Oregon Real Estate Exam #2 Flashcards
A real estate licensee has a buyer agency agreement. What is the seller in this situation?
A. a customer
B. a client
C. a fiduciary
D. an agent
A. A Customer
- There’s an important distinction between client and customer. Unless there is a specific agreement to the contrary, licensees represent only one side in a transaction. In this case, its the buyer who is the client and it’s the licensee’s obligation to negotiate a deal that’s in that person’s best interests, not the one that’s fairest to both parties.
A optionor and optionee make a contract for an option on a commercial piece of property. If the optionee decides to exercise his option, when must he perform?
A. He must exercise his option within 6 months under state law.
B. He must exercise his option under the terms of the option contract.
C. He can exercise his option whenever he wants.
B. He must exercise his option under the terms of the option contract.
- Options are generally concerned with only two things: time and price. Whatever the parties agree to in those regards defines the terms of the option and the obligations of the parties.
When can a landlord evict a disabled blind or disabled tenant from the premises?
A. If the tenant gets a dog and the apartment policy does not allow pets.
B. If the tenant insists on a handicapped parking place.
C. If the tenant makes modifications to his unit at his expense.
D. If the tenant has loud parties and makes too much noise.
D. If the tenant has loud parties and makes too much noise.
- The law requires reasonable accommodation–for example, allowing a guide dog for a blind person even if there’s a no pets policy. However, that does not mean that all rules are suspended. Noise, safety, and use of premises policies may still be enforced.
Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property. What, if any, is the relationship between the buyer’s broker, the seller and the listing broker?
A. There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smith represents the buyer.
B. Customer
C. Agency
D. Dual Agency
A. There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smith represents the Buyer.
- Since each broker represents separate sides in the transaction, no relationship exists.
A buyer bought a property without telling the seller of his intended purpose for the property. The contract contains no contingency clauses and is a properly executed contract. After the closing, the buyer is unable to obtain the zoning he needs for his commercial project. What is the contract at this stage?
A. void
B. voidable
C. breach
D. enforceable
D. Enforceable
- Since there were no contingency clauses, and no restrictive covenants or record. If the buyer cannot secure a change of zoning, the contract is perfectly valid as stands and is enforceable between the parties.
The seller and the buyer finally agreed to a purchase price of $203,500 with the closing to occur on June 15, 2011. The taxes for the year 2011 in the amount of $2,500 have not been paid by the seller. (Taxes are paid in arrears). How much would the tax proration amount to, and how would it appear on a full settlement statement? Base your on a 365 day year, and the buyer is responsible for the day of settlement.
A. $1,130.14 debit the seller and credit the buyer
B. $1,130.14 debit the buyer and credit the seller
C. $2,500 credit and seller and debit the buyer
D. Nothing, the seller does not owe since the buyer is buying.
A. $1,130.14 debit the seller and credit the buyer.
- The seller would owe money, and the buyer would receive money, because the seller has not paid the taxes. $2,500 divided 365 is $6,849315 times the actual days of 165 is $1,130.14.
A seller listed his home for six months on Feb 26. On April 29, a buyer made an offer on the property. The listing broker presented the offer to the seller on April 30. The seller accepted the offer on May 1, with the closing to occur on June 15. Assuming the closing took place on June 15, when did the listing expire?
A. 26-May-04
B. 15-Jun-04
C. 26-Aug-04
D. 15-Dec-04
B. 15-Jun-04
- Listing contracts set forth the terms and conditions under which a broker will sell a property for his or her client. When the closing takes place, the terms of the contract have been fulfilled and it expires automatically.
The seller listed their property for six months on Feb 26 for $104,500. They agreed to pay the listing broker a 7% commission at closing on the agreed-upon sale price. A buyer made an offer on the property on March 29 for $102,000. The seller countered the offer on April 1 at $103,500 and the buyer accepted the counteroffer with the closing to occur on June 15. How much commission did the seller owe the listing broker, and how would it appear on the settlement statement?
A. $3,622.50 Debit the Seller
B. $7,140.00 Credit the Seller
C. $7,315.00 Debit the Seller
D. $7,245.00 Debit the Seller
D. $7,245.00 Debit the Seller
- Commissions are paid based on the actual selling price, not the listing price. Additionally, since the broker represented the sellers in this transaction, the commission is debited from their side of the ledger.
