CANVAS QUIZ: Chapter 4

Question 1

In a listing agreement:

a) no handwritten instructions are allowed.
b) preprinted instructions supersede handwritten instructions.
c) handwritten instructions supersede preprinted instructions.
d) handwritten instructions must exactly match preprinted instructions.

Answer 1

c) handwritten instructions supersede preprinted instructions.

Question 2

The “listing package” contains how many basic forms?

a) one
b) three
c) four
d) five

Answer 2

d) five

Question 3

The “listing package” is packet of forms given from:

a) seller to the buyer.
b) agent to the buyer.
c) agent to the seller.
d) lender to the escrow agent.

Answer 3

c) agent to the seller.

Question 4

Which of the following is NOT included in the listing package?

a) Buyer’s Inspection Advisory (BIA)
b) Wire Fraud and Electronic Funds Transfer Advisory )WFA)
c) Seller’s Advisory (SA)
d) Disclosure Regarding Real Estate Agency Relationship (AD)

Answer 4

a) Buyer’s Inspection Advisory (BIA)

Question 5

What form advises Buyers and Sellers that an agent may not be working only for them, but also may be working for other clients as well?

a) Buyer and Seller’s Advisory Buyer and Seller’s Advisory Possible Representation of More Than One Buyer or Seller – Disclosure and Consent (PRBS)
b) Buyer and Seller’s Advisory
c) Multiple Listing Advisory
d) none of the above

Answer 5

b) Buyer and Seller’s Advisory

Question 6

What type of residential listing requires a definite end time and date?

a) open listing
b) exclusive authorization and right to sell listing
c) buyer’s listing
d) net listing

Answer 6

b) exclusive authorization and right to sell listing

Question 7

In the CAR Residential “Exclusive Authorization and Right to Sell” Listing, the “safe harbor provision” whereby a listing broker must provide the seller with a list of prospective buyers is meant to protect:

a) the buyer from unsafe building practices.
b) the original listing broker and secondary brokers’ right to earn a commission.
c) seller’s right to deny a commission.
d) MLS from buyer’s lawsuits.

Answer 7

b) the original listing broker and secondary brokers’ right to earn a commission.

Question 8

Unless terms in the CAR ® Residential Listing Agreement (RLA) are specified, sellers are NOT obligated to pay a commission when they refuse a full price offer, unless:

a) the offer is made by a family member.
b) the offer is leveraged.
c) the offer is for all cash, with no contingencies.
d) all of the above.

Answer 8

c) the offer is for all cash, with no contingencies.

Question 9

Under “supervision of salesperson’s activities,” if the broker does not approve of any terms, (referred to as the Managerial Approval clause 17) he or she has the right to cancel the CAR® listing agreement:

a) within one day.
b) within three days.
c) within four days.
d) within five days.

Answer 9

d) within five days.

Question 10

According to Real Estate Law, an agent is required to give a copy of the Listing Agreement to the principal(s):

a) at the time of signing.
b) at the time escrow closes.
c) within 3 business days of signing.
d) within 3 months of signing.

Answer 10

a) at the time of signing.

Question 11

The Seller’s Advisory (SA) is an important list of forms (General and Statutory Duties) given to the seller, recommending obtaining professional inspections. Which of the following is NOT one of the mandatory disclosures listed on the form?

a) Transfer Disclosure Statement
b) Natural Hazard Disclosure Statement
c) Buyer’s Financial Disclosure Statement
d) Ordinance Disclosures

Answer 11

c) Buyer’s Financial Disclosure Statement

Question 12

In a CMA, it’s important to only select properties that are comparable to the subject property and:

a) have recently sold.
b) inflate the value of the subject property.
c) are not listed with an MLS.
d) are viewable on the internet.

Answer 12

a) have recently sold.

Question 13

The comparative/market data approach is the most reliable expression of value because it represents the reactions of:

a) the stock market.
b) informed buyers and sellers.
c) uninformed buyers and sellers.
d) none of the above.

Answer 13

b) informed buyers and sellers.

Question 14

The amount of cash or cash equivalent that is most likely to be paid for a property on a given date in a fair and reasonable open market sale is called:

a) market value.
b) capital value.
c) net value.
d) conditional value.

Answer 14

a) market value.

Question 15

In a CMA, it’s important to only select properties that:

a) inflate the value of the subject property.
b) are comparable to the subject property.
c) are viewable on the internet.
d) are not listed with an MLS.

Answer 15

c) are viewable on the internet.

Professor mistake? All of these are true.

Question 16

“Active Listings” on a CMA:

a) are the properties in the area that are getting the most offers.
b) are properties that have pending offers waiting for seller’s decision.
c) often have inflated asking prices that very few buyers actually expect to pay.
d) none of the above.

Answer 16

c) often have inflated asking prices that very few buyers actually expect to pay.

Question 17

Which of the following is NOT a potential result of overpricing property?

a) broker’s may not show the property to clients because of the price.
b) the DRE will intervene to set the appropriate asking price.
c) property usually stays on the market too long.
d) the property may be perceived as having something wrong with it (stigmatized).

Answer 17

b) the DRE will intervene to set the appropriate asking price.

Question 18

The number of months’ supply of home listings “for sale” on an MLS at a particular time is called:

a) inventory.
b) the market saturation level.
c) demand.
d) none of the above.

Answer 18

a) inventory.

Question 19

In a “buyer’s market”:

a) there are more real estate licensees than buyers.
b) there are more buyers than real estate licensees.
c) there are more listings than buyers.
d) there are more buyers than sellers.

Answer 19

c) there are more listings than buyers.

Question 20

The HVCC says that appraisals must be ordered by third party appraisal companies. What does HVCC stand for?

a) Homebuyers Valuation Conventional Code
b) House Value Completion Code
c) Home Variety Construction Code
d) Home Value Code of Conduct

Answer 20

d) Home Value Code of Conduct