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Maine Quiz 1
Terms in this set (51)
1. In Maine, a person without a real estate license may:
A. Receive a referral fee.
B. Receive compensation for finding a buyer for a piece of property.
C. Sell a relative's house and receive a fee not to exceed 5%.
D. Call bids at a real estate auction.
Your answer: D. Call bids at a real estate auction.
2. Under Maine law, "real estate brokerage' means:
A. The full-time practice of real estate over a two year period.
B. To act solely for the client of a real estate agency to the exclusion of other affiliated licensees.
C. A single instance of offering, attempting to conduct, or conducting real estate services on behalf of another for compensation.
D. Any entity providing real estate services including property management and leasing.
Your answer: C. A single instance of offering, attempting to conduct, or conducting real estate services on behalf of another for compensation.
3. In Maine an agency that has a company policy that permits disclosed dual agency must provide a disclosed dual agency consent agreement to:
A. The seller as an addendum to the Purchase and Sale Agreement.
B. Prospective clients at the time of entering into a brokerage agreement.
C. The Real Estate Commission when opening a new real estate agency.
D. The settlement agent at closing.
B. Prospective clients at the time of entering into a brokerage agreement.
4. In Maine, property disclosure must be:
A. Signed by the seller.
B. Signed by the agent of the seller.
C. Available on the Multiple Listing Service.
D. In writing.
D. In writing. - Property disclosure must be provided in writing. Maine law does not require anyone to sign the disclosure. However, most designated brokers require the signature of the seller.
5. Jill lists a convenience store with an apartment on the second floor. The property is served by well water. Jill must ask the seller for disclosure information on:
A. The location of the private water supply.
B. Gross annual income of the convenience store.
C. The intent of the seller to offer seller financing.
D. How long the seller has operated a store on the property.
Your answer: A. The location of the private water supply.
6. Which of the following must a buyer agent disclose to his client regarding the heating system in a residential property?
A. The current price per gallon for heating fuel
B. The advisability of replacing electric baseboard heat
C. Malfunctions within the past two years
D. Malfunctions during the time the seller owned the property
Your answer: C. Malfunctions within the past two years
7. In Maine, information regarding the location of a leach field must be disclosed to the buyer:
A. Prior to or during the preparation of the offer.
B. At the time of the septic inspection.
C. Only if requested in the Purchase and Sale Agreement.
D. Orally during the first showing of the property.
Your answer: A. Prior to or during the preparation of the offer.
8. In Maine, a licensee is NOT required to provide a copy of the Real Estate Brokerage Relationships Form to a prospective buyer or seller:
A. For a property with less than 1 or more than 4 residential dwelling units.
B. If the licensee is acting solely as a principal, not as an agent for another.
C. When the written communication from the licensee is a solicitation of business.
D. All of the above.
Your answer: D. All of the above.
9. In Maine, a seller agent's obligations to his or her client would include:
A. Hosting an open house.
B. Presenting additional offers after the property is securely under contract with a confirmed closing date.
C. Advising the seller on matters pertaining to hazardous materials on the property.
D. Being present at all showings of the property.
Your answer: B. Presenting additional offers after the property is securely under contract with a confirmed closing date
10. A Maine licensee shall disclose, in the offer to purchase, that the licensee is acting in self interest and that she is a real estate licensee EXCEPT when:
A. Selling her own primary residential home.
B. Buying real estate not listed with a real estate agency.
C. Buying real estate listed with the licensee's agency.
D. Buying real estate and sharing in the brokerage fee resulting from the sale.
Your answer: A. Selling her own primary residential home
11. When it comes to assuring good title, Maine is a:
A. Race state.
B. Notice state.
C. Race Notice state.
D. Community property state
Your answer: C. Race Notice state.
12. The best way for a licensee to determine the boundaries of a property is to:
A. Walk the property with the seller to locate the monuments.
B. Check the records at town hall.
C. Ask the seller.
D. Have the property surveyed by a licensed surveyor.
Your answer: D. Have the property surveyed by a licensed surveyor.
13. In Maine, when must a licensee furnish various documents, including copies of offers, counteroffers and all types of contracts to a consumer?
A. At the time of their signatures
B. Within a reasonable amount of time after their signatures
C. Prior to depositing any earnest monies in the agency trust account
D. Prior to the seller signing the deed
Your answer: A. At the time of their signatures
14. The Maine Real Estate Commission requires that heating system disclosures be presented to a buyer:
A. Prior to or during the preparation of an offer.
B. Prior to the buyer signing the mortgage and note.
C. Before the closing.
D. After the buyer's offer is accepted by the seller.
Your answer: A. Prior to or during the preparation of an offer.
15. Which of the following is required to hold an active real estate license in order to be compensated for selling real estate on behalf of another?
A. An auctioneer who calls bids at a real estate auction but does not hold the earnest money or assist with the Purchase and Sale Agreement
B. An attorney who frequently lists and sells property as a regular part of his practice
C. Timeshare sales people
D. Rental agents
Your answer: B. An attorney who frequently lists and sells property as a regular part of his practice
16. A designated broker in Maine is:
A. Responsible for the brokerage activities of anyone in her real estate brokerage agency.
B. Any licensee with an active Broker license.
C. A former licensee who is not actively engaged in the practice of real estate.
D. An attorney who assists a client with a real estate transaction.
Your answer: A. Responsible for the brokerage activities of anyone in her real estate brokerage agency.
17. Betty wants to purchase a seasonal property with an onsite sewage disposal system in a Shoreland Zone and convert it to her year-round residence. As her agent, you advise her to make her offer contingent on:
A. Meeting with the town code enforcement officer to apply for a permit.
B. Receiving a seasonal conversion permit from the local plumbing inspector.
C. Receiving a non-conforming use permit from the local zoning board.
D. Receiving a permit from the Department of Environmental Protection.
Receiving a seasonal conversion permit from the local plumbing inspector
18. Which law requires review of developments that may have a substantial effect upon the environment and occupy more than 20 acres?
A. Shoreland Zoning Act
B. Site Location of Development Law
C. Sherman Anti-trust Act
D. Fair Housing Law
Site Location of Development Law
19. The Shoreland Zoning Law is primarily administered through:
A. Each municipality.
B. The Environmental Protection Agency.
C. The Maine Real Estate Commission.
D. The Department of Labor
Your answer: A. Each municipality. - Yes, the Shoreland Zoning Law is primarily administered through each municipality.
20. Bill purchases his neighbor's farmhouse and learns there is a metal underground storage tank on the property. Bill has 10 days to:
A. Dig up and replace the tank.
B. Notify the Department of Environmental Protection of the change in ownership.
C. Notify his neighbors of his intentions regarding his use of the tank.
D. Discontinue use of the tank.
Your answer: B. Notify the Department of Environmental Protection of the change in ownership.
21. Which of the following is NOT a violation of Maine Fair Housing Law?
A. A seller refuses to consider an offer because of the buyer's sexual orientation.
B. The owner of a rental property refuses to rent to a 16 year old tenant.
C. A seller instructs his listing agency to tell any Hispanic buyers that the property is no longer for sale.
D. A seller decides not to accept an offer from the buyers because the buyers are of French-Canadian ancestry.
Your answer: B. The owner of a rental property refuses to rent to a 16 year old tenant.
22. Henry purchases a camp in an unorganized township in Maine. He plans to expand the camp and live there after he retires. Which agency would he contact to obtain a building permit?
A. Land Use Planning Commission
B. Department of Fisheries and Wildlife
C. Attorney General's office
D. Department of Environmental Protection
Your answer: A. Land Use Planning Commission
23. Lucinda is selling her condominium unit. Which of the following must she must provide to the buyer of her unit?
A. A current resale certificate
B. The bylaws
C. The rules and regulations of the association
D. All of the above
Your answer: D. All of the above
24. Condominium associations must furnish a certificate containing the information required for the unit owner to comply with the Maine Condominium Act:
A. At least 3 days prior to the closing.
B. Within 10 days of the request of the unit owner.
C. Before the property is listed for sale.
D. Within 3 days of notification of the contract for sale.
Your answer: B. Within 10 days of the request of the unit owner.
25. What is the amount of Maine Transfer Tax paid by the seller on a property that sells for $369,195?
Your answer: A. $812.90
3695,195/500 = 738.39, round up 739 x 2.2 =1 625.80/2 = 812.90
26. When Grandpa Eli dies, his farm was divided into 6 separate parcels and distributed to each of his 6 grandchildren according to his will. Which of the following statements is true?
A. Grandpa Eli's will created a subdivision.
B. If 3 of the grandchildren decide to build homes on their parcels, a subdivision will have been formed.
C. A subdivision has not been created because there are no buildings on the property.
D. No subdivision has been created because the division was accomplished by devise.
Your answer: D. No subdivision has been created because the division was accomplished by devise.
27. Any person transferring property with a subsurface waste water disposal system located within the Shoreland Zone must provide to the buyer a written statement by the seller as to whether the system has malfunctioned during the 180 days preceding the date of:
A. The closing.
B. The effective date of the Purchase and Sale Agreement.
C. The home inspection.
D. Final mortgage approval.
Your answer: A. The closing.
28. A new lot that abuts a lake must have at least how many feet of frontage on the water?
A. 75 feet
B. 100 feet
C. 200 feet
D. 250 feet
Your answer: B. 100 feet
29. The minimum lot size required for residential development with a private septic system is:
A. 10,000 square feet
B. 20,000 square feet
C. 40,000 square feet
D. 80,000 square feet
Your answer: B. 20,000 square feet
30. In Maine, the amount of the brokerage agency's funds that may be in the real estate trust account may not exceed:
Your answer: A. $500
31. Disclosure of material defects of the property must be made to:
A. The agent of the buyer.
B. The buyer.
C. The title attorney presiding at the closing.
D. The Home inspector.
Your answer: B. The buyer.
32. Which of the following is an example of a ministerial act that an agent of the seller may provide to an unrepresented buyer?
A. Suggesting a negotiating strategy so that the buyer may get a good price on the property.
B. Filling in the blanks on a Purchase and Sale Agreement form at the direction of the buyer.
C. Providing a Comparative Market Analysis (CMA) to the buyer.
D. Informing the buyer of the seller's motivation for selling.
Your Answer: B. Filling in the blanks on a Purchase and Sale Agreement form at the direction of the buyer.
33. Except in the case of an emergency, how many hours notice must a landlord give a tenant before entering the tenant's apartment?
A. 12 hours
B. 24 hours
C. 48 hours
D. 72 hours
Your answer: B. 24 hours
34. In Maine, a title search goes back at least how many years to rest on a warranty deed?
A. 10 years
B. 25 years
C. 40 years
D. 100 years
Your answer: C. 40 years
35. The Real Estate Brokerage Relationships Form does NOT need to be presented to the buyer of:
A. An 8 unit apartment house.
B. Commercial property with no residential component.
C. Vacant land.
D. All of the above.
Your answer: D. All of the above
36. Which of the following statements about the Maine Real Estate Commission is true?
A. There are 2 industry members and 4 public members.
B. The Commission may assess a fine of up to $3500 per violation.
C. The commission employs a Director who is responsible for the day-to-day business of the commission.
D. No industry members are permitted to service on the Commission.
Your answer: C. The commission employs a Director who is responsible for the day-to-day business of the commission.
37. What type of listing is prohibited in Maine?
A. Net listing
B. Open listing
C. Exclusive agency listing
D. Exclusive right to sell listing
Your answer: A. Net listing
38. Whose duty is it to oversee all advertising placed by the affiliated licensees of Pine Cone Realty to ensure that it complies with the law and rules of the Maine Real Estate Commission?
A. The designated broker of Pine Cone Realty
B. The individual affiliated licensees of Pine Cone Realty
C. Unlicensed assistants employed by individual licensees of Pine Cone RealtyD
. The chair of the Maine Real Estate Commission
Your answer: A. The designated broker of Pine Cone Realty
39. Which of the following is an example of a permissible use of a real estate trust account in Maine?
A. The designated broker may deposit rent receipts in the trust account.
B. The agency may place up to $500 in the account for the purpose of maintaining the account.
C. The bookkeeper may draw checks from the account in order to pay the person who cleans the real estate office building each night.
D. The designated broker may pay the costs of providing health insurance to the company accountant out of the trust account.
Your answer: B. The agency may place up to $500 in the account for the purpose of maintaining the account.
40. What level of license must the licensee earn in order to be a designated broker?
A. Sales Agent
B. Associate Broker
Your answer: C. Broker
41. Under what sales price of a Maine property sold by a non-resident does the seller does not owe any Maine Nonresident Withholding tax?
Your answer: A. $100,000
42. How long does the designated broker have to deposit an earnest money check after acceptance of the offer?
A. 2 calendar days
B. 2 business days
C. 5 calendar days
D. 5 business days
Your answer: D. 5 business days - You are correct. Earnest money checks must be deposited within 5 business days after acceptance of the offer.
43. Which of the following is a protected class under Maine Fair Housing Law?
A. Sexual orientation
C. Marital status
D. Pet owner
Your answer: A. Sexual orientation
44. A Maine real estate licensee is convicted of driving under the influence in Montana. Which of the following statements in true?
A. She must report the conviction to the Maine Real Estate Commission no later than 10 days after the conviction.
B. Her Maine real estate license is automatically suspended.
C. She must report the conviction to the Maine Real Estate Commission when she next renews her license.
D. The Maine Real Estate Commission automatically imposes a fine of $2000.
Your answer: A. She must report the conviction to the Maine Real Estate Commission no later than 10 days after the conviction.
45. When must a copy of a contract must be provided to the parties who signed it?
A. At the time of signatures
B. As soon as practicable
C. Within 48 hours
D. Within 7 days
Your answer: A. At the time of signatures
46. Sean is a title examiner performing a title search for 222 Oak Street. For how many years back in time must Sean research this title (assuming that the search "rests" on a warranty deed at the earliest date of this time period)?
A. 15 Years
B. 40 years
C. 50 years
D. 100 years
Your answer: B. 40 years
47. Within how many days after they have been signed must a licensee provide copies of documents to the designated broker?
A. 5 calendar days
B. 10 calendar days
C. 15 calendar days
D. 20 calendar days
Your answer: A. 5 calendar days - The licensee must provide copies of of all real estate brokerage documents prepared in a real estate transaction to the designated broker within 5 calendar days after a document has been signed.
48. At a maximum, for how many months may a listing agreement carry over? Assume that the client does not subsequently sign an exclusive listing agreement with another real estate brokerage agency.
A. 2 months
B. 4 months
C. 6 months
D. 8 months
Your answer: C. 6 months
49. Where are you most likely to find information about any building permits issued in the past for a property located in the city of Lewiston?
A. Lewiston City Hall
B. The county registry of deeds
C. Probate court
D. Maine Department of Natural Resources
Your answer: A. Lewiston City Hall
50. Where are you most likely to find whether zoning ordinances allow a day care center to be located at a particular property in the town of Harrison?
A. The county registry of deeds
B. Harrison Town Hall
C. Department of Environmental Protection
D. Harrison Fire Department
Your answer: B. Harrison Town Hall
51. Janet is the licensee working for the buyer of 444 Spruce Street. The buyer's offer is accepted on Monday. By which day must Janet provide her designated broker with a copy of the signed Purchase and Sale Agreement?
Your answer: D. Saturday - (5 Calendar Days) Janet must provide her designated broker with a copy of the signed document with 5 calendar days.
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