Alaska Law Test Questions and Answers

D 26. In the presence of witnesses, a seller asks a licensee to sell 2 acres of his land. The seller and licensee orally agree on the price, terms of the sale, and commission. Thirty-two days later, the licensee tells the seller that she has a buyer and gives him the buyer's name. The seller says that he has changed his mind about paying the commission and, later, sells his property to the licensee's prospect. Which of the following statements about the validity of the licensee's claim to a commission is true? A) It is valid because there were witnesses to the oral listing. B) It is valid because the seller allowed the agent to reveal the name of the buyer before saying that he had changed his mind. C) It is invalid because an oral listing has to be renewed every 30 days. D) It is invalid because a listing for real estate must be in writing and signed by the seller. A 27. The condominium fee assessed monthly by the owners' association is used to pay A) for snow removal and lawn care B) for interior painting of individual units C) mortgage installments D) closing costs of unit resales D 28. A transaction was not completed and a dispute arose between the buyer and seller over the disposition of the earnest money. In this situation, if the dispute cannot be resolved any other way, the broker should do which of the following? A) Hold the earnest money until the buyer and seller can agree to its disposition. B) After a reasonable time, declare the earnest money forfeited for lack of agreement and apply it to the commission. C) Request the Real Estate Commission to determine the disposition of the earnest money. D) Interplead with the court of jurisdiction for an allocation decision. D 29. The owner of a six-unit apartment building arranges for an unlicensed resident to manage the units for $100 a month during the owner's six-month absence. Which of the following statements about this arrangement is true? A) It is a violation of the license law. B) It is legal because it is not "regular business." C) It is legal only if the acting manager informs the Real Estate Commission of his temporary responsibilities before assuming them. D) It is legal because the acting manager is a resident. D 30. A buyer drives by a property she is buying 3 days before the scheduled closing and discovers that several of the trees have been knocked down and the yard has been dug up to install a sewer in place of a septic system. The buyer calls the licensee and says that she no longer wants to purchase the property because the yard in its original condition was one of her main reasons for buying it. She wants her earnest money back. The licensee, who knew of the impending sewer connection, refuses, saying that, while the yard is no longer as attractive, a house on a sewer line is more valuable than one on a septic system. Which of the following statements about this situation is true? A) The buyer will lose the earnest money for failing to close without sufficient cause. B) The buyer will lose the earnest money because the added value of improvements exceeds the cost of repairing the damage. C) The buyer is entitled to a refund, but the licensee did nothing wrong by keeping silent. D) The buyer is entitled to a refund because the licensee is guilty of misrepresentation.