The Offer & Sales Agreement

Question 1

In real estate, selling begins with

(a) calculating future profits.
(b) uncovering client needs and then working for those needs to be satisfied.
(c) setting sales commission goals and yearly income requirements.
(d) creating a successful appearance to attract high end clients.

Answer 1

(b) uncovering client needs and then working for those needs to be satisfied.

Question 2

Part of evaluating your communication skills involves

(a) checking your breath.
(b) talking louder.
(c) testing your vocabulary.
(d) checking your voice personality.

Answer 2

(d) checking your voice personality.

Question 3

Open-ended questions ask for

(a) reasons and feelings.
(b) a simple yes or no answers.
(c) concise answers.
(d) the sale.

Answer 3

(a) reasons and feelings.

Question 4

Property features include those of specific houses as well as those of

(a) local government.
(b) the community.
(c) personality.
(d) personal taste.

Answer 4

(b) the community.

Question 5

In striving to obtain an offer to purchase, you must sell the property’s benefits that match the buyer’s

(a) ethnic background.
(b) economic bracket.
(c) needs and wants.
(d) familial status.

Answer 5

(c) needs and wants.

Question 6

Logic makes people think, or reason. Emotion makes them

(a) purchase.
(b) question.
(c) doubt.
(d) act.

Answer 6

(d) act.

Question 7

At various stages of your presentation, prospects may signal they are ready to buy. These buying signals can take the form of

(a) facial expressions.
(b) words or phrases.
(c) actions.
(d) all of the above.

Answer 7

(d) all of the above.

Question 8

When confronted with buyer resistance in the form of objections, you should

(a) crush them decisively.
(b) be offended by them.
(c) welcome them.
(d) fear them.

Answer 8

(c) welcome them.

Question 9

An effective way to respond to an objection is to

(a) firmly disagree and hold your ground.
(b) rephrase the objection as a question.
(c) act like the objections is unreasonable.
(d) flat-out refuse to talk about the objection for effect.

Answer 9

(b) rephrase the objection as a question.

Question 10

The technique of answering a question with a question is referred to as a

(a) hook.
(b) catch.
(c) snag.
(d) trick.

Answer 10

(a) hook.

Question 11

The psychological moment for a trial close

(a) always occurs within the first few minutes of a sales presentation.
(b) varies with each transaction.
(c) never happens on the first meeting.
(d) never happens out in the field.

Answer 11

(b) varies with each transaction.

Question 12

A closing technique that gives a buyer a choice between two things rather than between something and nothing is called a(n)

(a) assumptive close.
(b) inducement close.
(c) narrative close.
(d) positive choice close.

Answer 12

(d) positive choice close.

Question 13

Which of the following closing techniques involves a third party as an ally?

(a) inducement
(b) fear of loss
(c) narrative
(d) assumptive

Answer 13

(c) narrative

Question 14

When providing the buyer with the estimated buyer’s costs, you should

(a) strive to be realistic.
(b) be honest and full in your disclosures.
(c) err on the high side to prevent any surprises.
(d) all of the above.

Answer 14

(d) all of the above.

Question 15

All real estate sales contracts must be in writing to be enforceable according to the

(a) Business & Professions Code.
(b) Statute of Frauds.
(c) Civil Code.
(d) Commissioner’s Regulations.

Answer 15

(b) Statute of Frauds.

Question 16

The Purchase Agreement provides for increasing the earnest money deposit in cases of

(a) multiple offers
(b) auctions
(c) low initial deposits.
(d) a buyer’s market.

Answer 16

(c) low initial deposits.

Question 17

The Statutory and Other Disclosures paragraph of the purchase agreement calls for disclosure of

(a) lead-based paint.
(b) natural and environmental hazards.
(c) Megan’s Law database.
(d) all of the above.

Answer 17

(d) all of the above.

Question 18

Paragraph 14 of the purchase agreement addresses all time periods for compliance and disclosures. Modification of time periods

(a) happen spontaneously and sometimes cannot be disclosed.
(b) can be made at the buyer’s discretion.
(c) must be in writing.
(d) can be made at the seller’s discretion.

Answer 18

(c) must be in writing.

Question 19

A contract clause that emphasizes punctual performance as an essential requirement of the contract is

(a) let the buyer use diligence
(b) time is of the essence
(c) punctual performance required
(d) tardy means default

Answer 19

(b) time is of the essence

Question 20

Which of the following statements is true regarding the purchase agreement and escrow instructions?

(a) Certain paragraphs of the contract of sale itself serve as escrow instructions.
(b) The buyer and seller usually draft separate escrow instructions.
(c) The broker is responsible for drafting joint escrow instructions.
(d) The escrow agent will interpret the sales contract to draft escrow instructions.

Answer 20

(a) Certain paragraphs of the contract of sale itself serve as escrow instructions.

Designated paragraphs of the purchase agreement are joint escrow instructions. Escrow instructions detail the procedures necessary to close the transaction and directs the escrow agent on how to proceed.

Question 21

For effective communications it is best to:

(a) sell the item not the benefits.
(b) provide sufficient facts so the receivers can form valid conclusions.
(c) use technical terms wherever possible.
(d) talk fast if the customer talks slowly.

Answer 21

(b) provide sufficient facts so the receivers can form valid conclusions.

Question 22

An example of an open-ended question would be:

(a) Do you like this house?
(b) Can you afford a $1,500 house payment?
(c) What do you like about this neighborhood?
(d) Is there any more information you would like?

Answer 22

(c) What do you like about this neighborhood?

Question 23

An example of a closed-end questions, would be:

(a) Isn’t this a large living room?
(b) Whose bedroom would this be?
(c) Would you use this room as a bedroom or a den?
(d) What do you think of the floor plan?

Answer 23

(a) Isn’t this a large living room?

Question 24

When dealing with a prospect who is silent, the best approach would be to:

(a) do all the talking yourself.
(b) ask leading questions.
(c) speed up your presentation.
(d) remain silent to force the prospect to talk.

Answer 24

(b) ask leading questions.

Question 25

Motives for buying include:

(a) love of family.
(b) health.
(c) comfort and convenience.
(d) all of these.

Answer 25

(d) all of these.

Question 26

Disadvantages of home-ownership include all of the following EXCEPT:

(a) appreciation.
(b) risk.
(c) lack of liquidity.
(d) greater responsibility.

Answer 26

(a) appreciation.

Question 27

Which of the following should an agent regard as a buying signal?

(a) The statement, The price seems a little high.
(b) A reluctance to leave a property
(c) An inquiry as to when possession would be possible
(d) All of these

Answer 27

(d) All of these

Question 28

In meeting a buyer’s objections the agent should consider:

(a) welcoming the objections.
(b) conceding before answering.
(c) meeting objections half-way.
(d) all of these.

Answer 28

(d) all of these.

Question 29

A sale would most likely be killed by:

(a) supporting statements with facts.
(b) being over-eager to close.
(c) appearing confident.
(d) mentioning a potential objection before the customer does.

Answer 29

(b) being over-eager to close.

Question 30

If a prospective buyer intends to occupy a single-family home as a residence, the agent should realize this fact could have a direct bearing on:

(a) the date of occupancy.
(b) damages should the buyer default.
(c) the request for notice of default.
(d) what will be regarded as personal property.

Answer 30

(b) damages should the buyer default.