and cannot be enforced. B. must be printed in bold face. C. are included and legal if the buyer fails to object within two business days. D. are legal in time-share contracts only.

B. must be printed in bold face.

A broker and a buyer sign a buyer's agency agreement. Which of these is not an element that the Commission requires to be in the agreement? A. A statement that the broker's commission may be based on a percent of the sale B. A disclosure that the broker could become a dual agent C. A disclosure that if the buyer's broker is compensated by the listing broker, the buyer's broker will represent the seller D. A statement that the broker's fee is a result of negotiations between the parties

C. A disclosure that if the buyer's broker is compensated by the listing broker, the buyer's broker will represent the seller

A buyer wants to cancel a time-share that he purchased. How long does he have to cancel the contract? A. Three hours B. Three days following the date of the contract C. Five banking days D. Five days following the date of the contract

D. Five days following the date of the contract

Kathy is buying a home and she will need a mortgage to finance the property. What needs to be in the sales contract regarding the financing? A. The mortgage lender's name and Federal Id number B. The maximum assets of the lender C. The deadline for the buyer to obtain an income tax refund D. The term and interest rate of the mortgage

D. The term and interest rate of the mortgage

An Exclusive Listing Agreement may not have a term or listing period of more than A. three months. B. six months. C. nine months. D. one year.

D. one year.

An exclusive listing agreement must include all BUT A. the list price of the property. B. the commission, fee or other compensation expected on the sale only. C. the duration of the listing agreement. D. the term of the automatic renewal

D. the term of the automatic renewal

estimate of reasonable expenses

The broker's commission; The mortgage payments and financing costs; Taxes and assessments; Settlement expenses.