Real Estate Exam- MO & National Study Questions and Answers

Real Estate Exam- MO & National Study Questions and Answers A seller owned two plots of land that combined for a width of 950 ft and a depth of 1800 ft. A creek divided the north plot from the south plot. What is the total acreage of the two plots? - Correct Answer ️️ -Draw a line to divide rectangle horizontally. Write 950 as width & 1800 ft as depth. Multiple 950 x 1800 =1,710,000 Then divide 1,710,000 by 43,560 to convert to acreage. Answer is 39.25 rounded A secretary in a real estate office has passed the salesperson's exam but has not yet received a license. This person could - Correct Answer ️️ -give another salesperson in the office the address of the listed property the other salesperson wants to show An owner builds a rec room onto her house, neighbor feels it will violate setback lines established by city building codes. Does neighbor have the right to request an injunction? - Correct Answer ️️ -Yes, under these circumstances she may ask for an injunction A broker recieved EMD from the buyer. Offer wasn't accepted by the seller but money had already been deposited. What should be done? - Correct Answer ️️ -Broker should return EMD immediately to the buyer In order to be in compliance with the Statute of Frauds, a sales contract must - Correct Answer ️️ -be in writing The owner of an apartment building has just signed a managment agreement with a real estate firm. In this situation, has an agency been formed? - Correct Answer ️️ -Yes, an agency is formed when one party delegates to another the right to act on their behalf. A property was for sale for $129,000. An offer was made for $123,000. The seller counteroffered at $127,000. Would this offer be binding? - Correct Answer ️️ -No offer is binding until both parties are in agreement. What best describes a fixture? - Correct Answer ️️ -it was personal property at one time A 16 year old bought a piece of property. Seller found out and wanted to void the deal. Could he do this? - Correct Answer ️️ -No, only the buyer could void the contract X, a single person, and Y, a single person, want to take title to a property. They want undivided interest. If one dies, the interst will be passed to the other. Which way of taking title will best suit them? - Correct Answer ️️ -Joint tenants with the right of survivorship In the event of an EMD dispute, the broker should - Correct Answer ️️ -contract sign a release or release it to the courts After listing a home with a broker, a seller told the broker NOT to disclose the major structural damanges in the house. The broker should - Correct Answer ️️ -tell the buyer of all defects prior to writing the contract. To create joint tenancy there must be the unity of - Correct Answer ️️ -P - possession I - interest T - time T - title Seller had his home listed with a broker. During listing period, seller found his own buyer and refused to pay broker commission. Broker sued the seller and won. What type of listing was this? - Correct Answer ️️ -Exclusive Right to Sell A property manager normally is in charge of all of the following duties except - Correct Answer ️️ -repairing a tenant's fixture In 1988, John Smith built a 3 story apt building. To comply with Federal Fair Housing - Correct Answer ️️ -Handicap tenants would need to have access to at least the first floor Elective credits for continuing education could be granted for a course - Correct Answer ️️ -that is exclusively video-taped for classroom courses Dole refused to sell his land to the local park district. He felt the price the park offered for the land was not sufficient consideration. If the park were to pursue the matter in court, what proceeding would it institute to try to force Dole to sell? - Correct Answer ️️ -Condemnation (process of eminent domain) Rose family owns a home in a semi-rural area that is about 5 years old. They recently announced plans for a new regional airport that will place their home directly in line with a main runway, about one mile from its end. Will this diminish the value of the Rose home? - Correct Answer ️️ -Yes, because this is an example of external obsolesence Which best describes the sale price for a property in an option agreement? - Correct Answer ️️ -Buyer is guaranteed a fixed price when the option is signed ABC Realty employs Mary as a salesperson. It doesn't require her to attend sales meetings nor spend certain amount of time doing office hours. Mary is not reimbursed for normal expenses and is responsible for paying her own income and social security taxes. Her status is best described as - Correct Answer ️️ -Independent contractor Value of a property is $125,000. Listed at $145,000. Seller told broker he would take $115,000. Broker told this info to a buyer would offered $117,000 that the seller accepted. If seller knew this, what could he do? - Correct Answer ️️ -Refuse to pay commission because the broker violated his obligations A person owned her own company specializing in negotiating sales for buyers an sellers. She had incorporated her business but does not get listings or sell. Does she need a real estate license? - Correct Answer ️️ -Yes, and the company needs a broker's license. If the seller asked the broker what race the buyers were, would the broker have violated fiduciary relationship by refusing to answer? - Correct Answer ️️ -No, because fiduciary regards monetary and material Broker described the boundaries of a property to a prospective buyer without informing her that the boundaries described were not exact. After purchasing the property, the new owner extended a fence within the described boundaries. A neighbor brought an injunction against the new owners. Can broker be accountable for misrepresentation? - Correct Answer ️️ -Yes, because broker knew the boundaries were not exact and were actually false. What item allows a sales contract to be voided? - Correct Answer ️️ -One of the contract contengencies CANNOT be met If a complaint is filed against a salesperson who was in the process of switching brokers, what is true? - Correct Answer ️️ -complaint would get a written record of the salesperson's answer to the complaint What would not be considered evidence of marketable title? - Correct Answer ️️ - certificate of title by a real estate broker Elements of value include - Correct Answer ️️ -D- demand U - utility S - scarcity T - transferability A promissory note - Correct Answer ️️ -primary evidence of a loan Dole and Carr set up a partnership to deal in real estate. What type of license would be needed? - Correct Answer ️️ -Both partners and company would need a broker's license When a company furnishes materials for the construction of a hou