Chapter 3 - 3

Mr. Hardcase wants to reserve the right to sell his home to a co-worker without paying a commission to a broker. Which of the following listings should he sign? a. An exclusive agency. b. An exclusive right to sell. c. A ratified listing. d. A bona fide listing.

a. An exclusive agency.

The Sherman Antitrust Act prohibits each of the following activities, EXCEPT: a. Commingling. b. Price fixing. c. Boycotts. d. Tie-in arrangements.

a. Commingling.

Which of the following listings is the most advantageous to the broker? a. Exclusive right-to-sell. b. Exclusive agency. c. MLS. d. Implied.

a. Exclusive right-to-sell.

How many agents are there in an exclusive right-to-sell listing? a. One. b. Two. c. Three. d. As many as the owner chooses.

a. One.

If a buyer defaults on a valid sales contract and the seller wants to enforce the terms of the contract, the seller would file suit for which of the following? a. Specific performance. b. Monetary damages. c. Liquidated damages. d. Quiet title.

a. Specific performance.

When a buyer buys a property under an installment sale contract, the seller retains a. title to the property. b. a remainder estate. c. possession of the property. d. a life estate.

a. title to the property.

During the executory period of a valid contract for sale, the rights of buyer are best described as: a. Executed. b. Equitable. c. Executory. d. Equalization.

b. Equitable.

Net listings are acceptable in most states. a. True b. False

b. False

Mr. Foster signed a 60 day exclusive right-to-sell listing with broker Roy. One week later, Foster signed an exclusive agency listing with broker Gray who sold the home a few days later. Which of the following statements is correct? a. Foster may pay Roy only. b. Foster owes two full commissions. c. Foster must pay Roy only and Roy will split the fee with Gray. d. Foster should give one half the commission each to Roy and Gray.

b. Foster owes two full commissions.

Broker Jenkins has presented an offer from buyer Frazer. Before the seller has accepted the offer, Jenkins is informed that Frazer is acting for an unknown purchaser in this transaction. What should Jenkins do in this situation? a. Inform the seller that the offer is void. b. Inform the seller of the existence of an unknown purchaser. c. Return the earnest money deposit to Frazer. d. Inform Frazer that his offer is illegal.

b. Inform the seller of the existence of an unknown purchaser.

A contract for the sale of land in which the buyer makes regular payments, takes possession, but does not receive title is known as a(n): a. Mortgage. b. Land contract. c. Lease. d. Option.

b. Land contract.

The listing price of a property is established by: a. The multiple listing service. b. The owner. c. The appraiser. d. The listing salesperson and/or the employing broker.

b. The owner.

The Sherman Antitrust Act prohibits agreements not to compete in certain geographical areas between: a. Two licensed salespersons who work for the same firm. b. Two different real estate firms. c. Both two salespersons working for the same firm and two different real estate firms. d. Neither two salespersons working for the same firm nor two different real estate firms.

b. Two different real estate firms.

An option contract is a __________ contract until the option is exercised and is then a __________ contract. a. Bilateral/unilateral. b. Unilateral/bilateral. c. Bilateral/bilateral. d. Unilateral/unilateral.

b. Unilateral/bilateral.

In a valid real estate contract, the seller is known as the: a. Offeror. b. Vendor. c. Grantee. d. Mortgagor.

b. Vendor.

Wilma lists her house with broker Fred under an exclusive right-to-sell agreement. Fred later abandons the listing. Which of the following is true in this situation? a. Wilma must maintain the listing with Fred until the expiration date. b. Wilma may terminate the listing. c. Wilma must wait 90 days before she can list the property with another broker. d. Wilma must file a notice of abandonment.

b. Wilma may terminate the listing.

An owner lists a home with a broker for $172,000. Two days later, the broker brings an offer for $170,000. At this time, which of the following statements is true? a. The broker has found a buyer and has earned his commission. b. A ready and willing buyer has been found and a commission is due. c. A ready and willing buyer has been found, but no commission is owed the broker at this time. d. None of these choices.

c. A ready and willing buyer has been found, but no commission is owed the broker at this time.

A broker acts as an agent in all of the following functions EXCEPT: a. Leasing property. b. Selling property. c. Appraising property. d. Exchanging property.

c. Appraising property.

The maximum fine is $16,000 for violations of the: a. CAN-SPAM Act. b. Do Not Call Registry. c. Both the CAN-SPAM Act and the Do Not Call Registry. d. Neither the CAN-SPAM Act nor the Do Not Call Registry.

c. Both the CAN-SPAM Act and the Do Not Call Registry.

Casper is planning to sell his house and desires the broadest possible exposure. He gives Bert an exclusive right-to-sell listing, Gail an exclusive agency listing and Mark an open listing. Mark sells the house. Under these circumstances, which of the following statements is true? a. Mark must split his commission with Bert and Gail. b. Casper owes two commissions, one to Mark and one to Bert and Gail to be split between them. c. Casper owes 3 commissions. d. Mark is the only one who will receive a commission.

c. Casper owes 3 commissions.

Which of the following would NOT terminate an offer to sell real property? a. Lapse of reasonable time b. Rejection of the offer by the offeree c. Death of the sales agent d. Revocation of the offer

c. Death of the sales agent

Broker Sam lists a house and sells it 2 months into the listing period. After closing Sam tries to collect his commission but the seller refuses and proves that he is not legally obligated to pay a commission. What type of listing did Sam most likely have? a. Exclusive agency listing. b. Open listing. c. Net listing. d. Exclusive right-to-sell listing.

c. Net listing.

If an offer is rescinded, it is: a. Revised. b. Altered. c. Terminated. d. Accepted.

c. Terminated.

Smith died and his real property was sold. Which of the following determines the amount of commission paid to the broker handling the sale? a. The State Real Estate Board or Commission b. The local bar association c. The listing signed by the broker and the executor or administrator for the estate d. The State Association of Realtors

c. The listing signed by the broker and the executor or administrator for the estate

All listings must include a. a dragnet clause. b. permission for the listing broker to appoint subagents. c. a description of the property. d. an automatic renewal clause.

c. a description of the property.

If an offer is mailed to the seller, a contract exists when a. the buyer receives the acceptance in the mail. b. the agent receives the acceptance in the mail. c. the seller mails his acceptance. d. the seller calls the agent and informs him of the acceptance.

c. the seller mails his acceptance.

A broker obtains an open listing on a piece of property. In order to collect a commission on the sale of this property, the broker must be able to prove which of the following? a. He was licensed at the time of the sale. b. He was employed at the time of the sale. c. He was the procuring cause of the sale. d. All of these choices.

d. All of these choices.

A listing agreement will automatically terminate: a. If the listing broker goes bankrupt. b. On the date specified in the listing agreement. c. If the seller dies prior to receiving an offer. d. Any of these choices.

d. Any of these choices.

How many brokers can be given an open listing? a. One. b. Two. c. Three. d. As many as the owner chooses.

d. As many as the owner chooses.

Licensee Larry works for Broker Bob. Larry obtains a listing contract from Seller Steve. This contract is between Seller Steve and: a. Licensee Larry. b. Broker Bob and the local MLS. c. The local MLS. d. Broker Bob.

d. Broker Bob.

In which type of listing is the commission least likely to be expressed in terms of percentage? a. Open. b. Exclusive agency. c. Exclusive right-to-sell. d. Net.

d. Net.

What is the highest commission rate that a real estate broker can charge for marketing a farm? a. 10%. b. 15%. c. 18%. d. None of the above is a correct answer.

d. None of the above is a correct answer.

A salesperson wishes to charge a reduced commission to her sister. Where would the salesperson obtain approval for such an arrangement? a. State Association of Realtors. b. Local Association of Realtors. c. Real Estate Board or Commission. d. None of these choices.

d. None of these choices.

If a broker has an exclusive right-to-sell listing, which of the following statements is INCORRECT? a. There must be a definite termination date in the listing. b. All money given, by the seller to the broker, must be accounted for. c. The broker may cancel the listing if he chooses. d. The broker is legally obligated to sell the property.

d. The broker is legally obligated to sell the property.

A listing agreement must contain all of the following information EXCEPT: a. The signature of the owner of the property. b. The percentage of commission or fee. c. An expiration date. d. The net amount that the seller will receive.

d. The net amount that the seller will receive.

An oral listing is: a. Void. b. Voidable. c. Illegal. d. Unenforceable.

d. Unenforceable.

A broker has an exclusive-right-to-sell listing, but the owner finds a buyer and sells the property while the listing is still in force. The broker is entitled to: a. A full commission. b. 50% of the commission. c. Reimbursement for out of pocket expenses. d. No commission, because the owner sold the house himself.

a. A full commission.

A broker lists a property. A buyer submits a written offer and the seller accepts the offer. On the day scheduled for closing, the seller refuses to sign any of the papers to close the transaction. The broker is entitled to: a. A full commission. b. One-half of the agreed upon commission. c. Out of pocket expenses. d. Nothing.

a. A full commission.

Which of the following real estate related contracts is considered an employment contract or agreement? a. A listing agreement. b. An offer to purchase. c. An option. d. None of these choices.

a. A listing agreement.

Why do brokers feel that an exclusive right to sell listing gives the broker the best protection? a. Because the broker would be paid regardless of who finds the buyer. b. Because exclusive right to sell listings permit protection clauses. c. Because exclusive right to sell listings never expire. d. Because exclusive right to sell listings do not have to be included in the local MLS.

a. Because the broker would be paid regardless of who finds the buyer.

A broker when showing property, should disclose to the buyer any known latent defects about the property. Which of the following is NOT considered a latent defect? a. Crumbling concrete in the driveway. b. A defective septic system. c. A foundation crack covered with paneling. d. An inoperable garbage disposal.

a. Crumbling concrete in the driveway.

Helen sells her house to Fred using a contract for deed. Which of the following statements is correct? a. Helen is the vendor and holds legal title. b. Fred is the vendor and holds equitable title. c. Helen is the vendee and holds equitable title. d. Fred is the vendee and holds legal title.

a. Helen is the vendor and holds legal title.

A buyer's agent's commission would most likely come from the buyer: a. In a For Sale By Owner (FSBO) transaction. b. In most transactions. c. In all transactions. d. In no transactions.

a. In a For Sale By Owner (FSBO) transaction.

A buyer enters into a contract for the purchase of property, agreeing to make a specified down payment, and further agreeing to regular monthly payments to the seller, who is holding legal title, for a specified period of time. This describes what type of contract? a. Installment contract. b. Purchase money mortgage. c. Option contract. d. Agreement contract.

a. Installment contract.

A salesperson receives an earnest money deposit on Monday while working with broker Allan. On Friday, the salesperson goes to work for broker Bob. What should be done with the earnest money deposit? a. It stays with broker Allan. b. It goes to broker Bob. c. It should be given to the seller. d. It is returned to the buyer.

a. It stays with broker Allan.

Which of the following real estate related contracts could be considered an employment agreement? a. Listing agreement. b. Offer to purchase. c. Option. d. Mortgage.

a. Listing agreement.

The best example of rescission of a contract would be: a. Mutual agreement of a landlord and a tenant to cancel a lease. b. An option which is not exercised by the optionee. c. A seller making a counter offer to a buyer's offer. d. A buyer accepting a counter offer made by a seller.

a. Mutual agreement of a landlord and a tenant to cancel a lease.

If an option to purchase real estate expires July 15th without the optionee exercising his option, what must the owner do to release the property from option? a. Nothing b. Obtain a release from the optionee c. File a lis pendens d. File a lien

a. Nothing

The vendee is: a. One who buys or offers to buy. b. One who sells or offers to sell. c. The lender. d. The borrower.

a. One who buys or offers to buy.

Under a contract for deed, the buyer: a. Receives an insurable interest b. Receives legal title c. Is not allowed possession of the property until the purchase price is paid d. Has a fee simple estate

a. Receives an insurable interest

Sophie, a licensed salesperson, works for a broker who is representing a buyer. Sophie finds a house for the buyer and the transaction closes. Sophie will receive her commission from which of the following? a. The broker that holds her license. b. The broker that listed the house that Sophie sold. c. The settlement attorney handling the closing. d. The buyer, per his or her agreement with Sophie.

a. The broker that holds her license.

A listing agreement with a seller may be terminated by: a. The seller. b. The buyer's broker. c. The salesperson that obtained the listing. d. Death of the salesperson.

a. The seller.

When a buyer purchases property under an installment sales contract, the seller retains: a. Title to the property b. A remainder estate c. Possession d. A life estate

a. Title to the property

If a broker brings the seller an offer meeting all the terms specified in the listing, the seller does not have to sell. a. True b. False

a. True

Which of the following would be a violation of anti-trust law? a. Two brokers agree that each will market his services only in specific areas of the community. b. Jim, a broker, advertises that his firm will only represent buyers. c. An independent broker refuses to join the local Association of Realtors. d. A real estate company has some sales agents working as independent contractors and other sales agents working as employees.

a. Two brokers agree that each will market his services only in specific areas of the community.

Which of the following would be a violation of antitrust law? a. Two brokers agree that each will market his services only in specific areas of the community. b. Jim, a broker, advertises that his firm will only represent buyers. c. An independent broker refuses to join the local Association of Realtors. d. A real estate company has some sales agents working as independent contractors and other sales agents working as employees.

a. Two brokers agree that each will market his services only in specific areas of the community.

Licensee Laura has a listing on Seller Sally's house. Seller Sally has accepted an offer for $200,000 but the sale has not yet closed. Licensee Larry then presents an offer on the house to Licensee Laura for $175,000. Must Licensee Laura present this offer to Seller Sally? a. Yes, but Larry must be informed that an offer has already been accepted and Larry's offer will be considered a "back-up" offer. b. No, because the house is already under contract. c. No, because the listing price is less than the price of the accepted offer. d. Only if Larry and Laura work for the same real estate broker.

a. Yes, but Larry must be informed that an offer has already been accepted and Larry's offer will be considered a "back-up" offer.

If a broker lists a property, she CANNOT be: a. A dual agent. b. A buyer's agent only. c. An agent for the seller only. d. An agent for both buyer and seller.

b. A buyer's agent only.

A property was listed for sale at $185,000. Four offers are presented. Which offer BEST describes an offer made by a ready, willing and able buyer? a. An offer for $175,000, all cash. b. A full price offer, from a financially qualified buyer, subject only to financing at current market rates. c. An offer at full price contingent upon the buyer (offeror) first selling his current residence. d. A full price offer contingent upon the seller "taking back" a second trust for $15,000.

b. A full price offer, from a financially qualified buyer, subject only to financing at current market rates.

Which type of listing agreement allows the seller to sell his property and NOT have to pay a commission, but assures the broker a commission if anyone else, other than the owner, sells the property? a. An open listing. b. An exclusive agency listing. c. A special listing. d. An exclusive right-to-sell listing.

b. An exclusive agency listing.

An owner has entered into a listing agreement with a broker. During the period of the agreement, the owner sells the property himself. The owner is not legally required to pay a commission to the broker. What type of listing agreement did the owner have? a. A net listing. b. An exclusive agency. c. An exclusive right-to-sell. d. A lease contract.

b. An exclusive agency.

If a person pays for the right to purchase property at a specified price, within a specified time, the person has: a. A right of first refusal. b. An option. c. A sales contract. d. A lease.

b. An option.

Broker Jones is considering lowering the price on an overpriced listing. Which of the following is the best answer? a. This is good business practice. b. Jones must have the owner's permission to lower the price. c. Jones, as the listing agent, has implied authority to do this. d. Jones is legally liable for misrepresenting the price to previous prospective buyers.

b. Jones must have the owner's permission to lower the price.

Which of the following listing agreements is LEAST likely to specify a commission rate? a. Open listing. b. Net listing. c. Exclusive agency. d. Exclusive right-to-sell.

b. Net listing.

A listing agreement will automatically terminate: a. If the selling agent changes brokers. b. On the date specified in the listing agreement. c. When the owner vacates the property. d. If the property owner marries.

b. On the date specified in the listing agreement.

If an owner gives a listing to more than one broker, it would generally be which type of listing? a. Net listing. b. Open listing. c. Exclusive agency. d. Exclusive right-to-sell agreement.

b. Open listing.

Which of the following is the BEST example of a unilateral contract? a. Lease. b. Option. c. Real estate contract for sale. d. Listing agreement.

b. Option.

Under the customary listing agreement, the broker, as the agent for the seller, can: a. Accept or reject offers for the seller. b. Place a "For Sale" sign on the property. c. Deposit earnest money in the broker's personal account. d. Advertise the property at a price lower than the listed price.

b. Place a "For Sale" sign on the property.

A broker decides to lower the prices of her listings after the properties have been on the market for 120 days. She finds that more buyers are now calling on these listings. Which of the following is true about such a practice? a. She can do this only with the local Association of Realtors approval. b. She can do this only with the owner's approval. c. She can do this only after informing all previous buyers. d. This is an excellent marketing technique.

b. She can do this only with the owner's approval.

What is the defining feature of a net listing? a. There is no commission if the seller finds the buyer. b. The broker's commission is any sale price in excess of a stated number. c. It offers the best protection to the broker. d. It offers a flat-fee commission regardless of sale price.

b. The broker's commission is any sale price in excess of a stated number.

Which of the following statements about options is true? a. The optionor can void the option if another offer is submitted. b. The optionee can allow the option to expire. c. The optionee can extend the option period automatically. d. Options only involve raw land.

b. The optionee can allow the option to expire.

Licensee Laura has a listing on Seller Sara's house. The listing expires in 5 days. Before the listing expires Laura shows the house to Buyer Billy. Seller Sara pulls Billy aside and says that if he waits until the listing expires he can make an offer for 3% less than the listing price and Sara will accept it. If Buyer Billy makes the offer 10 days later, is Licensee Laura entitled to a commission if Sara accepts the offer? a. Yes, in all cases. b. Yes, but only if the listing includes a protection clause. c. No, in no cases. d. No, unless there is a non-disturbance clause.

b. Yes, but only if the listing includes a protection clause.

The protection clause in a contract: a. Protects the buyer and seller from breach of contract. b. Assures the broker will be paid a commission. c. Ensures the broker a commission if the seller and buyer enter into a contract after the listing has expired. d. Safeguards the borrower from foreclosure by a lender.

c. Ensures the broker a commission if the seller and buyer enter into a contract after the listing has expired.

A seller wants to list her home with a broker but would like the option to sell it herself and not pay a commission. Which type of listing should she AVOID signing? a. Open listing. b. Exclusive agency listing. c. Exclusive right-to-sell listing. d. General listing.

c. Exclusive right-to-sell listing.

A prospective buyer noticed an ornate flag pole attached to the front porch of the house she wants to purchase. She wants to make certain that the flag pole is included in the sale. What should the agent do? a. Nothing, because the pole is attached and will automatically convey. b. Call the seller and advise them the buyer wants the pole. c. Include the flag pole in the offer to purchase. d. Photograph the flag pole as evidence of its attachment.

c. Include the flag pole in the offer to purchase.

Which of the following is (are) true regarding the Multiple Listing Service? a. It can only accept residential listings. b. It can establish minimum and maximum commission rates. c. It can refuse to accept open listings. d. All of these choices.

c. It can refuse to accept open listings.

David, an independent and individual broker, dies. His daughter, a licensed broker and only heir, inherits the brokerage business. If she intends to operate the brokerage and keep the listings, it is necessary that she: a. File legal notice of her intent to assume responsibility for the brokerage business. b. Advise the probate court of her intent to assume responsibility for the listing agreements. c. Negotiate and receive new listing agreements from each client. d. Nothing is required because she is the only heir.

c. Negotiate and receive new listing agreements from each client.

William Wells, a principal broker, listed parcel A under an exclusive agency listing agreement and listed parcel B under an exclusive right-to-sell agreement. Both listings expired. Three days later, without seeing each other's property beforehand, the two owners exchanged properties in a Like-Kind exchange. William will receive: a. One commission. b. Two commissions. c. No commission. d. A split commission.

c. No commission.

A seller signs a listing with the provision that any commission will be split between the brokerage firm handling the sale and the seller's unlicensed brother. Is this agreement legal? a. Yes, as long as the brother has contractual ability. b. Yes, if the brother assists in the negotiation. c. No, the brother must be a licensed real estate broker to receive a commission. d. No, the local board of Realtors must first approve this agreement.

c. No, the brother must be a licensed real estate broker to receive a commission.

A buyer requests the broker take a listed property off the market until his wife sees the property. Should the broker do this? a. Yes, as long as his wife can see it before the next business day. b. Yes, if the buyer pays the brokerage firm a small fee for this service. c. No, this would violate the agency agreement. d. No, only the local Association of Realtors can approve such an arrangement.

c. No, this would violate the agency agreement.

Broker Bob takes an open listing on Seller Sara's house. Broker Bob would be entitled to a commission on the sale of the house: a. In all cases. b. Only if it was not the seller who found the buyer. c. Only if Broker Bob is the "procuring cause" of the sale. d. If the property sells during the term of the listing.

c. Only if Broker Bob is the "procuring cause" of the sale.

Harry leases a small office building from Sally. Included in the lease is a clause that states that should Sally ever decide to sell the building, Harry would have the right to purchase the building by matching any offer Sally is willing to accept. This is an example of a(n): a. Option. b. Habendum clause. c. Right of first refusal. d. None of the above.

c. Right of first refusal.

The amount of commission or fee that a listing broker is to receive is determined by: a. The Multiple Listing Service. b. The National Association of Realtors. c. The seller and the broker. d. The Real Estate Board or Commission.

c. The seller and the broker.

A property is listed at $168,000. A full price offer is made without contingencies. Which of the following statements is the most complete correct answer? a. The seller must accept the offer. b. The seller is not obligated to sell the property. c. The seller may refuse to sell, but could be required to pay the broker a commission. d. The seller would be in violation of Fair Housing law.

c. The seller may refuse to sell, but could be required to pay the broker a commission.

What is the purpose of a liquidated damages clause in an offer to purchase a property? a. To set a specific time limit to complete the transaction. b. To give the buyer a "due diligence" period during which the buyer could rescind the contract. c. To specify what damages the seller may collect if the buyer defaults on the contract. d. To allow the seller to sue the buyer for damages if the buyer breaches the contract.

c. To specify what damages the seller may collect if the buyer defaults on the contract.

A listing broker earns his or her commission: a. When the listing contract is signed. b. At the closing of the transaction. c. When producing a ready, willing and able buyer on terms acceptable to the seller. d. Only if the broker presents a ready willing and able buyer on the seller's exact terms.

c. When producing a ready, willing and able buyer on terms acceptable to the seller.

When does title pass in an installment sales contract (land contract)? a. At closing. b. In one year. c. When the debt has been satisfied. d. When the contract is signed.

c. When the debt has been satisfied.

To be legally binding, a real estate sales contract must contain a a. termite clause. b. list of personal property. c. legal description. d. commission.

c. legal description.

Under an exclusive right-to-sell listing, the seller would be responsible for paying a commission to the listing broker: a. If the seller, himself, finds a buyer. b. If the seller went to another broker and the other broker found a buyer. c. If another broker saw the listing in the MLS and sold the property. d. All of these choices.

d. All of these choices.

A buyer includes a clause that allows the buyer to rescind the offer to purchase a property if the home inspector finds undisclosed problems with the property. This is an example of a(n): a. Exculpatory clause. b. Rescission clause. c. Non-disturbance clause. d. Contingency clause.

d. Contingency clause.

In what type of listing would the listing broker be paid the commission if the listing broker or any other broker was the procuring cause, but not if the seller found the buyer personally? a. Net listing. b. Open listing. c. Exclusive right to sell listing. d. Exclusive agency listing.

d. Exclusive agency listing.

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.

Seller Chaney has rejected three offers which were all $2,500 below the listed price of her home. Broker Rudy receives a fourth offer which is also $2,500 below the listed price. What should Rudy do? a. Tell the prospective buyers to forget it, as the same offer has already been rejected by Chaney. b. Tell the prospective buyers their offer will be submitted to Chaney only if they increase the offered price. c. Hold the offer to see if a better one comes in. d. Immediately submit this offer to Chaney.

d. Immediately submit this offer to Chaney.

When a contract is breached, the injured party: a. May not sue for money damages. b. May not sue for specific damages. c. May rescind the contract bilaterally. d. May rescind the contract unilaterally.

d. May rescind the contract unilaterally.

A broker receives a call from a family that is moving into the area from another state. They advise the broker that they want the opportunity to look over different neighborhoods before making a buying decision, but do need to move soon. How should the broker handle this situation? a. Find a house for sale with immediate occupancy. b. Put the couple into a rental property with only a one year lease. c. Locate an owner willing to enter into a lease with option to buy. d. Suggest they rent on a month to month basis.

d. Suggest they rent on a month to month basis.

A licensed real estate salesperson can receive compensation for real estate activities from: a. The principal, be it the buyer or seller. b. The listing broker or a cooperating broker. c. The principal or the listing broker. d. The employing broker only.

d. The employing broker only.

When a seller and licensed salesperson agree to a listing, on terms acceptable to the broker, an agency relationship is established between: a. The seller agent and the seller. b. The listing salesperson and the seller. c. The listing broker and the buyer. d. The listing broker and the seller.

d. The listing broker and the seller.

If an optionee does NOT exercise his option rights during the option period, which of the following would occur? a. The optionee can ask for a return of any consideration paid. b. The optionee can be sued by the optionor. c. The optionor can be sued by the optionee. d. The optionee gives up the consideration paid for the option right.

d. The optionee gives up the consideration paid for the option right.

A broker, acting as a dual agent, with the knowledge and consent of all parties, collected one-half the commission from the seller and one-half from the buyer at settlement. Which of the following statements is true concerning this situation? a. This action is illegal b. The broker needed only the consent of the seller c. The broker needed only the consent of the buyer d. This action is permitted only with the consent of both parties

d. This action is permitted only with the consent of both parties

An optionee is obligated to do which of the following? a. To rezone a property prior to exercising his option. b. To convey further assurance to the optionor. c. To exercise the option within 60 days. d. To pay consideration for the option right.

d. To pay consideration for the option right.