RE Exam 1 questions with complete
solutions graded A+ already passed
A seller signs two listing agreements on the same property at the same time for the same listing period
with different firms. The seller signs an Exclusive Right to Sell Listing Agreement with ABC Realty, Inc. and
an Exclusive Agency Agreement with XYZ Realty, Inc. If a ready, willing and able buyer is procured by ABC
Realty, Inc., which of the following statements would be legally correct?
A. seller would owe one commission to ABC Realty, Inc.
B. seller would owe one commission to XYZ Realty, Inc.
C. seller would owe two commissions, one commission to ABC Realty, Inc. and one commission to XYZ
Realty, Inc.
D. there would only be one commission and it would be shared by both firms - correct answer ✔✔C.
seller would owe two commissions, one commission to ABC Realty, Inc. and one commission to XYZ
Realty, Inc.
Which of the following is not required for a contract to be valid and enforceable?
A. legal purpose
B. consideration
C. mutual consent
D. signature - correct answer ✔✔D. signature
Which of the following statements are correct regarding construction loans?
A. Construction loans have the highest risk to a lender
B. Construction loans usually have a shorter amortization period than residential loans
C. Construction loans usually have a lower interest rate than residential loans
D. RESPA does not apply when the buyer is purchasing a lot and obtaining a construction loan at the
same time - correct answer ✔✔A. Construction loans have the highest risk to a lender
, Under which of the following types of mortgage loans would a buyer have to produce a certificate of
reasonable value?
A. VA guaranteed loan
B. VA insured loan
C. FHA insured loan
D. conventional loan - correct answer ✔✔A. VA guaranteed loan
Aunt Fran decides to sell her property to a church "so long as" the property is used for religious
purposes. One year after the closing, the new owner uses the property for a nonreligious purpose.
Which of the following statements are correct?
A. This is a good example of a fee simple transfer
B. This is a transfer of a defeasible fee
C. Planning and zoning would be involved in enforcing the condition
D. If Aunt Fran dies, the condition is automatically terminated - correct answer ✔✔B. This is a transfer of
a defeasible fee
Under the standard form 2T Offer to Purchase and Contract when is the buyer obligated to provide the
due diligence fee to the seller?
A. On the date the offer is submitted
B. On the effective date in the contract
C. Within 3 days of acceptance
D. Within one day of acceptance of the contract - correct answer ✔✔B. On the effective date in the
contract
Concerning the residential property disclosure statement, which of the following is/are TRUE?
A. Licensees are required to advise and assist the seller with the disclosure
solutions graded A+ already passed
A seller signs two listing agreements on the same property at the same time for the same listing period
with different firms. The seller signs an Exclusive Right to Sell Listing Agreement with ABC Realty, Inc. and
an Exclusive Agency Agreement with XYZ Realty, Inc. If a ready, willing and able buyer is procured by ABC
Realty, Inc., which of the following statements would be legally correct?
A. seller would owe one commission to ABC Realty, Inc.
B. seller would owe one commission to XYZ Realty, Inc.
C. seller would owe two commissions, one commission to ABC Realty, Inc. and one commission to XYZ
Realty, Inc.
D. there would only be one commission and it would be shared by both firms - correct answer ✔✔C.
seller would owe two commissions, one commission to ABC Realty, Inc. and one commission to XYZ
Realty, Inc.
Which of the following is not required for a contract to be valid and enforceable?
A. legal purpose
B. consideration
C. mutual consent
D. signature - correct answer ✔✔D. signature
Which of the following statements are correct regarding construction loans?
A. Construction loans have the highest risk to a lender
B. Construction loans usually have a shorter amortization period than residential loans
C. Construction loans usually have a lower interest rate than residential loans
D. RESPA does not apply when the buyer is purchasing a lot and obtaining a construction loan at the
same time - correct answer ✔✔A. Construction loans have the highest risk to a lender
, Under which of the following types of mortgage loans would a buyer have to produce a certificate of
reasonable value?
A. VA guaranteed loan
B. VA insured loan
C. FHA insured loan
D. conventional loan - correct answer ✔✔A. VA guaranteed loan
Aunt Fran decides to sell her property to a church "so long as" the property is used for religious
purposes. One year after the closing, the new owner uses the property for a nonreligious purpose.
Which of the following statements are correct?
A. This is a good example of a fee simple transfer
B. This is a transfer of a defeasible fee
C. Planning and zoning would be involved in enforcing the condition
D. If Aunt Fran dies, the condition is automatically terminated - correct answer ✔✔B. This is a transfer of
a defeasible fee
Under the standard form 2T Offer to Purchase and Contract when is the buyer obligated to provide the
due diligence fee to the seller?
A. On the date the offer is submitted
B. On the effective date in the contract
C. Within 3 days of acceptance
D. Within one day of acceptance of the contract - correct answer ✔✔B. On the effective date in the
contract
Concerning the residential property disclosure statement, which of the following is/are TRUE?
A. Licensees are required to advise and assist the seller with the disclosure
