Barney Fletcher Exam
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Correct Detailed Answers
Guaranteed Pass
1. A broker has the buyer's earnest money deposit deposited in an escrow
account. The amount of the deposit exceeds the amount of the broker's
commission for the sale. The broker may remove his commission on this sale
ONLY:
Select one:
a. When the buyer moves into the property.
b. When the seller moves out of the property.
c. When the closing is completed.
d. Whenever the seller says it is ok to do so. - ANSWER c. When the closing is
completed.
2. When legal dual agency exists, the agent is required to maintain the
confidences of:
Select one:
a. The buyer only.
b. Both the seller and the buyer.
c. The seller only.
,d. Neither the buyer nor the seller. - ANSWER b. Both the seller and the
buyer.
3. Fred and Wilma gave a listing contract to Broker Bob to sell their home and
both signed the contract. Prior to receiving any offers, Fred died in an
unfortunate bowling accident. What is the effect of Fred's death on the listing
contract?
Select one:
a. The contract remains in effect.
b. The contract would be automatically terminated by law.
c. The contract would be in default.
d. The contract would only be enforceable in a community property state. -
ANSWER a. The contract remains in effect.
4. Funds in the escrow account may be dispersed for any of the following
reasons EXCEPT when:
Select one:
a. All principals to the transaction agree in writing to the disposition.
b. A court orders disbursement of the funds.
c. The seller demands forfeiture of the earnest money deposit.
d. The transaction is consummated. - ANSWER c. The seller demands
forfeiture of the earnest money deposit.
5. The death of a seller would terminate which of the following contracts?
Select one:
a. A purchase contract.
,b. A listing contract.
c. Both of the above.
d. None of the above. - ANSWER b. A listing contract
6. A broker could return the buyer's deposit from the escrow account back to
the buyer in which of the following cases?
Select one:
a. The offer expired without any acceptance by the seller.
b. The seller rejected the buyer's offer.
c. The transaction was cancelled because of the buyer's inability to meet the
financing contingency and the seller consented to returning the deposit.
d. Each of the above. - ANSWER d. Each of the above.
7. The maximum fine for an individual for a violation of the Sherman Antitrust
Act is:
Select one:
a. $0, since individuals are not subject to the Act - only companies are subject to
the Act.
b. $250,000.
c. $500,000.
d. $1,000,000 - ANSWER d. $1,000,000
8. Who is required to comply with the Civil Rights Act of 1866? - ANSWER d.
Everyone, without exception.
, 9. Larry Licensee runs an ad for one of his listings. The ad contains the phrase
"nearby St. Andrew Roman Catholic Church." This would be considered: -
ANSWER a. Acceptable advertising if true;
10. A disparate impact case has gone to trial. The plaintiffs have shown that a
particular policy has had a disparate impact on a particular protected class.
However, the defendant has shown that the policy serves a legitimate
business necessity. What will be the next step? - ANSWER c. The plaintiff
will have to show that other policies might have served the same business
necessity with less disparate impact on protected classes;
11. Adeline is selling her own home as a For Sale By Owner (FSBO). On Sunday, a
full price offer is made by an Asian couple. Adeline refuses the offer made by
the couple. On Monday, Adeline accepts an offer, $4000 below the asking
price from a Caucasian family. Has Adeline violated any laws and if so which
one? - ANSWER Adeline has violated the Civil Rights Act of 1866;
12. One of the recent emerging issues in Fair Housing complaints has been the
issue of excluding applicants on the basis of having a record of criminal
convictions. Why is this the case?
a. There is a new protected class of people with criminal convictions;
b. African-Americans and Latinos have a disproportionately higher rate of having
criminal conviction records than Caucasians.
c. There is an increasing interest in prison reform;
d. Due to provisions of the Dodd-Frank Act. - ANSWER b. African-Americans
and Latinos have a disproportionately higher rate of having criminal conviction
records than Caucasians.
13. The purpose of the Fair Housing Amendments Act of 1988 was to:
Questions With Reviewed 100%
Correct Detailed Answers
Guaranteed Pass
1. A broker has the buyer's earnest money deposit deposited in an escrow
account. The amount of the deposit exceeds the amount of the broker's
commission for the sale. The broker may remove his commission on this sale
ONLY:
Select one:
a. When the buyer moves into the property.
b. When the seller moves out of the property.
c. When the closing is completed.
d. Whenever the seller says it is ok to do so. - ANSWER c. When the closing is
completed.
2. When legal dual agency exists, the agent is required to maintain the
confidences of:
Select one:
a. The buyer only.
b. Both the seller and the buyer.
c. The seller only.
,d. Neither the buyer nor the seller. - ANSWER b. Both the seller and the
buyer.
3. Fred and Wilma gave a listing contract to Broker Bob to sell their home and
both signed the contract. Prior to receiving any offers, Fred died in an
unfortunate bowling accident. What is the effect of Fred's death on the listing
contract?
Select one:
a. The contract remains in effect.
b. The contract would be automatically terminated by law.
c. The contract would be in default.
d. The contract would only be enforceable in a community property state. -
ANSWER a. The contract remains in effect.
4. Funds in the escrow account may be dispersed for any of the following
reasons EXCEPT when:
Select one:
a. All principals to the transaction agree in writing to the disposition.
b. A court orders disbursement of the funds.
c. The seller demands forfeiture of the earnest money deposit.
d. The transaction is consummated. - ANSWER c. The seller demands
forfeiture of the earnest money deposit.
5. The death of a seller would terminate which of the following contracts?
Select one:
a. A purchase contract.
,b. A listing contract.
c. Both of the above.
d. None of the above. - ANSWER b. A listing contract
6. A broker could return the buyer's deposit from the escrow account back to
the buyer in which of the following cases?
Select one:
a. The offer expired without any acceptance by the seller.
b. The seller rejected the buyer's offer.
c. The transaction was cancelled because of the buyer's inability to meet the
financing contingency and the seller consented to returning the deposit.
d. Each of the above. - ANSWER d. Each of the above.
7. The maximum fine for an individual for a violation of the Sherman Antitrust
Act is:
Select one:
a. $0, since individuals are not subject to the Act - only companies are subject to
the Act.
b. $250,000.
c. $500,000.
d. $1,000,000 - ANSWER d. $1,000,000
8. Who is required to comply with the Civil Rights Act of 1866? - ANSWER d.
Everyone, without exception.
, 9. Larry Licensee runs an ad for one of his listings. The ad contains the phrase
"nearby St. Andrew Roman Catholic Church." This would be considered: -
ANSWER a. Acceptable advertising if true;
10. A disparate impact case has gone to trial. The plaintiffs have shown that a
particular policy has had a disparate impact on a particular protected class.
However, the defendant has shown that the policy serves a legitimate
business necessity. What will be the next step? - ANSWER c. The plaintiff
will have to show that other policies might have served the same business
necessity with less disparate impact on protected classes;
11. Adeline is selling her own home as a For Sale By Owner (FSBO). On Sunday, a
full price offer is made by an Asian couple. Adeline refuses the offer made by
the couple. On Monday, Adeline accepts an offer, $4000 below the asking
price from a Caucasian family. Has Adeline violated any laws and if so which
one? - ANSWER Adeline has violated the Civil Rights Act of 1866;
12. One of the recent emerging issues in Fair Housing complaints has been the
issue of excluding applicants on the basis of having a record of criminal
convictions. Why is this the case?
a. There is a new protected class of people with criminal convictions;
b. African-Americans and Latinos have a disproportionately higher rate of having
criminal conviction records than Caucasians.
c. There is an increasing interest in prison reform;
d. Due to provisions of the Dodd-Frank Act. - ANSWER b. African-Americans
and Latinos have a disproportionately higher rate of having criminal conviction
records than Caucasians.
13. The purpose of the Fair Housing Amendments Act of 1988 was to:
