Barney Fletcher Exam 2
Questions & Verified Answers /Latest 2025
1. which of the following is not found in a property management agreement?
A. the property manager conducting an appraisal on the property once a year
B. the duties of the property manager
C. the compensation of the property manager
D. the legal description:
A. the property manager conducting an appraisal on the property once a year
2. A $1,000 earnest money is deposited with a 30 day option to buy. Which is correct
concerning the agent's commission?
A. it is earned at closing
B. it is earned at the time the option is entered into
C. it is earned only if the option is exercised
D. the commission comes of the $1,000:
C. it is earned only if the option is exercised
3. The trust money has been deposited into a trust account. Which is true about the earnest
money?
A. it can be revoked by either party
B. only the broker can disperse the earnest money because only the broker can hold the
earnest money
C. the seller always gets the money as liquidated damages when the buyer backs out
D. it is beyond the control of the buyer or the seller:
D. it is beyond the control of the buyer or the seller
4. A buyer gave a seller an offer that called for acceptance within 24 hours. How could this offer
be terminated?
, A. the seller waiting until after 24 hours to act upon it
B. the seller giving it back to the buyer within 24 hours but changing the closing date by
initialing, dating, and timing the change
C. the seller accepting within 24 hours and then finding out that the buyer had died prior to
the acceptance
D. all of the above:
D. all of the above
5. In a real estate purchase and sale agreement, the money that is held as pre arranged
liquidated damages is best known as:
A. an escrow
B. an offer
C. an option
D. earnest money (binder, good faith):
D. earnest money (binder, good faith)
6. A buyer sends an offer with a $5,000 earnest money check. The next day, he accepts $100
from the seller to make the offer irrevocable. How can the buyer get his earnest money back?
A. withdraw his offer before the seller communicates his acceptance
B. obtain a court injunction against the seller
C. the seller communicates a counteroffer
D. withdraw the offer before closing:
C. the seller communicates a counteroffer
7. Which of the following is not an essential element to make a real estate sales contract valid
(legal)?
A. legal description
B. in writing
C. a sales price
D. legality
Questions & Verified Answers /Latest 2025
1. which of the following is not found in a property management agreement?
A. the property manager conducting an appraisal on the property once a year
B. the duties of the property manager
C. the compensation of the property manager
D. the legal description:
A. the property manager conducting an appraisal on the property once a year
2. A $1,000 earnest money is deposited with a 30 day option to buy. Which is correct
concerning the agent's commission?
A. it is earned at closing
B. it is earned at the time the option is entered into
C. it is earned only if the option is exercised
D. the commission comes of the $1,000:
C. it is earned only if the option is exercised
3. The trust money has been deposited into a trust account. Which is true about the earnest
money?
A. it can be revoked by either party
B. only the broker can disperse the earnest money because only the broker can hold the
earnest money
C. the seller always gets the money as liquidated damages when the buyer backs out
D. it is beyond the control of the buyer or the seller:
D. it is beyond the control of the buyer or the seller
4. A buyer gave a seller an offer that called for acceptance within 24 hours. How could this offer
be terminated?
, A. the seller waiting until after 24 hours to act upon it
B. the seller giving it back to the buyer within 24 hours but changing the closing date by
initialing, dating, and timing the change
C. the seller accepting within 24 hours and then finding out that the buyer had died prior to
the acceptance
D. all of the above:
D. all of the above
5. In a real estate purchase and sale agreement, the money that is held as pre arranged
liquidated damages is best known as:
A. an escrow
B. an offer
C. an option
D. earnest money (binder, good faith):
D. earnest money (binder, good faith)
6. A buyer sends an offer with a $5,000 earnest money check. The next day, he accepts $100
from the seller to make the offer irrevocable. How can the buyer get his earnest money back?
A. withdraw his offer before the seller communicates his acceptance
B. obtain a court injunction against the seller
C. the seller communicates a counteroffer
D. withdraw the offer before closing:
C. the seller communicates a counteroffer
7. Which of the following is not an essential element to make a real estate sales contract valid
(legal)?
A. legal description
B. in writing
C. a sales price
D. legality
