PRACTICE EXAM F

(The answers to the following questions are that the bottom of the page.)

1. The buyer's equity in the property is the

a. purchase price of the property
b. assessed value of the property
c. value the owner possesses above the amount of the mortgage.

2. An unlicensed secretary in a broker's office may:

a.Give information to a caller about a listing available.
b. Take a listing by phone
c. Solicit for listings
d. Arrange for a salesperson to handle the call.

3. A principal of the broker is the:

a. Buyer
b. Seller
c. Customer
d. A person who has authorized the broker as a single agent.

4. The term immediately as it applies to brokers and the deposit of escrow funds is defined to mean:

a. Not later than the end of the next business day.
b. Not later than the end of the third business day.
c. Not later than the end of the third calendar.
d. Within 24 hours.

5. A valid contract

a. Need not have a legal objective
b. Must contain an offer and an acceptance
c. Need not contain a consideration
d. May be signed by a minor

6.Salesperson Kelly is employed by Broker Kim. Broker Kim and Kim's friend Dell (who owns another brokerage office) invest in a small apartment building & ask Kelly to participate in
the investment. This relationship between Kelly, Kim and Dell:

a. Is a limited partnership
b. Is a general partnership
c. Is a joint venture
d. Is illegal because a salesperson cannot be a partner in a real estate investment.

7. If the property owner is a corporation, then the individual
authorized to sign the listing agreement is:

a. The president.
b. The secretary.
c. The person named by the corporate resolution.
d. The treasurer.

8. The owner of the property who signed the listing with a broker for 60 days was killed in an accident before the broker procured a buyer. This listing is:

a. Binding upon the owner's heirs to carry out the promises.
b. No good as an authorization, but binding if a buyer is secured later.
c. Terminated immediately upon death.
d. Still in effect as the owners intent was clearly stated.

9. How many days does a buyer of a new condominium unit have to cancel the purchase agreement?

a. 3 working days
b. 7 working days
c. 10 calendar days
d. 15 calendar days

10. A real estate firm advertises that it is a"single-agency broker". This notice informs the public that for each real estate transaction, the firm will represent:

a. The seller only
b. The buyer only
c. Both the seller and the buyer.
d. Either the seller or the buyer, but not both in the same transaction.

11. If both the buyer and seller claim the earnest money deposit in a broker's escrow account how much time after the last claim received does the broker have to notify FREC in writing?

a. 5 calendar days
b. 7 business days
c. 15 business days
d. 30 business days

12. A black prospect asks to be shown a home that a broker has a sign on. The home is in a predominately black neighborhood. The broker should assume:

a. This is blockbusting
b. The prospect is testing the broker
c. The prospect likes the design and location of the home
d. This may lead to a charge of steering.

13. A woman who acquires real property under the terms of a will is known as:

a. A personal representative
b. An executrix
c. A devisee.
d. A testatrix.

14. A written lease that has a definite termination date is known as a:

a. Tenancy for years.
b. Tenancy in common
c. Tenancy at will
d. Life estate

15. Which of the following is not essential to a real estate contract?

a. Promise by the seller to sell
b. Promise by the buyer to buy
c. Agreed upon purchase price
d. Binder deposit.

16. A broker who commingles escrow funds and business funds is guilty of:

a. Fraud
b. Conversion
c. Culpable negligence
d. Attempted fraud.

17. When two people develop a scheme to defraud a third person, they are guilty of:

a. Conversion
b. Conspiracy to defraud
c. Misrepresentation
d. Culpable negligence

18. When you take a listing for an owner occupied single family residence, & the owner states you are not to show the property to anyone of the "A" nationality, you should:

a. Ignore the statement and proceed with the listing.
b. Comply with your principal's request.
c. Make note of the fact in the listing and continue to list, hoping that no "A" people will want to see the property.
d. Inform the principal this action is not legal.

19. When the words "time is of the essence" appear in a contract of sale, they insure that

a. The seller can change the closing date at will.
b. The buyer can change the closing date at will.
c. The time of the closing is flexible.
d. The closing must be held on the date set in the contract.

20. In a real estate corporation, a licensed broker would have to be in charge of:
I. Advertising
II. Accounting department
III. Personnel department
IV. Fee appraisals

a. I only
b. I and II only
c. I and IV only
d. I, II, III and IV

21. The seller took back a purchase money mortgage. How would it appear on the closing statement?

a. A credit to the seller and a debit to the buyer.
b. A debit to the seller and a credit to the buyer.
c. A debit to the seller.
d. A credit to the seller.

22. A contract of sale must be signed by

a. The seller only
b. The buyer only
c. The buyer and seller
d. The broker only

23. The term that best refers to the economic value owning to fortuitous factors such as weather and transportation facilities is:

a. Progression
b. Assemblage
c. Situs
d. Convergence

24. Broker Bob's neighbor, John Smith, refers brokerage business to Bob, and salesperson Sue from Bob's office lists the property. After the deal closes, Bob may:

a.Pay Smith a finder's fee, but may not share the commission.
b. Take Smith out for dinner at Bob's expense.
c. Not pay Smith a referral fee unless Smith is licensed.
d. Share commission with Smith because Sue, not Bob listed the property.

25. The Civil Rights Act of 1866 prohibits discrimination in housing on the basis of:

a. Race
b. Religion
c. Sex
d. Marital status

26. Broker Bob represented Buyer Jack who successfully acquired a home from Seller Kim. Kim was represented by broker Lowell. Bob can legally share the commission with which of the
following:

a. Jack
b. Kim
c. Lowell
d. All of the above.

27. An agency agreement to sell a specific piece of real estate will be terminated all of the following except:

a. Death of the broker
b. Bankruptcy of the seller
c. Revocation of the listing salesperson's license.
d. Insanity of the broker.

28. The term "dedication" refers to:

a. The initial state of subdivision development ("ceremonial start-up").
b. The transfer of certain subdivision areas from private to public ownership.
c. Recordation of a subdivision plat at the county courthouse.
d. A covenant placed in the deed to all subdivision lots.

29. Which of the following is neither exempt nor immune from ad valorem property tax.

a.County hospital
b.New church
c.Consolidated high school
d.Undeveloped farm land.

30. A salesperson employed by a real estate broker to show and sell property listed with the broker is best described as:

a.An agent of the broker, who is an agent of the principal.
b. An agent for the principal
c. A principal to the transaction.
d. An independent contractor not an agent.

ANSWERS