National Brokerage

Question 1

An agreement in which a seller hires a broker to market a property creates an agency relationship between

the listing agent, buyer, and seller.

buyer and broker.

broker, buyer, and seller.

broker and seller.

Answer 1

broker and seller.

Question 2

A utility right-of-way is an example of

an encroachment.

a lien.

an encumbrance.

a permit.

Answer 2

an encumbrance.

Question 3

What kind of lease conveys a leasehold interest to an owner of a cooperative?

Net-net

Proprietary

Percentage

Index

Answer 3

Proprietary

Question 4

AIDA stands for

Allowance, Involvement, Develop, and Action

Attention, Interest, Desire, and Action

Action, Involvement, Detail, and Allowance

Advanced, Intake, Design, and Action

Answer 4

Attention, Interest, Desire, and Action

Question 5

If a buyer asks about homes in the “Muslim” area, what should you do?

Explain to the buyer that you, ethically and legally, cannot recommend housing based on religion.

Refer them to another licensee.

Answer the buyer’s question to the best of your abilities.

Report the buyer to the Fair Housing Board.

Answer 5

Explain to the buyer that you, ethically and legally, cannot recommend housing based on religion.

Question 6

Which of the following situations would give concern about working for the Sunny Valley Brokerage?

The office holds weekly staff meetings.

Most agents appear successful.

Agents seem to come and go quickly.

Office has a selection of training materials.

Answer 6

Agents seem to come and go quickly.

Question 7

Property briefs are also called

property notes.

cheat sheets.

property flyers.

house information pads.

Answer 7

property flyers.

Question 8

Which type of contract can have tax benefits for a seller?

Option to buy

Purchase and sale

Contract for deed

Lease

Answer 8

Contract for deed

Question 9

Most apartment leases are

estates at will.

freehold estates.

estate at sufferance.

estates from period to period.

Answer 9

estates from period to period.

Question 10

An agent owes all but which of these to his or her customer?

Disclosure

Funds accounting

Advertising

Skill

Answer 10

Advertising

Question 11

Which statement about property management is FALSE?

Property management is a specialized field in real estate.

A property manager is a fiduciary.

Asset manager and resident manager mean the same thing.

A management agreement is an employment contract between the owner and the manager.

Answer 11

Asset manager and resident manager mean the same thing.

Question 12

Agent Sally has been with Black Realty for over three years and has worked up to the top agent in the firm. Her commission percentage rate is double that of a starting agent. Based on this information, what type of compensation plan does the Black agency have in place?

Graduated

Level Grade

Ramped

Step

Answer 12

Graduated

Question 13

Which of the following is NOT a resource for information regarding professional ethics?

Federal laws

Licensing regulations

Real estate marketing copy

Real estate associations

Answer 13

Real estate marketing copy

Question 14

What is the purpose of a carryover clause?

Protects the seller if the buyer cancels the sale

Allows a six-week extension to the listing contract

Allows the broker to collect a commission for some period of time after the listing expires

Prevents the seller from doing an FSBO sale up to six months after the listing expires

Answer 14

Allows the broker to collect a commission for some period of time after the listing expires

Question 15

What are persons called who act as buyers and check on fair housing compliance?

Fair housing guides

Compliance officers

Block watchers

Testers

Answer 15

Testers

Question 16

What does risk management mean as it applies to property management?

Controlling and limiting risk through proper insurance

Limiting financial risk through the operating budget

Overseeing preventive maintenance

Keeping the grounds cleared to eliminate accident risk

Answer 16

Controlling and limiting risk through proper insurance

Question 17

Which type of agreement assures that a broker will receive compensation regardless of who procures the buyer?

Gross listing

Net listing

Exclusive right to sell

Exclusive agency

Answer 17

Exclusive right to sell

Question 18

The Brooks’ paid-off property sold for $247,600. What will they net after paying a 7.5% commission to their broker?

$215,830

$219,700

$227,792

$229,030

Answer 18

229,030

Question 19

All closing real estate sales must be reported to the IRS on which form?

Estate Tax Form

Hud-78 Form

Form 1099

Form 1199

Answer 19

Form 1099

Question 20

When a seller agrees to an MLS listing, what is the seller authorizing?

Designated agency

Subagency

Dual agency

Exclusive agency

Answer 20

Subagency

Question 21

Agent Sam gets about 6 hours of floor time each week. What is a major duty for Agent Sam during this time?

File office documents from previous transactions.

Assist other agents.

Prepare mailings.

Respond to incoming sales calls.

Answer 21

Respond to incoming sales calls.

Question 22

What is the purpose of the Statute of Frauds?

It invalidates certain oral contracts.

It requires certain conveyance-related contracts to be
in writing.

It nullifies oral leases and listing agreements.

It eliminates fraud in real estate contracts.

Answer 22

It requires certain conveyance-related contracts to be in writing.

Question 23

Puffing is a term characterized by which of the following actions?

Providing opinions

Giving fraudulent statements

Giving objective information

Misrepresenting the facts

Answer 23

Providing opinions

Question 24

Which of the following situations would cause the IRS to think that a contractor is really an employee?

The licensee attends sales meetings.

The licensee gets a commission.

The licensee takes paid sick days.

The licensee pays for transportation expenses.

Answer 24

The licensee takes paid sick days.

Question 25

A licensee tells a neighborhood watch group that Vietnamese are moving into the neighborhood. What is this broker guilty of?

Redlining

Typecasting

Steering

Panic selling

Answer 25

Panic selling

Question 26

Which party holds the escrow money when a dispute occurs?

Title Company

Court Appointed Escrow Agent

The Sponsoring Broker

Mortgage Lender

Answer 26

The Sponsoring Broker

Question 27

Earnest money is usually made in the form of a

holding draft.

check.

letter of credit.

cash deposit.

Answer 27

check

Question 28

What process determines how much money the buyer needs to bring to closing?

The escrow agent will subtract the total of the buyer’s credits from the total debits and the result is what the buyer needs to bring.

The buyer brings an open bank draft and finds out the final amount at the closing meeting.

The broker finds out from HUD and tells the buyer how much to bring.

The lender calculates what’s owed and tells the buyer what to bring.

Answer 28

The escrow agent will subtract the total of the buyer’s credits from the total debits and the result is what the buyer needs to bring.

Question 29

Owning a building typically

increases marketing abilities for the company.

allows better market share of the business.

reduces the flexibility of the business.

increases the flexibility of the business.

Answer 29

reduces the flexibility of the business.

Question 30

If a group of brokers has a meeting to set commission rates, what does this violate?

Fair Housing Act

Sherman Antitrust Act

Civil Rights Act of 1968

Jones v. Mayer

Answer 30

Sherman Antitrust Act

Question 31

A building with integrated office and retail space would be considered

a Class A building.

a mixed-use property.

institutional real estate.

a flex-space development.

Answer 31

a mixed-use property.

Question 32

After a listing agreement is signed, and if the agent is a member of a marketing service called a Multiple Listing Service (MLS). What specific form must be completed before the agent can post and market the property to other licensees who are members of MLS?

MLS Form BB-1

A copy of the original listing agreement

The original listing agreement

An MLS form.

Answer 32

An MLS form.

Question 33

A broker can enter into a single agency agreement with

seller and secondary principal.

a renter and landlord.

a buyer.

a seller and buyer.

Answer 33

a buyer.

Question 34

How should a seller deal with an interested party that shows up at their front door unannounced and wants to see the house?

The seller should conduct a tour.

Take the person’s name and then call the office immediately so an agent can come to do the showing.

Give the visitor a flyer and the agent’s business card.

Tell the visitor when the next open house is scheduled.

Answer 34

Take the person’s name and then call the office immediately so an agent can come to do the showing.

Question 35

Which of the following referral fees are NOT prohibited by RESPA?

Title search referral fees

Fees among cooperating brokers

Title insurance referral fees

Inspection referral fees

Answer 35

Fees among cooperating brokers

Question 36

What type of budget is used to forecast income and expense over some period of years?

Operating

Variable

Capital Reserve

Stabilized

Answer 36

Stabilized

Question 37

Disclosure is sometimes called what?

Openness

Honesty

Notice

Diligence

Answer 37

Notice

Question 38

Which document is the most important at closing?

Settlement statement

Deed

Inspection reports

Listing contract

Answer 38

Deed

Question 39

Which person is responsible for filling out a property disclosure statement?

Broker’s office assistant

The cooperating agent

The sellers

The listing agent

Answer 39

The sellers

Question 40

Which form of agency is illegal in most states

Single agency

Buyer’s agency

Undisclosed dual agency

Subagency

Answer 40

Undisclosed dual agency

Question 41

Which of the following is an advantage of investing in a nonresidential property?

No cost-of-living provisions

Reduced payroll taxes

No lease coverage for production interruptions

Limited rent controls

Answer 41

Limited rent controls

Question 42

Which method can be helpful in tracking your advertising results?

Mark outs

Error codes

Assigning a code

Back testing

Answer 42

Assigning a code

Question 43

What is the definition of a principal?

A broker who owns a real estate firm

A person who delegates another to act on his or her behalf through an agency relationship

Someone who buys a property directly from an owner with no representation

A person who expects loyalty and accounting from the person who purchases the property

Answer 43

A person who delegates another to act on his or her behalf through an agency relationship

Question 44

What is the typical time period required to maintain escrow records?

3-5 days

3-5 weeks

3-5 months

3-5 years

Answer 44

3-5 years

Question 45

When an agency relationship is terminated, which of the following responsibilities still remains in force?

Skill

Confidentiality

Obedience

Care

Answer 45

Confidentiality

Question 46

Which of the following is considered a variable expense?

Real estate taxes

Insurance

Advertising

Utilities

Answer 46

Utilities

Question 47

What can you do to increase your chances of extending a listing that is about to expire?

Call some friends and ask them to tour the property.

Meet with your sellers a few weeks before the listing expiration and review with them your marketing efforts.

Draw up an extension contract and mail it to the seller’s two weeks before the listing expires.

Meet with the sellers after the listing expires and write a new listing.

Answer 47

Meet with your sellers a few weeks before the listing expiration and review with them your marketing efforts.

Question 48

Which type of real estate advertisement is typically located in areas with a high presence of foot traffic?

Billboards

Radio Ads

Door Hangers

Shopping Guides

Answer 48

Shopping Guides

Question 49

What is the best approach to establishing a buyer’s possession?

Buyers take possession 2 days after the transaction close.

Buyers take possession on the day of the close.

Sellers should remain on the property at least 3 days after the closing date.

Sellers should move from the property at least 5 days before the close date.

Answer 49

Buyers take possession on the day of the close.

Question 50

Which of the following classes are not protected by federal law?

Military status

Sex

Color

Handicap

Answer 50

Military status