The CE Shop State Exam Practice

You are a new licensee, and your client wants to rent. She says, "You know, I would just rather go with an oral lease since I know my landlord really well, and oral leases are easier." How should you advise her?

"You can enter into an oral lease, but I recommend getting it in writing for greater legal protection."

Which of the following Louisiana contracts is an example of an accessory contract?

A mortgage

Which of the following statements best describes an involuntary privilege?

A privilege created without a property owner's consent

Damian enters into a contract to sell his home to Lori, who puts down a $5,500 earnest money deposit. At the last minute, Lori backs out of the deal. Damian keeps the earnest money deposit. Of what is this an example?

Accepting liquidated damages

What states have reciprocal licensure agreements with Louisiana and allow you to practice real estate there?

Alabama, Arkansas, Colorado, Georgia, Mississippi, Oklahoma, Pennsylvania, Iowa, and New Mexico

In surveying, a _____ is a physical feature that defines the boundaries of the land.

Bound

You can serve as a fiduciary and negotiate terms for which of the following?

Clients only

_____ occurs when heirs (forced or legatee) must give back to the estate any gifts a decedent gave them within three years of the decedent's death.

Collation

Saying, "You scratch my back, and I'll scratch yours," is an example of what type of Louisiana contract?

Commutative

In a real estate transaction, which of the following is established when the parties enter into an agreement voluntarily with a full understanding of the contract terms?

Consent

Daniel had a great experience with his apartment and landlord until about three months ago, when the plumbing in the unit above started leaking into his apartment. The landlord keeps saying he'll fix it but hasn't, and now Daniel has mold growing on two walls. Daniel is moving out before his lease has expired. What does this scenario describe?

Constructive eviction

In Louisiana, _____ means that possession of part of an immovable by title equals possession of the entire immovable.

Constructive possession

One of the following licensees' actions would constitute commingling. Which is it?

Cynthia deposited her client's earnest money check into the firm's operating account.

Sponsoring broker Evan just had his real estate license revoked after being convicted of fraud. What does this mean for Oakley, a newly licensed affiliated salesperson at his firm?

Oakley's license is suspended until she can find another sponsoring broker to represent her.

Which fiduciary duty requires agents to follow all of their client's lawful instructions?

Obedience

What are suit for specific performance, suit for damages, and acceptance of liquidated damages?

Options a wronged party has to remedy a breach of contract

What type of Louisiana foreclosure ensues if a borrower defaults and the promissory note doesn't include a confession to judgment clause?

Ordinary

Full authority to use, enjoy, and dispose of a thing is the right of _____.

Ownership

Individuals in which role are primarily responsible for determining a Louisiana property's assessed value?

Parish tax assessor

Eileen entered into a contract to buy Peter's home. The contract specified that Peter must leave the refrigerator with the home, and he must replace the roof before closing. During the pre-closing walk-through, Eileen confirmed the house had a nice new roof, but also found that Peter took the refrigerator with him. Eileen decided she didn't want the refrigerator that much anyway so she didn't make a fuss. This is an example of ______ of the contract.

Partial performance

In an addendum to the purchase and sale contract, the seller agrees to paint the house before conveying the house to the buyer. The weather changes, and the seller is unable to finish painting the house before closing. Of what is this an example?

Partial performance

Which of these obligations must lessees fulfill, according to the lease contract?

Pay the rent in accordance with the agreed-upon terms.

Sue Ellen has a contract to buy Roger's house, which she has always admired, when Roger decides he's ready to move to a senior living community. After Roger finds a suitable senior apartment and moves, Sue Ellen writes a check for the agreed-upon amount, and Roger transfers the deed to her. What is happening in this scenario?

Performance

The owner of ABC Construction entered into a contract to build two homes for brothers Jack and John. The contract specified that the homes must be completed by April 1. ABC finished the homes on March 30. Of what is this an example?

Performance

Movin' On Up Real Estate brokerage wants to start using a city skyline trademark with their logo. What must they do before they create the trademark?

Register the trademark with the Secretary of State.

In addition to sanctions and license revocation or suspension, what additional penalty might a Louisiana licensee face for violating license law?

Repay all administrative costs associated with the hearing.

The Louisiana Real Estate Commission has the power to ______.

Require licensees to maintain separate escrow accounts in legally chartered financial institutions

If any child predeceased the decedent, then that child's descendants will inherit their parent's share of the separate property by _____.

Roots

Lily helped to select the current Louisiana Real Estate Commission chairperson. What must be true of Lily?

She is a Louisiana Real Estate Commission member.

Which of these scenarios shows landlord Katya fulfilling one of her duties?

She promptly fixes a faulty smoke detector in a tenant bedroom.

When homebuyers agree to open an escrow account for their mortgage, the mortgage lender uses that money to pay ______.

Taxes and insurance

Which of the following is a reason a usufruct would end?

The surviving spouse remarries.

Which of the following statements is true for sub-contractors in Louisiana?

Their deadline for filing a mechanic's privilege varies based on whether a notice of contract was filed.

Which of the following is true about net listings?

They often involve a conflict of interest.

Which of the following is FALSE about general partnerships in Louisiana?

They own immovables via co-ownership.

Both the buyer and the seller have to sign the purchase and sale agreement in order to demonstrate that ______.

They understand the terms

Which deed warranty assures that there are no other claims or liens against the title, other than those in the public record or the deed itself?

Undeclared, non-apparent servitudes

Which of the following is NOT a type of accession under Louisiana law?

Usufruct

Which type of Louisiana deed contains the most promises to ensure the buyer is getting what was guaranteed?

Warranty deed

In contract law, when does partial performance occur?

When a party does some, but not all, of what the party has agreed to do

Which of the following is NOT true of accession?

When a sandbar or island pops up in the middle of a river, it belongs to the owner whose land it's closest to.

Sub-agency is legal in Louisiana if there is a ______ in place.

Written agreement

Monique is affiliated with Vermilion River Realty in Lafayette. She creates some Google ads that say: "Monique Kaiser, (785) 555-1234." Is Monique's ad violating Louisiana license law?

Yes, because she didn't list her brokerage name and contact information.

Is dual agency legal in Louisiana?

Yes, with written consent

In what situation does homestead debt protection cover the entire value of the homestead?

Debts from a catastrophe, injury, or terminal illness

Excess funds from the Louisiana Real Estate Recovery Fund may be transferred to the education fund on what date?

December 31

Millage must be converted to a decimal in order to determine the ad valorem taxes for a given Louisiana parish. What formula should you use to convert millage to decimals?

Divide the millage by 1,000

Dwight tells his buyer Jamie that a nearby stream could possibly flood the basement, though it's never happened to him. After signing the contract, Jamie's home inspector shows proof that the basement flooded last year, when Dwight was still living in the home. What's true about this situation?

Dwight has committed fraud, which has invalidated Jamie's consent.

Dying intestate means _____.

Dying without a will

Which of the following is the legal process of removing a tenant from a leased unit?

Eviction

The Donaldsons' property inside the Monroe city limits is six-and-a-half acres. Their bona fide homestead for debt protection rights is _____ acres.

Five

A decedent's children under the age of 24 or who are permanently mentally incapacitated are called _____.

Forced heirs

Which of the following describes a servitude of habitation?

Gives someone the right to live in a house owned by another person

In what type of contract is one party obligated to do something for the other's benefit, but the obligated party doesn't receive anything in return?

Gratuitous

Ben just transferred to Breezy Money Realty. He lost a lot of clients when he switched firms, so he decides to call them and promise them a lower commission rate if they break their contracts with his old broker and sign on with him. What Louisiana license law has he violated?

He offered an inducement to encourage a party to break one contract and sign a new contract with him.

Question 80 Which of these scenarios shows tenant Ivan fulfilling his part of his lease?

He pays his rent on the fifth of every month, as he and his landlord have agreed.

Prospective buyer John was found to be a non-interdicted person at the time he signed a contract. What's one reason a person would be considered non-interdicted in Louisiana?

He was drunk.

Maddox just attempted to file a complaint with the LREC but was told his issue is one it doesn't investigate. This means his complaint is probably related to ______.

His commission

To meet the requirements of the statute of frauds, an agreement must clearly identify the contract's subject matter, present the contract's essential terms and conditions, and ______ to be enforceable.

Identify the contracting parties

Jade purchases a house in Louisiana and puts down a deposit of $5,000. Is this an earnest money contract?

If the deposit is earmarked as "earnest money" in the contract, then it's an earnest money contract. Otherwise, it isn't.

Louisiana law provides for some exceptions to the agent's duty of confidentiality. Which of the following is a valid legal exception to confidentiality?

If the disclosure of the confidential information is legally compelled

Which of the following is an exception to dual agency relationships in Louisiana?

If the licensee is the seller and represents the buyer

Supplementary evidence submitted with an executory foreclosure which isn't required to be verified is called ______.

Inauthentic evidence

Mineral rights are an example of _____.

Incorporeal immovables

Which of the following is true when it comes to community property?

Insurance payments for damages to community property are community property.

Biff's offer on Anna's Louisiana farm doesn't specify a deadline for acceptance. Instead, Biff has framed the offer to give Anna a "reasonable time" to consider it. What's the status of the offer during that time?

Irrevocable

Which of the following is a true statement about offers in Louisiana?

Irrevocable offers are illegal in most states, but they're legal in Louisiana.

Along with legal capacity and mutual consent, what is another required element of a valid Louisiana contract?

Lawful cause

The three types of predial servitudes include conventional and natural. What's the third?

Legal

Whose duty is it "to maintain the thing in a condition suitable for the purpose for which it was leased"?

Lessor

Which type of land description is also called the plat reference system?

Lot and block

Which of the following powers related to licensee education belong to the Louisiana Real Estate Commission?

Mandate additional continuing education coursework.

Which of the following is a specific privilege that would be filed by an electrical sub-contractor on a renovation project at a Louisiana residence?

Mechanic's

Someone was driving by one of Lydia's listings, and called the number on the sign to ask her about the list price. Lydia tells them the price and gives them basic information about the home. At this point, what would Lydia's interactions with the caller be considered, per Louisiana law?

Ministerial acts

Parker just became a supervising broker in Baton Rouge. Which of the following is one of his required duties?

Monitor licensees' paperwork.

Which of the following is a Louisiana licensee prohibited from doing when engaged as a dual agent?

Negotiating to the advantage of either client

Louisiana resident Jeff sells Kyle his home in Baton Rouge. If Kyle finds out that Jeff breached the written contract, and wishes to sue Jeff, he must do so within ______ years.

10

How many classroom hours of pre-licensing education are required for someone to become a salesperson in Louisiana?

90 hours

In Louisiana, a legal relationship in which the obligor becomes bound to perform in the obligee's favor is known as ______.

An obligation

_____ is the government's unauthorized action that deprives property owners of their property without complying with the law.

Appropriation

Arcadia, a licensed broker, wants to open a branch office near Café des Amis. Who will need to manage this office?

Arcadia or a broker that she designates

Louisiana deeds may include three land measurements that aren't typical in any other state. Two of them are the vara and the toise. What's the third?

Arpent

Louise has stayed in her rented apartment six weeks beyond the end of her lease, which was month to month. Her landlord, Paul, has not made any objections. Which of the following actions can Paul legally take?

Ask her to leave after providing her with seven days' notice.

Which type of corporation involves double taxation?

C corporation

Julia signs a contract to buy Harold's home. Before closing, it's discovered that Julia is only 16 years old. Because she's a minor, she's not considered legally competent to enter into a contract. Which of the parties can void the contract?

Julia

Shannon just helped Linda sell her property. When the agency relationship between Shannon and Linda terminates, can Shannon disclose confidential information that Shannon learned while Linda was her client?

No, because an agent's duty of confidentiality never ends.

Calla's seller client, Rahim, got upset with Calla and said he wanted to terminate the listing agreement. Can Rahim do this?

No, because the agreement is legally binding.

You're representing Abe and Ben in a dual agency situation. Abe tells you something that would give Ben a distinct advantage if he knew. Do you tell Ben?

No, because you can't share one client's confidential information with another client.

Anna and Cindy entered a contract to buy Jake's home. However, at the last minute, Cindy had a change of heart and wanted out of the deal. Anna asked another friend, Sally, if she wanted to take Cindy's place as a co-buyer of Jake's home. Everyone agreed to the substitution of Sally for Cindy on the contract. Of what is this an example?

Novation

According to Louisiana statute, which piece of advertising information must be displayed?

Real estate brokerage information

Corporeal possession means _____.

Possession through physical use or enjoyment of a thing

In Louisiana, how is "separate property" most likely acquired?

Prior to marriage

Mitchell, a seller's agent in Louisiana, is carefully tracking and accounting for the funds associated with his client's transaction. Which statutory duty is he fulfilling?

Promote the client's best interests.

When the commission's investigation into a consumer complaint against a licensee reveals evidence that the licensee violated license law, the commission may hold a _______.

Public adjudicatory hearing

______ means that your client is saying, "You acted as my agent without authority; now, here's your authority."

Ratification

Carol wants to create an advertisement for her new listing. Which of the following is required according to LREC?

The business name, sponsoring broker's contact information and month and year the ad was published

If a Louisiana seller is in breach of contract under an earnest money contract in which the buyer put down $5,000 in earnest money, which of the following is the possible remedy for the buyer?

The buyer can have the $5,000 earnest money returned, and receive $5,000 from the seller.

Which of the following is a true statement about Louisiana's statutory and fiduciary duties?

The duty of confidentiality lasts forever.

Under what circumstances are Louisiana commission members removed from the Louisiana Real Estate Commission?

The governor has them removed for just cause.

Aside from your name, your broker's name, and the city and state where your brokerage is located, what else must be included on every page of your website according to Louisiana license law guidelines?

The regulatory jurisdiction in which your brokerage is licensed