Missouri Real Estate Final Test Review 100% Correct

A seller owned two plots of land that combined for a width of 950ft and a depth of 1800ft. A creek divided the north plot from the south plot. What is the total acreage of the two plots? - ANSWER-(B) 39.25 acres A secretary in a real estate office has passed the salesperson's exam but has not yet received a license. This person could: - ANSWER-C. give another salesperson in the office the address of the listed property the other salesperson wants to show An owner builds a recreation room onto her house. Her neighbor feels the new addition will violate setback lines established in city building codes. Does the neighbor have the right to request an injunction to stop construction? - ANSWER-D) yes, under these circumstances the neighbor may justifiable ask for an injunction 4. A broker received earnest money from the buyer. The offer was not accepted by the seller; however, the agent had already deposited the earnest money. What should be done? - ANSWER-B return the earnest money to the buyer immediately In order to be in compliance with the statute of frauds, a sales contract must be - ANSWER-in writing The owner of an apartment building has just signed a management contract with a real estate firm. In this situation, has an agency been formed? - ANSWER-A. yes, because an agency is formed whenever one party delegates to another the right to act on their behalf in certain business transactions Falk had a property for sale for $129,000. Murphy made an offer for $123,000. Falk made a counteroffer of $127,000. Which of the following statements is NOT true regarding this situation? - ANSWER-C. the counteroffer would be binding on Murphy Which BEST describes a fixture? - ANSWER-C.)it was at one time personal property wanted to void the deal. Could he do so? A 16 year old bought a piece of property. The seller found out that he was a minor and - ANSWER-no, only the buyer could void the contract X, a single person, and Y, a each to have an undivided interest in the single person, want to take title to a property. They want property and if one dies, the interest will pass to the other. Which of the following ways of taking title BEST accomplishes their objectives? - ANSWER-B X, a single person, and Y, a single person, as joint tenants with right of survivorship In the event of a dispute over earnest money the broker should - ANSWER-(D hold the money until all parties to the contract sign a release or release it to the courts 12. After listing a home with a broker, a seller told the broker NOT to disclose a major structural defect in the house. The broker should - ANSWER-PD. tell the buyer of the defect prior to the writing of a contract To create a joint tenancy relationship in the ownership of real estate, there must be unity of - ANSWER-C. possession, time, interest and title A seller had his home listed with a broker. During the listing period, the seller found seller and won. What type of listing did the broker most likely have? his own buyer and refused to pay the broker's commission. The broker then sued the - ANSWER-A an exclusive right to sell listing A property manager normally is charged with all the following duties except: - ANSWER-D repairing a tenants fixture In 1988, John Smith built a 3 story apartment building. To comply with the Federal Fair Housing: - ANSWER-A handicap tenants would need to have access to at least the 1st floor Elective credits for continuing education could be granted for a course: - ANSWER-That is exclusively videotaped for classroom courses Dole refused to sell his land to the local park district. He felt that the price the park district offered for the land was not sufficient consideration. If the park district were to pursue the matter in court, what proceeding would it institute to try to force Dole to sell his land? - ANSWER-condemnation semi-rural area that is about five years old. They regional airport that will place their home about one mile from its end. If the airport is The Rose family owns a home in a recently announced plans for a new directly in line with a main runway, constructed, will this diminish the value of the Rose home? - ANSWER-yes, because of external obsolescence Which BEST describes the sale price for a property in an option agreement? - ANSWER-the buyer is guaranteed a fixed price when the option is signed 21. ABC Realty employs Mary as a salesperson. It does not require her to attend sales meetings nor spend certain hours in the office. Mary is not reimbursed for normal expenses and is responsible for paying her own income and social security taxes. Her status is best described as that of - ANSWER-an independent contractor The value of a property was $125,000 but listed with a broker for $145,000. The seller told the broker he would take $115,000. The broker told this information to a buyer who promptly offered $117,000 that the seller accepted. If the seller found out about this, what could the seller do? - ANSWER-A refuse to pay the broker's commission as the broker violated his obligations 23. A person seller. She had incorporated her business owned her own company specializing in negotiating sales for buyers and but does not get listings or sell properties. Does she need a real estate license to do this? - ANSWER-Ayes, she and the corporation need a broker's license If the seller asked the violated fiduciary relationship by respectfully refusing to answer? broker what race the buyers were would the broker have - ANSWER-no, because race, color, religion, national origin and sex are not material Which of the following items allows a sales contract to be voided? - ANSWER-A one of the contract contingencies CANNOT be met A complaint had been filed against a salesperson. However, the salesperson was in the process of switching to another broker. Which of the following is true regarding this situation? - ANSWER-the complainant would get a written record of the salesperson's answer to the complaint All of the following would be considered evidence of marketable title EXCEPT a(n) - ANSWER-certificate of title by a real estate broker Which of the following is an example of personal property? - ANSWER-the rented water softener in the basement at the time of the sale of the house A promissory note - ANSWER-is the primary evidence ofa loan Dole and Carr set up a partnership to deal in real estate. What type of license would be needed? - ANSWER-both partners & the company need a broker's license A seller and broker signed an exclusive right to sell listing agreement. The listing expired. A month later, the seller sold the property to a buyer with whom the broker had not had any contact. Would the broker be due a commission? - ANSWER-no, because the broker had not brought in a ready, willing and able buyer within the listing period Antitrust Laws do not prohibit: - ANSWER-real estate salespersons within the same office agreeing on a standard commission rate To properly represent a buyer client who is interested in purchasing a property formerly used as a gas station, the agent should: - ANSWER-recommend to the buyer that they should consider consulting with an environmental expert The MREC can appoint a legal temporary license in which case? - ANSWER-A.upon the death of the broker to complete all contracts Ownership in severalty occurs when - ANSWER-property is owned by one person A broker produces a supposedly ready, willing and able buyer. At closing, the seller is unable to provide marketable title to the property and the buyer cannot come up with the financing to purchase the home. Is the broker due a commission? - ANSWER-no, because he did not produce a ready, willing and able buyer Which of the following permits the mortgagor to obtain additional funds at the later date without writing a new mortgage? - ANSWER-open end mortgage What is the difference between a variance and a nonconforming use? - ANSWER-a variance applies to construction occurring after zoning codes have been determined; a nonconforming use applies to construction that occurred before zoning codes were determined In the appraisal process looking at shopping centers, the social fiber of the community and distances form schools is called. - ANSWER-neighborhood analysis A person rents a lakeside cabin to a young couple for suntanning every day the lesser comes back to the beach area that he leased and he sells popcorn and hotdogs to the people from the public beach nearby can suntanners break the lease? - ANSWER-Yes because he destroyed theirpeaceable possession thus warranting constructive eviction A sales person decided to sell her house she did not want to list the house with her brokerage company instead she wanted to sell her own house as a for sale by owner which of the following items with the sales person have to do - ANSWER-Put in wll advertising "owner agent", including the yard sign. Broker Dole has a 90-day listing on a property. During the listing Broker Carr contacted the seller and told him that he had a buyer moving one month after the listing was to terminate and asked the seller to sign an agreement to take effect after the listing expires. This is: - ANSWER-a violation of state real estate law Sally is a property manager. Which of the following actions is legal for Sally? - ANSWER-Obtaining information from prospective tenants to determine if they are financially able to afford the rent What type of agency is created by the actions of the parties rather than by an expressed agreement? - ANSWER-ostensible agency An owner installs a new furnace in his home. It becomes: - ANSWER-a fixture A visiting dignitary, who rented a place to live from May, 1985 to July 1, 1985, owns which of the following? - ANSWER-estate for years