Barney Fletcher Cram Final Exam Questions with
CORRECT Answers (Grade A+)
Question 1:
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
Question 2:
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
Question 3:
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
Question 4:
A broker had an exclusive right to sell agency listing. In order to collect the commission, he must:
Answer:
B. prove he was licensed at the time of the sale 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
,Question 5:
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
Question 6:
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
Question 7:
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
Question 8:
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
, Question 9:
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 D. it cannot be assigned because a listing contract is a personal services contract
Answer:
D. it cannot be assigned because a listing contract is a personal services contract
Question 10:
What type of transaction exists when there is a written contract for a broker to receive pay from both or
either party and performs only ministerial acts for one or
Answer:
B. transaction brokerage both parties? A. double agency B. transaction brokerage C. sub agency D.
single agency
Question 11:
When is the correct time for the salesperson to get the proper legal description of the seller's property?
A. when filling out the offer B. when filling out the sales contract C. when filling out the listing D. any
time before closing
Answer:
C. when filling out the listing
Question 12:
Sue acquires an option to buy a tract of land from Pete. which of the following is NOT true? A. Sue is
the optionee and Pete is the optionor B. the property may be purchased at the discretion of the optionee
C. Pete may not diminish the value of the property (waste) during the period the option is in effect D.
Pete may not sell the property to anyone else during the period the option is in effect
Answer:
D. Pete may not sell the property to anyone else during the period the option is in effect
Question 13:
The contract signed between a buyer and a broker is called? A. listing contract B. buyer's brokerage
agreement C. listing agreement D. buyer's relationship
Answer:
B. buyer's brokerage agreement
CORRECT Answers (Grade A+)
Question 1:
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
Question 2:
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
Question 3:
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
Question 4:
A broker had an exclusive right to sell agency listing. In order to collect the commission, he must:
Answer:
B. prove he was licensed at the time of the sale 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
,Question 5:
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
Question 6:
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
Question 7:
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
Question 8:
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
, Question 9:
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 D. it cannot be assigned because a listing contract is a personal services contract
Answer:
D. it cannot be assigned because a listing contract is a personal services contract
Question 10:
What type of transaction exists when there is a written contract for a broker to receive pay from both or
either party and performs only ministerial acts for one or
Answer:
B. transaction brokerage both parties? A. double agency B. transaction brokerage C. sub agency D.
single agency
Question 11:
When is the correct time for the salesperson to get the proper legal description of the seller's property?
A. when filling out the offer B. when filling out the sales contract C. when filling out the listing D. any
time before closing
Answer:
C. when filling out the listing
Question 12:
Sue acquires an option to buy a tract of land from Pete. which of the following is NOT true? A. Sue is
the optionee and Pete is the optionor B. the property may be purchased at the discretion of the optionee
C. Pete may not diminish the value of the property (waste) during the period the option is in effect D.
Pete may not sell the property to anyone else during the period the option is in effect
Answer:
D. Pete may not sell the property to anyone else during the period the option is in effect
Question 13:
The contract signed between a buyer and a broker is called? A. listing contract B. buyer's brokerage
agreement C. listing agreement D. buyer's relationship
Answer:
B. buyer's brokerage agreement
