Rockwell Real Estate Exam 1 Questions with Answers (100%
Correct Answers)
A licensee locates what seems like a ready, willing, and able buyer. However, the deal falls
through at closing because the buyer can't obtain necessary financing. At the same time, though,
the seller turns out to be unable to provide marketable title. Does the seller still owe a
commission to the listing agent in this case?
A. No, because the sale didn't close
B. No, because there was no ready, willing, and able buyer
C. Yes, because the licensee saw the transaction through to the closing date
D. Yes, because the seller has an absolute duty to provide marketable title at closing —Answer:
B. No, because there was no ready, willing, and able buyer
Buyer Bob and Seller Sam decide to wait until Sam's listing agreement with XYZ Real Estate has
expired, to avoid paying a commission. Does the listing agent have any legal recourse?
A. Yes, the listing agent can pursue criminal charges
B. Yes, the listing agent can sue Bob under the listing agreement
C. Yes, the listing agent can sue Sam under the listing agreement
D. No, the listing agent has no further recourse —Answer: D. No, the listing agent has no
further recourse
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,Bronson agreed to sell his house to the Hatchers. Closing is scheduled for May 15. Bronson
already paid the taxes for the entire year, but the Hatchers are assuming responsibility for the
taxes as of the closing date. The settlement statement will prorate the taxes as a:
A. credit to the buyer, and debit to the seller
B. debit to the buyer, and credit to the seller
C. debit to the seller
D. credit to the buyer —Answer: B. debit to the buyer, and credit to the seller
To be entitled to sue for a commission, a person must be able to prove that at the time the real
estate activities were performed, she:
A. was licensed
B. had passed the real estate exam
C. had at least a verbal promise of compensation
D. was under the supervision of a mentor —Answer: A. was licensed
Q falls behind on his child support payments. The matter is forwarded to the Director of the
Department of Licensing. What action is available to the Director? She can:
A. suspend Q's license
B. revoke Q's license
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,C. fine Q up to $5,000
D. issue a cease and desist order —Answer: A. suspend Q's license
A legal action brought in court to compel a party to fulfill the terms of a contract because the
land is unique and money damages would not adequately compensate the party victimized by
a breach is called a/an:
A. partition action
B. suit for specific performance
C. quiet title action
D. injunction —Answer: B. suit for specific performance
An appraiser needs to be state-certified to perform which of the following appraisals?
A. Appraisal of a residence valued at $200,000
B. Appraisal of a residence valued at $500,000
C. Appraisal related to a loan that will be issued by a federally insured lender
D. Appraisal related to an FHA loan —Answer: D. Appraisal related to an FHA loan
Which of the following actions by a developer would require a zoning variance or a rezone,
because it would result in a more intensive use of the land?
A. Deed restriction prohibiting further subdivision of individual lots
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, B. Deed restriction prohibiting painting houses non-earth-tone colors
C. Fewer outbuildings placed on each lot than allowed by law
D. Increase in number of lots per acre —Answer: D. Increase in number of lots per acre
On a settlement statement, an earnest money deposit that will be held by the brokerage firm
until closing is a:
A. credit to the buyer
B. credit to the seller
C. debit (charge) to the buyer
D. debit (charge) to the seller —Answer: A. credit to the buyer
A licensee would not be disciplined for:
A. accepting compensation from both parties to a transaction without a written disclosure
B. failing to adequately supervise an employee who misrepresents a property to a prospect
C. failing to include the firm's name, as licensed, in an advertisement
D. offering to advertise a property, for a fee, for a "For Sale by Owner" seller —Answer: D.
offering to advertise a property, for a fee, for a "For Sale by Owner" seller
Tests to distinguish a fixture from personal property include all of the following, EXCEPT:
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Correct Answers)
A licensee locates what seems like a ready, willing, and able buyer. However, the deal falls
through at closing because the buyer can't obtain necessary financing. At the same time, though,
the seller turns out to be unable to provide marketable title. Does the seller still owe a
commission to the listing agent in this case?
A. No, because the sale didn't close
B. No, because there was no ready, willing, and able buyer
C. Yes, because the licensee saw the transaction through to the closing date
D. Yes, because the seller has an absolute duty to provide marketable title at closing —Answer:
B. No, because there was no ready, willing, and able buyer
Buyer Bob and Seller Sam decide to wait until Sam's listing agreement with XYZ Real Estate has
expired, to avoid paying a commission. Does the listing agent have any legal recourse?
A. Yes, the listing agent can pursue criminal charges
B. Yes, the listing agent can sue Bob under the listing agreement
C. Yes, the listing agent can sue Sam under the listing agreement
D. No, the listing agent has no further recourse —Answer: D. No, the listing agent has no
further recourse
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,Bronson agreed to sell his house to the Hatchers. Closing is scheduled for May 15. Bronson
already paid the taxes for the entire year, but the Hatchers are assuming responsibility for the
taxes as of the closing date. The settlement statement will prorate the taxes as a:
A. credit to the buyer, and debit to the seller
B. debit to the buyer, and credit to the seller
C. debit to the seller
D. credit to the buyer —Answer: B. debit to the buyer, and credit to the seller
To be entitled to sue for a commission, a person must be able to prove that at the time the real
estate activities were performed, she:
A. was licensed
B. had passed the real estate exam
C. had at least a verbal promise of compensation
D. was under the supervision of a mentor —Answer: A. was licensed
Q falls behind on his child support payments. The matter is forwarded to the Director of the
Department of Licensing. What action is available to the Director? She can:
A. suspend Q's license
B. revoke Q's license
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,C. fine Q up to $5,000
D. issue a cease and desist order —Answer: A. suspend Q's license
A legal action brought in court to compel a party to fulfill the terms of a contract because the
land is unique and money damages would not adequately compensate the party victimized by
a breach is called a/an:
A. partition action
B. suit for specific performance
C. quiet title action
D. injunction —Answer: B. suit for specific performance
An appraiser needs to be state-certified to perform which of the following appraisals?
A. Appraisal of a residence valued at $200,000
B. Appraisal of a residence valued at $500,000
C. Appraisal related to a loan that will be issued by a federally insured lender
D. Appraisal related to an FHA loan —Answer: D. Appraisal related to an FHA loan
Which of the following actions by a developer would require a zoning variance or a rezone,
because it would result in a more intensive use of the land?
A. Deed restriction prohibiting further subdivision of individual lots
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, B. Deed restriction prohibiting painting houses non-earth-tone colors
C. Fewer outbuildings placed on each lot than allowed by law
D. Increase in number of lots per acre —Answer: D. Increase in number of lots per acre
On a settlement statement, an earnest money deposit that will be held by the brokerage firm
until closing is a:
A. credit to the buyer
B. credit to the seller
C. debit (charge) to the buyer
D. debit (charge) to the seller —Answer: A. credit to the buyer
A licensee would not be disciplined for:
A. accepting compensation from both parties to a transaction without a written disclosure
B. failing to adequately supervise an employee who misrepresents a property to a prospect
C. failing to include the firm's name, as licensed, in an advertisement
D. offering to advertise a property, for a fee, for a "For Sale by Owner" seller —Answer: D.
offering to advertise a property, for a fee, for a "For Sale by Owner" seller
Tests to distinguish a fixture from personal property include all of the following, EXCEPT:
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