LEGAL ASPECTS CORRECT EXAM QUESTIONS AND
ANSWERS SET A+
✔✔What is the commonality of compensatory, punitive, and nominal damages? -
✔✔Legal remedies for breach of contract
✔✔The statute of __________ requires that all real estate contracts must be in writing
to be enforceable. - ✔✔frauds
✔✔In which type of listing must the broker show that he or she was actually the
procuring cause of the sale in order to earn the commission? - ✔✔Exclusive agency
listing
✔✔Once the seller reviews the offer and agrees to the terms, the seller signs the sales
contract; this ultimately signifies ____________ the offer. - ✔✔acceptance of
✔✔The deposit receipt accomplishes several functions. Which is not a function of a
deposit receipt? - ✔✔Employment agreement between seller and agent
✔✔Buyer Bob's agent presented an offer to purchase Seller Rita's house. Rita was
delighted because the offer met all of her terms. She had not expected her home to sell
so quickly, so she accepted the offer, but changed the closing date from 45 days to 60
days. In this situation, buyer Bob is: - ✔✔not bound by his original offer and he can
ignore her counteroffer.
✔✔Bill received a contract with an attractive offer, but wants time to think it over. In
order to make the other party's offer irrevocable for a period of time, Bill must pay for
a(n) - ✔✔option.
✔✔What is the commonality of disclose, elect, and confirm? - ✔✔Disclosure Regarding
Real Estate Agency Relationships
, ✔✔As a result of the Easton v. Strassburger case, real estate licensees must disclose
material facts about a property to buyers. Which statement reflects an agent's
disclosure requirements? - ✔✔Caveat emptor
✔✔Five years ago, a triple murder occurred on the property. Does the agent, who
knows about the murders, have to disclose this to potential buyers? - ✔✔Since it was 5
years ago, the agent need not say anything.
✔✔Sarah wants to sell her home. Which of the following is she required to disclose? -
✔✔One of the burners on the stove does not work.
✔✔Sid Brutality is the lead guitarist and singer for a popular and successful rock group
known as Bad Aftertaste. Bad Aftertaste practices twice a month at Sid's home. Sid's
neighbor, Kate, is trying to sell her home. Does Kate need to provide written disclosure
that Bad Aftertaste practices nearby? - ✔✔Yes, if Bad Aftertaste can be heard at Kate's
place.
✔✔Which booklet should be given to buyers of any masonry building with wood-frame
floors or roofs built before January 1, 1975? - ✔✔Homeowner's Guide to Earthquake
Safety Booklet
✔✔Public services, such as roads, sewers, parks, schools, and fire stations in new
developments may be financed under the: - ✔✔Mello-Roos Community Facilities Act.
✔✔In an escrow for a sale of real property in which no title insurance is to be issued,
the buyer must receive and sign an advisability of title insurance notice. Who should
deliver the notice to the buyer? - ✔✔Escrow holder
✔✔To be enforceable, lease agreements between the property owner and the renter
that are for longer than one year (1 year plus 1 day): - ✔✔must be in writing.
✔✔A __________ is an agreement in which a party has the right to occupy real
property for a predetermined length of time. - ✔✔lease
✔✔The warranty of habitability for residential real property requires that: - ✔✔the roof
does not leak and no doors or windows are broken.
✔✔How are the majority of rental agreements terminated? - ✔✔Expiration of the
agreed-upon term in a lease
✔✔The legal process that the property owner must go through to reclaim his or her
property after the tenant defaults on the rental agreement terms is known as: -
✔✔eviction.
ANSWERS SET A+
✔✔What is the commonality of compensatory, punitive, and nominal damages? -
✔✔Legal remedies for breach of contract
✔✔The statute of __________ requires that all real estate contracts must be in writing
to be enforceable. - ✔✔frauds
✔✔In which type of listing must the broker show that he or she was actually the
procuring cause of the sale in order to earn the commission? - ✔✔Exclusive agency
listing
✔✔Once the seller reviews the offer and agrees to the terms, the seller signs the sales
contract; this ultimately signifies ____________ the offer. - ✔✔acceptance of
✔✔The deposit receipt accomplishes several functions. Which is not a function of a
deposit receipt? - ✔✔Employment agreement between seller and agent
✔✔Buyer Bob's agent presented an offer to purchase Seller Rita's house. Rita was
delighted because the offer met all of her terms. She had not expected her home to sell
so quickly, so she accepted the offer, but changed the closing date from 45 days to 60
days. In this situation, buyer Bob is: - ✔✔not bound by his original offer and he can
ignore her counteroffer.
✔✔Bill received a contract with an attractive offer, but wants time to think it over. In
order to make the other party's offer irrevocable for a period of time, Bill must pay for
a(n) - ✔✔option.
✔✔What is the commonality of disclose, elect, and confirm? - ✔✔Disclosure Regarding
Real Estate Agency Relationships
, ✔✔As a result of the Easton v. Strassburger case, real estate licensees must disclose
material facts about a property to buyers. Which statement reflects an agent's
disclosure requirements? - ✔✔Caveat emptor
✔✔Five years ago, a triple murder occurred on the property. Does the agent, who
knows about the murders, have to disclose this to potential buyers? - ✔✔Since it was 5
years ago, the agent need not say anything.
✔✔Sarah wants to sell her home. Which of the following is she required to disclose? -
✔✔One of the burners on the stove does not work.
✔✔Sid Brutality is the lead guitarist and singer for a popular and successful rock group
known as Bad Aftertaste. Bad Aftertaste practices twice a month at Sid's home. Sid's
neighbor, Kate, is trying to sell her home. Does Kate need to provide written disclosure
that Bad Aftertaste practices nearby? - ✔✔Yes, if Bad Aftertaste can be heard at Kate's
place.
✔✔Which booklet should be given to buyers of any masonry building with wood-frame
floors or roofs built before January 1, 1975? - ✔✔Homeowner's Guide to Earthquake
Safety Booklet
✔✔Public services, such as roads, sewers, parks, schools, and fire stations in new
developments may be financed under the: - ✔✔Mello-Roos Community Facilities Act.
✔✔In an escrow for a sale of real property in which no title insurance is to be issued,
the buyer must receive and sign an advisability of title insurance notice. Who should
deliver the notice to the buyer? - ✔✔Escrow holder
✔✔To be enforceable, lease agreements between the property owner and the renter
that are for longer than one year (1 year plus 1 day): - ✔✔must be in writing.
✔✔A __________ is an agreement in which a party has the right to occupy real
property for a predetermined length of time. - ✔✔lease
✔✔The warranty of habitability for residential real property requires that: - ✔✔the roof
does not leak and no doors or windows are broken.
✔✔How are the majority of rental agreements terminated? - ✔✔Expiration of the
agreed-upon term in a lease
✔✔The legal process that the property owner must go through to reclaim his or her
property after the tenant defaults on the rental agreement terms is known as: -
✔✔eviction.
