Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Unit 1 Tennessee Introduction > Tennessee Unit 1 Exam > Flashcards

Tennessee Unit 1 Exam Flashcards

1
Q

The broker’s estimate of a probable sales price range is an appraisal.

A

F

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

In searching for comparables to establish an effective competitive market analysis (CMA), the licensee should attempt to find those that have sold under normal selling conditions within the past six months, if possible.

A

T

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Square footage includes those areas of a property that are heated and finished.

A

T

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Unless one is certain of getting the listing on the first visit, the CMA is normally presented to the seller on the second visit.

A

T

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

If a licensee of one firm wants to advertise the listings of another firm, the listing licensee must have written permission from the seller before allowing the cooperating broker to do so.

A

T

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

When associated with a franchise firm and advertising anything other than a specific piece of property, the ad must include a statement that each “franchise name” is independently owned and operated.

A

T

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Match the following: Exclusive, Procuring cause, Computer-generated CMA, Six months, E-mail newsletter, Curb appeal

A)
Usual form of an option listing

B)
CMA comparing price per square foot only

C)
One who started the action that resulted in the transaction

D)
Length of time a pass certificate is valid

E)
Attractive outside of a property

F)
Cost-effective newsletter

A

Exclusive = A

Procuring cause = C

Computer-generated CMA = B

Six months = D

E-mail newsletter = F

Curb appeal = E

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Match the following: Exclusive agency listing, Option listing, Net listing, Open listing, Exclusive right to sell listing

A)
Listing allows the seller to employ any number of brokers as listing agent

B)
Exclusive listing in which seller has the right to find his/her own buyer without being obligated to pay a commission

C)
Exclusive listing in which the seller agrees to pay a commission no matter who produces the buyer

D)
Listing gives the licensee the opportunity to purchase the property he or she is listing

E)
Listing state’s the net amount seller wishes to receive from a sale; excess goes to the broker as commission

A

Exclusive agency listing = B

Option listing = D

Net listing = E

Open listing = A

Exclusive right to sell listing = C

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Indicate whether each type of marketing methods is most likely to generate immediate, long-term, or no real estate business.

A)
Refusing to work with a minority

B)
Real estate farming

C)
Sphere of influence

D)
Newsletter

E)
Contacting expired listings

F)
For sale by owner

A

Long-term = B, D

Immediate = C, E, F

No Business = A

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

A seller agrees to give a REALTOR® an exclusive right-to-sell listing agreement. The seller, however, wants to exclude a potential buying prospect that came to his for-sale-by-owner (FSBO) open house last Sunday. In this scenario,

A)
the REALTOR® may complete a “listing exclusion” form.
B)
by excluding anyone, the seller is really not giving the REALTOR® any kind of listing.
C)
by excluding anyone, the REALTOR® would not have an exclusive right-to-sell listing.
D)
the REALTOR® should just buy the seller’s house and flip it for a profit.

A

Explanation
The answer is the REALTOR® may complete a “listing exclusion” form. Though this form may simply be an addendum to a listing agreement, it gives the seller the opportunity to complete an exclusive right-to-sell listing with a licensee, and for a limited, agreed time, sell the property directly to the excluded individual(s) without the obligation of using the REALTOR® or paying a commission.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

When cooperating brokers advertise a listing firm’s listings, they must include a statement that

A)
the listings are all exclusive right to sell.
B)
some of the listings do not belong to the advertiser.
C)
the cooperating firm is a member of the MLS.
D)
some of the listings advertised are underpriced.

A

Explanation
The answer is some of the listings do not belong to the advertiser. To comply with truth in advertising, cooperating firms must include a matching or similar disclaimer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

In both an exclusive right-to-sell listing and an exclusive agency listing,

A)
an offer of cooperation does not imply an offer of compensation.
B)
the seller can rescind the listing at any time for any reason.
C)
the broker is guaranteed commission at closing.
D)
an offer of cooperation implies an offer of compensation.

A

Explanation
The answer is an offer of cooperation does not imply an offer of compensation. The listing firm most often, but not always, will share commissions in exclusive listings.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

In an exclusive right-to-sell listing,

A)
the seller does not have to pay a commission.
B)
more than one broker represents the seller.
C)
one broker represents the seller.
D)
the seller represents themselves.
A

Explanation
The answer is one broker represents the seller. The seller gives one broker exclusive rights to represent the seller in the sale of the property in an exclusive right to sell listing.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

The type of listing agreement MOST often recommended by brokers and the multiple listing service (MLS) is

A)
exclusive right-to-sell listing.

B)
option listing.

C)
exclusive agency listing.

D)
net listing.

A

Explanation
The answer is exclusive right-to-sell listing. It is most often recommended because it best protects the seller’s and the broker’s interest in the transaction, and in a dispute, is the easiest to prove procuring cause. In an exclusive right-to-sell listing, the broker is assured of a commission when the transaction closes, regardless of who produced the buyer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

An ad for a condominium for sale inviting buying prospects to “bring Rover” when, in fact, the development has a no-pet policy is

A)
misleading and untruthful.

B)
a violation of Regulation Z.

C)
a violation of RESPA.

D)
not a violation as long as the pet is kept indoors.

A

Explanation

The answer is misleading and untruthful. Agents must take care that their advertising is not misleading or untruthful.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

An agent is discussing an owner’s needs in helping him sell his home. The homeowner says he must net $480,000 so he has sufficient funds for the down payment and closing costs to purchase the $600,000 home the agent has listed. The homeowner says that “anything you can sell it for above $480,000 will be your commission.” If the agent agrees, she has

A)
agreed to an illegal net listing.
B)
created a dual agency.
C)
the potential to make a significant amount of money on the deal.
D)
become a pur autre vie.
A

Explanation
The answer is agreed to an illegal net listing. Net listings allow for an undisclosed commission amount and are illegal in most states.

17
Q

A buyer wants to purchase a home along the banks of the Cumberland River. She is concerned that the property may be in a floodplain. Her BEST source for current information about the floodplain status of the property is

A)
her lender.
B)
her REALTOR®.
C)
the U.S. Army Corps of Engineers.
D)
the appraiser.
A

Explanation
The answer is the U.S. Army Corps of Engineers. The Corps prepares and revises the flood maps for the most current and accurate information.

18
Q

A superior service for a competitive compensation is

A)
an underpriced listing.
B)
an overpriced listing.
C)
a containment service.
D)
a value-added service.
A

Explanation
The answer is a value-added service. A value-added service justifies the commission that the agent is asking the seller to pay.

19
Q

A seller is currently occupying the home he wants to sell. The real estate agent presents a Property Condition Disclosure form to the seller to complete and sign. He refuses. The agent should attempt to have the seller complete a

A)
buyer agency agreement.
B)
sales contract.
C)
property condition disclaimer statement.
D)
property condition exemption statement.
A

Explanation
The answer is property condition disclaimer statement. The disclaimer statement states that the seller disclaims disclosure. If the buyer is willing to accept the disclaimer, the transaction can still close; however, if the buyer insists on receiving a disclosure statement, the seller must provide it.

20
Q

Sellers/lessors of residences of four units or less must disclose the possibility of lead-based paint if the property was built before

A)
1978.
B)
2005.
C)
1982.
D)
1962.
A

Explanation
The answer is 1978. Federal law requires that owners of residential property for sale or rent disclose the possibility of lead-based paint if the property was built before 1978.

21
Q

The firm’s name and phone number must be included when advertising

A)
commercial property only.
B)
residential property only.
C)
property for sale or rent.
D)
property for sale only.
A

Explanation
The answer is property for sale or rent. All advertising must include the firm’s name and phone number, whether for sale or for rent.

22
Q

After a listing presentation, a way to find out whether the sellers are ready to list is to

A)
get up from the table and begin to leave.
B)
continue discussing the listing until they sign.
C)
threaten the sellers with eviction.
D)
ask for the order.
A

Explanation
The answer is ask for the order. Agents sometimes give a wonderful presentation but forget to ask for the order. It is important to do so to see whether the sellers are ready to list.

23
Q

When a licensee performs a CMA for a seller, the licensee is suggesting to the seller

A)
an opinion of value.
B)
a probable sales price range.
C)
a probable sales price.
D)
an estimate of value.
A

Explanation
The answer is a probable sales price range. Appraisers suggest a probable sales price; real estate agents suggest a probable sales price range and let the seller pick the price from the parameters suggested.

24
Q

An ad violating Regulation Z is a violation of

A)
truth in lending.
B)
license law.
C)
RESPA.
D)
fair housing.
A

Explanation

The answer is truth in lending. Regulation Z is also known as the federal Truth in Lending Act.

25
Q

At the kitchen table is the BEST place to discuss real estate listings in a home because

A)
the table is small enough to discuss personal business.
B)
it is where most family business takes place.
C)
it is where the family usually eats.
D)
it is usually the only room with a table.

A

Explanation
The answer is it is where most family business takes place. Most discussions of family business in the home happen at the kitchen table. It is where real estate business should be discussed as well.

26
Q

A net listing is illegal in Tennessee because

A)
commissions are not required to be disclosed in Tennessee.
B)
commissions can only be paid by affiliate brokers.
C)
a net listing discloses an exact commission amount.
D)
all commissions must be disclosed in Tennessee.

A

Explanation
The answer is all commissions must be disclosed in Tennessee. A net listing exists when the broker and the seller agree the broker will accept everything above a certain dollar amount as the commission, therefore not a commission amount which is illegal in Tennessee.

27
Q

New affiliate brokers should meet with their broker at LEAST

A)
weekly.
B)
quarterly.
C)
monthly.
D)
daily.
A

Explanation
The answer is weekly. Weekly meetings between new affiliate brokers and their broker allow both to review efforts, business, strategy, and so on.

28
Q

Most often, the reason a property does NOT sell is that the

A)
property is located in a questionable area.
B)
seller is not available to receive offers.
C)
property is overpriced.
D)
buyer did not sign the offer.
A

Explanation

The answer is property is overpriced. A well-prepared CMA should convince the seller not to overprice the property.

29
Q

When affiliated with a franchise real estate firm, company name and franchise name

A)
are one and the same.
B)
are not required to be included in an ad.
C)
must be in capital letters in an ad.
D)
must both be included in an ad.
A

Explanation
The answer is must both be included in an ad. Whether advertising property or just the business, both franchise name and firm name must be included in the ad.

30
Q

The contract that creates the relationship between the broker, as agent, and the seller, as client, is the

A)
sales contract.
B)
buyer agency contract.
C)
independent contractor contract.
D)
listing contract.
A

Explanation
The answer is listing contract. It creates an employment agreement and a representation agreement whereby the seller employs the broker and allows the broker to legally represent the seller’s interest.

Unit 1 Tennessee Introduction (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions