Unit 10 - Questions

Question 1

Provisions relieving the seller from responsibility for defects involving the sale property or requiring the buyer to execute a release to that effect at the time of settlement
a) are illegal and cannot be enforced
b)must be printed in bold face
c) are included and legal if the buyer fails to object within two business days
d) are legal in time-share contracts only

Answer 1

b)must be printed in bold face

Question 2

The required statement of Estimated Costs of the Seller at Settlement,
a) determines the final net proceeds for IRS Form 1099
b) gives the seller an estimate of net proceeds from the sale
c) determines the final net proceeds the seller will receive at closing
d) guarantees the seller a net amount at closing

Answer 2

b) gives the seller an estimate of net proceeds from the sale

Question 3

A sales contract must include a statement describing the ________________________ and the telephone number of the Commission where the seller can receive further information.

Answer 3

Real Estate Recovery Fund

Question 4

What is the form that must be given to a seller before the execution of a sales contract?

Answer 4

Estimated Costs of the Seller at Settlement

Question 5

An Exclusive Listing Agreement may not have a term or listing period of more than

Answer 5

one year

Question 6

Kathy is buying a home and she will need a mortgage to finance the property. What needs to be in the sales contract regarding the financing?
a) the mortgage lender’s name and federal ID number
b) the maximum assets of the lender
c) the deadline for the buyer to obtain an income tax refund
d) the term and interest rate of the mortgage

Answer 6

d) the term and interest rate of the mortgage

Question 7

What is the function of the required statement of Estimated Cost and Return given to buyers?
a) to guarantee the expenses associated with the sale that the party may pay
b) to provide the buyers an estimate of reasonable expenses associated with the sale that the party may be expected to pay
c) determines the expenses associated with the sale that the lender will pay
d) legally caps the expenses associated with the sale that the party can pay

Answer 7

b) to provide the buyers an estimate of reasonable expenses associated with the sale that the party may be expected to pay

Question 8

A comparative market analysis is always performed by

Answer 8

A real estate licensee

Question 9

The required form to be given to each buyer before the execution of a sales contract is called

Answer 9

A Statement of Estimated Cost and Return

Question 10

A broker is preparing an exclusive listing agreement with the seller. All of the following items may be included EXCEPT
a) the sales price
b) an automatic extension clause
c) the amount of commission or fee the broker charges
d) a statement that the broker will be paid, no matter who sells the property

Answer 10

b) an automatic extension clause

Question 11

The Commission requires that a statement of Estimated Cost and Return be prepared by the ________before a sales contract is completed.

Answer 11

Broker

Question 12

All sales contracts must contain a statement about the existence and purpose of the…

Answer 12

Real Estate Recovery Fund

Question 13

Any agreement between a broker and a seller, if the seller is committed to paying a commission, must be in writing and contain a statement describing the ________________________ and the telephone number of the Commission where the seller can receive further information.

Answer 13

Real Estate Recovery Fund

Question 14

A comparative market analysis helps the real estate professional work with the seller by
a) providing a price range for deciding a listing price for the home
b) setting the sale price of the home
c) revealing the competition for the property
d) establishing the amount a buyer will need to borrow

Answer 14

a) providing a price range for deciding a listing price for the home

Question 15

An exclusive-right-to-sell agreement must contain
a) a disclosure of the listing agent’s relationship with the employing broker
b) a statement of when the agreement will automatically renew
c) a statement that the broker earns a commission on a sale during the listing period no matter who sells the property
d) a statement of the broker’s authority to sign contracts on behalf of the seller

Answer 15

c) a statement that the broker earns a commission on a sale during the listing period no matter who sells the property

Question 16

Which of the following must be included in a written offer to purchase?
a) the names of the buyers and sellers
b) the current zoning classification
c) the date the subdivision was approved
d) the right to cancel the purchase by midnight of the 5th day following the date the offer was executed

Answer 16

a) the names of the buyers and sellers

Question 17

How does a buyer cancel a campground membership?

Answer 17

Notify the seller by certified mail

Question 18

A buyer wants to cancel a time-share that he purchased. How long does he have to cancel the contract?

Answer 18

Five days following the date of the contract