Terms in this set (309)
If a contract for the purchase of real estate is to be enforceable, consideration must be sufficient relative to the value in order to enforce a suit for:specific performance.A contract is non-assignable when:it is a personal service contract.Able accepted an offer from Baker to purchase Blackacre. Before the contract was formally accepted, Baker made inquiries and was assured the property was connected to a sewer line. The contract was accepted, but escrow had not yet closed when Baker discovered that there was not a sewer connection, but that a new septic tank had been recently installed on the parcel. Baker could:rescind the contract/back out of the contract before close of escrow.If an offer is refused by the seller, the broker will try to obtain:a counter offer.A minor or incompetent person may:acquire real property through gift or inheritance.A contract to purchase an office building that is conditional upon obtaining satisfactory leases is called:an enforceable contract.The purchaser of an apartment building puts a contingency making the offer subject to the buyers obtaining a satisfactory lease, this is:an illusory contract.Consideration for a contract can be:-money to be paid -promise to perform an act -a service to be performed in the futureWhich of the following would not terminate an offer to purchase real estate?The offeror communicates notice of revocation after the offeree has properly posted acceptance.Able gave Broker Charlie a listing and promised to pay him a 6% commission if he finds a suitable buyer. This is:a bilateral executory contract.Which of the following contracts falls under the Statute of Frauds:Any agreement which is not to be performed within one year.Which of the following statements is false?An option binds the optionee to performance.The buyer and seller sign the liquidated damages clause in the purchase contract. The buyer defaults, the deposit is:divided equally between the seller and the listing agent.Able sold real property to Baker, who was declared incompetent in a court of law:the contract is void.Who can enter into a valid contract to purchase real estate?AliensAble obtained a 60 day option to purchase a parcel of real property for $20,000. He paid $1 for the option:the option is valid if the $1 was actually delivered.All of the following are essential elements of each and every contract except:WritingWhen is a broker relieved of the obligation to present an offer?When the offer is patently frivolous.None of the following would automatically terminate an offer to purchase real property except:rejection of the offer by the offeree.Able made an offer to purchase a parcel of real property. He died before the listing broker could notify him of an unqualified acceptance by the seller. Which of the following is true?the death of Able constituted a revocation of the offer.None of the following may enter into a valid contract except:aliens.An option is:a contract to keep an offer open.Which of the following is not covered under the Statute of Frauds?leases for less than one year.A seller accepts a buyers offer in writing, however, the buyers broker receives a letter canceling the offer before he communicated acceptance to the offeror. Which of the following is correct?The offeror will receive a full refund of his deposit.An option:-does not create an interest in land and is assignable. -is a unilateral contract. -does not require the optionee to exercise the option.If an offer is not accepted within the terms of the offer:the offeror will receive a full refund of the deposit.An offer usually must be accepted:within a reasonable period of time.A mutually signed contract that is executed prior to receipt of a binding deposit is:valid.A seller promises to pay a commission if the broker finds a buyer and the broker promises to use diligence in finding the buyer, this is called:a bilateral executory contract.An option to buy becomes binding when:purchaser exercises his right to purchase.Laches:is losing a right by failing to assert a right in a timely manner.With regard to contracts:handwritten items take precedence over printed items.A rider is:an addition or amendment to a document.An offer can be terminated by:seller rejects offer.A failure to perform a duty is called:a breach of contract.An offer to perform is called:a tender.A promise given in exchange for a promise is called:consideration.Able holds a two year lease with an option to purchase and assigns it to Baker. Which of the following is correct?Baker would now hold the option.If Able tenders the asking price within one month as agreed, Baker must:perform under the option agreement.A minor owns a farm and asks his father to sell the farm for him. Escrow closes and then the buyer changes his mind. Which of the following is correct?The transaction is void because a minor is incapable of delegating power and must have court approval.Novation is most closely related to:substitution of a new contract for an old one.A contract to keep an offer open for a specific period of time is:An optionThe following are correct statements concerning an option, except:the optionee must perform if the optionor exercises his option within the period specified.An agents commission is usually limited to negotiations unless the following is included:liquidation damages clauseConcerning options, which of the following is the most correct statement?If a lease contains an option to purchase, this right normally will pass with an assignment of the lease, even if the option is not specifically mentioned in the assignment of the lease.A grandfather clause:is prearranged.Consideration can be:-Money -performanceAn offer is made, acceptance is not communicated back to the offeror and then the offeror dies. The:contract has not been formed.In an option agreement, the owner of the option is the:OptioneeA minor can acquire real property by:gift or inheritance.A contract is:an agreement to do or not to do something.Real estate contracts are written instruments because of the:statute of fraudsThe Statute of Frauds was designed to prevent fraudulent proof of:a fictitious oral agreement.Which of the following contracts is one where the seller agrees to pay the licensee a commission if the licensee agrees to use diligence in finding a buyer?bilateral executory contractWhich of the following is not required for a valid contract?MoneyA valid contract requires:a genuine offer and genuine acceptance and a meeting of the minds.A divorced person under 18 years of age wants to list her home with a broker:the broker can take the listing.If a person is formally committed to a mental institution, all of their subsequent contracts will be:void by statute.A minor can receive title to real property by gift or inheritance without court approval. However, the minor:cannot convey the real property without court approval.Which of the following have the capacity to contract?aliensIf a person is declared mentally incompetent:a conservator is appointed for the person by the court.An offer may be terminated by:offeree making a counter offer.Seller Able listed a property with Broker Baker for $86,000. Buyer Charlie submitted an offer of $80,000 that would expire in four days. The next day Seller Able made a counter offer of $83,000. When Buyer Charlie did not respond to this counter offer within the four day period, Seller Able accepted the original offer of $80,000 from Buyer Charlie and instructed Broker Baker to deliver it to buyer Charlie. Buyer Charlie informed Broker Baker that he had changed his mind and did not want the property. Seller Able insisted that they had a deal. In this case there is:a void contract.A deposit receipt and offer to purchase a property becomes enforceable:when the buyer is notified of the seller accepting the offer.If an offer comes in without a deposit, the:agent can accept it but must advise the seller that there is no deposit.If a buyer makes an offer to a seller and the seller changes the terms of the offer, this is:a rejection by the offeree.When a spouse sells separate property on his own, the contract is:ValidA purchase agreement is:an offer.If Able sells property to Baker, each party performed fully, and then Able dies:there is a valid contract.An offer is made, acceptance is not communicated back to the offeror, and the offeror dies:A contract is not formed.An auctioneer is not required to take a bid on a foreclosure sale unless the auction is:without reserve.An auctioneer is:A sellerIn which type of auction is the auctioneer required to accept bids?without reserve.An auctioneer sets a minimum bid to begin an auctions. Someone offers to buy at 10% more than the opening bid. The auctioneer must accept this bid in an auction:without reserve.Consideration is defined as:-services rendered. -a promise to perform an act. -an exchange of money.To be binding, every real estate contract must have:consideration.The Statute of Frauds requires all real estate contracts to be in writing, this includes:agreements that are not to be performed within one year of their making.A unilateral contract is:an open listing.An unenforceable contract is:an oral contract to purchase real estate.A contract for the sale of community property signed by the husband only is:voidable.If a person is formally committed to a mental institution, all of their subsequent contracts will be:VoidAble holds a two year written lease with an option to purchase at a stated price. If Able assigns the lease to Baker:Baker would now hold the option.Which of the following will force the seller to sell the property?specific performanceThe liquidated damages clause in a real estate purchase contract has been initialed by both buyer and seller. The buyer subsequently receives news of a job transfer and decides not to buyer the property. Under these circumstances, the deposit is:given 50% to seller and 50% to broker.An option is:a contract to keep an offer open.An agreement not to close an offer is called:an option.If a seller rescinds a contract because a buyer defaults, what happens to the earnest money deposit given by the buyer if the parties did not initial the liquidated damages clause in the purchase contract?It must be returned to the buyerIn an option agreement, the owner of the option is the:optioneeConsideration can be:-money -performance -act of forbearanceConcerning options, which of the following is the most correct statement?If a lease contains an option to purchase, this right normally will pass with an assignment of the lease, even if the option is not specifically mentioned in the assignment of the lease.A Grandfather Clause:is prearranged.Consideration can be:Money and performanceAn offer is made, acceptance is not communicated back to the offeror and then offeror dies. The:contract is not formed.A purchase agreement is presented to the seller's agent and the seller's agent knows the seller will not like it. The seller's agent crosses out items and initials them for his seller. The result is:This is illegal.A "waiver" is:a unilateral act and accepting its legal consequences.Able is a minor. He asks his father to help him sell Blackacre that he received through inheritance. A real estate broker is used to sell the property. Two weeks after close of escrow, Able changes his mind. Under these circumstances:the contract is void because Able is a minor.According to the Statute of Frauds, which of the following must be in writing?An agreement by a purchaser to pay an indebtedness secured by a trust deed upon the property being purchased.All of the following statements regarding options are true, except:The option binds the optionee to performance.Which of the following contracts is unenforceable?Net listing where the broker does not disclose his compensation.A suit for specific performance will least likely be successful under which of the following scenarios?A broker does not use diligence in dealing with his principal.All of the following are true regarding an option, except:The optionee acquires a legal interest in the property."Adequate, valuable, good, and sufficient" relate to:considerationIn a counter offer:the offeree becomes the offerorAn attorney-in-fact:is a person who has been given the right to act on behalf of anotherA buyer and seller sign a contract and then die:there is a valid contractAn agent goes to the seller and changes the terms of the contract. The agent then signed the buyer's name. This is:unethical and illegalIf a buyer and seller enter into a valid binding contract and one of the parties dies or becomes incompetent, the contract is:valid, if it was signed before the party died or became incompetent.A broker holds an option on his listing agreement, he must disclose that he is acting as a __________ to prospective buyers.principalAn agent chooses to act on an option granted to him by the seller. In presenting his offer, the agent should:-disclose all material facts known to him about the property. -disclose any and all profits that will be made on the purchase. -disclose/present any and all other offers that have been provided to the agent up to this time.Seller Able accepted an offer on his home and the acceptance was communicated back to the buyer. Prior to opening escrow, however, Seller Able received an all cash offer to purchase the property. He decided to cancel the original contract and notified Broker Baker of his decision. Which of the following is most correct?Broker Baker has a good legal basis to collect a commission (excellent chance).When accepting an offer on his home, Seller Thomas changed one of the terms of the buyers offer. This is best described as:A counter offerA person enters into a contract and agrees not to terminate the contract for a certain period of time. This is called a(n):OptionA seller may accept a buyer's offer:by fax/facsimileIf there is a conflict between a preprinted contract and handwritten terms and conditions, which will prevail?The handwritten terms and conditions will take precedence over preprinted items.Broker Able listed a property from seller Baker, and reserved an option for him to purchase the property himself. If Broker Able exercises the option he must:The broker must do all of the aboveA broker holds a purchase-option on land owned by Nelson. When exercising the option to purchase the broker must disclose to Seller Nelson that the broker is:the principalThe term "express contract" describes a contract which is expressed:in words, either oral or writtenA contract based on an unlawful consideration is:VoidA contract based on illegal consideration is:VoidIf a contingency is put into a contract, it is important to be specific about the:-nature of the contingency -duration of the contingency -method by which the contingency will be removedThe legal meaning of the word waiver, as it is applied to real estate transactions, most nearly means:a unilateral act and its legal consequencesMost contracts between a seller and broker for the purpose of selling real estate are in the form of:a written agreementJones gave Smith a power of attorney to sell his home. All of the following statements are correct, except:Smith may legally deed the property to himself, only if the selling price equals or exceeds the fair market value.If a broker does not disclose his membership in a corporation that is buying property listed with the broker, the purchase contract is:voidable by either partyIf one person is delegated by an instrument to act officially on behalf of another, that person is called a(n):an attorney in factAbrogation means:contract rescissionIf a broker does not disclose his membership in a corporation that is buying property listed with the broker, the purchase contract is:voidable by either partyIf a buyer defaults on a purchase contract and the seller subsequently rescinds the contract, the seller should:return anything of value received from the buyer and the buyer should return anything of value received from the sellerWhich of the following would be defined as a unilateral act and its legal consequences?waiverWhen a tenant agrees ahead of time to recognize and pay rent to the new owner of an income property (apartment), this is called:novationA verbal acceptance of an offer for the purchase of real estate with a broker would constitute a contract that was:unenforceableAll of the following are considered contracts, except:grant deedThe Statute of Frauds does not apply to:a partnership formed to invest in real propertyA corporation listed a property for sale with a broker. Subsequently, the entire slate of officers were killed in a plane crash. The listing is:ValidA valid contract requires all of the following, except:A deedIf an unemancipated 17 year minor enters into a contract, it is:VoidableWhen a person fails to perform any of the terms and conditions of a contract, this is called:A breachIf a 17 year old inherits a parcel of real property and deeds it to another party. After he turns 18 years old, he decided he wants the parcel back. He would:be able to get his property backA power-of-attorney can be terminated by:-incapacity of the parties to the power of attorney -revocation by the principal -death of the attorney-in-factA verbal lease for a year or less would be:enforceableIf a person fails to do something in the required period of time, this is called:lachesA tenant verbally agrees to rent a house for six months. One month later the tenant decides to move out. Which of the following is correct?It is an enforceable contractWhen a legally competent person has been given the power to perform certain acts for another legally competent person, this is known as:a power of attorneyAll property sales and purchases are required to be in writing:to be enforceableA verbal agreement between two real estate brokers to split a commission is:enforceableWhen an offer is made by a buyer and accepted by the seller, which of the following is correct?the buyer would not receive title to the propertyAble paid a property owner $100 as consideration for an option to purchase a property. The option contained a clause stating that the option was to be for a duration of 60 days from June 1, 2007 and upon exercising the option, the holder is to purchase the property for all cash within 30 days thereafter. On July 10, 2007 Able sold and assigned his option for $1,000. On July 28, 2007 the new holder of the option notified the owner that he would purchase on August 15, 2007. The owner claimed the option was void. Which of the following is true?The option was valid and the assignee could purchase the property on August 15, 2007An advance fee contract requires all of the following, except:a guarantee that the sale, lease, or exchange will be completed.Tenant Able agrees to fix certain items for Owner Baker. After many promises, Owner Baker realizes that Tenant Able is not going to fix the items. Owner Baker then writes up a contract compelling Tenant Able to fix the items, and Owner Baker also threatens to evict Tenant Able if he does not comply. Such a contract would be:voidable by Tenant AbleIf an offeror communicates a notice of revocation after the offeree properly posts a notice of acceptance, this will:not terminate an offer to purchase real propertyA prospective purchaser can revoke or withdraw an offer:at anytime and for any reason before the sellers acceptance of an offer has been communicated back to the purchaserAn option:-does not bind the optionee to performance -binds the optionorConsideration for a valid contract would include:-a promise made in consideration of marriage -a promise to paint a unconstructed building -a promissory note that does not pay any interestIf a buyer makes an offer to purchase a property on October 2nd and the terms allow the seller five days for acceptance, but the seller did not accept the offer until October 10th, the buyer can:demand the return of his depositWith an option:-title acquired by exercising an option dates back to the time of the option and any intervening rights are cut off as long as they were aware of the existence of the option -only the optionor is bound to sell the property -the optionee has no interest or estate in landA licensed real estate broker:cannot bring an action for specific performance on behalf of her principalThe Statue of Frauds requires real estate contracts to beWrittenA seller issues a counter offer and the offeree rejects it. What can the seller do?Do nothingIf a buyer or seller dies before a contract is consummated, what happens?the contract is enforceableIf the seller changes his mind regarding selling a property and the buyer wants to gain access to the title, what could the buyer do?Institute a suit for specific performanceA buyer dies after mailing an offer into a seller. What happens to the offer?The offer is terminatedAn option is 60 days in length and expires on June 1. The optionee assigns the option to a new optionee. It was stipulated in the option that the price must be paid with all cash. On August 15 the optionee wants to exercise the option. The property owner says the option is void. Which is most correct?the option is void because it was past the dateA seller issues a counter offer and the offeree rejects it. What can the seller do?Do nothingIf the seller changes his mind, and the buyer wants to gain access to the title, what could he do?Specific performanceA clause that allows a buyer who cannot arrange financing to cancel the contract is called:a contingency clauseA real estate broker may use an oral agreement:as long as he can prove in court that he was involved by showing emails, phone records, etc. then he can recover his commission for negotiating a month-to-month rentalA minor signing a real estate contract makes the contract:VoidAn attorney-in-fact cannot perform real estate transactions on behalf of her principal without:recording the power of attorneyAll of the following are required to be in writing under the Statute of Frauds, except a(n):general partnership agreementThe legal doctrine of specific performance uses the fact that:no two parcels of real property are the sameA buyer withdraws her offer to purchase a home prior to acceptance by the seller. Which of the following is correct?There is no contract so the buyer can withdraw his offer and receive a refund of her earnest money depositWhich of the following must be in writing?an agreement by a buyer to assume a trust deed loanIf a buyer dies before being notified of the seller accepting his offer:the offer is revoked because the death of either party terminates an offerAn offer is made by the buyer and was accepted by the seller. The seller dies a day after this. Since the buyer was not notified of the seller's acceptance of his offer:the offer is terminated with the death of the sellerA one year apartment lease signed by an unmarried 17 year old is:invalidA voidable contract is:valid now but can be voided by interested parties in the futureA real estate option would include:lack of mutuality of contractIf a buyer pays a deposit and then backs out of the sale for no valid reason:the buyer would have the deposit returned to themA broker-owner relationship that is established by a listing agreement generally is a(n):-bilateral contract. -employment contract. -promise for a promise.A broker has listed a sellers home using an exclusive agency listing agreement. The exclusive agreement is for four months. During this time, the broker expends considerable time, effort and money marketing and advertising on behalf of the seller. Ten days before the date the listing is to expire, the seller decides to sell his home to his next door neighbor. The seller now owes the broker:no commission.A real estate broker need not prove that he is the procuring cause when:an exclusive right to sell listing is used.A broker licensee can legally claim a commission for:the sale of a property on which he/she had an exclusive authorization to sell with a definite termination date.If an owner signs an exclusive authorization and right to sell listing but later cancels the agreement, the:owner can cancel the contract, but may be liable for payment of damages under the agreement.Property owner Able gave an exclusive right to sell listing to his broker Baker for a period of 90 days. The agreement provides that broker Baker would earn a 6% commission. Broker Baker commenced efforts to sell the property, advertising it extensively. Thirty days later, Able sent a certified letter to Baker canceling the listing agreement. He indicated that, because he was giving an open listing to other brokers, he did not owe Baker a fee. The terms of the open listing provide for a 5% commission to be paid. Thirty days later one of the agents, to whom Able had given an open listing, sold the property. In this instance:the seller would be liable to pay commissions to both broker Baker and the broker who sold the property through the open listing.An owner listed his property for sale with a broker, but sold it himself without utilizing any of the brokers services. He was obligated to pay the listing real estate broker a commission. The type of listing was:exclusive right to sell listing.In order to be entitled to a commission, a broker must show that he/she was the procuring cause of the sale under all of the following listings except a/an:Exclusive authorization and right to sellIn an open, non-exclusive listing situation, the broker who most likely would be paid a commission is the one who has:communicated acceptance of offer to the offeror.In the event a buyer of a single-family, owner-occupied residence defaults under a purchase contract in which both parties had initialed the Liquidated Damages Clause, the maximum the seller can retain would be:3% of the purchase price, not to exceed the amount of deposit.The Liquidated Damages Clause in a real estate purchase contract has been initialed by both the buyer and the seller. The buyer subsequently receives news of a job transfer and decides not to buy the property. Under these circumstances, the deposit:will be divided equally between seller and listing broker.The words time is of the essence appear in the:deposit receipt and purchase contract.At 12:00 noon, Baker made an offer to purchase a single-family residence. He instructed his real estate broker not to present his offer until 6:00 PM. By 6:00 PM, three more offers had been submitted. The real estate broker should:present all offers to the property owner simultaneously as soon as possible.A broker has two offers on the same property. The two offers are from salespeople within his office and both have given deposits. The broker decides not to present the second offer until the first offer has been accepted or rejected by the seller. The seller is not made aware of the second offer. The brokers action is:Not permissibleIf, in a transaction, the amount made as a deposit is not sufficient to cover the monetary damages incurred by a party to the real estate sales transaction, the following party could not file an action in a court of law:a real estate broker acting as an agent for his principal.A person who has been given the right to act on behalf of another is known as a/an:attorney in fact.The owner of a single-family residence lists the property for sale with a real estate broker. The owner informed the broker of a roof leak, but the broker did not inform the buyer. The buyer could recover damages:from both the seller and the broker. The seller could then recover damages from the broker.A property is not listed for sale. A person who wants the property executes an offer to purchase it through a real estate agent and gives the broker a $5,000 check as a deposit. The broker can:can accept the check as the exclusive agent of the buyer.The following could be used by a buyer as earnest money deposit in purchasing real property:-a promissory note secured by a deed of trust. -a postdated check. -an unsecured promissory note.Seller Able, the owner of Blackacre, lists the property for sale with Broker Baker. Able fails to authorize the agent to accept the deposit on his behalf. Buyer Charlie makes an offer on Blackacre and gives Broker Baker a check for $5,000 as a deposit. Under these circumstances, Broker Baker:can accept the deposit as agent for buyer Charlie and place the monies in the brokers trust fund.Using a note as a deposit from a buyer in making an offer:the agent should inform the seller that the deposit is in the form of a note before the seller accepts the offer.You are a California real estate broker. A prospect is referred to you by an out-of-state broker and a sale is consummated by you. You want to split your commission with the cooperating broker. Under California Real Estate Law, you:may pay a commission to a broker of another state.A real estate broker only has a right to earn a commission when the property sells during the listing period unless the following is included in the listing agreement:a brokers protection clause.Broker Charlie listed a property owned by Seller Able. The listing agreement stated, No more than a 20% down payment. The broker brought in an all cash offer. Broker Charlie is entitled to:No commissionBroker Charlie took a listing on a commercial property and also received a right to purchase it within thirty days. On the 28th day Broker Charlie decides to purchase the property, he must:-give the seller any material information -disclose any outstanding offers. -obtain a written consent from the seller acknowledging any profits or anticipated profits that Broker Charlie may acquire.What is the maximum time for an exclusive right to sell listing?whatever is agreed between the broker and seller.A broker must reveal all material facts to his principal. Which of the following would be considered a material fact?the broker has knowledge that a better offer to purchase is coming in.The usual listing contract authorizes a broker to:find a purchaser and accept a deposit with an offer to purchase.When a broker has a non-exclusive listing, to be legally entitled to a commission, he must prove:-he is a licensed broker. -he has found a ready, willing, and able buyer. -he is the procuring cause.Broker includes the following clause in the exclusive listing contract, In consideration of the execution of the foregoing, the undersigned broker agrees to use diligence in procuring a purchaser. This clause is:important to the creation of a bilateral contract.When a broker shows an open listing, the broker should:notify the seller of the prospects identity.What is the first thing a listing agent must give the seller before entering into a listing contract?agency disclosure and confirmation of agency form.If a buyer would like to move in early, what should the agent doObtain written consent from the sellerWhich of the following are contained in a deposit receipt?-contract -brokers commission -receipt for depositRegarding the energy conservation clause in the deposit receipt, who pays for the work?Seller no matter who wants the work doneWhen the owners of a commercial property list the property for sale, the cost that is most likely overlooked is:ManagementIn addition to the commission from a difficult transaction, the salesperson could expect a bonus from:his broker.The broker made a material misrepresentation about the sellers property to a prospective buyer. He was acting in good faith from representations of the seller, therefore,he is entitled to a full commission and indemnification by the seller.The standard exclusive listing contract extends for:a period agreed upon between the broker and the seller.The contract between a property manager and property owner is called:a managers agreement.An open listing is:UnilateralA salesperson did something unethical. Who is liable?Salesperson and brokerCertain statements must appear in a listing contract depending on the type of property being listed. Notice that the commission is negotiable must be included in a listing for which of the following types of properties?a residential building containing one-to-four dwelling unitsIf a listing broker has the seller sign a hold harmless clause, this protects the broker against:Misinformation by the sellerThe listing agreement authorizes the broker to:accept a deposit from a prospective buyer.On an open listing, who is the one who gets paid a commission?-procuring causeAn exclusive listing contract:extends for a period upon which the seller and broker agree.When a buyer signs an exclusive authorization to locate a property agreement, there is usually a clause in the agreement that allows the broker to:represent other buyers during the time limits of the agreement.Which of the following would indicate a net listing?$50,000 after close of escrow.If in a transaction the amount made as a deposit is not sufficient to cover the monetary damages incurred by a party to the real estate sales transaction, a real estate broker as an agent for his principal could do all of the following, except:file an action in a court of law.Which of the following would be considered a material fact and must be disclosed to the buyer?extensive plumbing repairs are needed in the propertyA property is not listed for sale. A person who wants the property executes an offer to purchase it through a real estate agent. In doing so, he gives the broker a $5,000 check as a deposit. The broker:can accept the check as the exclusive agent of the buyer.Buyer Baker made an offer and gave the sellers Broker Charlie a $500 check as a deposit. Before the offer was presented to Seller David, Buyer Baker withdrew the offer. The broker should:return it immediately.The listing agreement generally authorizes the broker to:-find a purchaser -accept an offer to purchase -accept a depositA broker is relieved of the obligation to present an offer to purchase real property to the principal:when the offer is patently frivolous or he is acting on written instructions of the principal.The buyers earnest money deposit may be:-A promissory note -A post-dated check -Anything the seller considers valuableUsually a broker has a right to a commission only on the basis of negotiations which he completes during the term of the listing agreement, unless:a protection period clause is contained in the listing agreement.If a real estate licensee misrepresents a property to a buyer while he is acting as an agent, he may subject himself to:-Disciplinary action by the licensing authority -civil action -criminal actionWhen the deposit receipt on the sale of a house states that the property is being sold as is it:also requires a real estate transfer disclosure statement.The words time is of the essence can be found in which of the following contracts?Real estate purchase contract and receipt for depositCertain statements must appear in the listing contract depending on the type of property being listed. Notice that the commission is negotiable must be included in a listing for which of the following types of properties?A residential building containing one-to-four dwelling unitsWhile prospecting, agent Roberts came upon a homeowner who said he would sell his home if he received the price he wanted. He did not want to list his property with agent Roberts, but said he would listen to any offers that might be presented and pay a commission if he accepted it. This type of listing is a/an:open listingA broker who solicits and accepts a deposit on the purchase of a parcel of real property without express written authorization from the owner to sell the property is:acting as agent for the buyer and not the sellerCertain statements must appear in a listing contract depending on the type of property being listed. Notice that the commission is negotiable must be included in a listing for which of the following types of properties?A residential building containing one-to-four dwelling unitsIn reference to the listing agreement, the hold harmless clause protects the agent from liability for:misinformation given by the seller concerning the propertyWhen would an agent not receive a commission?Exclusive agency listing where the seller sold it himself.One week after entering into a legally binding purchase contract the buyer backed out of the agreement. The seller:-can sue the buyer for money damages -must return the deposit to the buyer -must attempt to resell the property to another buyer in an attempt to minimize damagesWhich of the following would terminate a listing agreement?The seller's house burning down.Seller signed a 90 day exclusive right to sell listing with Broker Able. When the listing expired, Seller gave an open listing to Broker Baker and Broker Charlie. Three weeks later, Broker Baker presented an offer to the seller which he accepted. Which of the following is most correct?Broker Baker is the procuring cause of the sale and is entitled to a full commissionSeller Skinner signed a 90 day exclusive right to sell listing with Broker Bill. Two weeks later, Skinner cancelled the listing with Bill and gave an open listing to Broker Carl and another open listing to Broker Paul. Three weeks later, Paul presented an offer to Skinner which the seller accepted. Which of the following is most correct?Paul is entitled to a full commission and Bill is entitled to a full commission as wellWhat document gives the listing agent the authority to accept a deposit?Exclusive right to sellThe date of a purchase contract is generally the date:final acceptance is communicated back to the offerorWhen can the buyer legally take possession of the property?When the parties agreeProspective purchaser Boswell executed a full price offer to purchase Seller Maxwell's property which was listed by Broker Hix under an exclusive right to sell listing contract. As Hix was departing his office to present the offer to the seller, Broker Hinkler, with whom Hix regularly cooperated, produced a second offer which was for $1,000 less than the listed price, but which contained a much larger down payment and other more favorable terms. The listing broker should:present both offers at the same time.If a real estate broker sells a property where the buyer will take possession prior to transferring title, the document he would have the buyer and seller execute is called:An interim occupancy agreementA seller may revoke an exclusive right to sell listing by:sending a written letter to the brokerThe time is of the essence clause:applies to the entire contractUnder a liquidated damages clause, if a buyer backs out of a purchase of a home, what happens to the earnest money deposit?it will normally be divided between the seller and brokerIf a contract contingency is not removed:the buyer can cancel the purchase and receive his earnest money deposit backIf the buyer and seller agree that "time is of the essence," and one of the parties misses a deadline in the contract, the other party may:rescind or cancel the contract without penaltyAt the end of a listing, a real estate broker gave a list of buyers with whom he had been negotiating. If the broker left a name off the list and that person purchased the property, the broker would receive:No commissionWhat type of listing would allow a real estate broker to sell the property to a buyer or buy it herself?Option listingIf a broker informs a seller verbally that he is negotiating with a buyer, and one day after the expiration of the listing the buyer buys the property, the owner:is not liable for a commissionIf a seller signs open listings with five different brokers:each of the brokers have the opportunity to earn a commissionAn exclusive authorization and right to sell listing:contains a legal description of the propertyIf an exclusive listing contains a clause that gives the seller a right to a 24 hour notice to cancel the listing:the real estate broker could be subject to disciplinary action by the Real Estate CommissionerA real estate broker obtains an exclusive authorization and right to sell listing from a corporation. During the listing, all of the officer of the corporation are killed in a plane crash. The listing would:Remain in full effectA real estate broker obtains an exclusive listing on a property owned by three different individuals. The broker meets with each individual to get a signature. The broker must:give each person a copy of the exclusive listing when they sign itWhich of the following are under the Terms of sale section of a listing agreement?-price -method of payment -identification of personal propertyIf a real estate broker shows a property under an open listing, she should:write a memorandum to the seller notifying him that the broker showed the propertyAn open agreement would occur when:a buyer enters into an agreement with more than one buyers agent, while owing compensation only if she uses the buyers brokerWhen a real estate broker has an exclusive listing, she may be subject to disciplinary action from the Real Estate Commissioner by doing which of the following:not giving a copy of exclusive listing to the seller and not including a definite termination date for the listing agreementWhich of the following is/are true?If the listing is not an exclusive listing, then it does not require the real estate broker to use diligence in obtaining an offer on the propertyThe minimum time period for an exclusive right to sell listing is:whatever is agreed between the seller and the broker.If a buyer would like to enter a house prior to close of escrow to paint and make minor repairs, the broker should:obtain written approval of the buyers request from the ownerEscrow has not closed and the buyer wants to move in early. What type of document should a broker use?short leaseThe authority for a broker to receive a deposit from a prospective buyer is found in which of the following documents:Listing agreementWhat type of listing allows the broker to list the property and purchase it if he desires?Option listingBroker has an agreement with a seller to list a property for sale. He represents a buyer in the purchase of the same listed property. Which of the following types of listings would the broker possibly not be paid a commission?Net listingThe warranty of authority is invalid when the broker:Will not disclose the name of the principal to a buyer until an offer is madeMembers of a multiple listing service (MLS) generally use a(n):exclusive right to sellAn exclusive authorization and right to sell listing:contains a legal description of the propertyIf an exclusive listing contains a clause that gives the seller a right to a 24 hour notice to cancel the listing:the real estate broker could be subject to disciplinary action by the Real Estate CommissionerUnder an exclusive agency agreement:an owner may sell the property himself without liability for a commission to the brokerBroker Able obtained an exclusive authorization and right to sell listing agreement from the seller of the property. Able found an offer that was accepted during the listing period. Both the offer and escrow instructions made no mention of a commission being paid to Broker Able. In this instance, Broker Able:will be legally entitled to a commission on the sale of the propertyA real estate broker has his real estate brokers license suspended during an exclusive right to sell listing period. Which of the following is correct?He would not have to prove he was the procuring cause of the saleBroker Able had an exclusive authorization and right to sell listing that expired at 10am on February 19th. At 11am on February 19th, Seller Baker signed a new listing agreement with Broker Charlie, who was another real estate broker. At noon on February 19th, Broker Able presented a full price offer to the seller. Which of the following is correct?Broker Charlie is entitled to a commissionAn exclusive agency listing incorrectly states that the commission was $6 rather than the 6% that was intended. If the seller sells the property himself, then the real estate broker would receive:NothingIf a real estate broker shows a property under an open listing, she should:write a memorandum to the seller notifying him that the broker showed the propertyAn open agreement would occur when:a buyer enters into an agreement with more than one buyers agent, while owing compensation only if she uses the buyers brokerWhen a real estate broker has an exclusive listing, she may be subject to disciplinary action from the Real Estate Commission by doing which of the following:not giving a copy of exclusive listing to the seller and not including a definite termination date for the listing agreementWhich of the following is/are true?If the listing is not an exclusive listing, then it does not require the real estate broker to use diligence in obtaining an offer on the propertyAn exclusive listing ended after ninety days. Two weeks later, the same broker brings in a buyer and sells the property. What is most correct regarding the commission?Listing ended, but the broker would be entitled to a full commission if the seller encouraged procurement after the listing endedIf a buyer wants to move in early. What should an agent do?Get written consent from the sellerA seller gives a real estate broker a net listing in the amount of $200,000. If an offer comes in for $150,000, the broker should:present the offer to the sellerA real estate licensee:cannot accept a deposit from a buyer without specific authorization in the listing agreementAfter accepting the buyer's offer for a property, the seller realizes that the first trust deed that the buyer is taking over is for only $270,000 instead of $300,000 as mentioned in the listing contract. In this situation:the offer is validIf a buyer wants to move in early, the broker should:get a written consent from the sellerFor a real estate broker to be entitled to a commission, the broker must:All of the above are required for a broker to receive a real estate commission on the sale of a property.A homeowner gives several open listings to individual real estate brokers. If the homeowner finds a buyer, and sells the property himself:he does not have to pay a commissionMaximum term of an exclusive listing of $2,000 or less is:45 days
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If Bauer had ultimately succeeded in his claim, what might the remedy have been? What else might have resulted?
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