CE SHOP FINAL EXAM QUESTIONS
WITH COMPLETE SOLUTION
kwhich of the following is the price a lender believes the property will bring at a foreclosure sale? -
mortgage value
Burt terminated his exclusive right-to-sell listing agreement with Scott, his listing broker. Burt may legally
do this as long as he's ________ - willing to pay Scott's commission anyway
what must a homeowner in DC disclose about a property built before 1978 if they have never tested it
for lead paint? - that the home is presumed to have lead-based paint
Fred is buying Gary's property, which is listed with Sara. Who are the parties to the listing agreement? -
Gary and Sara
an appraiser used the cost approach to estimate a property's value at $220,000. The site value was
$50,000 and the total depreciation estimate was $4,000. What was the estimated cost of improvements?
- $174,000
which term is defined as the addition of one possessor's years of use to another's continuous use of the
same property in an adverse possession claim? - tacking
which one of the following statements describes informed consent as it relates to dual agency? - both
the buyer and the seller understand what dual agency is and agree in writing to allow the agent to
represent both parties
which of the following factors would play a role in an IRS determination as to whether a licensee should
be classified as an employee or an independent contractor? - whether the licensee receives benefits
from the brokerage firm
under the statute of _____, if legal remedy is sought against a person, the pursuer must bring a court
action within a specified period of time - limitations
Chester is interested in becoming a real estate licensee in DC. After completing the requirements for
obtaining the license for a real estate salesperson, which agency will administer Chester's license? - DC
Real Estate Commission
A client terminates a listing agreement before its expiration date. What happens now? - the client may
owe a commission anyway
what's involuntary lien? - a lien created without a property owner's consent
Jim is a listing agent. What offers must he present to his client and when? - he must present all offers as
soon as practicable
, Wallace is beside himself He spent the last five months raising enough money to purchase the property
that he has an opinion on, and now, a month before the end of his option period, the seller refuses to
sell him the property. The seller's actions are ____________. - a breach of contract
The mishandling of escrow funds can result in_______________. - Disciplinary action and fines for the
real estate licensee
How many feet are in a mile? - 5,280
Under which types of agency agreement may a buyer and agent operate? - open, exclusive right to
represent, and exclusive agency
With an option contract, which of the following constitutes a breach of contract? - the optionor sells the
property without the option contract to someone other than the optionee
What would be an altruistic reason for a municipality to accept a land dedication? - to use the land for
public benefit
Rhonda and Jade both consider themselves African-American, although Rhonda has much darker skin
and hair than Jade. When Rhonda went to the Valley Falls apartment manager's office to request a rental
application, she was told there were no vacancies. Jade went in a day later and received an application.
This may be discrimination based on__________ - color
Among other things, a listing in the MLS should always include ____________. - at least one photo
Joint tenancy requires unities of time, interest, and___________. - possession
Obviously, you can't lawfully convey something unless the parties agree on what's being conveyed. How
is that determined? - legal description
Whose role is it to develop the comprehensive master plan? - Planning board members
A trust involves a special relationship called a fiduciary relationship. Which of the following statements is
true regarding trusts? - Any asset may be held in a trust
When is property partitioned? - When two or more people hold ownership of a property and one wants
to sell his/her portion
If a community isn't growing in an orderly fashion, which local land use group would most likely be at
fault? - planning board
Larry, an associate broker, received an earnest money check from his buyer client. Which of the following
actions is appropriate and would be in compliance with real estate law? - Larry turns the check over to
his broker for deposit into the firm's escrow account
When does performance of a contract occur? - Both parties have fully met the terms of the contract
Following all of the client's lawful instructions describes which fiduciary duty? - obedience
What's the purpose of the title search? - to collect evidence that the title is a marketable title, meaning
its clear and free of encumbrances
WITH COMPLETE SOLUTION
kwhich of the following is the price a lender believes the property will bring at a foreclosure sale? -
mortgage value
Burt terminated his exclusive right-to-sell listing agreement with Scott, his listing broker. Burt may legally
do this as long as he's ________ - willing to pay Scott's commission anyway
what must a homeowner in DC disclose about a property built before 1978 if they have never tested it
for lead paint? - that the home is presumed to have lead-based paint
Fred is buying Gary's property, which is listed with Sara. Who are the parties to the listing agreement? -
Gary and Sara
an appraiser used the cost approach to estimate a property's value at $220,000. The site value was
$50,000 and the total depreciation estimate was $4,000. What was the estimated cost of improvements?
- $174,000
which term is defined as the addition of one possessor's years of use to another's continuous use of the
same property in an adverse possession claim? - tacking
which one of the following statements describes informed consent as it relates to dual agency? - both
the buyer and the seller understand what dual agency is and agree in writing to allow the agent to
represent both parties
which of the following factors would play a role in an IRS determination as to whether a licensee should
be classified as an employee or an independent contractor? - whether the licensee receives benefits
from the brokerage firm
under the statute of _____, if legal remedy is sought against a person, the pursuer must bring a court
action within a specified period of time - limitations
Chester is interested in becoming a real estate licensee in DC. After completing the requirements for
obtaining the license for a real estate salesperson, which agency will administer Chester's license? - DC
Real Estate Commission
A client terminates a listing agreement before its expiration date. What happens now? - the client may
owe a commission anyway
what's involuntary lien? - a lien created without a property owner's consent
Jim is a listing agent. What offers must he present to his client and when? - he must present all offers as
soon as practicable
, Wallace is beside himself He spent the last five months raising enough money to purchase the property
that he has an opinion on, and now, a month before the end of his option period, the seller refuses to
sell him the property. The seller's actions are ____________. - a breach of contract
The mishandling of escrow funds can result in_______________. - Disciplinary action and fines for the
real estate licensee
How many feet are in a mile? - 5,280
Under which types of agency agreement may a buyer and agent operate? - open, exclusive right to
represent, and exclusive agency
With an option contract, which of the following constitutes a breach of contract? - the optionor sells the
property without the option contract to someone other than the optionee
What would be an altruistic reason for a municipality to accept a land dedication? - to use the land for
public benefit
Rhonda and Jade both consider themselves African-American, although Rhonda has much darker skin
and hair than Jade. When Rhonda went to the Valley Falls apartment manager's office to request a rental
application, she was told there were no vacancies. Jade went in a day later and received an application.
This may be discrimination based on__________ - color
Among other things, a listing in the MLS should always include ____________. - at least one photo
Joint tenancy requires unities of time, interest, and___________. - possession
Obviously, you can't lawfully convey something unless the parties agree on what's being conveyed. How
is that determined? - legal description
Whose role is it to develop the comprehensive master plan? - Planning board members
A trust involves a special relationship called a fiduciary relationship. Which of the following statements is
true regarding trusts? - Any asset may be held in a trust
When is property partitioned? - When two or more people hold ownership of a property and one wants
to sell his/her portion
If a community isn't growing in an orderly fashion, which local land use group would most likely be at
fault? - planning board
Larry, an associate broker, received an earnest money check from his buyer client. Which of the following
actions is appropriate and would be in compliance with real estate law? - Larry turns the check over to
his broker for deposit into the firm's escrow account
When does performance of a contract occur? - Both parties have fully met the terms of the contract
Following all of the client's lawful instructions describes which fiduciary duty? - obedience
What's the purpose of the title search? - to collect evidence that the title is a marketable title, meaning
its clear and free of encumbrances
