Wilhelmina Littel
Quiz by , created more than 1 year ago

End of chapter tests from Aware in South Carolina

18
1
0
Wilhelmina Littel
Created by Wilhelmina Littel about 7 years ago
Close

Aware Chapter Tests 1-8

Question 1 of 115

1

A relationship, whereby one, called the principal, authorizes another, called the agent, called the agent, to represent the principal in business relations with third parties, is known as

Select one of the following:

  • agency

  • brokerage

  • apparent

  • authority

Explanation

Question 2 of 115

1

One employed by and under the control of another known as the principal, to represent such principal in business dealings with third parties is called a/an

Select one of the following:

  • servant

  • agent

  • independent contractor

  • client

Explanation

Question 3 of 115

1

In an agency relationship, the one who employees another to represent him/her in legal and/or business dealings with third persons is called a/an

Select one of the following:

  • agent

  • attorney in fact

  • customer

  • principal

Explanation

Question 4 of 115

1

The brokerage firm employed by either a seller or buyer may employ associated licensees to assist in meeting the obligations to the brokerage firm's principal/client. Those so employed may be called

Select one of the following:

  • subagents of the brokerage firm

  • special agents of the brokerage firm

  • fiduciaries

  • attorney in fact

Explanation

Question 5 of 115

1

The person(s) with whom a brokerage firm is working under a transaction brokerage agreement is a

Select one of the following:

  • customer

  • client

  • fiduciary

  • principal

Explanation

Question 6 of 115

1

One who is in a position of trust and confidence with respect to another is known as a/an

Select one of the following:

  • fiduciary

  • independent contractor

  • servant

  • broker

Explanation

Question 7 of 115

1

A competent person who is authorized by another to act in his/her place as an agent is known as a/an

Select one of the following:

  • attorney in fact

  • master

  • attorney at law

  • servant

Explanation

Question 8 of 115

1

A written instrument authorizing a person to act for another to the extent indicated in the instrument is called

Select one of the following:

  • power of attorney

  • a listing contract

  • a permission to act slip

  • an employment agreement

Explanation

Question 9 of 115

1

An agency which is voluntarily created through contractual agreement between the principal/client and the agent is known as a/an

Select one of the following:

  • implied agency

  • express agency

  • sensible agency

  • statutory agency

Explanation

Question 10 of 115

1

A common law agency created by the conduct and acts of the principal and agent is called

Select one of the following:

  • implied agency

  • sensible agency

  • statutory agency

  • express agency

Explanation

Question 11 of 115

1

An agent, while working within the scope of his/her authority, binds his/her principal. The authority granted by a seller to a broker is expressed in the

Select one of the following:

  • buyer's broker agreement

  • listing agreement

  • management contract

  • option contract

Explanation

Question 12 of 115

1

A type of authority that is voluntarily and explicitly set forth as instructions by the principal in the agency agreement is called

Select one of the following:

  • implied authority

  • necessary authority

  • express authority

  • statutory agency

Explanation

Question 13 of 115

1

Authority exercised by an agent which is in accord with usual or traditional practices is called

Select one of the following:

  • implied authority

  • express authority

  • traditional authority

  • statutory authority

Explanation

Question 14 of 115

1

One authorized to conduct a series of transactions involving an ongoing relationship such as a salesperson or broker employed by a broker in charge is

Select one of the following:

  • general agent

  • special agent

  • disclosed agent

  • statutory agent

Explanation

Question 15 of 115

1

One authorized to conduct a single transaction or a series of transactions not involving an ongoing relationship is

Select one of the following:

  • special agent

  • undisclosed agent

  • general agent

  • statutory agent

Explanation

Question 16 of 115

1

An agent disclosed to the customer that he/she represents a client and he/she also disclosed the client's identity. What type of principal is the client?

Select one of the following:

  • disclosed principal

  • undisclosed principal

  • partially disclosed principal

  • general principal

Explanation

Question 17 of 115

1

Which of the obligations of a principal to an agent is not automatic and must be agreed upon?

Select one of the following:

  • Reimbursement

  • Opportunity

  • Good conduct

  • Good faith

Explanation

Question 18 of 115

1

There are eight situations by which an agency can be terminated by operation of the law. Which is best for the agent?

Select one of the following:

  • Performance

  • Lapse of time

  • Change of law

  • Destruction of subject matter

Explanation

Question 19 of 115

1

Broker Tom has a listing on property owned by seller Steve. Which of the following should broker Tom not disclose to buyer Bob?

Select one of the following:

  • Tom has seen evidence of termites.

  • Steve may take less than listing price.

  • The building has structural defects.

  • Zoning makes the present use non-conforming.

Explanation

Question 20 of 115

1

Which of the following is correct concerning a listing broker's obligations and responsibilities to the seller?

Select one of the following:

  • The broker may buy the seller's property and sell it to a prospect at a profit as long as the profit is 6% or less.

  • The broker may relieve herself of any fiduciary responsibilities as long as they have been delegated to any qualified agents that are licensed with her company.

  • The broker is obligated to obey all of the seller's lawful instructions, even those with which she personally disagrees.

  • The broker has the implied authority to reject unreasonable offers to the principal.

Explanation

Question 21 of 115

1

Broker Joyce received a full price offer on some property she had listed. The offer is contingent on the owner financing 90% of the price. Joyce feels the offer is unacceptable because the buyer has defaulted on other loans in the past, but she does not mention this to her client. Did Joyce meet her fiduciary duties?

Select one of the following:

  • No, because she withheld relevant facts from her client.

  • Yes, because she delivered the offer regardless of her feelings about it.

  • No, because she may be able to get a better deal later.

  • Yes, since she found a buyer who was willing to pay full price.

Explanation

Question 22 of 115

1

After listing a house for sale, a broker incurs $37 in advertising expense and $17 in taxi fares for prospects interested in the property. For which expense should the seller reimburse the broker?

Select one of the following:

  • only those expenses agreed upon by the seller and the broker as part of the listing agreement.

  • only advertising expenses, as taxi fares are not a normal expense of a listing broker

  • advertising expenses and transportation costs incurred in an attempt to market the listed property

  • expenses are never reimbursed to a broker by a seller as part of a listing agreement

Explanation

Question 23 of 115

1

A broker took an exclusive listing contract on a seller's home. The seller told the broker the roof leaked, but the broker made no notation on the listing. Later, a buyer made an offer on the property that the seller accepted. The broker lied when the buyer made his/her offer; telling him/her the roof was in good condition. After the buyer took possession, he/she discovered the truth during the first rain. Responsibility for the misrepresentation rests with

Select one of the following:

  • both the broker and the seller

  • the broker only

  • the seller only

  • after possession, caveat emptor applies

Explanation

Question 24 of 115

1

During the period of an exclusive right to sell listing, if the principal no longer wishes to be represented by the brokerage firm, the principal may

Select one of the following:

  • revoke the agency created by the listing contract but may be liable for damages

  • revoke the listing contract and not be liable for damages

  • not revoke the agency because an exclusive right to sell listing is an irrevocable contract

  • be forced to sell the property in accordance with the terms of the listing

Explanation

Question 25 of 115

1

Three of the five permissible brokerage relationships in South Carolina are

Select one of the following:

  • transaction agency, disclosed dual agency and seller agency

  • seller agency, buyer agency and transaction brokerage

  • seller agency, single agency, and undisclosed dual agency

  • buyer agency, cooperative subagency and transaction brokerage

Explanation

Question 26 of 115

1

In South Carolina, when must a licensee provide a meaningful explanation of agency relationships to a buyer or a seller?

Select one of the following:

  • any time before the offer is presented

  • at the first practical opportunity at which the licensee and the buyer or seller has substantive contact

  • prior to writing the offer for the buyer

  • prior to asking the buyer his name and telephone number

Explanation

Question 27 of 115

1

What term in the SC license law replaced the common law term, principal?

Select one of the following:

  • Client

  • Attorney in fact

  • Master

  • Fiduciary

Explanation

Question 28 of 115

1

In South Carolina, which of these duties of an agent to a principal continues after the agency relationship has been terminated?

Select one of the following:

  • full disclosure

  • loyalty

  • obedience

  • confidentiality

Explanation

Question 29 of 115

1

What is a common law 'third party' called in the SC license law?

Select one of the following:

  • customer

  • client

  • master

  • fiduciary

Explanation

Question 30 of 115

1

When creating an agency relationship in SC between a real estate brokerage firm and a seller, what is required?

Select one of the following:

  • the seller and the brokerage firm must have a written agency agreement

  • there must be an agreement for the seller to pay a commission

  • the seller must have a clear title to the property

  • the seller and the brokerage firm must agree to a 180 day listing

Explanation

Question 31 of 115

1

A requirement for a non-resident to be eligible to receive a SC license is that they

Select one of the following:

  • not maintain a place of business within the state

  • reside in a state which grants reciprocity with SC

  • be licensed with a broker in charge licensed by SC

  • are a non resident for only 4 months a year

Explanation

Question 32 of 115

1

An unlicensed person negotiated the sale of real estate. The real estate commission is payable to

Select one of the following:

  • the broker

  • the salesperson

  • no one

  • an escrow holder

Explanation

Question 33 of 115

1

Before taking the South Carolina real estate sales examination, every applicant shall furnish evidence satisfactory to the Real Estate Commission of: successful completion of sixty classroom hours,

Select one of the following:

  • attain the age of 21 years and be a high school graduate or equivalent

  • attain the age of 18 years and be a high school graduate or equivalent

  • attain the age of 18 years and be a resident of this state

  • attain the age of 21 years and be a resident of this state

Explanation

Question 34 of 115

1

In the event that a licensee failed to renew her license,

Select one of the following:

  • no more real estate activity will be legal except transactions in which she is the principal

  • no commissions may be collected on the transactions she has not closed before her license expired

  • her license will be cancelled on September 30th

  • as of September 1st, she will be fined $75

Explanation

Question 35 of 115

1

When should a buyer's earnest money personal check be deposited in the trust account of the brokerage?

Select one of the following:

  • upon acceptance of both parties of the contract

  • within 48 hours of acceptance of an offer to purchase

  • within 48 hours after receipt

  • on or before the next banking day after receipt

Explanation

Question 36 of 115

1

A real estate salesperson in SC wrote an ad for her new listing: "Spacious executive brick home with great view of the mountains and priced to sell at only $625,000. Call 271-9732." What is wrong with this ad?

Select one of the following:

  • It does not contain the name of the real estate company.

  • It is offensive to certain groups.

  • It is in violation of the Fair Housing Act as amended in 1989.

  • It is in violation of Regulation Z.

Explanation

Question 37 of 115

1

The SC Real Estate Commission has the power to

Select one of the following:

  • act as an advisory board to the Governor.

  • create the standards for the employees of the SC Real Estate Commission.

  • suspend a license, find and impose jail sentences of up to 6 months

  • conduct disciplinary hearings and decide the punishment of those found guilty

Explanation

Question 38 of 115

1

When a salesperson receives a personal check as an earnest money deposit he must

Select one of the following:

  • give it to his broker no later than the following business day

  • place it in his own trust account

  • place it in the broker's general account

  • place it in the salesperson's special account

Explanation

Question 39 of 115

1

A very difficult sale results in a dispute between brokers A and B about earned commission. Broker A feels that the bonus offered should have been paid to him as a procuring cause and complains to the Real Estate Commission. Which is correct?

Select one of the following:

  • Commission disputes are not under the jurisdiction of the Real Estate Commission

  • He must submit his complaint in writing

  • Bonuses are always paid to the selling agent only

  • Both brokers will have to appear at a hearing before Commission members

Explanation

Question 40 of 115

1

By what authority does the state of South Carolina require a person to have a real estate license to practice real estate?

Select one of the following:

  • Commission power

  • State statute

  • Governmental authority

  • State Constitution

Explanation

Question 41 of 115

1

The real estate license law is an example of

Select one of the following:

  • good legislation

  • big government

  • police power

  • protectionism

Explanation

Question 42 of 115

1

The purpose of the real estate license law is to

Select one of the following:

  • provide revenue for the state

  • protect the people who are selling real estate

  • increase employment opportunities for salepersons

  • protect the public when involved in real estate transactions

Explanation

Question 43 of 115

1

J was found guilty of acting as a broker and an undisclosed principal in the same transaction. The decision of the Commission was to revoke J's license. What is the minimum time J must wait following revocation of his license, to be eligible for a new license?

Select one of the following:

  • three years

  • two years

  • nine months

  • six months

Explanation

Question 44 of 115

1

K, a licensed salesperson from Alabama, has a friend, M, in South Carolina who has listed his house for sale. K gave M's agent the name of a buyer who purchased the house. After the settlement, M's agent gave K's brokerage firm a referral fee. How is this legal?

Select one of the following:

  • K did not come into SC and help with the sale.

  • The referral fee is $500 or less.

  • The fee was paid in cash.

  • K's continuing education hours have been met.

Explanation

Question 45 of 115

1

Why are the requirements for continuing education mandated by the state?

Select one of the following:

  • to decrease liability for brokers

  • to protect the public's interest

  • to provide additional training for agents

  • to comply with Federal Statutes

Explanation

Question 46 of 115

1

Copies of all closing statements of transactions handled by a broker must be kept on file in his office for a period of

Select one of the following:

  • three years

  • five years

  • one year

  • two years

Explanation

Question 47 of 115

1

An agent received a cash deposit for a principal's property. The agent placed the deposit in his personal checking account and then wrote a check to his trust account. For this action, the agent was found guilty of

Select one of the following:

  • conversion

  • commingling

  • dual agency

  • secret profit

Explanation

Question 48 of 115

1

If a South Carolina Real Estate licensee guarantees a buyer a future profit, he should know that

Select one of the following:

  • he is doing the buyer a favor

  • he is not allowed to do this by SC license law

  • he must be a broker and five years of experience

  • he should also give the buyer legal advice

Explanation

Question 49 of 115

1

A real estate license may be revoked upon proof of the licensee

Select one of the following:

  • violating a buyer's right to choose an attorney or insurance agent

  • charging more than the usual rate of commission

  • having a dispute between a broker and a salesperson as to commission

  • refusing to accept a listing

Explanation

Question 50 of 115

1

What does the Statute of Frauds relate to in real estate?

Select one of the following:

  • Contracts for the sale of land or any interest in land must be in writing in order to be enforceable

  • Contracts for the sale of land or any interest in land must be notarized and witnessed in order to be recordable

  • Contracts for the sale of land or any interest in land must be in writing in order to be legal

  • When people go to court and testify about a real estate transaction, they must be at least 18 years of age

Explanation

Question 51 of 115

1

What is the purpose of the Statute of Frauds?

Select one of the following:

  • To provide reliable evidence of the existence and terms of a contract

  • To provide a system to prevent the bribery of a witness to a contract

  • To stop fraud in the sale of real estate

  • To make oral contracts against the law

Explanation

Question 52 of 115

1

Oral contracts for the sale of land are ____________ because of _____________

Select one of the following:

  • valid, good intentions

  • void, Statute of Frauds

  • unenforceable, good intentions

  • unenforceable, Statute of Frauds

Explanation

Question 53 of 115

1

Who must sign a contract for the purchase of real estate?

Select one of the following:

  • the buyer only

  • the seller only

  • the person to be charged

  • either the buyer or seller

Explanation

Question 54 of 115

1

A contract in which the agreements and terms are stated by both parties is _________ and when the consideration is an exchange of promises, it is also __________

Select one of the following:

  • implied, bilateral

  • express, unilateral

  • implied, executed

  • express, bilateral

Explanation

Question 55 of 115

1

A contract in which the terms are determined from observing the conduct of the parties in a/an _____________ contract.

Select one of the following:

  • express

  • unilateral

  • bilateral

  • implied

Explanation

Question 56 of 115

1

A contract in which a promise is exchanged for a promise is

Select one of the following:

  • bilateral

  • express

  • unilateral

  • implied

Explanation

Question 57 of 115

1

A contract in which both parties have met all obligations is

Select one of the following:

  • executed

  • express

  • executory

  • bilateral

Explanation

Question 58 of 115

1

A contract which lacks one or more of the essential elements of a contract is

Select one of the following:

  • executory

  • void

  • voidable

  • express

Explanation

Question 59 of 115

1

A contract which allows one of the parties to elect to be bound to the contract or escape its consequences is

Select one of the following:

  • executory

  • void

  • voidable

  • illegal

Explanation

Question 60 of 115

1

A proposal made by one person to another is called

Select one of the following:

  • a contract

  • a memo

  • a communication

  • an offer

Explanation

Question 61 of 115

1

There are 5 ways to terminate an offer. When an offeree turns down the offer, this is called

Select one of the following:

  • rejection

  • revocation

  • counter offer

  • lapse of time

Explanation

Question 62 of 115

1

When an offeror changes his/her mind and notifies the offeree before the offer is accepted, this terminates the offer by

Select one of the following:

  • revocation

  • rejections

  • counter offer

  • lapse of time

Explanation

Question 63 of 115

1

When an offeree accepts an offer by making changes in the original offer, it is a termination of the original offer and is called

Select one of the following:

  • counter offer

  • rejection

  • revocation

  • lapse of time

Explanation

Question 64 of 115

1

The elements of either fraud or misrepresentation are a misstatement of a ____ with _____ and ______

Select one of the following:

  • material fact, reliance by the other party, resulting damages

  • material fact, damages, deceit

  • fact, reliance, resulting damages

  • salesman, ignorance, carelessness

Explanation

Question 65 of 115

1

When the terms of a contract are completely satisfied by both parties, the contract is discharged by

Select one of the following:

  • performance

  • release

  • novation

  • accord and satisfaction

Explanation

Question 66 of 115

1

The substitution of a new contract for an old contract which discharges all obligations under the old contract is called

Select one of the following:

  • accord and satisfaction

  • performance

  • rescission

  • statute of limitations

Explanation

Question 67 of 115

1

A substitution of the parties to a contract which excuses the original parties is called

Select one of the following:

  • novation

  • performance

  • rescission

  • accord and satisfaction

Explanation

Question 68 of 115

1

Certain contracts may be discharged by a definite time limit within which a suit must be initiated. The laws governing this are called

Select one of the following:

  • Statute of Limitations

  • Statute of Time Limits

  • Statute of Frauds

  • Statute of Liberty

Explanation

Question 69 of 115

1

One situation that always terminates an offer but which is only an excuse for non-performance of a contract of sale when specifically stated in the terms of the contract is

Select one of the following:

  • mutual mistake

  • frustration of purpose

  • death of one of the parties

  • destruction of the subject matter

Explanation

Question 70 of 115

1

When one party to a contract fails to perform in whole or in part, gives advance notice that he/she does not intend to perform, or makes performance impossible, this is known as

Select one of the following:

  • fraud

  • misrepresentation

  • fraudulent misrepresentation

  • breach of contract

Explanation

Question 71 of 115

1

A court ordered K to pay P $50,000 in excess of P's out of pocket damages that resulted from K's fraudulent actions in relationship to his/her contract with P. What is this $50,000 called?

Select one of the following:

  • punitive damages

  • liquidated damages

  • compensatory damages

  • nominal damages

Explanation

Question 72 of 115

1

S's offer to purchase states that it will be kept open three days for acceptance. One day after making the offer, and before acceptance, S wants to withdraw it. The real estate agent should inform S that

Select one of the following:

  • the offer may be withdrawn without penalty

  • revocation means the forfeiture of earnest money

  • only in the event of death can the offer be revoked prior to acceptance

  • the offer is irrevocable

Explanation

Question 73 of 115

1

A contract was ambiguous in that numbers written as words differed from the numerals. Which of the following principles can be used to interpret this contractual ambiguity?

Select one of the following:

  • words take precedence over numerals

  • numerals take precedence over words

  • ambiguous contracts are void

  • the lesser amount would prevail

Explanation

Question 74 of 115

1

P leased an apartment to L under an oral lease. Which lease agreement is enforceable?

Select one of the following:

  • A lease for one month starting twelve months

  • A lease for three months starting in ten months

  • A lease for eight months starting in five months

  • A lease for eight months starting in four months

Explanation

Question 75 of 115

1

A purchase contract provision stating that the buyer shall forfeit the deposit if the buyer fails to complete the purchase is known as

Select one of the following:

  • liquidated damages

  • punitive damages

  • the safety clause

  • the subordination clause

Explanation

Question 76 of 115

1

K agreed in an enforceable written agreement to buy a lot from P for $30,000. K later refused to complete the purchase as agreed, and after extensive effort, P later found a buyer for the lot who would not pay more than $26,000. A court awarded P $4,000 in damages. Which term describes the damages?

Select one of the following:

  • compensatory

  • nominal

  • punitive

  • liquidated

Explanation

Question 77 of 115

1

The ________ establishes an agency relationship between the property owner as principal (client) and the brokerage as agent.

Select one of the following:

  • listing agreement

  • sales contract

  • personal services agreement

  • buyer's representation agreement

Explanation

Question 78 of 115

1

The listing agreement does which of the following ?

Select one of the following:

  • Creates an agency relationship between the listing salesperson and the property owner

  • Obligates the seller to sell if a full price offer is received

  • Employs a real estate brokerage to represent a buyer

  • Creates an agency relationship between the listing brokerage and the property owner

Explanation

Question 79 of 115

1

A brokerage agreement whereby the property owner hires one or more brokerages, agrees to compensate only the one brokerage who produces a buyer, and reserves the right to sell by himself and pay no agents, is called

Select one of the following:

  • open listing

  • net listing

  • exclusive right to sell

  • exclusive agency

Explanation

Question 80 of 115

1

A brokerage agreement whereby one one brokerage is hired by the owner, but the owner can sell his/her own property without incurring obligations to pay a commission, is called

Select one of the following:

  • net listing

  • open listing

  • exclusive right to sell

  • exclusive agency

Explanation

Question 81 of 115

1

A brokerage agreement that obligates the property owner to pay the commission to the listing brokerage regardless of who made the sale is known as

Select one of the following:

  • open listing

  • exclusive agency

  • exclusive right to sell

  • net listing

Explanation

Question 82 of 115

1

An owner says "I want to get $50,000 out of this property, and you can have anything over that amount as your commission." What would we call this arrangement?

Select one of the following:

  • net listing

  • open listing

  • exclusive right to sell

  • exclusive agency

Explanation

Question 83 of 115

1

A salesperson was told his/her brokerage's commission was too high. He responded by saying that everyone charges about the same. Which law may this have violated?

Select one of the following:

  • Federal antitrust laws

  • Federal obscenity laws

  • SC unfair trade laws

  • SC license law

Explanation

Question 84 of 115

1

The three practices that are forbidden by the Sherman and Clayton Acts are price fixing, allocation of customers and

Select one of the following:

  • allocation of markets

  • taking net listings

  • blockbusting

  • allocation of deed stamps

Explanation

Question 85 of 115

1

A listing contract creates an agency relationship and it may be terminated by

Select one of the following:

  • death of listing employee

  • failure to sell the property in 90 days

  • expiration of the term

  • listing with another agency

Explanation

Question 86 of 115

1

A brokerage firm earned a commission from the sale of a parcel of property when the firm is

Select one of the following:

  • a listing brokerage on the property that was sold

  • the procuring cause...the reason the property was sold

  • managed by a licensed broker in charge at the time the property was sold

  • managed by a licensed broker in charge, had a valid listing, and the property was sold

Explanation

Question 87 of 115

1

The owner received a full price all cash offer from the buyer. The terms of the exclusive right to sell listing gave the owner the right to take a purchase money mortgage for 80% of the purchase price at 7 1/2% for 20 years. Which of the following statements is true?

Select one of the following:

  • The owner may refuse this offer and owe the brokerage nothing

  • The owner may refuse this offer and owe the brokerage the full commission

  • The buyer may sue for specific performance

  • The brokerage may sue for full commission

Explanation

Question 88 of 115

1

In a contract of sale, mutual assent (offer and acceptance) is usually contained in the paragraph that identifies the contracting parties. The offer, in a real estate contract of sale, must be definite as to

Select one of the following:

  • price, time, and property

  • property, price, and terms

  • property, time, and location

  • terms, location, and parties

Explanation

Question 89 of 115

1

The mutual promises of the vendor (seller) and vendee (buyer) are sufficient

Select one of the following:

  • purpose

  • consideration

  • form

  • conditions

Explanation

Question 90 of 115

1

Which of the following is not true regarding earnest money deposits? They

Select one of the following:

  • are not essential to make a contract of sale binding

  • are paid by the buyer as evidence of good faith

  • may serve as liquidated damages if the buyer breaches contract

  • are required to make the contract of sale binding

Explanation

Question 91 of 115

1

When any agreement for the sale of real estate will include personal property, the personal property sale should be evidenced by

Select one of the following:

  • a bill of sale

  • the contract of sale

  • the listing contract

  • the deed of conveyance

Explanation

Question 92 of 115

1

When a purchase and sale agreement (contract of sale) is fully executed, ________ is transferred to the buyer.

Select one of the following:

  • equitable title

  • title

  • legal title

  • possession

Explanation

Question 93 of 115

1

When a property is under contract, normally the one holding ______ title assumes the risk of loss in the event of damage or destruction before conveyance, but by agreement, the liability may be moved to the one holding __________ title.

Select one of the following:

  • legal, equitable

  • absolute, legal

  • normal, equitable

  • equitable, legal

Explanation

Question 94 of 115

1

VA and FHA each require that the contract of sale include a certain statement. The basic subject matter of both of the added statements deals with which of the following?

Select one of the following:

  • The buyer does not have to complete the purchase if the appraisal is less than the sale price

  • The seller does not have to complete the sale if the appraisal is more than the purchase price

  • The buyer will be required to put more money down if the appraisal is less than the sale price

  • The seller is required to sell for a lower price if the appraisal is lower than the purchase price

Explanation

Question 95 of 115

1

Brokers are not normally a party to the contract. The agreement of a seller to pay a commission should be

Select one of the following:

  • in the listing agreement

  • in the purchase and sale agreement

  • included in both listing and purchase and sale in every case

  • agreed to orally since it is not under the Statute of Frauds

Explanation

Question 96 of 115

1

When the date for performance will not be met in a contract that contains the phrase "time is of the essence," it is sound prace to

Select one of the following:

  • have all parties execute a formal extension to avoid the possibility of litigation

  • assume the courts will allow for reasonable delays

  • get all parties to orally agree to another date (not to exceed 30 days)

  • get the parties together for a meeting of the minds to extend the date

Explanation

Question 97 of 115

1

A contract in which one makes an offer to sell to another, and the other gives valuable consideration to keep the offer from being revoked for a definite period of time, is called a/an

Select one of the following:

  • option to buy

  • option to sell

  • legally binding offer

  • bilateral contract

Explanation

Question 98 of 115

1

In an option to buy, the seller is called _________ and the buyer is _________

Select one of the following:

  • optioner, optionee

  • maker, payee

  • payee, maker

  • optionee, optioner

Explanation

Question 99 of 115

1

After the option has been exercised, the optionee gets

Select one of the following:

  • equitable title

  • title

  • legal title

  • possession

Explanation

Question 100 of 115

1

An option without valuable consideration is a/an

Select one of the following:

  • void contract

  • implied contract

  • executory contract

  • voidable contract

Explanation

Question 101 of 115

1

On June 1, K paid M $1,000 for a 60 day option to buy M's house for $230,000 cash at closing. The terms of the option gave 30 days, after the date of election, to close. On July 10, K sold his/her option to J. On July 28, J notified M that he/she would buy M's house and would close on August 15. Which of the following is true?

Select one of the following:

  • Options cannot be sold, therefore, J cannot buy unless M wants to sell to him/her.

  • All of the procedure was legitimate and J can buy on August 15.

  • If J changes his/her mind and decides not to buy after all, he/she is not guilty of breach of contract.

  • If M decides not to sell, he/she can get out of the deal by returning the $1000 plus 9% interest.

Explanation

Question 102 of 115

1

B told J that he/she could have a right of first refusal to buy his/her motel. Which of the following situations is correct?

Select one of the following:

  • If S makes B an offer that he/she finds attractive, he/she must make the same deal available to J before he/she can sell to S.

  • If J decides to buy, B must sell to him/her.

  • If S makes B an offer that he/she finds attractive, he/she is obligated to sell the motel.

  • If B decides to sell, J must make the first offer or lose his/her right of first refusal.

Explanation

Question 103 of 115

1

Property that is fixed, immovable, indestructible, and unique in character is

Select one of the following:

  • real property

  • intangible property

  • personal property

  • tangible property

Explanation

Question 104 of 115

1

The solid part of the surface of the earth, and the free or occupied space for an indefinite distance upwards, as well as downwards, is a definition of

Select one of the following:

  • land

  • tangible property

  • intangible property

  • improvements

Explanation

Question 105 of 115

1

Everything that is the subject of ownership not coming under the denomination of real property is called

Select one of the following:

  • personal property

  • corporeal property

  • incorporeal property

  • fixtures

Explanation

Question 106 of 115

1

A valuable addition made to real property, intended to enhance its value or beauty, or to adapt it for a new or further purpose, is known as a/an

Select one of the following:

  • improvement

  • fixture

  • appurtenance

  • trade fixture

Explanation

Question 107 of 115

1

Which of the following is an example of an improvement?

Select one of the following:

  • a paved road to or on the property

  • original vegetation, including trees

  • wallpapering the foyer

  • painting the living room

Explanation

Question 108 of 115

1

Articles, interests, and rights which attach to and pass with real property, such as rights of way, easements, outbuildings, and barns are called

Select one of the following:

  • appurtenances

  • fixtures

  • trade fixtures

  • tangible property

Explanation

Question 109 of 115

1

An item of personal property that has lost its identity as such because of the manner or method in which it has been associated with real property is known as a/an

Select one of the following:

  • fixture

  • appurtenance

  • trade fixture

  • tangible property

Explanation

Question 110 of 115

1

Items of personal property attached to rental property by the tenant to be used in connection with the business for which he/she occupies the premises are known as

Select one of the following:

  • trade fixtures

  • fixtures

  • appurtenances

  • improvements

Explanation

Question 111 of 115

1

The terms "use, possession, control, disposition" bring which legal theory to mind?

Select one of the following:

  • Statute of Frauds

  • bundle of rights

  • bundle of legal interests

  • statute of limitations

Explanation

Question 112 of 115

1

When a property is bordered by a non-navigable stream the

Select one of the following:

  • property line goes to the center of the stream

  • edge of the water forms the property line

  • owner may use the water any way he/she desires

  • owner has littoral rights

Explanation

Question 113 of 115

1

Relative to freehold estates, the term "_______" assures that one has the "bundle of rights" and will enjoy freedom from disturbances caused by defect in the title.

Select one of the following:

  • quiet enjoyment

  • non-possessory interest

  • complete property

  • possessory interest

Explanation

Question 114 of 115

1

One of a property's boundard lines, in a metes and bounds description, is N 30 degrees E 150'

Select one of the following:

  • The angle between the East-West line and the boundary line is 30 degrees toward North

  • Standing at the POB, the surveyor starts with her face toward North and then looks to the right down a line 30 degrees East

  • Standing at the POB, the surveyor starts with her back toward North and then looks to the left down a line 30 degrees toward East.

  • The angle between the North-South line is 30 degrees toward East.

Explanation

Question 115 of 115

1

A surveyor who wants to know the elevation above sea level of a certain location would first need to locate a/an

Select one of the following:

  • altitude mark

  • principal base line mark

  • benchmark

  • meridian base link mark

Explanation

Previous
Next