Principles of Real Estate Ch.5 (Quiz 5)

A properly signed exclusive right-to-sell listing agreement is an:

1) bilateral contract

2) purchase contract

3) implied contract

4) unilateral contract

1) bilateral contract

Buyer makes a written bonafide offer to purchase, and seller signs the acceptance. A contract is first created:
1) when the broker presents the offer to the seller

2) when buyer receives proper communication of seller's acceptance

3) when the buyer and seller sign escrow instructions

4) immediately upon seller's acceptance

2) when buyer receives proper communication of seller's acceptance

A unilateral contract is:
1) a promise for a promise.

2) created by actions.

3) a completed contract.

4) a promise for an act.

4) a promise for an act.

A real estate broker takes an exclusive right to sell listing from a seller for $400,000. A buyer makes an offer for $375,000 which the seller accepts. Before the sale closes, the buyer discovers that the broker misrepresented the square footage of the home. Based on this information, the purchase contract is probably:
1) voidable

2) valid

3) void

4) illegal

1) voidable

All of the following are essential for a valid real estate contract, except:
1) capable parties

2) mutual consent

3) lawful object

4) parole evidence

4) parole evidence

An executory contract is a contract that:
1) has been recorded

2) is yet to be completed

3) is in writing

4)has been fully performed

2) is yet to be completed

An owner gives ABC Realty an exclusive agency listing for 60 days. Thirty days later the owner finds a buyer and sells the property without the services of ABC Realty. The:
1) two of the answers are correct

2) the sale is invalid

3) owner does not owe a commission

4) owner owes ABC Realty a commission

3) owner does not owe a commission

A listing contract given to several real estate brokers in which the commission is payable to the first broker who brings in an acceptable offer is what type of listing?
1) Open

2) Multiple

3) Net

4) Exclusive

1) Open

A counteroffer by the seller:
1) is used as a tactic by the seller to drive up the sales price of the property

2) indicates acceptance of buyer’s offer

3) rescinds the buyer’s offer

4) automatically does away with the buyer’s original offer and in reality, is an offer made to the buyer from the seller

4) automatically does away with the buyer’s original offer and in reality, is an offer made to the buyer from the seller

An oral contract is made between an agent and a seller for the sale of real property. The seller refuses to pay the commission after the sale of the property. This contract between the seller and the agent is:
1) a valid contract and can be sued upon

2) a voidable contract because the agent had the option to call it off

3) an unenforceable contract because the Statute of Frauds requires agreement for compensation to be in writing

4) n enforceable contract because the agent and seller had an agreement

3) an unenforceable contract because the Statute of Frauds requires agreement for compensation to be in writing

A buyer makes an offer on a lot for $150,000 and the seller counter offers for $158,000. The buyer is:
1) bound by the counter offer

2) prevented from making another offer

3) relieved from any further liability

4) bound by the original offer

3) relieved from any further liability

According to the exclusive right to sell CAR Residential Listing Agreement, a real estate broker is entitled to the commission if the property is:
1) found to be unmarketable by a title company

2) withdrawn from the market with the mutual consent of the seller and the listing agent

3) destroyed due to a natural hazard

4) sold during the listing period

4) sold during the listing period

An exclusive right to sell listing is given to Broker Pardo, a sole owner, but Pardo dies prior to finding a buyer; the listing:
1) none of these are correct

2) passes to the estate of Pardo

3) terminates

4) continues if another broker buys the Pardo real estate office

3) terminates

When would a broker be legally required to reveal the amount of commission under a net listing?
1) Before the seller accepts the buyer's offer

2) When the property is listed

3) After the close of escrow

4) Whenever the seller asks

1) Before the seller accepts the buyer's offer

At what minimum age is a civilian single person, who has not had any court or guardianship intervention, legally capable of entering into an enforceable real estate contract?
1) 16 years

2) 21 years

3) 18 years

4) 19 years

3) 18 years

When the owner of a piece of leased property gives the lessee an option to buy, the option:
1) requires the optionee to complete the sale

2) is not a purchase contract until exercised

3) requires no consideration or fee

4) is a lien on the seller's title

2) is not a purchase contract until exercised

The disclosure requirement that is concerned with sexual predators, is the:
1) Real Property Disclosure Act

2) Megan’s Law

3) Home Inspection Notice

4) Ral Estate Transfer Disclosure Statement

2) Megan’s Law

An owner lists a home for sale with XYZ Realty, with instructions to submit the listing to the multiple listing service and invite other brokers to help find a buyer. This is an example of a:
1) implied agency

2) cooperating agency

3) buyer's agency

4) dual agency

2) cooperating agency

 There are some basic provisions that should be included in a contract. Which one of the following is one of those provisions?
1) Names of the sellers only.

2) All of these

3) What is the buyer’s income.

4) Consideration

4) Consideration

A real estate agent may legally refuse to show property available for sale to a person of a minority race if the:
1) owners had given specific instructions against showing the home to minority buyers

2) agent felt the buyers would not like the location

3) agent feels the home was not suited for the people

4) owners were out of town and had left instructions the home was not to be shown to anyone during their absence

4) owners were out of town and had left instructions the home was not to be shown to anyone during their absence

 A broker's commission is most likely earned when the broker:
1) communicates acceptance to the offeror

2) communicates offer to seller

3) secures a substantial deposit with an offer

4) secures acceptance of an offer

1) communicates acceptance to the offeror

The sellers have accepted an offer in which they agreed to carry a second trust deed. What contract should be provided to the seller to be sure all the required information is available to them to enter into this type of agreement?
1) Seller Financing Addendum and Disclosure Statement.

2) Real Estate Transfer Disclosure Statement.

3) Buyer’s credit report.

4) Common Interest Development Statement.

1) Seller Financing Addendum and Disclosure Statement.

Which of the following indicates the greatest progress toward completion of a sale?
1) broker advises principal that broker has a signed offer to buy per the listing terms

2) buyer advised broker that buyer would sign acceptance of seller's counter offer

3) seller informed broker that seller would accept the lower price offered by buyer

4) broker notified buyer of seller's signed acceptance of buyer's offer

4) broker notified buyer of seller's signed acceptance of buyer's offer

Sales price for a mobile home is $145,000; excluding the commission, the seller closing costs are $2,000. Seller's existing loan balance $80,000. Per the terms of the listing, the seller is guaranteed a net of $58,000. What is the broker's commission?
1) $6,000

2) $3,000

3) $5,000

4) $4,000

3) $5,000

When a buyer is purchasing a condominium or PUD, said buyer must be given which of the following regarding the CC&Rs, homeowner dues, and financial and legal status of the homeowner's association?
1) Natural Hazard Disclosure Statement

2) Common Interest Development General Information

3) Real Estate Transfer Disclosure Statement

4) Seller Financing Addendum and Disclosure Statement

2) Common Interest Development General Information

Six separate co-buyers of a parcel of land signed a deposit receipt contract at different times and places. A copy must be:
1) given to the first and last signers only

2) given to each at the time they sign

3) be sent to each one after the last one signed

4) given to the first signer only

2) given to each at the time they sign

When a buyer backs out of a home sale, the most common outcome is:
1) buyer gets back the deposit; seller hopes to find another buyer

2) seller sues for specific performance

3) seller sues for dollar damages

4) broker expects the seller to still pay the commission

1) buyer gets back the deposit; seller hopes to find another buyer

 What is a contract called whereby the seller agrees to pay a commission and the broker agrees to use diligence in finding a buyer?
1) bilateral executory contract

2) unilateral executory contract

3) bilateral executed contract

4) unilateral executed contract

1) bilateral executory contract

The listing agreement stated that the existing loan was to be assumed. The broker received an offer per the exact terms of the listing except that the buyer wanted to put on a new loan. The seller refused the offer. The broker would be:
1) entitled to a full commission

2) entitled to one-half the commission

3) entitled to a reimbursement for expenses

4) entitled to no commission

4) entitled to no commission

Under an option agreement, the grantor/owner of the property is the:
1) option owner

2) option holder

3) optionee

4) optionor

4) optionor