A property is listed for $275,000. The buyers offer $265,000, and insist that the gourmet six-burner
stove remain with the property. When the signed offer is presented to the sellers, the sellers accept the
price, but want to take the stove with them. They cross out the item about the stove, sign the form, and
return it to the buyers. Under these circumstances: - Correct AnswersA. there is now a valid contract
that has been signed by all parties
B. the offer has been invalidated and the buyers will need to begin looking for a new property
C. the sellers can turn around and accept the original offer, if the buyers won't go along with giving up
the stove
***D. the original offer is terminated, and the sellers have made a counteroffer
A buyer is looking at a house in a neighborhood with newly installed sidewalks. When the buyer asks
about taxes, the seller assures her that the home isn't subject to any special assessments. The buyer's
agent should: - Correct AnswersA. advise the buyer that the property may be subject to special
assessments and recommend that the buyer look into it
B. check the county records to see if the property has any special assessments pending against it
C. contact an attorney to begin an investigation of the matter
D. say nothing and take the seller's word for it
The seller listed the property for $95,000. Assuming that their listing agreement is typical, the broker
would NOT be entitled to a commission if the seller: - Correct Answers***A. rejected a $90,000 offer
from a financially qualified buyer
B. accepted a $90,000 offer from a financially qualified buyer
,C. accepted a $95,000 offer, but his title turned out to be unmarketable
D. rejected a $95,000 offer from a financially qualified buyer
A licensee would not be disciplined for: - Correct AnswersA. accepting compensation from both parties
to a transaction without a written disclosure
B. failing to adequately supervise an employee who misrepresents a property to a prospect
C. failing to include the firm's name, as licensed, in an advertisement
***D. offering to advertise a property, for a fee, for a "For Sale by Owner" seller
Jesse, Kim, and Diane own a home together as joint tenants. If Jesse dies, her property interest: - Correct
AnswersA. will be inherited by her children according to the provisions of her will
B. must be bequeathed to Kim and Diane in her will
C. will be automatically devised to her heirs
***D. will be automatically transferred (conveyed) to Kim and Diane
The deed that states that there is a conveyance of interest, if any, is the: - Correct AnswersA. grant deed
B. bargain and sale deed
***C. quitclaim deed
D. special warranty deed
,The selling agent must NOT accept a promissory note as an earnest money deposit: - Correct AnswersA.
unless the agent knows that the buyer has an excellent credit history
***B. unless the purchase and sale agreement discloses that the deposit is a note
C. unless the seller agreed during negotiation discussion to accept a promissory note
D. under any circumstances
Net listings are strongly discouraged because they are likely to be unfair to the: - Correct AnswersA.
broker
B. buyer
***C. seller
D. All of the above
A movie theater was built ten years ago. If the neighborhood is now zoned entirely residential, the
movie theater: - Correct AnswersA. will have to be torn down
B. must be remodeled to better conform to the neighborhood's intended use
C. will be allowed to continue if the owner obtains a conditional use permit
***D. will be allowed to continue since it was built before the new zoning law went into effect
, John, Kevin, and Lyle own a property as tenants in common, but only Kevin and Lyle live on the property.
John would like to sell the property for redevelopment, but Kevin and Lyle refuse. What is John's best
option? - Correct AnswersA. Charge Kevin and Lyle rent
B. Create a trust to manage the property
C. Evict Kevin and Lyle
***D. Obtain a court order to sell the property
A licensee locates what seems like a ready, willing, and able buyer. However, the deal falls through at
closing because the buyer can't obtain necessary financing. At the same time, though, the seller turns
out to be unable to provide marketable title. Does the seller still owe a commission to the listing agent
in this case? - Correct AnswersA. No, because the sale didn't close
***B. No, because there was no ready, willing, and able buyer
C. Yes, because the licensee saw the transaction through to the closing date
D. Yes, because the seller has an absolute duty to provide marketable title at closing
A homeowner bought his home for $150,000. Ten years later, he refinanced his mortgage and borrowed
$100,000. Which of the following is true for this type of property? - Correct AnswersA. Interest on the
difference between the original loan amount and the refinanced amount is not deductible
B. Interest on only half of the difference between the original amount and refinanced amount is
deductible
***C. Interest on loans such as this one for the purchase or refinance of a principal residence is
deductible
D. Interest deductibility will depend on the borrower's tax bracket
stove remain with the property. When the signed offer is presented to the sellers, the sellers accept the
price, but want to take the stove with them. They cross out the item about the stove, sign the form, and
return it to the buyers. Under these circumstances: - Correct AnswersA. there is now a valid contract
that has been signed by all parties
B. the offer has been invalidated and the buyers will need to begin looking for a new property
C. the sellers can turn around and accept the original offer, if the buyers won't go along with giving up
the stove
***D. the original offer is terminated, and the sellers have made a counteroffer
A buyer is looking at a house in a neighborhood with newly installed sidewalks. When the buyer asks
about taxes, the seller assures her that the home isn't subject to any special assessments. The buyer's
agent should: - Correct AnswersA. advise the buyer that the property may be subject to special
assessments and recommend that the buyer look into it
B. check the county records to see if the property has any special assessments pending against it
C. contact an attorney to begin an investigation of the matter
D. say nothing and take the seller's word for it
The seller listed the property for $95,000. Assuming that their listing agreement is typical, the broker
would NOT be entitled to a commission if the seller: - Correct Answers***A. rejected a $90,000 offer
from a financially qualified buyer
B. accepted a $90,000 offer from a financially qualified buyer
,C. accepted a $95,000 offer, but his title turned out to be unmarketable
D. rejected a $95,000 offer from a financially qualified buyer
A licensee would not be disciplined for: - Correct AnswersA. accepting compensation from both parties
to a transaction without a written disclosure
B. failing to adequately supervise an employee who misrepresents a property to a prospect
C. failing to include the firm's name, as licensed, in an advertisement
***D. offering to advertise a property, for a fee, for a "For Sale by Owner" seller
Jesse, Kim, and Diane own a home together as joint tenants. If Jesse dies, her property interest: - Correct
AnswersA. will be inherited by her children according to the provisions of her will
B. must be bequeathed to Kim and Diane in her will
C. will be automatically devised to her heirs
***D. will be automatically transferred (conveyed) to Kim and Diane
The deed that states that there is a conveyance of interest, if any, is the: - Correct AnswersA. grant deed
B. bargain and sale deed
***C. quitclaim deed
D. special warranty deed
,The selling agent must NOT accept a promissory note as an earnest money deposit: - Correct AnswersA.
unless the agent knows that the buyer has an excellent credit history
***B. unless the purchase and sale agreement discloses that the deposit is a note
C. unless the seller agreed during negotiation discussion to accept a promissory note
D. under any circumstances
Net listings are strongly discouraged because they are likely to be unfair to the: - Correct AnswersA.
broker
B. buyer
***C. seller
D. All of the above
A movie theater was built ten years ago. If the neighborhood is now zoned entirely residential, the
movie theater: - Correct AnswersA. will have to be torn down
B. must be remodeled to better conform to the neighborhood's intended use
C. will be allowed to continue if the owner obtains a conditional use permit
***D. will be allowed to continue since it was built before the new zoning law went into effect
, John, Kevin, and Lyle own a property as tenants in common, but only Kevin and Lyle live on the property.
John would like to sell the property for redevelopment, but Kevin and Lyle refuse. What is John's best
option? - Correct AnswersA. Charge Kevin and Lyle rent
B. Create a trust to manage the property
C. Evict Kevin and Lyle
***D. Obtain a court order to sell the property
A licensee locates what seems like a ready, willing, and able buyer. However, the deal falls through at
closing because the buyer can't obtain necessary financing. At the same time, though, the seller turns
out to be unable to provide marketable title. Does the seller still owe a commission to the listing agent
in this case? - Correct AnswersA. No, because the sale didn't close
***B. No, because there was no ready, willing, and able buyer
C. Yes, because the licensee saw the transaction through to the closing date
D. Yes, because the seller has an absolute duty to provide marketable title at closing
A homeowner bought his home for $150,000. Ten years later, he refinanced his mortgage and borrowed
$100,000. Which of the following is true for this type of property? - Correct AnswersA. Interest on the
difference between the original loan amount and the refinanced amount is not deductible
B. Interest on only half of the difference between the original amount and refinanced amount is
deductible
***C. Interest on loans such as this one for the purchase or refinance of a principal residence is
deductible
D. Interest deductibility will depend on the borrower's tax bracket
