Barney Fletcher Cram Final Exam Graded A+

A seller wants to list the property with a broker, but wants to avoid paying any commission should the seller be fortunate enough to sell the property. himself. Which of the following should the seller avoid signing? A. an exclusive agency listing B. an exclusive right to sell listing C. an open listing D. all listings - ANSWER-B. an exclusive right to sell listing Mr. Smith listed his farm with broker Bob. Although Smith did not tell him, Bob knew he had to sell due to poor health. What should Bob tell potential buyers? A. tell them of the illness only if they ask, but not the need to sell B. tell them of the need to sell to insure a quick sale C. do not tell them even though it appears that Smith's death is imminent D. in order to sell quickly, tell them that the seller is ill because death would cancel the listing - ANSWER-C. do not tell them even though it appears that Smith's death is imminent In a cooperative sale, where the listing broker and the selling broker represent the seller, the selling broker has which of the following relationships? A. agent of the listing broker B. sub agent of the listing broker C. agent of the seller D. sub agent of the buyer - ANSWER-A. agent of the listing broker A broker had an exclusive right to sell agency listing. In order to collect the commission, he must: A. prove he was the procuring agent B. prove he was licensed at the time of the sale C. prove he had a ready, willing, and able buyer that met the seller's terms D. all of the above - ANSWER-B. prove he was licensed at the time of the sale A broker estimated the property lines by stating it ran between two trees in the back yard. After closing, the buyer found it was over six feet off. Is the broker liable? A. no, he gave an estimate B. no, the buyer should have gotten a survey C. yes, he made a statement which he realized could be false D. yes, the broker should have surveyed the property himself - ANSWER-C. yes, he made a statement which he realized could be false Smith has an exclusive listing with broker Jones for $220,000. Jones finds a buyer who wants representation and Jones represents both Smith and the buyer, verbally disclosing that he is now representing both as clients. Has Jones violated license law? A. yes, because this is sub agency B. yes, because this is undisclosed dual agency C. no, because he disclosed to all parties that neither had to consent to dual agency D. no, because he disclosed to all parties that his actions may be adverse to either party, however he would not divulge confidential information - ANSWER-B. yes, because this is undisclosed dual agency A buyer and seller sign an agreement to change the contract to close on May 1 instead of May 2. This is a(n): A. addendum B. special stipulation C. amendment D. clause - ANSWER-C. amendment When a person, upon payment of a consideration, has an obligation to buy land at a fixed price within a specified period of time, his right could be described as: A. a right of first refusal B. an option C. a sales contract D. either A or B - ANSWER-C. a sales contract Joan has a listing with broker Bob. A week into the listing, Joan gets a call from broker Jill stating that the listing is now with her. Can this happen? A. it's ok as long as it was assignable in the original contract B. it's ok as long as the brokers have a written contract between them to transfer C. never due to the statute of frauds D. it cannot be assigned because a listing contract is a personal services contract - ANSWER-D. it cannot be assigned because a listing contract is a personal services contract What type of transaction exists when there is a written contract for a broker to receive pay from both or either party and performs only ministerial acts for one or both parties? A. double agency B. transaction brokerage C. sub agency D. single agency - ANSWER-B. transaction brokerage When is the correct time for the salesperson to get the proper legal description of the seller's property? A. when filling out the offer B. when filling out the sales contract C. when filling out the listing D. any time before closing - ANSWER-C. when filling out the listing Sue acquires an option to buy a tract of land from Pete. which of the following is NOT true? A. Sue is the optionee and Pete is the optionor B. the property may be purchased at the discretion of the optionee C. Pete may not diminish the value of the property (waste) during the period the option is in effect D. Pete may not sell the property to anyone else during the period the option is in effect - ANSWER-D. Pete may not sell the property to anyone else during the period the option is in effect The contract signed between a buyer and a broker is called? A. listing contract B. buyer's brokerage agreement C. listing agreement D. buyer's relationship - ANSWER-B. buyer's brokerage agreement Typically in Georgia, the agent representing the seller is called? A. the selling agent B. the listing agent C. the sub agent D. the listing broker - ANSWER-D. the listing broker Which documents must be in writing to be enforceable according to the statute of frauds? A. leases over a year old B. real estate sales contracts C. deeds D. all of the above - ANSWER-D. all of the above Seller Jane negotiates a sales contract with buyer Bill, but before signing the contract, she contacts buyer Mike to see if he wants to buy it before Bill does. Mike probably had: A. an option B. a right of first refusal C. a listing agreement D. both B and C - ANSWER-B. a right of first refusal Which of the following actions is the Georgia Real Estate Commission (GREC) authorized to carry out through the provisions of the Georgia Real Estate Law? A. fine an individual up to $5,000 operating in the capacity of a broker, without a license B. fine a broker up to $1,000 for multiple violations C. fine a licensee up to $5,000 for one conviction of moral turpitude D. refuse to issue a license to an applicant who falsified an application - ANSWER-D. refuse to issue a license to an applicant who falsified an application In dual agency, the consent form must contain all of the following except? A. a lot and block legal description of the property B. a statement that the client does not have to consent to the dual agency C. a statement that the agent will disclose all adverse known material facts D. a statement that the agent will disclose any material relationships - ANSWER-A. a lot and block legal description of the property A man had rented a place to live but had stayed beyond his lease without the owner's consent. This would be: A. an estate at sufferance B. an estate at will C. a periodic tenancy D. a tenancy for years - ANSWER-A. an estate at sufferance Which would require compensation to be paid? A. police power B. condemnation C. escheat D. encumbrance - ANSWER-B. condemnation Which is true about personal property? A. it is attached to the land B. it is considered appurtenant to the land C. it is immovable D. none of the above - ANSWER-D. none of the above A method of describing land using points, angles, and distances is which of the following? A. rectangular survey B. measurement by leaps and bounds C. plat of survey or lot and block survey D. measurement by metes and bounds - ANSWER-D. measurement by metes and bounds Sam and Emma both used a driveway located on the boundary line between their two properties. When Sam died, would his heirs have the right to use the driveway? A. no, this right is not transferable B. no, this is an easement in gross and would not be transferable C. yes, this is an appurtenant easement and is inheritable D. yes, but they would have to pay Emma for her loss - ANSWER-C. yes, this is an appurtenant easement and is inheritable How may a husband and wife take title to real estate in Georgia? A. joint tenants B. tenants by the entireties C. tenants in common D. either A or C - ANSWER-D. either A or C ABC Incorporated was organized with five stockholders. How would ABC Incorporated the title to property? A. tenants in common B. tenants by the entirety C. joint tenants D. severalty - ANSWER-D. severalty When is commission normally payable? A. upon the broker bringing a ready, willing, and able buyer B. upon closing C. upon presentation of the offer D. three days after closing - ANSWER-B. upon closing Besides the seller, who may sign a real estate listing agreement? A. the broker only B. any salesperson or broker C. the broker or any salesperson with the broker's written authorization D. the broker or an associate broker only - ANSWER-C. the broker or any salesperson with the broker's written authorization A property listed with one broker was bought by a buyer who worked with another broker. The two brokers decided to split the commission. If the federal authorities found out about this they could: A. revoke the broker's licenses B. suspend the broker's licenses C. fine the brokers $1,500 D. do nothing - ANSWER-D. do nothing If all the principals live in the same city, in which of the following cases would the broker most likely need a power of attorney? A. the owner of a manufacturing plant lists it with a broker B. a buyer contracted with a broker to purchase all properties put up for sale in that county C. a couple going through a divorce lists their property with the broker D. the XYZ Corporation, through its Board of Directors, authorizes the broker to sell a piece of property owned by the corporation - ANSWER-B. a buyer contracted with a broker to purchase all properties put up for sale in that county An owner of a large estate told a broker he did not want an open house held on this property and wanted advertising in a national magazine only. Is this allowable? A. yes, the seller is responsible for planning all marketing of the property B. yes, the broker works for the seller and must follow all legal instructions of the seller C. no, the broker has the right to hold the house open at his own discretion D. no, the owner cannot limit the broker's ability to earn a commission - ANSWER-B. yes, the broker works for the seller and must follow all legal instructions of the seller A salesperson listed a property for $68,000. Soon thereafter, another property that had also listed for $68,000 sold for $75,000. The salesperson should: A. tell the owner, as he had obviously made a mistake in the estimate of market price B. tell the owner that another had sold for $75,000 C. NOT tell the owner because he should not admit that he made an error, as he would get in trouble with his broker D. tell the owner because if it sells for $75,000, the commission would go up - ANSWER-B. tell the owner that another had sold for $75,000 Broker Bob listed two properties and arranged for an exchange of the properties. Which is true? A. this could only be done if they are both debt free B. broker Bob would typically be due the full commission on both properties C. the commissions would be added together and broker Bob would get one half D. there is no commission on an exchange - ANSWER-B. broker Bob would typically be due the full commission on both properties One of the significant differences between an employee and an independent contractor is that: A. an independent contractor does not need an affiliation agreement with the broker B. an employer must pay an unemployment tax for each employee C. only the independent contractor can have draws against future commissions D. only the independent contractor has social security withheld from his or her commission checks - ANSWER-B. an employer must pay an unemployment tax for each employee When a salesperson is negotiating a listing contract, she learns that the seller has an assumable loan. Should she discuss with the seller ways to assist a buyer in financing the property? A. no, because if the seller's loan is assumed, the seller will always remain in a vulnerable position B. no, because financing part of the purchase price would place the seller in a vulnerable position C. yes, because every seller's equity in his/her property must be reduced to avoid capital gains taxes D. yes, because the seller's willingness to assist in the financing by allowing the loan to be assumed and possibly taking a second mortgage may make the property much more marketable, which would be to the seller's benefit - ANSWER-D. yes, because the seller's willingness to assist in the financing by allowing the loan to be assumed and possibly taking a second mortgage may make the property much more marketable, which would be to the seller's benefit A real estate salesperson intends to offer for sale a tract of land he inherited without listing it with a real estate brokerage company. Which of the following is NOT true concerning the marketing of this property? A. the salesperson must notify the broker in writing of his intention to sell the property B. in order to advertise the property, the salesperson must have his broker's written consent to do so C. in advertising the property, the advertisement must state, "owner is a licensed real estate agent acting as a principal D. the salesperson must offer the property through his broker's company. He may not advertise the property except as a listing of his company - ANSWER-D. the salesperson must offer the property through his broker's company. He may not advertise the property except as a listing of his company Most brokers will insert a protection clause in their listing contracts. This clause will usually allow: