REAL ESTATE LICENSE EXAM STUDY QUESTIONS AND ANSWERS GRADED A 2024

UNIT 11 - 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 - 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 - 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 - 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 - 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 - 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 - 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 - 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 - 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 - 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 - 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 - 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?