1. Emma purchased a home from Sam and they agreed to a 15% purchase
money mortgage at 8.5% interest. The price was $155,500 and Emma agreed
to pay the difference in cash.
2. How much was the intangibles tax?
A. $155.50
B. $70.50
C. $466.50
D. $70.00 - ANSWER B. $70.50
3. 155,500 x 15% = 23,325 (rounded down) to 23,300
4. 155,500 - 23,300 = 132,200
5. 23,300 divided by 500 = 46.6 or 47
6. 47 x 1.50 = 70.50
7. Emma purchased a home from Sam and they agreed to a 15% purchase
money mortgage at 8.5% interest. The price was $155,500 and Emma agreed
to pay the difference in cash.
8. How much was the transfer tax?
A. $155.50
B. $70.50
C. $466.50
D. $156.00 - ANSWER A. $155.50
9. 155,500 divided by 100 = 1,555 x .10 = 155.50
10. 3. Emma purchased a home from Sam and they agreed to a 15% purchase
money mortgage at 8.5% interest. The price was $155,500 and Emma agreed
to pay the difference in cash.
11. How much pre paid interest would Emma pay if the closing took place on April
15th?
A. $82.52
, B. $81.48
C. $88.02
D. $86.91 - ANSWER C. $88.02
12. 23,300 x 8.5% = 1,980.50
13. 1,980.50 divided by 360 = 5.50138889 x 16 days = 88.02
14. A seller wants to list the property with a broker, but wants to avoid paying any
commission should the seller be fortunate enough to sell the property. himself.
Which of the following should the seller avoid signing?
A. an exclusive agency listing
B. an exclusive right to sell listing
C. an open listing
D. all listings - ANSWER B. an exclusive right to sell listing
15. Mr. Smith listed his farm with broker Bob. Although Smith did not tell him,
Bob knew he had to sell due to poor health. What should Bob tell potential
buyers?
A. tell them of the illness only if they ask, but not the need to sell
B. tell them of the need to sell to insure a quick sale
C. do not tell them even though it appears that Smith's death is
imminent
D. in order to sell quickly, tell them that the seller is ill because death
would cancel the listing - ANSWER C. do not tell them even though
it appears that Smith's death is imminent
16. In a cooperative sale, where the listing broker and the selling broker represent
the seller, the selling broker has which of the following relationships?
A. agent of the listing broker
B. sub agent of the listing broker
C. agent of the seller
D. sub agent of the buyer - ANSWER A. agent of the listing broker
17. 7. A broker had an exclusive right to sell agency listing. In order to collect the
commission, he must:
A. prove he was the procuring agent
B. prove he was licensed at the time of the sale
C. prove he had a ready, willing, and able buyer that met the seller's
terms
D. all of the above - ANSWER B. prove he was licensed at the time of
the sale
, 18. 8. A broker estimated the property lines by stating it ran between two trees in
the back yard. After closing, the buyer found it was over six feet off. Is the
broker liable?
A. no, he gave an estimate
B. no, the buyer should have gotten a survey
C. yes, he made a statement which he realized could be false
D. yes, the broker should have surveyed the property himself -
ANSWER C. yes, he made a statement which he realized could be
false
19. 9. Smith has an exclusive listing with broker Jones for $220,000. Jones finds
a buyer who wants representation and Jones represents both Smith and the
buyer, verbally disclosing that he is now representing both as clients. Has
Jones violated license law?
A. yes, because this is sub agency
B. yes, because this is undisclosed dual agency
C. no, because he disclosed to all parties that neither had to consent
to dual agency
D. no, because he disclosed to all parties that his actions may be
adverse to either party, however he would not divulge confidential
information - ANSWER B. yes, because this is undisclosed dual
agency
20. 10. A buyer and seller sign an agreement to change the contract to close on
May 1 instead of May 2. This is a(n):
A. addendum
B. special stipulation
C. amendment
D. clause - ANSWER C. amendment
21. 11. When a person, upon payment of a consideration, has an obligation to
buy land at a fixed price within a specified period of time, his right could be
described as:
A. a right of first refusal
B. an option
C. a sales contract
D. either A or B - ANSWER C. a sales contract
22. 12. Joan has a listing with broker Bob. A week into the listing, Joan gets a call
from broker Jill stating that the listing is now with her. Can this happen?
A. it's ok as long as it was assignable in the original contract
B. it's ok as long as the brokers have a written contract between them
to transfer
C. never due to the statute of frauds
money mortgage at 8.5% interest. The price was $155,500 and Emma agreed
to pay the difference in cash.
2. How much was the intangibles tax?
A. $155.50
B. $70.50
C. $466.50
D. $70.00 - ANSWER B. $70.50
3. 155,500 x 15% = 23,325 (rounded down) to 23,300
4. 155,500 - 23,300 = 132,200
5. 23,300 divided by 500 = 46.6 or 47
6. 47 x 1.50 = 70.50
7. Emma purchased a home from Sam and they agreed to a 15% purchase
money mortgage at 8.5% interest. The price was $155,500 and Emma agreed
to pay the difference in cash.
8. How much was the transfer tax?
A. $155.50
B. $70.50
C. $466.50
D. $156.00 - ANSWER A. $155.50
9. 155,500 divided by 100 = 1,555 x .10 = 155.50
10. 3. Emma purchased a home from Sam and they agreed to a 15% purchase
money mortgage at 8.5% interest. The price was $155,500 and Emma agreed
to pay the difference in cash.
11. How much pre paid interest would Emma pay if the closing took place on April
15th?
A. $82.52
, B. $81.48
C. $88.02
D. $86.91 - ANSWER C. $88.02
12. 23,300 x 8.5% = 1,980.50
13. 1,980.50 divided by 360 = 5.50138889 x 16 days = 88.02
14. A seller wants to list the property with a broker, but wants to avoid paying any
commission should the seller be fortunate enough to sell the property. himself.
Which of the following should the seller avoid signing?
A. an exclusive agency listing
B. an exclusive right to sell listing
C. an open listing
D. all listings - ANSWER B. an exclusive right to sell listing
15. Mr. Smith listed his farm with broker Bob. Although Smith did not tell him,
Bob knew he had to sell due to poor health. What should Bob tell potential
buyers?
A. tell them of the illness only if they ask, but not the need to sell
B. tell them of the need to sell to insure a quick sale
C. do not tell them even though it appears that Smith's death is
imminent
D. in order to sell quickly, tell them that the seller is ill because death
would cancel the listing - ANSWER C. do not tell them even though
it appears that Smith's death is imminent
16. In a cooperative sale, where the listing broker and the selling broker represent
the seller, the selling broker has which of the following relationships?
A. agent of the listing broker
B. sub agent of the listing broker
C. agent of the seller
D. sub agent of the buyer - ANSWER A. agent of the listing broker
17. 7. A broker had an exclusive right to sell agency listing. In order to collect the
commission, he must:
A. prove he was the procuring agent
B. prove he was licensed at the time of the sale
C. prove he had a ready, willing, and able buyer that met the seller's
terms
D. all of the above - ANSWER B. prove he was licensed at the time of
the sale
, 18. 8. A broker estimated the property lines by stating it ran between two trees in
the back yard. After closing, the buyer found it was over six feet off. Is the
broker liable?
A. no, he gave an estimate
B. no, the buyer should have gotten a survey
C. yes, he made a statement which he realized could be false
D. yes, the broker should have surveyed the property himself -
ANSWER C. yes, he made a statement which he realized could be
false
19. 9. Smith has an exclusive listing with broker Jones for $220,000. Jones finds
a buyer who wants representation and Jones represents both Smith and the
buyer, verbally disclosing that he is now representing both as clients. Has
Jones violated license law?
A. yes, because this is sub agency
B. yes, because this is undisclosed dual agency
C. no, because he disclosed to all parties that neither had to consent
to dual agency
D. no, because he disclosed to all parties that his actions may be
adverse to either party, however he would not divulge confidential
information - ANSWER B. yes, because this is undisclosed dual
agency
20. 10. A buyer and seller sign an agreement to change the contract to close on
May 1 instead of May 2. This is a(n):
A. addendum
B. special stipulation
C. amendment
D. clause - ANSWER C. amendment
21. 11. When a person, upon payment of a consideration, has an obligation to
buy land at a fixed price within a specified period of time, his right could be
described as:
A. a right of first refusal
B. an option
C. a sales contract
D. either A or B - ANSWER C. a sales contract
22. 12. Joan has a listing with broker Bob. A week into the listing, Joan gets a call
from broker Jill stating that the listing is now with her. Can this happen?
A. it's ok as long as it was assignable in the original contract
B. it's ok as long as the brokers have a written contract between them
to transfer
C. never due to the statute of frauds
