Chapter 8 Quiz

Question 1 of 15

1. Question

If the full legal description of a property is too long to fit on the form, the agent should:

use the street address instead
give as much of the description as will fit in the space provided
attach a separate sheet with the full description
insert a reference to the recorder’s office where the deed is on file

Question 2 of 15

2. Question

If the optionee fails to exercise the option within the specified time:

the option is automatically extended for a similar period
the option expires automatically
the optionor can sue for breach of contract
the optionor is entitled to specific performance

Question 3 of 15

3. Question

A seller signs an open listing agreement with Broker A, and then immediately signs another open listing agreement with Broker B. If the property is sold before either listing expires, and Broker B is the procuring cause of the sale:

the seller must pay the full commission to Broker A as well as to Broker B
Broker A will not be compensated for her efforts
Broker A and Broker B will each receive half of the agreed commission
Broker A can sue the seller for breach of contract

Question 4 of 15

4. Question

Several weeks after the parties sign the purchase agreement, it becomes clear that they can’t transfer possession on the anticipated closing date. They sign an agreement to extend the closing date. This would be considered a/an:

addendum
amendment
binder
contingency clause

Question 5 of 15

5. Question

If a landlord constructively evicts a tenant, this terminates the lease through:

breach of the covenant against encumbrances
surrender
illegal use
breach of the implied covenant of quiet enjoyment

Question 6 of 15

6. Question

A broker’s commission is usually a:

percentage of the property’s listing price
percentage of the property’s appraised value
percentage of the property’s sales price
flat fee based on the anticipated difficulty of selling the property

Question 7 of 15

7. Question

If a purchase agreement provides that time is of the essence:

timely performance is considered an essential term of the agreement
failure to meet any deadline is never considered a breach of the contract
buyer, seller, and real estate broker are required to meet all deadlines in the agreement
both the selling and the listing broker must meet all deadlines set forth in the contract

Question 8 of 15

8. Question

In most states, in which of the following situations would a seller NOT owe a commission?

The transaction ends because there’s a financing contingency in the purchase agreement and the buyer isn’t able to obtain the necessary loan
The seller and buyer agree to walk away from the transaction
The seller discovers at the last minute that she does not have marketable title
The seller has a change of heart and decides not to sell

Question 9 of 15

9. Question

The date on which the seller receives the proceeds of the sale, the deed is delivered to the buyer, and all documents are recorded is called the:

closing date
termination date
transfer of possession date
date of acceptance

Question 10 of 15

10. Question

In most states a lease must be in writing if the:

annual rent is greater than $10,000
property will be occupied by the tenant as his primary residence
term of the lease is longer than one year
tenant is an individual and not a business

Question 11 of 15

11. Question

With an exclusive agency listing, the seller:

lists the property with only one broker but retains the right to sell the property by herself without being obligated to pay the broker’s commission
can list the property with several brokers, but only one of the brokers is considered the seller’s agent
can only list the property with the procuring cause of the sale
can list the property with several brokers, but is obligated to pay a commission only to the procuring cause

Question 12 of 15

12. Question

Which of the following would not terminate a lease?

Legal eviction
Assignment
Condemnation
Surrender

Question 13 of 15

13. Question

When a buyer makes an offer on terms other than those set forth in the listing agreement:

the broker should refuse to present it to the seller
the seller is liable for the broker’s commission whether she accepts the offer or not
the seller can accept the offer without becoming liable for the broker’s commission
the seller can turn down the offer without becoming liable for the broker’s commission

Question 14 of 15

14. Question

Despite a good faith effort, the buyer couldn’t obtain financing on the terms spelled out in the contingency clause. As a result:

the seller is entitled to damages
the good faith deposit is forfeited
the purchase agreement terminates and the good faith deposit is refunded
new financing terms must be specified

Question 15 of 15

15. Question

What clause may allow a broker to collect a commission even after the listing period has expired?

Safety clause
Habendum clause
Acceleration clause
Bump clause

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