Real Estate Final Exam 2 Flashcards

Real Estate Final Exam #2 Flashcards A seller listed her home with a broker. Shortly thereafter, the seller phones the broker and withdrew the exclusive-right-to-sell listing. A week later, she sold the home to her neighbor for a higher price than the price on the listing. In this situation, which of the following is true?If the owner withdrew the listing after the broker spent money on it, the owner may be liable to the broker for damages.A broker brings a seller an offer-to-purchase contract for the listed price of $114,500 with the stipulation that the seller must furnish a title insurance policy to prove marketable title. The seller refuses the offer. The broker can collect nothing.Specific liens would not include which of the followingJudgments A woman built a fence that extended beyond the boundary of her property onto her neighbor's property. That is an example of Encroachment A agrees to buy B's real estate for $123,000. A signs a contract and deposits $12,300 earnest money with B's broker C. B is unable to show good title and A demands the return of his earnest money from C, as provided in the contract. What should C do?Return the entire amount of earnest money to A A special agent could best be described as someone whohas authority to represent a principal in a specific transaction A man signed a lease for six months. This is an example ofEstate for years In the government survey methodbase lines run east and west A licensed real estate broker who engages the services of a licensed salesperson on the basis that the broker can direct what the salesperson can do but not how it is done has engaged as an independent contractor The following statements are incorrect EXCEPT: A broker is liable to his or her client for damages resulting from the broker's failure to exercise reasonable care.Generally, title insurance coverage extends to defects found in public records.A salesperson obtains a written offer to purchase a home she has listed for sale. The seller accepts the offer, and the salesperson promptly telephones the purchaser to notify him of the acceptance. Because the purchaser lives in a nearby town, the salesperson informs hi, that she will deliver a copy of the contract in three days. The salesperson has an enforceable contract when a copy of the contract is delivered to the purchaser in three days.A broker has just received an earnest money payment on an offer to purchase. The broker must place the earnest money in his trust account X and Y own adjoining parcels of real estate. X has granted Y an easement over his property for ingress and egress. If

Y decides to sell his land to Z, which of the following would be true?The status of the dominant and servient tenements would not change.

The listing broker owes fiduciary duty to the seller The deed that provides the buyer with the greatest protection is the warranty deed An owner lists her home for $98,000 and the broker tells the prospective buyer to submit a low offer because the seller is desperate. The buyer offers $96,000 and the seller accepts. In this situation the broker violated the agency relationship You order dinner in a restaurant. You are required to pay for the dinner through what kind of contract?Implied A section contains640 acres All of the following statements correctly describe a fiduciary

EXCEPT:

Fiduciary is a neutral third party A contractor builds an addition to a house for a contract price of $52,000, and records his mechanic's lien notice.Before making any payment, the owner has the house jacked up and put on a platform prior to moving it to another location. The contractor should record an attachment A broker has recently listed a home. The broker will generally earn his commission when he finds a buyer ready, willing and able to buy on the terms of the listing.A grandmother owned a life estate measured by her own life in residence. She leased the property for five years using a standard lease contract. Shortly thereafter, she died. The lease was Valid as long as she was alive A broker's license can be revoked if he or she accepts a commission that exceeds the customary rate A broker has received several offers for a property he has listed. The broker must present each offer to the seller.Promptly on receipt Which of the following correctly describes an open listingThe seller may employ any number of brokers.A farmer built a fence that extended onto her neighbor's land. This is an example of An encroachment Which of the following statements does not correctly describe a properly executed will?It takes effect only after the death of the devisee.Which of the following statements does not correctly describe a cooperative development?The owner holds a real property interest Legal descriptions may not be based onAn informal street address A plumber sells his home. In which he has installed washerless faucets. After the contract has been executed, he decides to replace the faucets with standard faucets.Which of the following is true?The plumber can be held liable for removing the faucets because they are fixtures that were in place before the contract was signed Which of the following is exempted from the Federal Fair Housing Law Lodgings of a private club when the lodgings are not operated commercially A broker employs several salespeople at her office. Early one day one member of the sales staff submitted a written offer with an earnest money deposit on a house listed with the broker. Later the same day another salesperson submitted a higher written offer on the same property, also

including an earnest money deposit. The broker, in accordance with the policy of her office, does not submit a second offer unless the first has been presented and rejected by the seller. In this case the seller accepted the first offer, so the seller was not informed of the second offer. IN this situation, the broker's actions are permissible, if such arrangement is written into the salespeople's employment contracts.A salesperson was showing a home to a prospective buyer when she stated that the property had the best view in the neighborhood. The salesperson knew that other homes in