Charles Barnes Real Estate Exam Prep
Questions and Correct Answers Latest
Question 1
An owner transfers title to a property to a buyer in exchange for a motorcycle. This is
an example of
Correct Answer
Voluntary alienation
Question 2
Agent Gerry has executed an exclusive buyer broker agreement with the Andersons.
The agent subsequently places an offer with Melinda, the exclusive selling agent for
the Lincolns, to buy their lakefront property. The offer contains provisions for the
Lincolns to pay the brokerage commission, which the Lincolns agree to. Given this set
of circumstances, Gerry owes the full set of fiduciary duties to
Correct Answer
The Andersons
Question 3
The meaning and salient characteristics of the agency relationship should be
disclosed to the client
Correct Answer
prior to completing a listing agreement
Question 4
Personal Property
Correct Answer
Movables, which are not annexed to or part of, the land; also referred to as chattels.
Page 1 of 35
,Question 5
Condo owners share of maintenance &operations expenses are based on?
Correct Answer
The units pro rata share of the property's value as defined in the declaration
Question 6
Which of the following defines actual notice
Correct Answer
: It is knowledge received or imparted through direct experience.
Question 7
To create an enforceable option-to-buy contract, there must be an exchange of
Correct Answer
valuable consideration and a right to buy
Question 8
An owner completes a sales contract on her property with a buyer. Before closing, the
seller runs into financial trouble and assigns the contract to her principal creditor. The
buyer cries foul, fearing the property will be lost. Which of the following is true?
Correct Answer
The assignor has completed a legal action
Question 9
The standard of care and competence that a principal can expect from an agent is
generally that which is
Correct Answer
A: comparable to that of other practitioners in the area
Page 2 of 35
,Question 10
A real estate sale contract is an executory contract until
Correct Answer
all the obligations and promises are performed and the transaction is closed
Question 11
In the context of agency law, the legal difference between an owner representation
agreement and a buyer representation agreement is
Correct Answer
The client
Question 12
: Wayne and Leota obtain an insurance policy that protects them from liabilities and
losses resulting from title defects. The kind of policy they bought is a
Correct Answer
: standard owner's title insurance policy
Question 13
The city of Stevensville has declared a moratorium on new construction. If demand is
increasing, what will be the likely effect on real estate prices in the area?
Correct Answer
Prices rise
Question 14
A licensed salesperson may work only for
Correct Answer
A single employing broker who has an active broker's license.
Page 3 of 35
, Question 15
: A broker obtains an exclusive listing to sell a house, but after two months, he
abandons the listing because the seller is too demanding and hot-tempered. What
can the seller do in this situation?
Correct Answer
Sue the broker for money damages
Question 16
Under the Equal Credit Opportunity Act, a lender, or a real estate agent who assists a
seller in qualifying a potential buyer, may not
Correct Answer
A: ask the buyer/borrower about his/her religion or national origin.
Question 17
: One of the strengths of the sales comparison approach is that it
Correct Answer
A: takes into account the competitive value of specific amenities of the subject
property.
Question 18
Q: A contingency in a sale contract is
Correct Answer
a condition that, if unmet, renders the contract unenforceable
Question 19
Which of the following is true of the connection between compensation and the
agency relationship?
Correct Answer
The relationship is independent of any compensation arrangement
Page 4 of 35
Questions and Correct Answers Latest
Question 1
An owner transfers title to a property to a buyer in exchange for a motorcycle. This is
an example of
Correct Answer
Voluntary alienation
Question 2
Agent Gerry has executed an exclusive buyer broker agreement with the Andersons.
The agent subsequently places an offer with Melinda, the exclusive selling agent for
the Lincolns, to buy their lakefront property. The offer contains provisions for the
Lincolns to pay the brokerage commission, which the Lincolns agree to. Given this set
of circumstances, Gerry owes the full set of fiduciary duties to
Correct Answer
The Andersons
Question 3
The meaning and salient characteristics of the agency relationship should be
disclosed to the client
Correct Answer
prior to completing a listing agreement
Question 4
Personal Property
Correct Answer
Movables, which are not annexed to or part of, the land; also referred to as chattels.
Page 1 of 35
,Question 5
Condo owners share of maintenance &operations expenses are based on?
Correct Answer
The units pro rata share of the property's value as defined in the declaration
Question 6
Which of the following defines actual notice
Correct Answer
: It is knowledge received or imparted through direct experience.
Question 7
To create an enforceable option-to-buy contract, there must be an exchange of
Correct Answer
valuable consideration and a right to buy
Question 8
An owner completes a sales contract on her property with a buyer. Before closing, the
seller runs into financial trouble and assigns the contract to her principal creditor. The
buyer cries foul, fearing the property will be lost. Which of the following is true?
Correct Answer
The assignor has completed a legal action
Question 9
The standard of care and competence that a principal can expect from an agent is
generally that which is
Correct Answer
A: comparable to that of other practitioners in the area
Page 2 of 35
,Question 10
A real estate sale contract is an executory contract until
Correct Answer
all the obligations and promises are performed and the transaction is closed
Question 11
In the context of agency law, the legal difference between an owner representation
agreement and a buyer representation agreement is
Correct Answer
The client
Question 12
: Wayne and Leota obtain an insurance policy that protects them from liabilities and
losses resulting from title defects. The kind of policy they bought is a
Correct Answer
: standard owner's title insurance policy
Question 13
The city of Stevensville has declared a moratorium on new construction. If demand is
increasing, what will be the likely effect on real estate prices in the area?
Correct Answer
Prices rise
Question 14
A licensed salesperson may work only for
Correct Answer
A single employing broker who has an active broker's license.
Page 3 of 35
, Question 15
: A broker obtains an exclusive listing to sell a house, but after two months, he
abandons the listing because the seller is too demanding and hot-tempered. What
can the seller do in this situation?
Correct Answer
Sue the broker for money damages
Question 16
Under the Equal Credit Opportunity Act, a lender, or a real estate agent who assists a
seller in qualifying a potential buyer, may not
Correct Answer
A: ask the buyer/borrower about his/her religion or national origin.
Question 17
: One of the strengths of the sales comparison approach is that it
Correct Answer
A: takes into account the competitive value of specific amenities of the subject
property.
Question 18
Q: A contingency in a sale contract is
Correct Answer
a condition that, if unmet, renders the contract unenforceable
Question 19
Which of the following is true of the connection between compensation and the
agency relationship?
Correct Answer
The relationship is independent of any compensation arrangement
Page 4 of 35
