CE SHOP TEST, REAL ESTATE FINAL
EXAM QUESTIONS AND ANSWERS
When banks have lots of funds available for lending, what tends to happen to interest
rates?
Rates decrease
Rates fluctuate, both up and down.
Rates increase
Rates stay the same. - Answer-Rates decrease
Which of these transactions would require the Missouri licensee to provide written
disclosure of his or her interest?
Henry is the listing agent for a vacant property in the condo complex where he lives.
John is the listing agent for his neighbor's house.
Sally is the buyer's agent for a couple that was referred to her by her previous client.
Step is her father's buyer's agent. - Answer-Step is her father's buyer's agent.
Missouri license law requires that licensees provide written disclosure of any ownership
interest they have or will have in a property. "Interest" also includes being the spouse,
parent, or child of a party to a real estate transaction.
How many feet are in three yards?
12
Nine
Six
Three - Answer-Nine
Stanley is having second thoughts about taking his neighbor to court over a written
agreement they have concerning who pays the rent on a storage unit that they share,
because it's used to store stolen merchandise. Stanley doesn't think the contract will
stand up in court. What type of contract does Stanley have?
Executed
Valid
Void
Voidable - Answer-Void
The informational form that explains the different types of agency representation and
transaction services available to real estate consumers in Missouri is known as the
__________.
,Agency Disclosure Form
Brokerage Relationship Disclosure Form
Listing Agreement Disclosure Form
Missouri Broker Disclosure Form - Answer-Missouri Broker Disclosure Form
Which of the following is true about an attorney's opinion of title?
It protects buyers from material defects.
It's no longer required anywhere.
It's the document that notes the cloud on the title.
It uses public records to validate property transfers. - Answer-It uses public records to
validate property transfers.
An attorney's opinion of title provides a legally valid opinion of a property's ownership
history. The attorney's scope of information is still limited to what's available in the
public records.
Which term involving trespassing is used when someone other than the owner claims
title to real property?
Adverse possession
Dedication by deed
Judgment lien
Lien holder - Answer-Adverse possession
What's designed to protect buyers from financial loss if the title to the property they buy
has defects?
Abstract of title
Chain of title
Title insurance
Title search - Answer-Title insurance
Which of these is an example of illegal market allocation?
Based on licensee expertise, Uptown Homes agrees with County Cottage Realty to
focus exclusively on suburban, rather than rural, homes.
Christopher's brokerage firm decides to focus on listings in the $350,000 to $475,000
price range.
Lamborn Realty Group and Your Choice Real Estate each discuss with their licensees
where the most lucrative deals can be found.
Three agents in Jonathan's firm agree to focus on the specific neighborhoods in which
they live so they're more knowledgeable about listings in those areas. - Answer-Based
on licensee expertise, Uptown Homes agrees with County Cottage Realty to focus
exclusively on suburban, rather than rural, homes.
,Lacey is preparing an offer for her buyer clients, and it's time to enter the amount of
earnest money they're going to offer. Which of the following statements is true regarding
what earnest money the buyers should offer?
Lacey knows the amount that will be acceptable to the seller, so she should determine
the amount of the earnest money.
Lacey should allow her clients to determine the amount of the earnest money offered.
The earnest money amount is predetermined based on the sales price.
The sellers will determine the amount of earnest money they consider indicative of a
serious offer. - Answer-Lacey should allow her clients to determine the amount of the
earnest money offered.
When considering buying property subject to an existing lease, it's critical to understand
the lease terms, including the lease duration, rent amount, renewal/purchase options,
and the __________________.
Lease start date
Property management responsibilities
Security deposit amount
Tenant's occupation - Answer-Property management responsibilities
What's the purpose of zoning?
It dictates how land in a specific area can be used.
Increase property taxes.
It provides safety standards for construction.
It reduces development in an area - Answer-It dictates how land in a specific area can
be used.
Which of these may be covered by a builder-backed home warranty?
Custom exterior paint
Owner-installed landscaping
Ugly carpeting
Workmanship - Answer-Workmanship
Cameron had a listing agreement with a client named Ben. Ben got mad at Cameron
and said he was terminating the agreement. Can Ben do this?
Only if the property is valued at more than $250,000.
Yes, but certain terms of the agreement may still be binding upon Ben.
Yes, its a clients prerogative.
Yes, with 30 days notice - Answer-Yes, but certain terms of the agreement may still be
binding upon Ben.
What duties does a buyer agent have to the seller?
, To advocate and negotiate on behalf of both parties
To disclose the agent's relationship with the buyer
To obtain the highest price possible
To provide comparables to support the buyers offering. - Answer-To disclose the
agent's relationship with the buyer
Jasper has a new listing, and he appoints Esther as his sub-agent. Esther brings Julie,
a buyer customer, to the transaction, and Julie buys Jasper's listing. What's true about
the agency relationships in this situation?
Esther owes her loyalty to the seller
Jasper is the sub-agent to Esther.
Jasper is the sub-agent to the seller.
Julie is the sub-agent to Jasper. - Answer-Esther owes her loyalty to the seller
Sandra enters into a contract to sell her home to Paul. Under the statute of frauds, in
order to be legally enforceable, the written contract must name the contracting parties,
identify the subject matter of the contract, and ______.
Achieve a result that is fair to all parties
Be handwritten
Be signed by two or more attorneys
Present the essential terms and conditions of the contract - Answer-Present the
essential terms and conditions of the contract
Which of the following statements is true regarding earnest money in Missouri?
Earnest money is rarely the subject of lawsuits against real estate licensees and their
brokers.
Earnest money must be placed in an escrow account within 10 banking days of receipt.
The amount of earnest money is non-negotiable.
The seller specifies the amount of the earnest money the buyer will deposit and when
the deposit will be made. - Answer-Earnest money must be placed in an escrow
account within 10 banking days of receipt.
Heath leases space in a commercial building for his sporting goods store, and the
building owner insisted on having Heath sign a percentage lease. Under the terms of a
percentage lease, Heath must pay ________.
All of his net income to the property owner
A percentage of his sales to other tenants in the building
A percentage of his sales to the property owner
A percentage of the rental rate of charity - Answer-A percentage of his sales to the
property owner
EXAM QUESTIONS AND ANSWERS
When banks have lots of funds available for lending, what tends to happen to interest
rates?
Rates decrease
Rates fluctuate, both up and down.
Rates increase
Rates stay the same. - Answer-Rates decrease
Which of these transactions would require the Missouri licensee to provide written
disclosure of his or her interest?
Henry is the listing agent for a vacant property in the condo complex where he lives.
John is the listing agent for his neighbor's house.
Sally is the buyer's agent for a couple that was referred to her by her previous client.
Step is her father's buyer's agent. - Answer-Step is her father's buyer's agent.
Missouri license law requires that licensees provide written disclosure of any ownership
interest they have or will have in a property. "Interest" also includes being the spouse,
parent, or child of a party to a real estate transaction.
How many feet are in three yards?
12
Nine
Six
Three - Answer-Nine
Stanley is having second thoughts about taking his neighbor to court over a written
agreement they have concerning who pays the rent on a storage unit that they share,
because it's used to store stolen merchandise. Stanley doesn't think the contract will
stand up in court. What type of contract does Stanley have?
Executed
Valid
Void
Voidable - Answer-Void
The informational form that explains the different types of agency representation and
transaction services available to real estate consumers in Missouri is known as the
__________.
,Agency Disclosure Form
Brokerage Relationship Disclosure Form
Listing Agreement Disclosure Form
Missouri Broker Disclosure Form - Answer-Missouri Broker Disclosure Form
Which of the following is true about an attorney's opinion of title?
It protects buyers from material defects.
It's no longer required anywhere.
It's the document that notes the cloud on the title.
It uses public records to validate property transfers. - Answer-It uses public records to
validate property transfers.
An attorney's opinion of title provides a legally valid opinion of a property's ownership
history. The attorney's scope of information is still limited to what's available in the
public records.
Which term involving trespassing is used when someone other than the owner claims
title to real property?
Adverse possession
Dedication by deed
Judgment lien
Lien holder - Answer-Adverse possession
What's designed to protect buyers from financial loss if the title to the property they buy
has defects?
Abstract of title
Chain of title
Title insurance
Title search - Answer-Title insurance
Which of these is an example of illegal market allocation?
Based on licensee expertise, Uptown Homes agrees with County Cottage Realty to
focus exclusively on suburban, rather than rural, homes.
Christopher's brokerage firm decides to focus on listings in the $350,000 to $475,000
price range.
Lamborn Realty Group and Your Choice Real Estate each discuss with their licensees
where the most lucrative deals can be found.
Three agents in Jonathan's firm agree to focus on the specific neighborhoods in which
they live so they're more knowledgeable about listings in those areas. - Answer-Based
on licensee expertise, Uptown Homes agrees with County Cottage Realty to focus
exclusively on suburban, rather than rural, homes.
,Lacey is preparing an offer for her buyer clients, and it's time to enter the amount of
earnest money they're going to offer. Which of the following statements is true regarding
what earnest money the buyers should offer?
Lacey knows the amount that will be acceptable to the seller, so she should determine
the amount of the earnest money.
Lacey should allow her clients to determine the amount of the earnest money offered.
The earnest money amount is predetermined based on the sales price.
The sellers will determine the amount of earnest money they consider indicative of a
serious offer. - Answer-Lacey should allow her clients to determine the amount of the
earnest money offered.
When considering buying property subject to an existing lease, it's critical to understand
the lease terms, including the lease duration, rent amount, renewal/purchase options,
and the __________________.
Lease start date
Property management responsibilities
Security deposit amount
Tenant's occupation - Answer-Property management responsibilities
What's the purpose of zoning?
It dictates how land in a specific area can be used.
Increase property taxes.
It provides safety standards for construction.
It reduces development in an area - Answer-It dictates how land in a specific area can
be used.
Which of these may be covered by a builder-backed home warranty?
Custom exterior paint
Owner-installed landscaping
Ugly carpeting
Workmanship - Answer-Workmanship
Cameron had a listing agreement with a client named Ben. Ben got mad at Cameron
and said he was terminating the agreement. Can Ben do this?
Only if the property is valued at more than $250,000.
Yes, but certain terms of the agreement may still be binding upon Ben.
Yes, its a clients prerogative.
Yes, with 30 days notice - Answer-Yes, but certain terms of the agreement may still be
binding upon Ben.
What duties does a buyer agent have to the seller?
, To advocate and negotiate on behalf of both parties
To disclose the agent's relationship with the buyer
To obtain the highest price possible
To provide comparables to support the buyers offering. - Answer-To disclose the
agent's relationship with the buyer
Jasper has a new listing, and he appoints Esther as his sub-agent. Esther brings Julie,
a buyer customer, to the transaction, and Julie buys Jasper's listing. What's true about
the agency relationships in this situation?
Esther owes her loyalty to the seller
Jasper is the sub-agent to Esther.
Jasper is the sub-agent to the seller.
Julie is the sub-agent to Jasper. - Answer-Esther owes her loyalty to the seller
Sandra enters into a contract to sell her home to Paul. Under the statute of frauds, in
order to be legally enforceable, the written contract must name the contracting parties,
identify the subject matter of the contract, and ______.
Achieve a result that is fair to all parties
Be handwritten
Be signed by two or more attorneys
Present the essential terms and conditions of the contract - Answer-Present the
essential terms and conditions of the contract
Which of the following statements is true regarding earnest money in Missouri?
Earnest money is rarely the subject of lawsuits against real estate licensees and their
brokers.
Earnest money must be placed in an escrow account within 10 banking days of receipt.
The amount of earnest money is non-negotiable.
The seller specifies the amount of the earnest money the buyer will deposit and when
the deposit will be made. - Answer-Earnest money must be placed in an escrow
account within 10 banking days of receipt.
Heath leases space in a commercial building for his sporting goods store, and the
building owner insisted on having Heath sign a percentage lease. Under the terms of a
percentage lease, Heath must pay ________.
All of his net income to the property owner
A percentage of his sales to other tenants in the building
A percentage of his sales to the property owner
A percentage of the rental rate of charity - Answer-A percentage of his sales to the
property owner
