REAL ESTATE SALESPERSON - Quiz - NATIONAL PEARSON VUE

REAL ESTATE SALESPERSON - Quiz - NATIONAL PEARSON VUE + TX Flashcards A salesperson is found guilty of business-related fraud. The broker will also be held responsible.RATIONALEA real estate broker is responsible for all acts and conduct performed by a real estate salesperson associated with (or acting for the broker. While the broker may be fined for the fraud, the broker is not responsible for paying the fine levied against the salesperson.A seller's agent CANNOTsay, "Leave it to me. I can get you the house at the price you want."RATIONALEA seller's agent can show the property, prepare the offer, and inform the buyer of available services to complete the transaction. The buyer must understand that the agent represents the seller. The agent can advocate for the seller-client only, not the buyer-customer.The Smiths purchase a cooperative on the Gold Coast.What will they receive at closing?Shares of stock and a proprietary leaseRATIONALEA cooperative is not real estate, but the purchase of shares of stock in a corporation. With the stock comes a proprietary lease, or the right to occupy a specific unit.The contract that gives one party the right to do something

without obligation is called:

OptionRATIONALEWhen a lease or other agreement gives a party the right without the obligation, it is an option.A person finds out that another individual is attempting to sell the first person's automobile. The first person, however, takes no steps to stop the individual from offering the automobile for sale to the general public. What type of agency relationship Apparent agencyRATIONALEAllowing someone to appear to be your agent without any expressed authority is called apparent agency, or agency by estoppel. Even though the apparent agent would not actually have the principal's express permission, he could indeed bind the principal through representations as that person's agent. A real estate contract should be created by express written agreement.Which of the following would cause termination of a real estate contract?CompletionRATIONALEThe termination of a contract occurs if it is completed (i.e. closed). Fraud makes a contract voidable by the lied-to party, but it does not necessarily terminate the contract. Acceptance of an offer would commence the contract, not terminate it.The Commission's six real estate-broker members must have been engaged in the real estate brokerage business for how long?At least five yearsRATIONALEThe six real estate-broker members shall have been engaged in the real estate brokerage business (as licensed real estate brokers) as their major occupations for at least five years immediately preceding their appointments.When the appraiser looks at the home Sandy has just purchased, he notices it has a fireplace and the comparable homes do not. He makes a $3,000 upward

adjustment on his sales comparison approach worksheet.The $3,000 adjustment is based on what appraisal principle?A: contributionB: competition contributionRATIONALEThis is the amount the fireplace contributes to the value. It is not necessarily the cost to install the individual item.

A buyer buys interest in a condominium in Mexico; she has one week's use of the property each year. Such an

ownership is best described as:

Time shareRATIONALEA fee simple absolute would give a buyer exclusive right to use the property absolutely, while a fee simple conditional gives the buyer the ownership of the property based upon a condition. A life estate is based upon the ownership during someone's life. This person receives the right to use the property for one week only; she is thus sharing time of possession with 51 other owners.While determining the net operating income of an investment property, an appraiser will take into account all of the following except:A: Income from vending machinesB: Interest expense Interest expenseRATIONALEAlthough tax deductible, the amount of interest an owner pays is not used to calculate the net operating income.An agent for the buyer does NOT have to inform the buyer of a suggestion of the lowest price that the buyer should pay based on the list price of the property.RATIONALEThe agent may suggest the lowest price that the buyer should pay based only on comparable values (regardless of the listing price).In Texas, the homestead is exempt from forced sale by creditors for payment of most debts EXCEPT a valid mechanic's or materialman's claim for the cost of improvements on the homestead property.RATIONALEA valid lien for labor or material on a homestead improvement (construction or renovation) must be based on a written contract, consented to by both spouses and acknowledged and signed before the work was performed or the materials delivered. Additional requirements provide that (a) the contract for the work and material must not be signed until five days after loan application, (b) the owner may rescind the contract up to three days after signing, and (c) the contract must be signed at the office of a third-party lender, an attorney, or a title company.An instrument that conveys a grantor's interest is called a:DeedRATIONALETitle is the actual, lawful, ownership. The deed is the instrument that conveys the ownership.A property is under an effectively dated contract of May 8th with a 40-day financing contingency. A back-up offer is properly executed on June 14th. The first buyer properly notifies the seller in writing on June 15th that a loan cannot be obtained and requests the return of earnest money, which occurs on June 22nd. The effective date of the back-up offer is June 14thRATIONALEA contract is effective when properly executed and this rule applies to a back-up offer as well.After receipt of payment from a property owner, the contractor has how many days to pay his subcontractor for services reflected in that payment?SevenRATIONALEThe contractor has seven days from receipt of the payment to pay his subcontractor for services reflected in that payment. Both the general contractor and subcontractors are entitled to mechanic's liens if they are not paid in full. Subcontractors are required to serve a landowner, and provide personal notice of their individual claims.

Syndicate Banking is:A group of investment banks acting together when lending

large amounts of money to a specific companyRATIONALE"Investment banks join to lend large amounts of money to a specific borrower." What can be determined by a location survey? whether or not the property's buildings encroach on neighboring landRATIONALEA location survey is not concerned with land use, size, or boundary.A licensee tells his client the safest way to divest property through a will. Which statement is true?The agent has committed the unauthorized practice of law.RATIONALEThe licensee's fiduciary duties to the

principal include: obedience, loyalty, disclosure,

confidentiality, accounting and reasonable care and due diligence. While his intent may be good, the salesperson cannot advise his client on legal matters. Only an attorney can counsel on legal matters.Farmer Jones is selling off portions of his land. Distrustful of the state, he had his attorney draw up a contract for any buyers. Which statement is true?He can use whatever contract he chooses.RATIONALEA property owner who prepared or had an attorney prepare the contract form does not have to use the TREC-promulgated form. The other party, however, will have to agree to the use of whatever from is selected by the seller. There is not a TREC Mandatory Form Use Waiver.The Real Estate Recovery Trust Fund's (Trust Fund) purpose includes which of the following?The Trust Fund is used to reimburse members of the public who have been financially injured or damaged by the actions of a real estate broker or salesperson.RATIONALEThe Real Estate Recovery Trust Fund (Trust Fund) is used to reimburse members of the public who have been financially injured or damaged by the actions of a real estate broker or salesperson. The aggrieved person must recover a valid judgment in a court of competent jurisdiction. The Trust Fund is not for the benefit of licensees.A sales agent is about to take a listing. The sellers indicate that they do not wish to have the property shown to anyone of a certain racial background. The real estate agent complies with the sellers' request. What statement is true?The broker is liable for the sales agent's misconduct, even though the broker did not know of the discriminatory acts.RATIONALEThe broker has what is known as "ostensible" liability; the broker is liable for any discrimination by his agents, whether the broker knows about the discriminatory acts or not. In reality, the sales agent, the broker, and the seller could all be charged with discrimination and are all potentially liable for the salesperson's actions.The subject property has five bedrooms but only one bathroom. What could this situation be causing?Functional obsolescenceRATIONALEWhen something inherent in the subject property causes the loss of value, the property suffers from functional obsolescence.Being unlicensed, which of the following activities can be done by Katie for her sister?Search real estate sites to help her find a homeRATIONALESearching real estate sites and