Real Estate License Exam UPDATED
Questions and CORRECT Answers
UNIT 11 - CORRECT ANSWER -CONTRACTS
12%
Which group of legal instruments may legally be prepared by a licensed real estate broker?
a. listing contracts, buyer brokerage agreements, commercial leases, and deeds
b. leases, option contracts, promissory notes, and buyer brokerage agreements
c. listing agreements, buyer brokerage agreements, sale contracts, and option contracts
d. mortgages, promissory notes, commercial leases, and option contracts - CORRECT
ANSWER -c. listing agreements, buyer brokerage agreements, sale contracts, and option
contracts
failure to comply with the statute of frauds
a. may not constitute an illegal act but would always invalidate a sale contract
b. would have to do with whether a contract is in writing
c. concerns adherence to prescribed time frames of enforcement
d. is prima facie evidence of the intent to commit fraud - CORRECT ANSWER -b. would
have to do with whether a contract is in writing
which contract does NOT come under the jurisdiction of the statute of frauds?
a. lease agreements for 1 year or less
b. option contract
c. sale contract
,d. listing agreement for more than 1 year - CORRECT ANSWER -a. lease agreement for 1
year or less
a valid real estate sale contract
a. contains all the essential elements and is in writing
b. has been acknowledged
c. requires witnessing
d. transfers title to real property - CORRECT ANSWER -a. contains all the essential
elements and is in writing
An adult contracting with a minor is an example of failure to meet which essential of a real estate
contract?
a. legality of the object
b. offer and acceptance
c. meeting of the minds
d. competent parties - CORRECT ANSWER -d. competent parties
Canceling a daughter's property indebtedness in a contract because of love and affection is an
example of
a. good consideration
b. valuable consideration
c. insufficient consideration
d. inadequate consideration - CORRECT ANSWER -a. good consideration
a contract that is NOT in writing is called
,a. a formal contract
b. a parol contract
c. a unilateral contract
d. an executory contract - CORRECT ANSWER -b. a parol contract (AKA oral
agreement)
When a contract has been formed but an undertaking remains to be performed by one or both
parties, it is an example of
a. an implied contract
b. an express contract
c. an executory contract
d. a unilateral contract - CORRECT ANSWER -c. an executory contract
which statement is FALSE regarding counteroffers?
a. the original offer is terminated by the counteroffer
b. the original offeree becomes the offeror
c. a contract is created when the new offeree accepts the counteroffer and communicates the
acceptance to the new offeror
d. the offeror and the offeree remain the same even though the terms are modified - CORRECT
ANSWER -d. the offeror and the offeree remain the same even though the terms are
modified
an offer is NOT terminated by
a. a counteroffer
b. an acceptance
c. a rejection
d. an extension - CORRECT ANSWER -d. an extension
, A closing is scheduled for next week. The broker would like the closing agent to prepare a check
payable to the sales associate for the associate's share of the commission. which statement is
TRUE?
a. the closing agent is required by law to make the check payable to the brokerage company
b. the broker may telephone the closing agent with instructions on how to disperse the escrow
funds due the sales associate
c. the broker may enter into a written blanket authorization with the closing agent to always
make the sales associates' commission payable to the associate
d. the broker must give specific written instructions to the closing agent regarding the exact
amount of commission due the sales associate for next week's closing - CORRECT
ANSWER -d. the broker must give specific written instructions to the closing agent
regarding the exact amount of commission due the sales associate for next week's closing
A woman gave an exclusive-right-of-sale listing to a broker to find a buyer for her residential lot.
While the woman was vacationing with her family, a buyer signed an offer to purchase the
woman's lot at the full price and terms of the listing agreement. Which statement is TRUE?
a. because this is an exclusive-right-of-sale listing, the broker is authorized to accept the offer on
the woman's behalf
b. the broker may accept the offer on the woman's behalf, as long as she gets the woman's
signature on the contract immediately upon the woman's return
c. the exclusive-right-of-sale listing does not give the broker the authority to accept the offer on
the woman's behalf
d. the broker may accept the offer because it is a full-price offer - CORRECT ANSWER -
c. the exclusive-right-of-sale listing does not give the broker the authority to accept the offer on
the woman's behalf
A man and a woman enter into a written agreement. The man will mow the woman's lawn every
week during the mowing season and every third week during the winter. In the middle of the
summer, the man has back surgery. He hands over his lawn maintenance contracts to a friend,
who assumes the responsibility for all of the man's customers for the remainder of the contract
period. Which term describes this situation?
Questions and CORRECT Answers
UNIT 11 - CORRECT ANSWER -CONTRACTS
12%
Which group of legal instruments may legally be prepared by a licensed real estate broker?
a. listing contracts, buyer brokerage agreements, commercial leases, and deeds
b. leases, option contracts, promissory notes, and buyer brokerage agreements
c. listing agreements, buyer brokerage agreements, sale contracts, and option contracts
d. mortgages, promissory notes, commercial leases, and option contracts - CORRECT
ANSWER -c. listing agreements, buyer brokerage agreements, sale contracts, and option
contracts
failure to comply with the statute of frauds
a. may not constitute an illegal act but would always invalidate a sale contract
b. would have to do with whether a contract is in writing
c. concerns adherence to prescribed time frames of enforcement
d. is prima facie evidence of the intent to commit fraud - CORRECT ANSWER -b. would
have to do with whether a contract is in writing
which contract does NOT come under the jurisdiction of the statute of frauds?
a. lease agreements for 1 year or less
b. option contract
c. sale contract
,d. listing agreement for more than 1 year - CORRECT ANSWER -a. lease agreement for 1
year or less
a valid real estate sale contract
a. contains all the essential elements and is in writing
b. has been acknowledged
c. requires witnessing
d. transfers title to real property - CORRECT ANSWER -a. contains all the essential
elements and is in writing
An adult contracting with a minor is an example of failure to meet which essential of a real estate
contract?
a. legality of the object
b. offer and acceptance
c. meeting of the minds
d. competent parties - CORRECT ANSWER -d. competent parties
Canceling a daughter's property indebtedness in a contract because of love and affection is an
example of
a. good consideration
b. valuable consideration
c. insufficient consideration
d. inadequate consideration - CORRECT ANSWER -a. good consideration
a contract that is NOT in writing is called
,a. a formal contract
b. a parol contract
c. a unilateral contract
d. an executory contract - CORRECT ANSWER -b. a parol contract (AKA oral
agreement)
When a contract has been formed but an undertaking remains to be performed by one or both
parties, it is an example of
a. an implied contract
b. an express contract
c. an executory contract
d. a unilateral contract - CORRECT ANSWER -c. an executory contract
which statement is FALSE regarding counteroffers?
a. the original offer is terminated by the counteroffer
b. the original offeree becomes the offeror
c. a contract is created when the new offeree accepts the counteroffer and communicates the
acceptance to the new offeror
d. the offeror and the offeree remain the same even though the terms are modified - CORRECT
ANSWER -d. the offeror and the offeree remain the same even though the terms are
modified
an offer is NOT terminated by
a. a counteroffer
b. an acceptance
c. a rejection
d. an extension - CORRECT ANSWER -d. an extension
, A closing is scheduled for next week. The broker would like the closing agent to prepare a check
payable to the sales associate for the associate's share of the commission. which statement is
TRUE?
a. the closing agent is required by law to make the check payable to the brokerage company
b. the broker may telephone the closing agent with instructions on how to disperse the escrow
funds due the sales associate
c. the broker may enter into a written blanket authorization with the closing agent to always
make the sales associates' commission payable to the associate
d. the broker must give specific written instructions to the closing agent regarding the exact
amount of commission due the sales associate for next week's closing - CORRECT
ANSWER -d. the broker must give specific written instructions to the closing agent
regarding the exact amount of commission due the sales associate for next week's closing
A woman gave an exclusive-right-of-sale listing to a broker to find a buyer for her residential lot.
While the woman was vacationing with her family, a buyer signed an offer to purchase the
woman's lot at the full price and terms of the listing agreement. Which statement is TRUE?
a. because this is an exclusive-right-of-sale listing, the broker is authorized to accept the offer on
the woman's behalf
b. the broker may accept the offer on the woman's behalf, as long as she gets the woman's
signature on the contract immediately upon the woman's return
c. the exclusive-right-of-sale listing does not give the broker the authority to accept the offer on
the woman's behalf
d. the broker may accept the offer because it is a full-price offer - CORRECT ANSWER -
c. the exclusive-right-of-sale listing does not give the broker the authority to accept the offer on
the woman's behalf
A man and a woman enter into a written agreement. The man will mow the woman's lawn every
week during the mowing season and every third week during the winter. In the middle of the
summer, the man has back surgery. He hands over his lawn maintenance contracts to a friend,
who assumes the responsibility for all of the man's customers for the remainder of the contract
period. Which term describes this situation?
