Why have real estate license laws been put into effect?
C. to protect the public and establish standards of professionalism
In real estate, a salesperson is always a(n)
C. licensee who performs real estate activities on behalf of a broker
All of the following are requirements for independent contractor status used by the Internal Revenue Service EXCEPT
A. specific hours stated in a written agreement
The broker who owns a realty agency does not permit his salesperson to change less than an 8% commission in any transaction. After reading a newspaper article about this realty agency's policies, the broker of another realty agency decides to adopt the 8% minimum, too. Based on these facts, which of the following statements is TRUE?
C. neither broker has committed an antitrust violation
A real estate broker had a listing agreement with a seller that specified a 6% commission. The broker showed the home to a prospective buyer. The next day, the buyer called the seller directly and offered to buy the house for 5% less than the asking price. The seller agreed to the price and informed the broker in writing that no further brokerage services would be required. The sale went to closing 6 weeks later. Based on these facts, which of the following statements is TRUE?
D. the broker was the procuring cause of the sale and is entitled to the full 6% commission
A qualified buyer makes a written offer on a property on March 6 by filling out and signing a sales agreement. Later that day, the seller accepts and signs the agreement, keeping one copy. The broker gives a copy of the signed agreement to the buyer on March 8. The seller's deed is delivered on May 1. The deed is recorded on May 7, and the buyer takes possession on May 15. When is the broker's commission payable if this is a usual transaction?
D. May 1
All of the following are violations of the federal antitrust laws EXCEPT
B. commission splitting
All of the following are ways for a broker to charge for services EXCEPT
B. standard community rate
What is the main value of a multiple-listing service (MLS) for sellers?
A. it exposes the property to a greater number of prospective buyers
After licensing laws are enacted by the legislature, who is responsible for adopting rules and regulations?
C. licensing authority (division, commission, ect.)
When communicating with clients and customers via e-mail, all of the following are examples of professional e-mail EXCEPT
C. responding to e-mails within one week
Although state laws vary regarding Internet advertising, which of the following is a typical element of state policy or law?
A. ads must avoid misleading the potential client or customer
The broker may still be entitled to a commission in which of the following situations where a pending property sale did NOT close?
C. the seller decided not to sell
An arrangement to sell one product only if the buyer purchases another product as well is called a(n)
A. tie-in agreement
An agreement that a listing broker offers no services other than placing a listing in the MLS is called a(n)
C. limited-service listing agreement
Even if a consumer has requested placement on the National Do Not Call Registry, a real estate professional may call the consumer up to how many months after the consumer's last purchase?
D. 18
The name for the current policy of the National Association of REALTORS® that allows all MLS members equal rights to display MLS data is the
A. Internet Listing Display Policy
An important purpose of the "E-Sign" Act is to
B. give contracts formed using e-mail the same legal standing as those on paper
What is the compensation plan called if a salesperson's commission split increases depending on whether the salesperson achieves higher production goals?
B. graduated commission split
What is the practice called when a consumer selects specific services to use and only pays the licensee for those services?
C. unbundling services
In a typical buyer agency agreement, the buyer is the
B. principal
The owner listed her home for sale with a broker. When the owner sold the home herself, she did not owe anyone a commission. Based on these facts, what type of listing did the broker and the owner most likely sign?
C. open listing
All of the following information is generally included in a listing agreement EXCEPT
D. client's specific requirements for a suitable property to buy
On January 10, a salesperson met with a seller and described the advantages of listing the seller property with his broker's office. On January 15, the seller agreed to the listing, and the salesperson and the seller signed the agreement. On January 18, the broker signed the agreement as required by the office policy. On January 20, the salesperson posted a For Sale sign in front of the house. When did the listing agreement become effective?
B. January 18
What is a listing agreement?
D. employment contract between seller and broker
Who are the parties to a listing agreement?
B. seller and broker
There are 5 different brokerage signs in the front yard. Evidently, the seller has signed a(n)
C. open listing
The broker has just explained the value of signing an exclusive-agency listing with a broker who is a member of the multiple-listing service. The broker is trying to overcome the misconceptions of the seller who asked about a(n)
C. open listing
What kind of listing agreement is illegal in many states because of the potential for conflict of interest between a broker's fiduciary responsibility to the seller and the broker's profit motive?
B. net listing
Buyer agents may be compensated in any of the following ways EXCEPT
C. percentage of list price
Any of the following will terminate a listing agreement EXCEPT
B. an offer to purchase
A broker is retiring and wants to submit his listing to another broker. How can he do this?
D. the sellers must agree to a new listing with the new broker
In which of the following types of listing agreements is the broker appointed as the seller's only agent?
B. exclusive-right-to-sell and exclusive-agency listings
In most states, a broker's license can be suspended or revoked if the broker
B. takes a listing that does not include a date on which the listing expires
All of the following are information needed for the listing agreement EXCEPT
C. the age of the seller
An example of personal property that a seller may leave with the property and, therefore, must be identified on the listing agreement is
D. stacked firewood
An elderly man left the family home to his second wife with the provision that when she dies, the home goes to a son by his first wife. The second wife owns a bundle of rights; however, she does not own the right to
C. will the property
Every workday for the past 20 years, a woman has parked her car in a specific place in the nearby parking garage. Today, she receives a notice that the garage will be replaced by an office building. Can they do this to her after all the years she parked there?
B. yes, because she only had a license
A man conveyed a one-acre parcel of land to a preschool. In the deed, the man stated that the property was to be used only as a playground; the man reserved a right of re-entry. What kind of estate has the man granted?
D. fee simple subject to a condition subsequent
A man owns a farm that lies along the edge of a river, which is too shallow to be navigable. If the man does not live in a jurisdiction that recognizes the doctrine of prior appropriation, how much (if any) of the river does he own?
D. the man owns the land under the river to the exact center of the waterway, and the right to use the water
Over the past 15 years, a river has been slowly depositing the soil along its eastern bank. As a result, the river is some 12 feet narrower than it used to be, and a parcel of property on the east side of the river is now 12 feet larger than it used to be. This scenario is an example of which of the following processes?
B. accretion
If the government acquires privately owned real estate through a condemnation suit, it is exercise its power of
C. eminent domain
A man owned 2 acres of land. He sold 1 acre to a woman and reserved an easement appurtenant for entrance and exit over her acre to reach the public road. The woman's land is
D. called the servient tenement
A man owns a large undeveloped parcel of land on the side of a hill. The property borders a road on the lower edge. The owner sells the lower portion of the property to a woman, and she builds a home on it. Several years later, the owner sells the upper-portion of the property to another man. This man's property does not border any road. For this man to gain access to the road, he must claim by implication of law an easement
B. by necessity
If the dominant estate merges with the servient estate, which of the following is TRUE?
D. the easement is terminated
The homestead exemption in a town is $15,000. Four years ago, a man purchased a home for $58,000 and then experienced hard times. At a court-ordered sale, the man's property is purchased for $60,000. If the man has an outstanding mortgage balance of $35,000 and credit card debts amounting to $24,360, how much is protected by the homestead?
A. $15,000
the homestead exemption if $15,000. So, when the property is sold for $60,000, the mortgage of $35,000 is paid, and $15,000 is reserved, leaving $10,000 for the credit card debt.
In some states, a husband cannot sell his property unless his wife also signs the deed. His wife's interest is called
A. dower rights
The state's authority to enact legislation to protect the public is passed through to municipalities and counties through
B. enabling acts
The state requires enough land to build a four-lane highway. For the state to acquire the needed land, the state must do all of the following EXCEPT
D. reimburse the property owner for the amount that the property owner paid for the land
A woman died in a nursing home. She had outlived all of her heirs and had not written a will. What happens to her $250,000 estate?
A. it escheats to the state or county
Which of the following is defined as a claim, charge, or liability that attaches to real estate?
A. encumbrance
Which of the following must exist for an appurtenant easement to exist?
C. 2 adjacent parcels, different owners
What are deed restrictions?
A. private agreements affecting the use of the land
The electric company has the right to extend its wires over 50 parcels of land. What right does the electric company have?
D. easement in gross
For as long as anyone can remember, neighbor families have used a foot path to get to the river. Recently, the current owner erected a fence across the path. Which of the following easements might the neighbors claim, which would require him to remove the fence?
C. easement by prescription
The rights of property owners of land next to large bodies of water, such as the ocean or the Great Lakes, are called
D. littoral rights
Which of the following cannot take title as a joint tenant with right of survivorship?
D. a corporation
When 2 or more individuals decide to buy a property together, it results in a
C. co-ownership
3 brothers bought a farm together, and the deed listed only each of their names. What form of ownership are they presumed to have taken?
D. tenancy in common
What form of ownership is employed when one person transfers ownership to someone else to hold and manage for a third person?
C. trust
A man with 2 sons and a woman with 2 daughters are getting married, and they are buying a house together. They ask the real estate licensee for advice about how to take title. What advice should the licensee offer?
C. suggest that they consult with an attorney
A will provided that the local banker take care of the deceased person's estate until the children reach age 25. What kind of trust is this?
B. testamentary trust
What kind of ownership do the horizontal property acts regulate?
D. condominiums
Shareholders in a cooperative receive shares of stock that entitle them to a
B. proprietary lease
Membership camping is similar to
A. time-share use
In a large highrise condominium, each unit is owned by individual owners. The elevators, parking garage, and swimming pool are referred to as
C. common elements
2 women own an apartment building together as joint tenants. They share equally in the expenses and profits. One day, one of the women decides to end the relationship. If she sells her interest to a man by signing and delivering a deed, which of the following statements is TRUE?
B. the man and the remaining woman will be tenants in common
In February, a seller conveyed an undivided one-half interest in a parcel of land to a woman. In March, the seller conveyed the remaining one-half interest to a man. The deed to the man included the following statement: "This man is to be a joint tenant with the woman." Both deeds were recorded. Based on these facts, which of the following statements is TRUE?
C. the man and woman are tenants in common
3 people own a large parcel of undeveloped land in joint tenancy. One of them wants to build a shopping center on the property, while the other 2 want to use it as an organic farm. The individual tries to buy the other tenants' interests, but they refuse to sell. Which of the following is her BEST option?
D. file a suit for partition
A man owns and lives year-round in a cottage in a lakefront community. His ownership of the cottage is in fee simple. He also owns an undivided percentage interest in a parking lot, a golf course, and a swimming pool, all located in the development. Based on these facts alone, the man's ownership is probably BEST described as a
C. condominium
Mike, Rebecca, and Noah agree to purchase and operate a property as a permanent investment. Mike and Rebecca each contribute $50,000. Noah contributes $30,000 and agrees to run the day-to-day operations of the business, which they call "Property Group Partners." Neither Mike nor Rebecca has any right to participate in the operation of the venture. Based on these facts, what type of business organization has Mike, Rebecca, and Noah established?
B. limited partnership
All of the following are unities required for a joint tenancy EXCEPT
A. unity of ownership
All of the following are characteristics of a tenancy by the entirety EXCEPT
A. the surviving spouse automatically owns one-half of the property acquired during the marriage
A man creates a trust to pay for a broker's real estate education. The trust is operated by a woman, who makes payments on behalf of the broker directly to the real estate school. Based on these facts, which of the following statements BEST characterizes the relationships among these parties?
A. the man is the trustor, the broker is the beneficiary, and the woman is the trustee
A company is a legal entity, created by charter under the laws of the state. The company is managed and operated by a board and is permitted to buy and sell real estate. When one of its directors dies, the company continues to operate. Because of its structure, the company's income is subject to double taxation. The company is BEST described as a
C. corporation
When a corporation takes complete ownership of a property, it is considered to be ownership in
A. severalty
In a tenancy in common, if the fraction of ownership are NOT stated in the deed, how are they determined?
A. the tenants are presumed to hold equal shares
In the case of land trusts, the beneficiary is usually also the
