Barney Fletcher Cram Final Exam questions with verified
answers
A broker advertises that if you will list with him and he cannot sell the
property, he will buy it from you. Is this legal?
A. never, this is an inducement and is illegal
B. never, this is an unfair practice and a misdemeanor
C. ok, if the two parties agree to a sales price and terms when the
property sells
D. ok, if the two parties agree to a sales price and terms prior to the
listing being signed Ans✓✓✓ D. ok, if the two parties agree to a sales
price and terms prior to the listing being signed
A broker estimated the property lines by stating it ran between two
trees in the back yard. After closing, the buyer found it was over six feet
off. Is the broker liable?
A. no, he gave an estimate
B. no, the buyer should have gotten a survey
C. yes, he made a statement which he realized could be false
D. yes, the broker should have surveyed the property himself Ans✓✓✓
C. yes, he made a statement which he realized could be false
,A broker had an exclusive right to sell agency listing. In order to collect
the commission, he must:
A. prove he was the procuring agent
B. prove he was licensed at the time of the sale
C. prove he had a ready, willing, and able buyer that met the seller's
terms
D. all of the above Ans✓✓✓ B. prove he was licensed at the time of the
sale
A buyer and seller sign an agreement to change the contract to close on
May 1 instead of May 2. This is a(n):
A. addendum
B. special stipulation
C. amendment
D. clause Ans✓✓✓ C. amendment
A contractor had a lien on a property for the non payment of services
that he provided to build a deck. He started the job on December 15th,
2001, recorded the lien on January 1st of the next year and sued the
owner on February 2nd, 2003. What best describes the situation?
,A. as long as he recorded the lien within 90 days of the completion of
the job, he should prevail in the law suit
B. he loses due to law of laches
C. he loses because he did not bring the suit before December 15th of
2002
D. if foreclosure takes place, the lien is prioritized on January 1st, 2003
Ans✓✓✓ B. he loses due to law of laches
A home is listed at an inflated price and requires all minority prospects
to pay that price. However, if a lower price is accepted from a non
minority prospect, this practice:
A. does not violate Fair Housing Laws because the home is still being
made available to minority prospects
B. subjects the seller and the seller's agent to liability for money
damages under a Fair Housing suit
C. is a violation by the seller only
D. is illegal only if the purchase of the house is being financed through
FHA or VA Ans✓✓✓ B. subjects the seller and the seller's agent to
liability for money damages under a Fair Housing suit
A homeowner with a mortgage replaced it with a new mortgage 3%
lower in interest and obtained extra funds to make investments. This is
called:
, A. subordination
B. refinancing
C. subrogation
D. wraparound Ans✓✓✓ B. refinancing
A lender would require a blanket mortgage in which of the following
circumstances?
A. if the borrower was going to use several unencumbered properties
as security
B. if there was a mortgage clause stating that upon default, it would
become a general lien
C. if the lender made the loan to encompass all of the borrower's debts
D. none of the above Ans✓✓✓ A. if the borrower was going to use
several unencumbered properties as security
A lien was placed on a property for electrical equipment for $4,500.
There already existed a special assessment lien for $1,000, a mortgage
lien for $40,000, and an IRS lien for $20,000. The home was foreclosed
on and sold. Which lien would take priority?
A. the IRS lien. The government always comes first
B. the mortgage lien. It is for the most amount of money
C. the special assessment lien. The government always comes first
answers
A broker advertises that if you will list with him and he cannot sell the
property, he will buy it from you. Is this legal?
A. never, this is an inducement and is illegal
B. never, this is an unfair practice and a misdemeanor
C. ok, if the two parties agree to a sales price and terms when the
property sells
D. ok, if the two parties agree to a sales price and terms prior to the
listing being signed Ans✓✓✓ D. ok, if the two parties agree to a sales
price and terms prior to the listing being signed
A broker estimated the property lines by stating it ran between two
trees in the back yard. After closing, the buyer found it was over six feet
off. Is the broker liable?
A. no, he gave an estimate
B. no, the buyer should have gotten a survey
C. yes, he made a statement which he realized could be false
D. yes, the broker should have surveyed the property himself Ans✓✓✓
C. yes, he made a statement which he realized could be false
,A broker had an exclusive right to sell agency listing. In order to collect
the commission, he must:
A. prove he was the procuring agent
B. prove he was licensed at the time of the sale
C. prove he had a ready, willing, and able buyer that met the seller's
terms
D. all of the above Ans✓✓✓ B. prove he was licensed at the time of the
sale
A buyer and seller sign an agreement to change the contract to close on
May 1 instead of May 2. This is a(n):
A. addendum
B. special stipulation
C. amendment
D. clause Ans✓✓✓ C. amendment
A contractor had a lien on a property for the non payment of services
that he provided to build a deck. He started the job on December 15th,
2001, recorded the lien on January 1st of the next year and sued the
owner on February 2nd, 2003. What best describes the situation?
,A. as long as he recorded the lien within 90 days of the completion of
the job, he should prevail in the law suit
B. he loses due to law of laches
C. he loses because he did not bring the suit before December 15th of
2002
D. if foreclosure takes place, the lien is prioritized on January 1st, 2003
Ans✓✓✓ B. he loses due to law of laches
A home is listed at an inflated price and requires all minority prospects
to pay that price. However, if a lower price is accepted from a non
minority prospect, this practice:
A. does not violate Fair Housing Laws because the home is still being
made available to minority prospects
B. subjects the seller and the seller's agent to liability for money
damages under a Fair Housing suit
C. is a violation by the seller only
D. is illegal only if the purchase of the house is being financed through
FHA or VA Ans✓✓✓ B. subjects the seller and the seller's agent to
liability for money damages under a Fair Housing suit
A homeowner with a mortgage replaced it with a new mortgage 3%
lower in interest and obtained extra funds to make investments. This is
called:
, A. subordination
B. refinancing
C. subrogation
D. wraparound Ans✓✓✓ B. refinancing
A lender would require a blanket mortgage in which of the following
circumstances?
A. if the borrower was going to use several unencumbered properties
as security
B. if there was a mortgage clause stating that upon default, it would
become a general lien
C. if the lender made the loan to encompass all of the borrower's debts
D. none of the above Ans✓✓✓ A. if the borrower was going to use
several unencumbered properties as security
A lien was placed on a property for electrical equipment for $4,500.
There already existed a special assessment lien for $1,000, a mortgage
lien for $40,000, and an IRS lien for $20,000. The home was foreclosed
on and sold. Which lien would take priority?
A. the IRS lien. The government always comes first
B. the mortgage lien. It is for the most amount of money
C. the special assessment lien. The government always comes first
