Lesson 3
Chapter 6-7
1.
A net listing
a.
is used only in Buyer Agency agreements
b.
are common, but are used in Seller Agency agreements
c.
are generally illegal or discouraged
d.
a&b
e.
none of these
2.
The commission to be paid a real estate broker
a.
is always negotiable
b.
is always a fixed dollar value and the rate depends on the selling price
c.
is the net amount above the sellers minimum price the broker is able to
negotiate from the buyer
d.
is set by the Board of Realtors
e.
set by local customs
3.
If the property sold one week after the agency listing agreement ended,
a.
the broker would still get the commission under the automatic extension
clause
b.
listing agreements do not expire, the broker gets the commission
c.
the broker would get the commission under the broker protection clause,
unless the property was re-listed with another company
d.
the contract expired, no commission
e.
none of these
4.
Which of the following statement(s) is (are) correct
I.
The listing agreement is the same as a real estate contract
II.
The listing agreement is a personal service contract
III.
All states require the listing agreement to be written
IV.
Oral contacts are sometimes permitted
a.
b.
c.
d.
I and II only
I, II, and IV only
II and III only
all of these
5.
A multiple – listing clause may be included in which type(s) of listing
agreements?
a. open listing agreement
b. exclusive – agency listing
c. exclusive right to sell
d. b or c
e. none of these
6.
The price of the listed property is set by
a.
b.
c.
d.
7.
the seller
the broker
an appraiser
a standardized formula
The description of the premises on the listing agreement should include
I. The street address
II. The owner’s mailing address
III. The legal description
IV. The parcel number
a.
b.
c.
d.
I only
I and II only
I and III only
I, III and IV only
8.
How does the listing agreement deal with personal property?
a.
it is silent, personal property is not real estate and not covered by the
contract
b.
It is silent, personal property such as washers, dryers, stoves, refrigerators,
and above ground swimming pools are included with the house if it is so
equipped
c.
The intention of the owner to include items such as washers, dryers,
stoves, refrigerators, and pools must be indicated in the listing agreement
d.
The owner must list what personal property is excluded. Any items of
personal property NOT on the list are included on the purchase price
9.
A completely exclusive agency agreement requiring the BUYER of real estate to
compensate the agent whenever the buyer purchases a property of the type
described in a contract even if the broker did not locate the property is called an
a.
exclusive buyer agency agreement
b.
exclusive – agency buyer agreement
c.
open buyer agency agreement
d.
all of these buyer agency agreements require the buyer to pay the
commission regardless of the brokers locating the property
e.
none of these
10.
Buyer’s Agents commissions are
a.
an hourly rate set by the state Real Estate Commission
b.
negotiated after the real estate transaction is closed
c.
3% of the purchase price
d.
none of these
11.
The four government powers are
a.
police, condemnation, taxation, & Escheat
b.
police, escheat, condemnation, eminent domain
c.
d.
e.
police, condemnation, eminent domain, & taxation
police, escheat, eminent domain & taxation
none of these
12.
If a person dies without a will and has no heirs, the ownership of the property is
transferred to:
a.
the US Treasury in settlement of the ‘death’ on estate tax
b.
to the county or State government through condemnation
c.
to the county or State government through the right of eminent domain
d.
to the county or State government through escheat
13.
An estate that automatically ends upon the current owner’s failure to comply with
a limitation
a.
fee simple
b.
fee simple determinable
c.
fee simple defeasible
d.
fee simple with future interests
e.
none of these
14.
__________ are usually imposed by a developer or subdivider to maintain
specific standards
a.
Liens
b.
Licenses
c.
Deed restrictions
d.
Easements by prescription
e.
None of these
15.
A license and an Easement in Gross differ because
I.
Only an Easement in Gross can be terminated by the grantor
II.
Only a license can be granted to an individual
III.
Only an Easement in Gross ends with the sale of the property
a.
b.
c.
d.
I only
II only
I and III only
none of these
16.
If a life estate is created and no person to whom the property will pass when the
life estate ends is named,
a.
the property goes to the state under the doctrine of escheat
b.
the property reverts to the grantor of the life estate or their heirs
c.
the property will pass to the remainderman
d.
the property will pass to the spouse of the person for whom the life estate
was created under the rights of Dower or Courtesy
17.
If the amount of land an individual owns was slowly decreased, the land suffered
a.
b.
c.
d.
erosion
accretion
avulsion
riparian
18.
If the amount of land an individual owns was suddenly decreased, the land
suffered
a.
erosion
b.
accretion
c.
avulsion
d.
riparian
19.
If a land owner owns property adjacent to a navigable waterway the owner has
_________ rights & owns the land up to _________
a.
riparian rights; the deepest part
b.
riparian rights; the center of the waterway
c.
riparian rights; the water’s edge
d.
littoral rights; the center of the waterway
e.
littoral rights; the water’s edge
20.
Estates that last a fixed period of time are broadly classified as
a.
leasehold estates
b.
freehold estates
c.
life estates
d.
none of these
21.
In some states the following type of listing is prohibited.
a.
Exclusive-right-to-sell
b.
Net listing
c.
Buyer agency agreement
d.
Open listing
22.
This type of listing agreement that provides for payment of a commission to the
broker even though the owner makes the sale without the broker’s aid is called an
a.
exclusive-right-to-sell listing.
b.
open listing.
c.
exclusive-agency listing
d.
option listing.
23.
A building sold for $157,000. The broker charged 6 percent commission and
divided it as follows: 10 percent to the salesperson who took the listing, one-half
of the balance to the salesperson who made the sale, and the remainder to the
broker. What was the listing salesperson’s commission?
a.
$239
b.
c.
d.
$942
$1,570
$4,239
24.
A property owner signed a 90-day listing agreement with a broker. The owner
was killed in an accident before the listing expired. Now the listing is
a.
binding on the owner’s spouse for the remainder of the 90 days.
b.
still in effect as the owner’s intention was clearly defined.
c.
binding only if the broker can produce offers to purchase the property.
d.
terminated automatically because of the death of the principal.
25.
By executing a listing agreement with a seller, a real estate broker becomes
a.
a procuring cause.
b.
obligated to open a special trust account.
c.
the agent of the seller.
d.
responsible for sharing commissions.
26.
Lonnie conveys the ownership of his house to his mother and stipulates that upon
her death he will recapture ownership. The interest Lonnie has in the property is a
a.
remainder interest.
b.
courtesy estate.
c.
legal life estate.
d.
reversionary interest.
27.
For land to be taken by the government under its right of emminet domain, which
of the following must apply?
a.
The taking must be for a public purpose.
b.
There must be a statutory dedication.
c.
This must be an adverse action.
d.
There must be constructive notice.
28.
Gina owns 50 acres of land with 500 feet of frontage on a desirable recreational
lake. She wishes to subdivide the parcel into salable lots, but she wants to retain
control over the lake frontage while allowing lot owners to have access to the
lake. Which of the following types of access rights would provide the greatest
protection for a prospective lot purchaser?
a.
An easement in gross
b.
An appurtenant easement
c.
An easement by necessity
d.
A license
29.
Janeen held fee simple title to a vacant lot adjacent to Mercy Hospital. She was
persuaded to make the lot available to Mercy. She had her attorney prepare a deed
that conveyed ownership of the lot to the hospital “…so long as it is used for
medical purposes.” After the completion of the gift, the hospital will own a
a.
life estate.
b.
c.
d.
tenancy for years.
determinable fee estate.
periodic tenancy.
30.
The owner of a secluded area adjacent to the Atlantic Ocean noticed that people
from town walked along the shore in front of his property. The owner learned that
the local citizens had been walking along this beach for several years. He went to
court to try to stop people from walking along the water’s edge in front of his
property. The owner is likely to be
a.
unsuccessful because the local citizens have been doing this for years and
thus have an easement.
b.
unsuccessful because the owner’s property extends only to the high-water
mark and the public may use the land beyond this point.
c.
successful because the owner’s property extends to the middle of the water
bed.
d.
successful because the owner can control access to his own property.
31.
Which of the following is true of a listing contract?
a.
It is an employment contract for the services of a broker.
b.
It obligates the seller to convey the property if the broker procures a ready,
willing, and able buyer.
c.
It obligates the broker to work diligently for both the seller and the buyer.
d.
It automatically binds the owner, broker and MLS to its agreed-upon
provisions
32.
Which of the following is a similarity between an exclusive-agency listing and an
exclusive-right-to-sell listing?
a.
Under each, the seller retains the right to sell the real estate without the
broker’s help and without paying the broker a commission.
b.
Under each, the seller authorizes only one particular salesperson to show
the property.
c.
Both types of listings gives the responsibility of representing the seller to
one broker only.
d.
Both types of listings ore open listings.
33.
Which of the following statements is true of a competitive market analysis (cma)?
a.
A CMA is the same as an appraisal.
b.
A CMA can help the seller price the property.
c.
By law in most states, a CMA must be completed for each listing taken.
d.
A CMA should not be retained in the property’s listing file.
34.
Under a listing agreement, the broker is entitled to sell the property for any price,
as long as the seller receives $85,000. The broker may keep any amount over
$85,000 as a commission. This type of listing is called a(n)
a.
exclusive-right-to-sell listing.
b.
exclusive-agency listing.
c.
d.
open listing.
net listing.
35.
The listing agreement on a residential property states that it expires on May 2.
Which of the following events would not terminate the listing?
a.
The agreement is not renewed prior to May 2.
b.
The owner dies on April 29.
c.
On April 15, the owner tells the listing broker that the owner is dissatisfied
with the broker’s marketing efforts.
d.
The house is destroyed by fire on April 25.
36.
A property owner who has the legal right to cross over a neighbor’s land hold a(n)
a.
estate in land.
b.
easement.
c.
police power.
d.
encroachment.
37.
A tenant who rents an apartment from the owner of the property holds a(n)
a.
easement.
b.
license.
c.
freehold interest.
d.
leasehold interest.
38.
A purchaser of real estate learns that his ownership rights could continue forever
and that no other person claims to be the owner or has any ownership control over
the property. This person owns a
a.
fee simple interest.
b.
life estate.
c.
determinable fee.
d.
fee simple on condition subsequent.
39.
Property deeded to a town “for recreational purposes only” conveys a
a.
fee simple absolute.
b.
fee simple on condition subsequent.
c.
leasehold interest.
d.
determinable fee.
40.
All of the following will terminate an easement EXCEPT
a.
adverse possession by the owner of the servient tenement.
b.
nonuse of a prescriptive easement.
c.
abandonment of easement.
d.
release of the right of easement to the dominant tenement.
Essay questions are for your convenience to prepare for the midterm and final. You do
not have to turn them in for a grade.
1. Compare & contrast the different kinds of listing agreements
2. What should a listing agreement include?
3. Under what circumstances can a listing agreement be terminated?
4. Why are not all interests in land ‘estates’? Describe what is necessary for an interest
to be an estate & give two examples of interests that are not estates.
5. Encumbrances take several forms. Describe five of them being sure to discuss how
they are created and how they are terminated.