Which of the following statements about offers is correct?

c. They must be accompanied by earnest money.

Ralph and Sandra are both agents at Healdsburg Realty. Ralph presents an offer, on behalf of his buyer client to Sandra, the listing agent. Sandra presents the offer to her seller who counteroffers in writing for more money. Ralph presents this counteroffer to his buyer who signs his acceptance in Ralph's presence. After the buyer signs, but before Ralph has notified Sandra, she contacts Ralph to inform him that her seller wishes to withdraw the counteroffer and sell to someone else for more money. Which of the following is true?

A. There is a valid contract since Ralph's buyer accepted in his presence and both Ralph and Sandra are dual agents.

B. Sandra's seller can withdraw since neither Sandra nor her seller had yet been informed of the buyer's acceptance.

C. Sandra's seller can withdraw since the actual paperwork had not yet been returned to Sandra and the earnest money had not yet been deposited.

D. Ralph had no authority to present the counteroffer on behalf of Sandra's seller.

A prospective purchaser has made an offer to the owner's agent who in turn has mailed the offer to his seller. The seller has received this offer, signed it, and now mailed it back to his agent. While the documents are in the mail, another offer for more money is made to the seller's agent. The agent calls the seller to inform him about this new offer, and the seller instructs him to disregard the signed agreement because he wants to accept this new offer. Which of the following is true?

D. The first offer has not been accepted and the seller is free to sell it to the second buyer.

A. The first offer has been legally accepted because it had been mailed back to the agent.

B. The second offer has been legally accepted.

C. The agent cannot present this new offer until there is resolution to the first offer.

An option to purchase differs from a right of first refusal in that:

C. in a right of first refusal the seller is not required to sell if the buyer wants to buy.

A. they are actually two names commonly used to describe the same thing.

B. in an option the purchaser is required to purchase the property if the seller decides to sell.

D. in an option the seller is not required to sell if the buyer decides to buy.

A buyer made an offer to purchase that stated "this offer shall remain open until 12:00 noon on August 20 at which point it shall become null and void:' He further stipulates "he will not terminate this offer prior to that time for any reason whatsoever:" On Thursday, August 19, before hearing back from the seller, the buyer contacts the seller to inform him that he has changed his mind. The buyer is:

C. not in breach of contract even though he terminated prior to noon on the 20th.

A. in breach of contract as he agreed not to terminate his offer prior to noon on the 20th.

B. in breach of agreement and will not be entitled to a refund of his earnest money deposit although he cannot be sued in a court of law.

D. not in breach of contract with the seller but is liable for payment of his buyer agent's commission if one was agreed to.

On Monday, the buyer, Jeff, signs a full price and conditions offer to purchase Sara's house and mails it to her for review. Sara receives it in the mail late on Tuesday afternoon, at which time she reads the offer and decides that she will accept it. When Sara gets to the office on Wednesday, she signs Jeff's offer and mails it back to him at his proper address. Jeff receives her acceptance on Thursday morning. What Sara does not realize is that Jeff had changed his mind and mailed a letter of revocation of his offer early Tuesday morning. Unfortunately, Sara did not receive the letter of revocation until Thursday afternoon. Is there a binding contract of sale?

B. Yes. Sara created a binding contract when she signed Jeff's offer on Wednesday and mailed it back to him at his proper address.

A. No. Jeff has adequately withdrawn his offer when he mailed the letter of revocation to Sara on Tuesday morning.

C. No. Jeff's revocation does not count until it is actually received on Thursday.

D. Yes. It was a binding contract when Jeff received the actual acceptance from Sara on Thursday morning.

As a result of a provisional broker's negligence in filling in the provisions in a contract of sale, the seller incurred a financial loss. Liability for this loss may be imposed upon:

C. both the agent and the employing broker.

D. neither the agent nor the employing broker.

A listing contract creates an agency relationship in which:

A. the broker is a general agent.

C. the seller is a special agent.

D. the broker is a universal agent

A seller tells his broker that he is very anxious to sell and will accept $5,000 less than the listed price. The broker may share this information with:

B. a cooperating MLS agent acting as a buyer's agent.

D. anyone interested in the property.

Which of the following types of listing agreements allow for the seller to personally sell her own property without having to pay the broker a commission?

B. exclusive agency and exclusive right to sell

D. open and exclusive right to sell

Amy shows her listing to a buyer who makes an offer that was ultimately accepted by the seller. Before the closing, the buyer has a job transfer that necessitates she move to another town. The seller sympathizes with the purchaser and allows her to withdraw from the contract and releases her from all further obligation. The seller:

D. owes Amy the full commission even though the seller has released the buyer from the obligation in this transaction.

A. owes Amy the selling "side" of the commission.

B. owes Amy only the expenses incurred by her in selling the property to this particular client.

C. does not owe Amy a commission since the property was not ultimately closed.

The clause that is inserted into a listing agreement that protects the broker in the event the seller and buyer try to delay entering into a contract of sale so they can avoid the commission to the agent is known as:

A. protection agreement clause.

D. nothing. It is illegal to insert a clause of this type

Champion Realty has received an offer on one of its listings. The seller lives in Maryland and the offer was emailed to him where he signed electronically to accept the offer with no modifications to the original agreement. Once the form was signed electronically it was emailed back to the listing agent at Champion. The agent at Champion then called and told the buyer agent at XYZ Realty the seller had signed the acceptance with no changes. The next day the seller wants to terminate the sale due to having received a better offer. He is claiming there is no contract since he did not "actually" sign the offer but rather used an electronic means to indicate acceptance. Which of the following best describes this situation?

A. Electronic signatures are legal and it became a contract once the listing agent notified the buyer agent.

B. It is not a contract since there was no "real" signature on the acceptance.

C. An electronic acceptance would be legal only if the buyer had signed electronically as well.

D. Electronic signatures can be legal and this became a contract once the signed offer was emailed back to the listing agent.

Amy accepted a buyer's verbal offer to purchase her house. A week later the buyer calls to inform her that he wishes to terminate his agreement. Which of the following best describes this situation?

C. This is a voidable contract since it was not in writing.

A. This agreement is illegal and has no legal recognition at all.

B. A verbal acceptance to sell real estate is only valid if the offer was made verbally as well.

D. This is a valid contract and the buyer can be held liable for damages by Amy.

The type of listing agreement in which the seller agrees to only have the brokerage firm enter the listing in the local MLS and place a sign in the yard might best be described as a(n):

C. exclusive agency listing agreement.

D. exclusive right to sell agreement.

All of the following are considered an example of a property owner's "bundle of rights" EXCEPT:

B. right to build whatever you wish on the property.

C. right to sell, lease, or convey.

Which of the following statements is correct?

B. Protective covenants are enforced by court injunction.

A. Spot zoning is legal in all cases.

C. Protective covenants are government restrictions.

D. All nonconforming uses are illegal

Wendy has been notified that her property is subject to being acquired by eminent domain. One of the requirements that must be met in order to acquire her property in this manner is that:

A. it must be for a public purpose.

B. she does not have to sell if the price being offered is not suitable to her.

C. she must first be given constructive notice.

D. a lis pendens must first be filed

Which of the following is an example of an exempt property under the Americans with Disability Act (ADA)?

B. model home in a new subdivision

Which of the following best illustrates the example of an easement appurtenant?

A. a right of way across one property to access the adjoining property

B. a municipal water and sewer line easement

C. a major oil or gas pipeline project easement

D. a purely personal right to walk across a neighbor's property to access the beach

Regulation Z of the Truth in Lending Act allows which of the following to be placed within an advertisement for a real estate loan without requiring a full disclosure of all credit financing terms?

C. the full annual percentage rate spelled out in full, that is, not abbreviated as APR

D. dollar amount of the finance charges

A short sale exists when:

B. the seller owes more than the property is worth and the seller is unwilling, or unable, to pay the difference.

A. the seller owes more than the property will sell for.

C. a property is sold quickly typically for all cash and closes in a matter of a few days.

D. the property is acquired by the lender for nonpayment and re-sold to an investor who buys these type properties in bulk.

Who is the oldest and largest of the secondary mortgage markets?

A. Federal National Mortgage Association (FNMA)

B. Government National Mortgage Association (GNMA)

C. Federal Home Loan Mortgage Association (FHLMC)

D. Washington National Mortgage Association (WNMA)

A title theory state is associated with a:

C. requirement for the acquisition of title insurance.

D. requirement to record title to the property in a public register of deeds.

A loan-to-value (LTV) is traditionally based upon:

D. the purchase price or appraised value, whichever is less

B. the relationship of the loan amount in relation to the CMA amount.

C. the appraised value or the purchase price whichever is more.

A contract for deed (land contract):

A. is when the purchaser acquires possession but no title until the loan is repaid in full.

B. stipulates the buyer acquires legal title upon closing the purchase.

C. stipulates the seller retains equitable title after the closing.

D. is never recorded until the loan is repaid.

Which of the following is true regarding VA mortgage loans?

C. The unmarried surviving spouse of a veteran who died as a result of service-related injuries can use the VA benefits their previous spouse had acquired.

A. These loans are not eligible to be assumed.

B. They can only be assumed by another veteran.

D. A veteran is allowed to purchase a house as a rental investment using earned VA benefits.

Which of the following is NOT considered to be one of the six elements considered to constitute a loan application according to RESPA?

B. driver's license of the applicant

A. address of the property pledged as collateral

C. estimated value of the property

D. Social Security number of the applicant

An alienation clause makes a mortgage:

C. unable to be sold in the secondary market.

The primary function of the FHA is to:

C. insure loans that protect lenders from financial loss.

B. make loans for low-income housing.

D. purchase mortgages on the secondary market.

National Section Practice Exam - Appendix A

Authored by Chris Nyce

Professional Development

Used 9+ times

National Section Practice Exam - Appendix A

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100 questions

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MULTIPLE CHOICE QUESTION

15 mins • 1 pt

Which of the following would terminate a residential sales agreement?

A. death of the seller

B. legal declaration of insanity of the seller

C. the sale of the property

D. an assignment

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

Which of the following statements is NOT correct?

A. A principal is responsible for acts of his agent while engaged in activities concerning the agency.

B. An agent is in a fiduciary relationship to her principal.

C. The agent has no duties to third parties in a transaction.

D. The principal owes cooperation to the agent.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

On the broker's recommendation, a seller accepted an offer that was 8% below the listed price. The broker did not disclose to the listing seller that the buyer was the broker's brother-in-law. Which of the following is correct?

A. The broker violated his obligations as agent of the seller.

B. The fact that the buyer is related to the broker does not need to be divulged to the seller.

C. The broker would only be obligated to disclose this relationship if the buyer had hired the broker as a buyer agent

D. There is no violation since the seller was in agreement with the terms of the buyer's offer.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

An agent's responsibilities and duties to a third person include:

A. not to disclose personal information regarding the third party.

B. disclosure of all material facts the agent knows or reasonably should know.

C. disclosure of personal information about the principal.

D. obedience to the lawful instructions of the third party.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

An agent, based upon statements made by the seller, tells her buyer that all mechanical systems are in "good working order:" The agent did not personally verify this information. The buyer decided not to have the property inspected since the seller had indicated they were selling "as is:" After the closing, the furnace is found to be defective and must be replaced.

A. The agent is not liable because the buyer opted to not have it inspected.

B. The agent is not liable since he relied upon representation made by the seller.

C. The agent is guilty of an innocent omission of material fact.

D. The agent is guilty of a negligent misrepresentation of material fact.

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

A real estate agent is typically considered to be in what form of agency relationship?

A. special agency

B. general agency

C. universal agency

D. exclusive agency

MULTIPLE CHOICE QUESTION

15 mins • 1 pt

Allison is an agent with Miller's Creek Realty that has a buyer client who wishes to see a listing obtained by her firm. The broker at Miller's Creek Realty appoints Allison to represent only the interests of the buyer and the listing agent to represent only the interests of the seller. This type of arrangement is an example of:

A. implied agency

B. express agency

C. special agency

D. designated agency

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National Section Practice Exam - Appendix A

Which of the following would terminate a residential sales agreement?

Which of the following statements is NOT correct?

On the broker's recommendation, a seller accepted an offer that was 8% below the listed price. The broker did not disclose to the listing seller that the buyer was the broker's brother-in-law. Which of the following is correct?

An agent's responsibilities and duties to a third person include:

A real estate agent is typically considered to be in what form of agency relationship?

A contract that has no legal standing because it does not meet the minimum standards for a legally enforceable agreement is:

A substitution of one contract for another where the original contract is voided is:

A contract in which one party makes a promise of compensation if another party renders a service in return is which of the following?

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