REAL ESTATE MID TERM QUESTIONS AND
ANSWERS GRADED A+ 2024-2025
Which of the following private deed restrictions in a new subdivision could directly affect the cost of
building a new house in that subdivision?
Restrictions concerning the minimum square footage
Which statement about an encroachment is not true?
An encroachment is usually revealed in the chain of title.
Rules established by the local government to regulate building and construction standards are called
building codes
Which of the following statements best describes a lien on real property?
A monetary encumbrance affecting title to the property
An easement created by a court of law establishing an owner's right to ingress and egress their property
would most likely be an easement:
appurtenant created by necessity
An investor buys three adjoining parcels of land. Each parcel is 140' deep and the square footage of each
parcel is 15,400 sq. ft. , 4200 sq. ft., and 4200 sq. ft. respectively. What is the total frontage of the
properties?
170 ft
,All of the following are characteristics of an agency relationship except
The agency is between a client and customer
An apartment owner signs a management contract with a real estate broker. Has an agency been
established?
Yes, the owner has created a general agency with the broker to act on their behalf in managing the
apartment
Broker Reed obtains an exclusive right to sell listing on a property owned by Mr. Lane. Which of the
following would be True concerning this agreement?
Broker Reed is due a commission regardless of procuring cause
under a listing agreement which of the following is a fiduciary responsibility of the listing broker?
Advising the seller the buyer is willing to pay more than they are offering
An owner listed their property for $200,000 and instructed the agent not to present offers below
$200,000. The agent receives a signed offer for $195,000. The agent should:
promptly present the offer to the seller
Under a listing agreement the broker was instructed to show the property by appointment only,
advertise the property in the multiple listing service. use a "FOR SALE" sign and determine the validity of
the title. Which of the following NOT a duty of the listing broker?
To determine the validity of the title
, Salesperson Smith receives an offer on a property he has listed on Main St at 10:00am. Smith
immediately calls the seller and makes an appointment to present the offer at 7:00pm. At 2:00pm and at
4:30 pm, Smith receives subsequent offers from agents with other companies. What is Smith's BEST
course of action regarding these three offers
Smith should present all offers and do so in the manner which Smith deems will be best to help the
seller client understand the options
A broker presents an offer to a seller for the full listed price of $215,000. The offer is accepted and
communicated to the buyer. Later another offer on the same property comes in at $210,000. What
should the broker do with the second offer?
Present the second offer to the seller immediately and suggest it be treated as a backup offer
A group of brokers attempts to set the commission rates for all real estate transactions within their
market area. Such action could subject the brokers to prosecution under the:
antitrust laws
A listing broker firm agrees to pay 50% of a 6% commission to a cooperating brokerage firm. The
cooperating firm agrees to pay 60% of their commission to the salesperson that finds a buyer. If the
property was listed for $250,000 and sold for $240,000, how much would the salesperson receive?
$4320
A broker wants to charge her clients a flat fee for her commission, so that no matter what price a home
sells for, the broker will receive the same amount of compensation. Which of the following must occur
before the broker can make such arrangements?
The clients must agree to the arrangement prior to listing the property
If a listed property is taken under condemnation (eminent domain) or sold at a foreclosure sale is the
broker paid a commission?
ANSWERS GRADED A+ 2024-2025
Which of the following private deed restrictions in a new subdivision could directly affect the cost of
building a new house in that subdivision?
Restrictions concerning the minimum square footage
Which statement about an encroachment is not true?
An encroachment is usually revealed in the chain of title.
Rules established by the local government to regulate building and construction standards are called
building codes
Which of the following statements best describes a lien on real property?
A monetary encumbrance affecting title to the property
An easement created by a court of law establishing an owner's right to ingress and egress their property
would most likely be an easement:
appurtenant created by necessity
An investor buys three adjoining parcels of land. Each parcel is 140' deep and the square footage of each
parcel is 15,400 sq. ft. , 4200 sq. ft., and 4200 sq. ft. respectively. What is the total frontage of the
properties?
170 ft
,All of the following are characteristics of an agency relationship except
The agency is between a client and customer
An apartment owner signs a management contract with a real estate broker. Has an agency been
established?
Yes, the owner has created a general agency with the broker to act on their behalf in managing the
apartment
Broker Reed obtains an exclusive right to sell listing on a property owned by Mr. Lane. Which of the
following would be True concerning this agreement?
Broker Reed is due a commission regardless of procuring cause
under a listing agreement which of the following is a fiduciary responsibility of the listing broker?
Advising the seller the buyer is willing to pay more than they are offering
An owner listed their property for $200,000 and instructed the agent not to present offers below
$200,000. The agent receives a signed offer for $195,000. The agent should:
promptly present the offer to the seller
Under a listing agreement the broker was instructed to show the property by appointment only,
advertise the property in the multiple listing service. use a "FOR SALE" sign and determine the validity of
the title. Which of the following NOT a duty of the listing broker?
To determine the validity of the title
, Salesperson Smith receives an offer on a property he has listed on Main St at 10:00am. Smith
immediately calls the seller and makes an appointment to present the offer at 7:00pm. At 2:00pm and at
4:30 pm, Smith receives subsequent offers from agents with other companies. What is Smith's BEST
course of action regarding these three offers
Smith should present all offers and do so in the manner which Smith deems will be best to help the
seller client understand the options
A broker presents an offer to a seller for the full listed price of $215,000. The offer is accepted and
communicated to the buyer. Later another offer on the same property comes in at $210,000. What
should the broker do with the second offer?
Present the second offer to the seller immediately and suggest it be treated as a backup offer
A group of brokers attempts to set the commission rates for all real estate transactions within their
market area. Such action could subject the brokers to prosecution under the:
antitrust laws
A listing broker firm agrees to pay 50% of a 6% commission to a cooperating brokerage firm. The
cooperating firm agrees to pay 60% of their commission to the salesperson that finds a buyer. If the
property was listed for $250,000 and sold for $240,000, how much would the salesperson receive?
$4320
A broker wants to charge her clients a flat fee for her commission, so that no matter what price a home
sells for, the broker will receive the same amount of compensation. Which of the following must occur
before the broker can make such arrangements?
The clients must agree to the arrangement prior to listing the property
If a listed property is taken under condemnation (eminent domain) or sold at a foreclosure sale is the
broker paid a commission?
