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WorksheetsReal Estate Quiz
Total questions: 103
Worksheet time: 1hrs 14mins
The duration of a listing agreement is:
whatever is negotiated between the broker and seller.
6 months.
whatever is negotiated between the seller and the buyer.
90 days.
If a person obtains a contract through duress, that contract is:
Valid
Void
Voidable
Unenforceable
The law that requires real estate contracts to be in writing to be enforceable is the:
law of descent and distribution.
statute of frauds.
statute of limitations.
parole evidence rule.
A property owner lists his property for sale with a broker. During the negotiations, the owner told the broker they wanted $138,000 for the property, and anything above that amount the broker could keep as his commission. The listing with this type of provision is known as the:
net listing.
non exclusive listing.
open listing.
gross listing.
Undue influence or duress applied to one party to a contract makes the contract:
unenforceable.
void.
voidable.
invalid.
The prospective purchaser may withdraw the offer at any time before the seller's acceptance of an offer:
True
False
When would a broker have a right to a commission based on negotiations which were started during the term of the listing agreement but completed after the listing agreement had expired?
The completion was during the protection period clause.
The listing involves the exchange of properties.
The listing agreement has a liquidated damages clause.
The broker brings a court suit against his principal.
Janice Riceland is shown a home by her agent, Richard. She makes an offer and gives Richard a check. At what point does her offer become an enforceable contract to buy?
When the deposit check clears
When Janice is notified the seller accepted the offer
As soon as Richard receives her offer and her check
As soon as the seller receives the offer and the check
Broker Dave has an exclusive agency listing to sell a $200,000 home for owner Jones. Before the listing expires, the home was sold through Jones' own efforts to a friend, and Dave was refused payment of any commission. Dave is legally entitled to receive from Jones:
a full commission.
one-half of a commission.
no commission.
all expenses that he incurred when advertising the property.
A voidable contract remains binding upon the parties until the contract is:
invalidated.
discovered.
qualified.
rescinded.
A contract between the seller of real property and a licensee, in which the seller agrees to pay the licensee a commission for producing a ready, willing, and able buyer and the licensee agrees to use due diligence in procuring the buyer, is called:
A unilateral executory contract.
A unilateral executed contract.
A bilateral executory contract.
A bilateral executed contract.
Which of the following is necessary for a real property conditional installment sales contract to be valid?
Lawful object, competent parties, offer and acceptance, legally sufficient writing.
Consideration, offer and acceptance, lawful object, competent parties, legally sufficient writing.
Consideration, offer and acceptance, expressed time element, price.
Consideration, offer and acceptance, mutuality, competent parties, legally sufficient writing.
A buyer enters into a verbal contract to purchase a house and immediately gives the broker an earnest money check for $500. Prior to performance under this contract, the verbal contract is considered legally:
unenforceable.
enforceable.
executed.
void.
Under a lease for a commercial property, a tenant agrees to pay $4,000 per month plus 3% of the gross monthly sales. This type of lease is called a:
net lease.
percentage lease.
triple net lease.
ground lease.
A salesperson who prepares a written listing agreement with a seller is helping to create a contractual relationship between the:
salesperson and the listing broker.
salesperson and the seller.
salesperson and the buyer.
salesperson's broker and the seller.
Under a sales contract, the legal remedy that may be used to force the seller to consummate the sale is called:
specific performance.
foreclosure.
a writ of execution.
an unlawful detainer.
If a lessee pays a fixed amount of rent plus all expenses such as taxes and insurance, the lease is known as a:
gross lease
net lease
percentage lease
graduated lease
A lease that provides for periodic increases of rent at regular intervals is called a:
percentage lease
graduated lease
long-term lease
yearly lease
With the exception of court-ordered sales, the amount of earnest money to be deposited by a prospective buyer is determined by the:
state real property law
local real estate association
agreement between the seller and the buyer
listing broker
In the event that a buyer fails to perform on an agreement to purchase, the seller may be allowed to keep the earnest money deposit as:
due compensation.
compensatory losses.
an escrow bonus.
liquidated damages.
A written purchase agreement has been signed by both a buyer and a seller. The Uniform Vendor and Purchaser Risk Act states that until the buyer has either possession of or title to a property, responsibility for the physical condition of the property:
is delegated to the buyer, who upon signing has equitable title to the property.
is assumed by the seller's homeowner's insurance company.
remains with the seller.
is given to a third party.
To be valid, an exclusive listing contract must contain all of the following except:
an expiration date.
the final contract price.
a description of the property.
the signatures of all interested parties.
A promise in exchange for a promise, supported by consideration, is the basis for a:
multilateral contract.
unilateral contract.
offer to lease.
valid, binding, bilateral, contract.
The party most likely to sue for specific performance in the purchase of real estate is the:
Appraiser.
Broker.
Buyer.
Lender.
Jones goes into a restaurant and orders lunch. At the end of the meal, is he legally obligated to pay the check?
Yes, but only if Jones is a legal adult.
Yes, because by ordering, Jones entered into an implied contract to pay for the meal.
Yes, because Jones is liable through the process of novation.
No, because strictly speaking, Jones did not promise to pay.
What is it called when a sum of money is submitted by a buyer with an offer to purchase?
A warranty bond
An earnest money deposit
Liquidated damages
A limited liability premium
The most important document in the sales process is the purchase contract because:
it provides the road map for the closing.
it tells the government why the buyer wishes to buy.
unless a real estate transaction is in writing, state law dictates how the money is spent and distributed.
The agent is not guaranteed fee without it.
One effect of a clause in a sales agreement that states that 'time is of the essence' might be that:
All parties must attend to those details called for in the agreement in a timely manner.
The seller can take care of matters at his convenience.
The agent must see that the contract has been fulfilled prior to closing.
The buyer can take care of matters at his convenience.
In April, Jones accepted an offer to sell his house to Brown. In June, Brown paid the purchase price and received a deed to the house and the keys. After June their contract was considered to be:
executory.
executed.
void.
voidable.
When is a contract said to be discharged?
Once all of its terms and conditions have been met.
When the contract is in dispute.
When most of its basic terms have been accomplished.
When there are further actions to be taken.
When a contract contains provisions outlining what money penalties will be levied against the party that refuses to perform, the amount specified is known as:
consideration.
performance guarantees.
liquidated damages.
earnest money.
Which of the following would usually occur in a sale-and-leaseback transaction?
The buyer keeps capital in inventories rather than in realty.
The rent that the seller pays is not income-tax deductible.
The seller gets a return on the purchase in the form of rental payments.
The property is sold on the condition that the new owner lease it back to the seller at the time title passes.
The basic purpose of a listing agreement is to authorize the broker to:
find a buyer.
negotiate the contract.
market the house.
sell the house.
A family rents a house from January 1st to June 30th. This is considered a(n):
tenancy at sufferance.
periodic tenancy.
estate for years.
tenancy at will.
A parcel of vacant land is listed with a broker for $100,000, requiring 20% down with the seller to carry back the balance. The broker brings in a full-price cash offer, but the owner refuses. The broker is entitled to:
a commission.
a new listing.
a refund.
a penalty.
Under a lease, the leasehold interest lies in the:
beneficiary.
landlord.
lessee.
lessor.
All of the following listings require that the broker be the "procuring cause" of the sale if he/she is to be entitled to a commission, EXCEPT:
an open listing.
an exclusive right to sell listing.
an exclusive listing.
there are no exceptions, all listings require proven procuring cause.
When creating a contract, consideration may be:
money.
money, work, or a promise.
work.
a promise.
During the term of an exclusive authorization and right to sell listing, the broker has his license revoked by the Real Estate Commission. To prove that he is entitled to a commission, he must prove all of the following, except:
that the buyer and seller agreed to the sale during the listing term.
that the listing was a legally binding agreement.
that he was the procuring cause of the sale.
that he was licensed at the time the commission was earned.
A listing with an effective date of March 12th and expiring on April 12th is for:
31 days
32 days
37 days
28 days
A tenant's five-year lease has expired but they continue to live on the premises and pay their rent monthly. If the landlord hasn't asked them to leave and continues to accept rent, this is considered a(n):
tenancy at will.
tenancy at sufferance.
periodic tenancy.
estate for years.
A broker has a combination of a listing and an option on a property. She exercises the option without disclosing to the seller that she has found a buyer at a higher price. The broker:
has done nothing wrong.
created an illegal dual agency.
is guilty of theft.
has made a secret profit.
Which of the following is NOT essential to all contracts?
Mutual consent.
In writing.
Capable parties.
None are correct.
An agent must submit all new offers to the owner until:
escrow opens on a potential sale.
the close of escrow.
the broker decides there have been enough offers.
the agent decides the seller isn't interested.
A broker enters into an open listing with a seller, but fails to give a copy of the listing contract to the owner and also fails to include a termination date. The broker then presents an offer which is accepted. Which of the following statements is most applicable?
The exclusion of a termination date does not matter, so the broker is entitled to the stated commission.
The broker is entitled to specific performance.
The broker is entitled to nothing.
The exclusion of a termination date nullifies the contract.
A broker has listed Mr. Applegate's property under an exclusive listing. He also has an option to purchase the property within 30 days. If after 27 days, the broker decides to buy the property, he must:
inform the seller of any additional offers on the property.
all of the other options are correct.
disclose all material facts known to him and to the seller.
disclose any profit he might make.
A broker receives a full-price offer on a house he has listed in accordance with the terms of the listing. Before he can present the offer, another broker brings in an offer with slightly better terms, but for $500 less. The listing broker should:
present both offers at the same time.
refuse to accept the second offer.
tell the other broker the property has been sold.
wait until the seller makes a decision on the first offer before presenting the second.
When a lessee transfers all of his/her interest in the property, it is called a(n):
transfer.
sale of a personal residence.
assumption.
assignment.
Most real estate contracts contain pre-printed clauses or spaces for information to be added in writing. When interpreting such contracts:
no changes or amendments to the pre-printed clauses are permitted by law.
the written parts and the pre-printed parts are given equal consideration.
the written parts take precedence over the pre-printed parts.
pre-printed parts take precedence over the written parts.
A buyer wanted to use a promissory note for consideration on the purchase of a property. Can he do this?
Yes. The buyer can do as he wishes since he is making the contract.
No. Only money can be used for consideration.
Yes. This is acceptable as long as the seller agrees.
No. Only the seller can write a promissory note.
A property owner lists his property for sale with a broker. During the negotiations, the owner told the broker they wanted $138,000 for the property, and anything above that amount the broker could keep as his commission. The listing with this type of provision is known as the:
Net listing
Exclusive agency listing
Open listing
Exclusive right to sell listing
Undue influence or duress applied to one party to a contract makes the contract:
Void
Voidable
Unenforceable
Illegal
The prospective purchaser may withdraw the offer at any time before the seller's acceptance of an offer:
If the offer is not in writing
If the offer is not accepted within 24 hours
For any reason
Only if the seller agrees
When would a broker have a right to a commission based on negotiations which were started during the term of the listing agreement but completed after the listing agreement had expired?
The completion was during the protection period clause.
The completion was within 30 days of expiration.
The completion was within 60 days of expiration.
The completion was within 90 days of expiration.
Janice Riceland is shown a home by her agent, Richard. She makes an offer and gives Richard a check. At what point does her offer become an enforceable contract to buy?
When Richard accepts the check
When Janice signs the offer
When Janice is notified the seller accepted the offer
When the seller receives the check
Broker Dave has an exclusive agency listing to sell a $200,000 home for owner Jones. Before the listing expires, the home was sold through Jones' own efforts to a friend, and Dave was refused payment of any commission. Dave is legally entitled to receive from Jones:
Full commission.
Half commission.
No commission.
A referral fee.
A voidable contract remains binding upon the parties until the contract is:
Ratified.
Voided by both parties.
Performed.
Rescinded.
A contract between the seller of real property and a licensee, in which the seller agrees to pay the licensee a commission for producing a ready, willing, and able buyer and the licensee agrees to use due diligence in procuring the buyer, is called:
Unilateral contract.
Bilateral executory contract.
Open listing.
Net listing.
Which of the following is necessary for a real property conditional installment sales contract to be valid?
Mutual consent, lawful object, consideration, writing.
Consideration, offer and acceptance, lawful object, competent parties, legally sufficient writing.
Offer and acceptance, mutual consent, lawful object, writing.
Consideration, mutual consent, lawful object, writing.
A buyer enters into a verbal contract to purchase a house and immediately gives the broker an earnest money check for $500. Prior to performance under this contract, the verbal contract is considered legally:
Unenforceable.
Valid.
Void.
Voidable.
Under a lease for a commercial property, a tenant agrees to pay $4,000 per month plus 3% of the gross monthly sales. This type of lease is called a:
Gross lease.
Net lease.
Percentage lease.
Graduated lease.
A salesperson who prepares a written listing agreement with a seller is helping to create a contractual relationship between the:
salesperson's broker and the seller
salesperson and the seller
seller and the buyer
broker and the buyer
Under a sales contract, the legal remedy that may be used to force the seller to consummate the sale is called:
specific performance
liquidated damages
rescission
compensatory damages
If a lessee pays a fixed amount of rent plus all expenses such as taxes and insurance, the lease is known as a:
gross lease
net lease
percentage lease
graduated lease
A lease that provides for periodic increases of rent at regular intervals is called a:
gross lease
graduated lease
net lease
percentage lease
With the exception of court-ordered sales, the amount of earnest money to be deposited by a prospective buyer is determined by the:
seller
buyer
agreement between the seller and the buyer
real estate agent
In the event that a buyer fails to perform on an agreement to purchase, the seller may be allowed to keep the earnest money deposit as:
specific performance
compensatory damages
rescission
liquidated damages
A written purchase agreement has been signed by both a buyer and a seller. The Uniform Vendor and Purchaser Risk Act states that until the buyer has either possession of or title to a property, responsibility for the physical condition of the property:
remains with the buyer
is shared between the buyer and seller
remains with the seller
is transferred to the buyer
To be valid, an exclusive listing contract must contain all of the following except:
A. The names of the parties involved.
B. The final contract price.
C. The terms and conditions of the sale.
D. The duration of the listing agreement.
A promise in exchange for a promise, supported by consideration, is the basis for a:
A. unilateral contract.
B. void contract.
C. implied contract.
D. valid, binding, bilateral, contract.
The party most likely to sue for specific performance in the purchase of real estate is the:
A. Seller.
B. Broker.
C. Buyer.
D. Lender.
Jones goes into a restaurant and orders lunch. At the end of the meal, is he legally obligated to pay the check?
A. No, because he did not sign a contract.
B. Yes, because by ordering, Jones entered into an implied contract to pay for the meal.
C. No, because the restaurant did not ask for payment upfront.
D. Yes, because the restaurant can sue for breach of contract.
What is it called when a sum of money is submitted by a buyer with an offer to purchase?
A. Down payment
B. An earnest money deposit
C. A security deposit
D. A reservation fee
The most important document in the sales process is the purchase contract because:
A. it provides the road map for the closing.
B. it guarantees the sale price.
C. it lists all the property defects.
D. it includes the buyer's credit report.
One effect of a clause in a sales agreement that states that 'time is of the essence' might be that:
A. All parties must attend to those details called for in the agreement in a timely manner.
B. The buyer can delay payment indefinitely.
C. The seller can extend the closing date at will.
D. The contract becomes void if not signed immediately.
In April, Jones accepted an offer to sell his house to Brown. In June, Brown paid the purchase price and received a deed to the house and the keys. After June their contract was considered to be:
A. Void.
B. Executory.
C. Executed.
D. Unenforceable.
When is a contract said to be discharged?
A. Once all of its terms and conditions have been met.
B. When one party decides to cancel it.
C. When it is signed by both parties.
D. When it is filed with the court.
When a contract contains provisions outlining what money penalties will be levied against the party that refuses to perform, the amount specified is known as:
A. punitive damages
B. compensatory damages
C. liquidated damages
D. nominal damages
Which of the following would usually occur in a sale-and-leaseback transaction?
A. The buyer leases the property to a third party.
B. The seller retains ownership of the property.
C. The buyer sells the property to another buyer.
D. The property is sold on the condition that the new owner lease it back to the seller at the time title passes.
The basic purpose of a listing agreement is to authorize the broker to:
A. find a buyer.
B. sell the property.
C. lease the property.
D. manage the property.
A family rents a house from January 1st to June 30th. This is considered a(n):
A. periodic tenancy
B. tenancy at will
C. estate for years
D. tenancy at sufferance
A parcel of vacant land is listed with a broker for $100,000, requiring 20% down with the seller to carry back the balance. The broker brings in a full-price cash offer, but the owner refuses. The broker is entitled to:
A. a full commission
B. nothing
C. a partial commission
D. reimbursement for expenses
Under a lease, the leasehold interest lies in the:
A. landlord
B. property manager
C. lessee
D. broker
All of the following listings require that the broker be the "procuring cause" of the sale if he/she is to be entitled to a commission, EXCEPT:
A. an open listing
B. an exclusive right to sell listing
C. a net listing
D. an exclusive agency listing
When creating a contract, consideration may be:
During the term of an exclusive authorization and right to sell listing, the broker has his license revoked by the Real Estate Commission. To prove that he is entitled to a commission, he must prove all of the following, except:
A listing with an effective date of March 12th and expiring on April 12th is for:
(a)
A tenant's five-year lease has expired but they continue to live on the premises and pay their rent monthly. If the landlord hasn't asked them to leave and continues to accept rent, this is considered a(n):
A broker has a combination of a listing and an option on a property. She exercises the option without disclosing to the seller that she has found a buyer at a higher price. The broker:
Which of the following is NOT essential to all contracts?
(a)
An agent must submit all new offers to the owner until:
A broker enters into an open listing with a seller, but fails to give a copy of the listing contract to the owner and also fails to include a termination date. The broker then presents an offer which is accepted. Which of the following statements is most applicable?
A broker has listed Mr. Applegate's property under an exclusive listing. He also has an option to purchase the property within 30 days. If after 27 days, the broker decides to buy the property, he must:
A broker receives a full-price offer on a house he has listed in accordance with the terms of the listing. Before he can present the offer, another broker brings in an offer with slightly better terms, but for $500 less. The listing broker should:
When a lessee transfers all of his/her interest in the property, it is called a(n):
(a)
Most real estate contracts contain pre-printed clauses or spaces for information to be added in writing. When interpreting such contracts:
A buyer wanted to use a promissory note for consideration on the purchase of a property. Can he do this?
Yes. This is acceptable as long as the seller agrees.
No. This is not acceptable under any circumstances.
Only if the property is under a certain value.
The Federal Truth-in-Lending Law (Regulation Z) gives the borrower a 3-day right of rescission when the loan is:
A purchase-money loan secured by a deed of trust on commercial property.
A loan secured by a second deed of trust, or mortgage on owner-occupied single-family residence when the money is borrowed subsequent to the purchase.
An FHA or VA loan to purchase a single-family, owner-occupied residence.
A conventional purchase-money loan secured by a deed of trust on residential property.
An acceleration clause is inserted into a note that is otherwise negotiable. Adding this clause:
does not limit the negotiability of the note.
has no effect on negotiability, but also is of no benefit to the holder of the note.
makes the note non-negotiable.
is required to be negotiable.
A mortgage clause which states that the entire balance of a mortgage is due immediately if the borrower sells the property is known as a(n):
estoppel certificate.
satisfaction clause.
acceleration clause.
due-on-sale clause.
What is the primary purpose of an earnest money deposit in a real estate transaction?
To pay for the broker's commission.
To cover closing costs.
To demonstrate the buyer's good faith.
To serve as a down payment.
Which type of listing agreement allows a property owner to sell the property themselves without paying a commission to the broker?
Net listing.
Open listing.
Exclusive right to sell listing.
Exclusive agency listing.
In real estate, what is the term for a tenant's right to match an offer to purchase the property they are leasing?
Right of first refusal.
Option to purchase.
Purchase agreement.
Leasehold interest.
