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Questions and Answers – Post Broker Course

MODULE ONE1. A licensee who is paid in a lump sum and who is

personally responsible for paying his or her own taxes is probably a(n):

independent contractor.

2. Which of the following statements best explains the meaning of this sentence: “To recover a commission for brokerage services, a broker must be employed as the agent of the seller”?

The broker must have asked the seller the price of the property and then found a ready, willing and able buyer.

3. When acting as an employee rather than an independent contractor, a salesperson is obligated to:

assume responsibilities assigned by the broker.

4. The real estate business is driven by small business.5. The MLS was created in the 60s6. In the 1950s, buyers were pretty much on their own.7. The nature of real estate brokerage services,

particularly those provided in residential sales transactions,

has changed significantly in recent years.

8. To be successful, a licensee has to know not only his or her product (real estate) but also how to

run a business.

9. Whether a salesperson is associated with a broker as an employee or as an independent contractor is important:

for income tax purposes.

10. Jo is a licensed salesperson who completed a difficult transaction. Jo may accept a bonus from:

her own broker

11. At their regular monthly meeting, a group of local brokers agree that the introduction of “discount brokerages” in their area would be bad for business. Thus, they informally agree to charge commission rates no lower than 6 percent for the coming year; there was, however, no limit placed on the amount of commission above that figure the brokers could charge. This type of “friendly” agreement is:

against the law.

12. A real estate broker is said to earn a commission from a seller when:

the sale is closed.

13. It is illegal for a broker to represent both the buyer and seller in the same transaction unless:

the broker obtains the prior consent of both parties.

14. The type of agency a real estate broker and seller enter into when they execute a listing agreement is generally considered to be:

a special agency.

15. The relationship created between the real estate broker and the principal places the broker in the position of:

a fiduciary.

16. A statement made by a broker to a buyer that “This apartment has one of the most fantastic views of the city,” when, in fact, the apartment has only poor, partial views, would be an example of:

puffing.

17. Bob is a salesperson employed by Tomorrow Realty. Helen is a salesperson employed by Condominium Sales Realty. Tomorrow Realty and Condominium Sales Realty are members of the same multiple-listing service. Helen secures a listing for Condominium Sales Realty. It is placed with the multiple-listing service, and Bob produces the sale for Tomorrow Realty. Bob can collect a commission from:

Tomorrow Realty

18. Condominium Sales Realty employs Paul as a salesperson. It does not require him to attend sales meetings or spend certain hours in the office. Paul is not reimbursed for normal expenses and is responsible for paying his own income and social security taxes. His status is best described as that of:

an independent contractor.

19. The listing broker discovered that the seller’s house was infested with termites. However, the seller was unaware of the problem. The broker knowingly failed to disclose it to a buyer. In this situation:

the broker can be held liable for damages.

20. A broker must obey all lawful instructions given to him or her by the principal. If any such instructions violate the law, the broker should:

withdraw from the transaction.

21. A broker has established the following office policy: “All listings taken by any salesperson associated with this real estate brokerage must include compensation based on a 7 percent commission. No lower commission rate is acceptable.” If the broker attempts to impose this uniform commission requirement, which of the following statements is true?

The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm.

22. Jim and Ruth are both salespersons who work for NMN Realty. One afternoon, they agree to divide their town into a northern region and a southern

The agreement between Jim and Ruth does not

region. Jim will handle listings in the northern region, and Ruth will handle listings in the southern region. Which of the following statements is true regarding this agreement?

violate antitrust laws.

23. After a particularly challenging transaction finally closes, the client gives the listing agent, Louise, a check for $500 “for all your extra work.” Which of the following statements is accurate?

Louise may receive compensation only from her broker.

24. Jim and Ruth are both salespersons who work for NMN Realty. One afternoon, they agree to divide their town into a northern region and a southern region. Jim will handle listings in the northern region, and Ruth will handle listings in the southern region. Which of the following statements is true regarding this agreement?

The agreement between Jim and Ruth does not violate antitrust laws.

25. A broker would have the right to dictate which of the following to an independent contractor?

Commission rate the person would receive

26. A real estate broker learns that her neighbor wishes to sell his house. The broker knows the property well and is able to persuade a buyer to make an offer for the property. The broker then asks the neighbor if the broker can present an offer from the prospective buyer, and the neighbor agrees. At this point, which of the following statements is true?

The neighbor is not obligated to pay the broker a commission.

27. The goal of planning is to ensure that the right things happen in the organization.

This statement is true.

28. “Customer” shall mean that person not represented in a real estate transaction. It may be the buyer, seller, landlord or tenant.


30. An ___________ is needed by any business that retains employees

EIN

31. Which of these is NOT a way to get business? Solicit your strengths

32. When a client or customer asks that we recommend a service provider, always;

Recommend three and let them follow up

33. What is the most proven method of building and growing a successful real estate practice?

A method based around asking for and being given

referrals34. What would be a good first marketing activity to

'touch' your Circle of Influence?Mail them a personal note telling them about your new career choice

35. What best describes a "Circle of Influence?" A list of people over whom I have influence

36. Which of the following would most buyers and sellers consider important in selecting a real estate professional?

Trust

37. Define: Public Relations Taking advantage of free press coverage to promote your firm, especially when someone in your organization has made some admirable social contribution that benefits the community, such as organizing or attending a philanthropic event

38. Potential clients received through the agent's good will and treatment of current clients

Referrals

39. Which groups should be included in your "sphere of influence?"

Union officialsPostal workersPersonnel managers

40. Often considered the most effective way to advertise homes and your brokerage to the public on a daily or weekly basis.

Newspapers/ Internet

41. A time-tested step-by-step method used in writing ads; this formula gets the job done

AIDA - Attention, Interest, Desire, and Action

42. Title companies derive directions for closing from which of the following documents?

The purchase contractThe sale contractThe closing instructions

Amendments to the purchase and sale contract

43. If the purchase is not completed due to a default by the seller and the earnest money deposit is returned to the buyer, the seller's broker may seek compensation, if any, from:

seller

44. __________ is the preferred business. referral business45. A plan can be a great motivator, but only as long as

the goals are attainable.True

46. If an owner refuses to pay the broker an earned commission, the broker may properly seek relief by:

bringing court action

47. Broker Betty at an open house meets a young couple looking to purchase their first home. The couple asked if the Broker thought they had enough income to qualify for a loan to purchase the property. Realizing this information is of a confidential nature Broker Betty makes the agency disclosure that her office policy and State statute require. The buyers are very skeptical about making a commitment and have been coached by family members not to sign anything. They refuse to sign the signature block on the Brokerage Disclosure to Buyer form. Betty should:

make a note of the date and time the disclosure was made and reference the fact that the buyers declined to sign the form - then have the discussion.

48. Associate Broker Jane Holmes is a party to which executory contract?

None of these

49. Common law independent contractors are not entitled to sick pay or to participate in the broker’s pension and profit sharing plans, wage continuation plans, health and accident insurance plans or qualified group insurance programs unless permitted by the broker to pay premiums to participate in group health insurance.

True

50. ________ advertising is illegal Blind51. A broker may not pay the license fees or

membership dues of independent contractor salespeople although he or she is free to pay those of employees and statutory independent contractors.

True

52. Because salespeople have their own motives for working, their individual views of success and what you need for the company may be different.

True

53. Buyer Wilson and Seller Smith have a voided sales contract. They have both agreed to disperse the

disperse the escrowed money,

funds, against the suggestions from Broker Bob. Broker Bob should:

as directed by seller, and as agreed between buyer and seller

54. Earnings on the IREBEA accounts may be made available to or utilized by a broker.

False

55. There are federal, state and local legal considerations concerning the hiring of a personal assistant.

True

56. Who is not subject to the truth in lending act? Lenders that aren't advertising

57. One requirement for valid transfer of title to property by deed is

words of conveyance

58. Creates a Voidable Contract - Match CONTINGENCIES59.60.61. “IREBEA” means Interest on Real Estate Broker

Escrow AccountsTrue

62. Mr. Ackerman leased a property for five years to Mr. Bones. During this term, Mr. Ackerman died and then Mr. Bones discovered that Mr. Ackerman's interest was a life estate. The owner of the property was correct in advocating which of the following?

Mr. Bones' interest was terminated upon Mr. Ackerman's demise

63. No common law independent contractor may be required by the broker to attend sales training, instruction and indoctrination courses.

This statement is very true.

64. Which of these in NOT the best advertising policy to stimulate the most interest?

give away minimal amounts of information initially

65. Which of the following deeds contains no express or implied warranties, or covenants?

Quitclaim deed

66. When soliciting listings of homes in an area where minorities had recently purchased homes, Broker A told his salespeople to solicit only Caucasian owners for listings as they will likely want to leave the area. This action would be regarded as

blockbusting

67. All of the following forms of discrimination are prohibited under the 1968 federal fair housing act except

sexual orientation.

68. In compliance with the ADA, all architectural barriers in existing facilities must be removed:

if removal is "readily achievable"

69. The word improvement refers to: Streets

Sidewalkssewage and drainage systems

70. Under the law of agency, a real estate broker owes all of the following duties to the principal except:

advertising

71. If a Seller is in default of the terms of the Contract to Buy & Sell:

The buyer may cancel or sue for specific damages.

72. Just as an architect could not build a structure successfully without a plan, the operations manual must have a plan.

True

73. All of the following are characteristics of an independent contractor relationship with a broker EXCEPT :

you do not need a license

74. The practical essentials of a valid contract are: offer, acceptance, consideration, competent parties, legality of the object

75. A buyer wishes to give a post-dated check with an offer. The broker should:

inform the seller as to the form of the deposit

76. _______________is an agreement (written, verbal, or inferred from conduct) among competitors that raises, lowers, or stabilizes prices or competitive terms.

Price fixing

77. The likelihood of policy and procedures problems increases when the broker is wearing two hats.

True

78. Working or prospect in an area of interest is also known as ______?

Farming

79. A referral is also known as_______chain? Endless80. At its most basic, real estate brokerage is about matching a home

seller with a home buyer.

81. A requirement that a salesperson accept floor time assignments from the broker is not consistent with the independent contractor status.

True

82. Centers of influence are called _________. Bird Dogs83. In order to compete in modern markets,

competitors sometimes need tocollaborate.

84. Market power is defined as: The power of a firm to control the market price of its product.

85. An offer from Fred has been accepted by seller Remove the tools.

Tom. Fred decided to put his work tools into the garage before the transaction closed. What should Fred's agent tell him?

86. Agent Carol just received her third low offer on one of her listings this morning. She believes the Seller will not accept any of them. What should Agent carol do?

Present all offers as soon as practicable.

87. Buyer Tom's offer has been accepted by the seller. Buyer Tom has requested entry to the property so that he can paint it before his family moves in. What should his agent tell Tom?

He cannot have access to the property before it closes and is recorded.

88. When is a broker relieved of presenting an offer? When the offer is obviously frivolous and the agent is acting on instructions from the seller.

89. Under the law of agency, a real estate broker owes all of the following duties to the principal except:

advertising

90. The duty owned from the agent to his/her client is fiduciary duties.91. The law that requires contracts in real estate to be

in writing isStatute of Frauds

92. It is not a good practice to let a buyer take possession of the property

before closing.


a special agency.


a fiduciary.

95. Generally, assistants will be considered employees if the broker or salesperson hiring them retains the right to control what the assistants do and how it is done.

True

96. The way to manage independent contractors is to encourage them and show how they will benefit from your suggestions.

97. Earnest money deposits should be deposited into a trust account by the end of the next business day.

98. A dual agency is in effect when both the buyer

and seller accept dual agency and acknowledge the dual agency agreement in writing.

99. Which of the following uniform transparent accounting standards must be used in regard to trust accounts?

Standard Accounting Practice

100. The phrase, “procuring cause” is most important to real estate agents in a

Open Listing.

101. Under federal fair housing laws, it is legal to prohibit which of the following in a housing unit?

Drugs

102. Which is an example of an agent's fiduciary responsibilities?

AccountingDisclosureConfidentiality

103. The effective date of the MAR contract is the date: On which the buyer or seller last signs the contract

104. The expiration, suspension or revocation of a responsible broker’s license shall automatically suspend the license of every real estate licensee currently under the supervision of that broker. In such cases

a licensee may transfer to another responsible broker.

105. a licensee may transfer to another responsible broker.

new disclosure forms will be acknowledged by all parties involved.

106. In dual agency the buyer shall give his/her consent by signing the MREC Dual Agency Confirmation Form which shall be attached to the offer to purchase

107. “Fiduciary Responsibility” are those duties due the principal (client) in a real estate transaction are

Loyalty, Obedience, Disclosure, Confidentiality, Reasonable Skill, Care and

Diligence and Full Accounting.

108. Each person is in charge of his or her own behavior, and everyone else is a bystander.

True

109. “Disclosed Dual Agent” is when an agent representing both parties to a real estate transaction with the informed consent of both parties, with written understanding of specific duties and representation to be afforded each party.

110. Special situations, where unusual facts exist or where one or more parties involved are especially vulnerable, could require additional disclosures not contemplated. In such cases, brokers

should seek legal advice prior to entering into an agency relationship.

111. f a broker, as escrow agent, accepts a check and later finds that such check has not been honored by the bank on which it was drawn, the broker shall

immediately notify all parties involved in the transaction.

112. Monies received in a trust account on behalf of clients or customers are not assets of the broker; however, a broker may deposit and keep in each escrow account or rental account some personal funds for the express purpose

of covering service charges and other bank debits related to each account.

113. An agent made real estate signs to put in the front yard of his client’s home. He did not put the name of his responsible broker or name of his real estate firm on the sign.

This is a “Blind Ad” and is in violation.

114. In addition to disclosing their licensed status on all advertisements, licensees are required to disclose their license status

on all contracts for real estate in which they have an ownership interest.

115. A real estate broker must keep on file following its consummation complete records relating to any real estate transaction for

three years.

116.

117. The Commission mandated disclosure form may be duplicated in content and size but not altered.

True

118. Every contract must reflect whom the broker represents by statement

over the signatures of the parties to the contract.

119. The responsible broker must hang in the office all licenses of the licensees he is responsible for

120. No licensee shall pay any part of a fee, commission or other compensation received by such licensee in buying, selling, exchanging, leasing, auctioning or renting any real estate

No licensee shall pay any part of a fee, commission or other compensation received by such licensee in buying, selling, exchanging, leasing, auctioning or renting any real estate

121. A responsible broker must maintain an office and display the license therein. If the broker has more than one office

the broker shall display a branch office license in each branch office.

122. When advertising a property shared by an out of state broker

he name of the Mississippi broker must be listed.

123. Brokers may give legal advice Never.124. The following may be exempt from having a

licenseReceiver, trustee, administrator and public Officers.Those dealing in oil/gas leases and mineral rights.

125. It is unlawful to carry out the business of a broker or salesperson without

a license.

126. Who are exempt from having a real estate license? A Public Official holding an auction.

127. A tenant who executed a lease is the lessee

128. When you do venture onto the sales floor with a contest, be prepared to monitor the salespeople very carefully.

True

129. A written listing agreement must have: a definite expiration date and may not be renewed automatically.show the price and terms the seller will accept.indicate the amount of the broker’s commission.

130. Which of the following would cancel a listing agreement?

Property owner’s death.

131. A buyer depended on his agent's information that the property the buyer is considering making an offer on is in a tax area of the lowest taxes in the city. Based on that information, an offer was made. Before the transaction closed the buyer found out the taxes in that area are some of the highest in the state. The buyer may seek to rescind the contract based on

misrepresentation.

132. One day after a broker’s listing on a property expired, the seller hired a new agent and that agent put the property on the MLS. A third agent called the broker with the expired listing and asked to see the property. The broker should respond by

telling the third agent who called to see the property that he no longer is the agent for the seller.

133. Inducing panic selling in a neighborhood is blockbusting.134. A buyer wants to make an offer based on complex

financing. The agent shouldsuggest the buyer consult an attorney to furnish the wording.

135. When taking a listing, the agent should verify square footage.136. The client would like to sell his house after owning

it for one year. The client let the agent know that the property was treated for termites 14 months ago. What should the agent do?

Tell the client to disclose that information.

137. A written agreement between a buyer and seller when the buyer wants to buy and the seller wants

a contract.

to sell is called138. A dual agency is in effect when both the buyer

and seller accept dual agency and acknowledge the dual agency agreement in writing.

139. The most important duty a property manager has is

increasing the property owner’s net income.

140. A property manager’s duties typically include all of the following except

investing the property owners funds.


Open Listing.

142. Which deed is typically used to cure a defect on title?

Quitclaim deed

143. A grantor signed a deed and then a notary acknowledged the document. The notary is making sure the person signing is she or he claim to be and that their signature is?

Voluntary

144. The seller of a property purchased the property when he was single. He is now married and would like to sell that property. What type of deed would the new spouse need to sign to convey their inchoate (incomplete) interest in the property?

Quitclaim

145. A rental agent has allowed a person dependent on a wheelchair to make necessary, minor changes to a rental property, these changes are referred to as?

Reasonable accommodations or modifications

146. Which laws provide guidance for making public facilities accessible?

ADA

147. The city acquires a tract of land for a highway. What power will they exercise?

Eminent Domain

148. Outdated plumbing fixtures are an example of? Curable functional obsolescence

149. What is a requirement of a universal agent? An executed power of attorney agreement

150. An agent had an exclusive right to sell listing agreement with a client on a home listed for $100,000. The agent knew that the seller would actually take $92,000 for the house due to the seller being under duress. During an open house, a

Yes. Regardless of intent, an agent can never reveal the lowest amount a seller

buyer came to view the property. The potential buyer loved the house but could not afford more than $90,000. The agent encouraged the buyer to submit an offer. The agent also informed the buyer to offer $90k because she knew the seller would accept $92,000. Did the agent violate her agency relationship with the seller?

will take for a property.

151. A seller had her house listed. Her agent received an offer on the property in which she presented to the seller. While the seller was considering the offer, the agent received a second offer on the property. According to the agent’s office policy, the agent does not present the second offer until the seller has accepted or rejected the first offer. In this scenario, the agent’s actions are?

Not allowed as all offers are to be presented to the seller upon the agent receiving them

152. Megan’s Law requires which of the following? The disclosure of convicted sex offenders in a community.

153. A buyer hired an agent under an exclusive buyer’s agency agreement. The buyer client wanted to submit an offer on a house that had been stigmatized by a recent murder-suicide. What is the agent’s ethical responsibility to her client?

Disclose it prior to signing any offer to purchase.

154. A seller had a fire in their kitchen one year ago. The burned joists were treated and sealed. Will the seller have to disclose these repairs?

Yes, known latent defects still must be disclosed.

155. Who is responsible for completing the Property Condition Disclosure Statement?

The seller

156. A tenant choose to purchase an orchard on an installment land contract for deed with a 15 year term loan. During the 15 years, what type of title does the vendee have in the orchard?

Equitable

157. A purchaser submitted an offer to purchase on a house with the stipulation that the sellers pay for the termite inspection. This stipulation is considered?

A contingency

158. An exclusive right to sell contract is considered a unilateral contract and?

An employment contract.

159. A buyer had an offer accepted by the seller. On Feb. 10, both parties agreed to an amendment extending the closing. The transaction was completed on March 15. What is the status of the contact on March 16th?

Executed

160. A seller gave an agent an exclusive right to sell for Both agents.

a 6 month period. Two weeks later, the seller signed an open listing with another agent who produced the buyer. Who does the seller owe a commission to?

161. A salesperson listed a client’s home under an exclusive right to sale contract. Which of the following is true?

The listing belongs to the salesperson’s broker.

162. A broker presented an offer to a seller with an additional stipulation that the seller provide a $5000 flooring allowance. The seller refused the offer. Can the broker collect his earned commission?

No, there was not a meeting of the minds.

163. A listing agent and seller knew that the HVAC unit was about to burn up. The buyer did not disclose it on the Property Condition Disclosure Statement. The seller’s agent made no comments to the condition of the HVAC unit. The property was listed “as is”. Are they free from liability on a failure to disclose a material fact with an “as is” provision?

No, “as is” does not clear them from liability on a known material defects.

164. Of the following listings, which one is a broker guaranteed a commission regardless of who sells the property?

Exclusive right to sell listing

165. The broker protection clause in a listing agreement states?

The broker is entitled to a commission if the broker introduced the buyer to the property after the expiration of the contract and within the protection clause timeframe.

166. Which of the following would not terminate a listing with a broker?

A sharp rise in the interest rate

167. A contract that has no legal object is considered? Void168. Of the following, what constitutes an open listing? The seller can

employ any number of brokers.

169. A seller and an agent have an open listing, what type of agreement is this?

Unilateral

170. You order dinner at a fine dining restaurant. What type of ‘contract’ do you have in reference to your actions?

Implied

171. What is the duty of a listing agent upon receiving several offers on a property they have listed?

Deliver each offer to the seller immediately upon receipt.

172. On a For Sale By Owner, the owner of the property gives a buyer an option to purchase the property. While the option is in effect, the option is considered?

A unilateral contract

173. A broker presented an offer to her seller. The Seller rejected it. The broker presented a second offer. Prior to the seller accepting or countering the second offer, the buyer calls the agent and rescinds the offer. At this point in time, there is?

174. MATCH: Ratification A method of creating an agency relationship in which the principal confirms the conduct of someone who initially acted without authority.

175. Everything in real estate has to be in writing according to the?

Statute of Frauds

176. When qualifying a prospective buyer or renter, a licensee may question the prospect about

rental history.

177. Which of the following is a broker who attempts to find a buyer for a property listed by another broker.

cooperating broker

178. The federal law (often referred to as the Fair Housing Act) that prohibited discrimination in housing based on race, creed, or national origin

Civil Rights Act of 1968

179. A real estate broker appointed by a buyer to find property for the buyer.

buyer's agent.


Both accounting and disclosure

181. What type of listing could create the most competition between the owner and listing agent selling the home?

An exclusive agency agreement

182. To create Agency, there must be delegated authority and

consent to act.

183. MATCH: Subagent The agent of an agent; associated salesperson or cooperating broker in relation to the principal.

184. A real estate broker wants to end racial segregation. As an office policy, the broker requires that salespersons show prospective buyers from racial or ethnic minority groups only properties that are in certain areas of town where few members of their groups currently live. The broker has prepared a map illustrating the appropriate neighborhoods for each racial or ethnic group. Through this policy, the broker hopes to achieve racial balance in residential housing. Which of the following statements is true regarding this broker’s policy?

Because the effect of the broker’s policy is discriminatory, it constitutes illegal steering regardless of the broker’s intentions.

185. There are financial challenges to running any operation, as well as personnel issues such as how many people to hire and in what capacity.

True

186. Which of the following would not be permitted under the federal Fair Housing Act?

The owner of a 20-unit residential apartment building rents to men only.

187. The act of directing home seekers toward or away from particular areas either to maintain or to change the character of the neighborhood is:

Steering.

188. Match: Special agent An agent who is authorized to represent the principal in one specific transaction or business activity only.

189. MATCH: Ready, willing and able buyer One who is prepared to buy property on the seller’s terms, is ready to take

positive steps to consummate the transaction and has the financial ability to do so.

190. Match: Puffing Exaggerated or superlative comments or opinions not made as representations of fact.

191. MATCH: Listing agreement A contract between a property owner and a real estate broker by which the broker is employed as agent to sell the owner’s real estate on the owner’s terms within a set period of time.

192. The IRS does not require the broker to pay social security or withhold tax for an independent contractor. As a salesperson, though, the licensee may not open an escrow account or take a listing in his or her own name.

True

193. MATCH: Law of agency The body of law that governs the rights and duties of principals, agents and third parties.

194. MATCH: General agent An agent who is authorized to represent the principal in a specified range of matters.

195. MATCH: Fiduciary One who is placed in a position of trust and

confidence, as an agent is to his or her principal.

196. MATCH: Express agreement An oral or written contract in which the parties state the contract’s terms and express their intentions in words.

197. Through the 1950s, real estate brokerage firms were primarily one-office, minimally staffed, family-run operations.

True

198. MATCH: Fraud The intentional misrepresentation of a material fact so as to harm or take advantage of another person.

199. MATCH: Commission Payment to a broker for services rendered, such as in the sale or purchase of real property; usually a flat fee or a percentage of the selling price.

200. Shown by their intentions in WORDS EXPRESS CONTRACT - MATCH

201. BREACH OF CONTRACT - MATCH Violation of any of the terms or conditions of a contract without legal excuse

202. DISCLOSURE - Match Part of Sales Contract


Louise may receive compensation only from her

broker.204. Jim and Ruth are both salespersons who work for

NMN Realty. One afternoon, they agree to divide their town into a northern region and a southern region. Jim will handle listings in the northern region, and Ruth will handle listings in the southern region. Which of the following statements is true regarding this agreement?

The agreement between Jim and Ruth does not violate antitrust laws.

205. A dual agency is legal and in violation of the fiduciary duty of loyalty unless both parties give their prior consent based on full knowledge of all the facts.

False

206. A real estate broker learns that her neighbor wishes to sell his house. The broker knows the property well and is able to persuade a buyer to make an offer for the property. The broker then asks the neighbor if the broker can present an offer from the prospective buyer, and the neighbor agrees. At this point, which of the following statements is true?

The neighbor is not obligated to pay the broker a commission.

207. If the broker advertises and attempts to make a sale but does not sell the property, he or she has not fully performed the listing agreement with the seller. Although the broker will usually collect commission at closing, it is generally said that the broker earns the commission when a ready, willing and able buyer is produced.

True

208. Which of the following statements best explains the meaning of this sentence: “To recover a commission for brokerage services, a broker must be employed as the agent of the seller”?

The broker must have asked the seller the price of the property and then found a ready, willing and able buyer.

209. If a licensee buys real property, which of the following statements is (are) true?

The seller should be given a “Working with a Real Estate Broker” form.

210. One of the best sources for verifying information about an owner’s correct legal name and a property’s legal description is:

A copy of the deed

211. Some states has a licensing authority—a commission, a department, a division, a board or

False

an agency—for real estate brokers and salespersons.

212. Joe may receive compensation only from her own broker. The grateful seller should send the bonus to the broker, who will pass it all on to Joe or retain some of it for office expenses, according to their agreement.

True

213. The relationship between a broker and a seller as evidenced by a listing agreement is a special agency—the broker is retained to perform only those services and for the length of time specified in the agreement. General agencies are entered into so that an agent can perform a broad range of activities on behalf of a principal. An ostensible agency is a form of implied, rather than expressed, agency.

True

214. A broker, as agent of his or her principal, is a fiduciary and owes the principal certain duties and obligations. For example, an agent learns many personal facts about his or her principal and may not disclose any confidential matters without the approval of the principal.

true

Module TWO



216. One important element of an estate held in joint tenancy is:

ownership has to be equal

217. When a grantor does not wish to convey certain rights of ownership, he or she:

may note the exceptions on the deed

218. William Boyd and his daughter Jane Boyds buy a tract of land for cash, and the property is deeded to them with rights of survivorship. William and Jane are:

joint tenants

219. The remnant of an estate that the grantor holds after he's granted a life estate to another person, if the estate will return to the grantor, is called:

reversionary interest

220. Which of the following deeds contains no express or implied warranties, or covenants?

Quitclaim deed

221. When a property is sold and several removable fixtures are sold, such as refrigerators and radiator covers, upon delivery of the deed, the seller should also deliver a(n):

bill of sale

222. If a Seller is in default of the terms of the Contract to Buy & Sell:

The buyer may cancel or sue for specific damages.

223. All of the following are forms of evidence of title EXCEPT

abstract and attorney’s opinion



225. Another name for personal property is chattel226. A promissory note requires payments to be made as

agreed upon.227. A trust deed and note are personal

property228. Who determines how title should be vested on a

deed?The buyer

229. The buyer and seller must be present for the closing at the same time

It is not necessary.

230. A Bill of Sale is used when personal property is involved in the transaction.

231. The information from a lender on the assumption of a mortgage should be compared with the

Purchase Agreement

232. It is the escrow agent's job to determine when possession is scheduled.

233. In a 1031 exchange escrow, an escrow agent certifies that the escrow qualifies for a 1031 tax free exchange.

234. The act of improperly segregating the funds belonging to the agent from the funds received and held on behalf of another; the mixing of separate and community property.

commingling

235. A buyer made an offer on a property and refused to present an earnest money deposit

Earnest money deposits are not required.

236. Date of possession is used in the closing to determine

the date used for prorations.

237. What is a client level duty relating to account of earnest money, actions, etc.

Accounting

238. Which of the following is not a function of the antitrust laws?

stop price fixing

239. Earnest money deposits should be deposited into a trust account by the end of the

next business day.240. What is a Bill of Sale? A document used

to convey personal property

241. A prospective Buyer has the legal right to demand the return of his earnest money deposit back before the offer is accepted.

242. An escrow agent has the responsibility to review the following, with the parties involved in a real estate transaction

the Title Report

243. An Earnest Money Agreement usually does not reveal the following

title exceptions.

244. The closing attorney or escrow agent must report the details of the closing on?

1099S

245. After an accepted offer, the buyer was unable to obtain a mortgage. Both parties agreed to cancel the contract. Who does the earnest money deposit belong to?

The purchaser is entitled to the entire amount of the earnest money.

246. What is the minimum number of parties to an escrow?

3

247. Whenever money is put into a Broker’s Trust Account, the broker

must keep detailed accurate records.

248. Usury Law is defines as the maximum amount of interest which can be charged on a security instrument



250. Before the close of escrow, who most likely will order the survey?

the closing agent

251. When is it necessary to have closing documents recorded prior to disbursement of escrow funds?

in almost all situations

252. An escrow is an arrangement that: Holds documentsHolds fundsCreates documents to affect a transfer of interest in

property.253. It is most important to follow the accounting

procedures for escrow accounts that are established by

The company’s broker.

254. If a broker, as escrow agent, accepts a check and later finds that such check has not been honored by the bank on which it was drawn, the broker shall


255. The determination of whether a client’s funds are nominal in amount or to be held for a short period of time

rest in the sound judgment of each broker, and no charge of ethical impropriety or other breach of professional conduct shall attend a broker’s exercise of judgment in that regard.

256. An earnest money deposit pertaining to a cooperative agreement must be held in escrow

by the Mississippi broker unless both the buyer and seller agree in writing to relieve the Mississippi broker of this responsibility.

257. When is an escrow account required? For higher-priced mortgage loans secured by a first lien on the borrowers principal dwelling.For conforming conventional loans for greater than 80% of the appraised property value.For higher-priced mortgage loans secured by a first

lien on the borrowers principal dwelling.


A copy of the deed

259. The minimum description requirement in a contract for a platted subdivision includes the subdivision name and all of the following except:

The number of acres in the parcel

260. The effective date of the MAR contract is the date: On which the buyer or seller last signs the contract

261. Which of the following statements is (are) true of a buyer’s earnest money deposit?

While a postdated check is not illegal, the broker must note clearly on the deposit receipt that the check is postdated, and he must get the seller’s approval before the contract is signed

262. A bulk sale involves the sale of inventory263. One deed of trust covering two or more parcels of

land located in different countiesmust be recorded in all appropriate counties

264. A tenant who executed a lease is the lessee265. Preparing documents or escrow provisions that go

beyond the customary duties of an escrow officermay constitute the unlawful practice of law

266. The third person under a deed of trust who holds the legal title for the purpose of carrying out the terms of the deed of trust, and only for that purpose, is called the

trustee

267. When a judgment debtor pays off a judgment, he is entitled to a

satisfaction of judgment

268. The adjustment of prepaid items and accrued unpaid items in an escrow between the principals is known as

prorations

269. Earnest money deposits should be deposited into a

trust account by the end of the next business day.



271. Whenever money is put into a Broker’s Trust Account, the broker

must keep detailed accurate records.

272. The closing attorney or escrow agent must report the details of the closing on?

1099S

273. A deed MUST be signed by the? Grantor274. Title transfers to the grantee when the deed is? Delivered and

accepted275. After an accepted offer, the buyer was unable to

obtain a mortgage. Both parties agreed to cancel the contract. Who does the earnest money deposit belong to?


276. The money in the broker's escrow account can hold the earnest money deposits of the buyer.

277. The act of improperly segregating the funds belonging to the agent from the funds received and held on behalf of another; the mixing of separate and community property.

commingling

278. Before the close the Seller has LEGAL TITLE279. It is most important to follow the accounting

procedures for escrow accounts that are established by

The state’s licensing law.

280. The closing agent must provide a form 1099-S to the seller of a residence at closing:

In all cases.

281. Broker Dean employs Martha as his bookkeeper. Martha is responsible for maintaining the brokerage’s accounting ledgers. She also prepares and signs all checks disbursed from Dean’s escrow and operating accounts. Which of the following statements is true of this situation?

Dean does not need to sign the checks; however, he must be an authorized signatory on the account.

282. A broker has deposited $100 of her personal funds in her escrow account to cover monthly bank servicing fees. Which of the following statements is(are) true of this situation?

The broker must account for the $100 on her monthly accounting records.

283. Today is April 1. Salesperson Rebecca has just received investor Teresa’s earnest money check dated April 7th. Furthermore, the check is made payable to Bob Wilson, Attorney Trust Account. Which of the following is the best wording to include in the Contract to Purchase and Sell Real Estate?

Receipt is hereby acknowledged of the sum of $5,000 dated April 7 payable to Bob Wilson, Attorney Trust Account (by check) as an earnest money deposit.

284. Investor Teresa made an offer on one of salesperson Rebecca’s listings. The Contract to Purchase and Sell Real Estate indicated that Teresa was depositing $5,000 as an earnest money deposit, payable to Bob Wilson, Attorney Trust Account. Which of the following statements is true of this situation?

The situation describes an acceptable arrangement for handling escrow funds.

285. Salesperson Rebecca receives an earnest money deposit from a prospective buyer on Monday, late in the evening. She turns it over to Martha, the bookkeeper, on Tuesday morning. Assuming no legal holidays are involved, when must the check be deposited in broker Dean’s escrow account?

The check must be deposited into the escrow account no later than the end of the banking day on Wednesday.



287. If a buyer signs an offer to purchase property contingent on first selling his current home, the seller’s agent would be wise to suggest:

Keeping the seller’s property on the market and giving the buyer a 24-hour right of first refusal.

288. If a contract does not set a closing date, which of the following statements is (are) true?

The parties have a reasonable time for closing.

289. Which of the following statements is (are) true of personal property to be included in the sale of a

It should be inventoried in the

building? contract.Incorrect descriptions of chattels may invalidate a contract.The seller must have ownership to transfer.



Module Three

291. Cost of sales is All of the transaction expenses.

292. When structuring the commission program for your salespeople, considering parity with the competition is important because

The salespeople evaluate your program for fairness in comparison with other brokers.

293. It is most important to follow the accounting procedures for escrow accounts that are established by

The company’s broker.

294. The person who is responsible for determining how the company charges for its services is

The salesperson who is negotiating with the client.

295. A loan application portfolio normally includes a letter of introduction, a personal financial statement, a budget and

A business plan.

296. When estimating your capital requirements, you should budget for at least how many months of operating expenses?

Six months

297. Broker Arthur was interviewing Sandi Diaz about a position with the firm. He may ask which of the following questions?

“Do you have an active real estate license?”

298. Broker Jane needed to staff his five offices in Hattiesburg, so he opened a proprietary real estate school to generate new recruits. ON the first and last nights of every course, just before the second break, he spoke to the students about his company’s growth and the benefits of associating with Jane Realty. In this situation, which of the following statements is true?

Jane’s visits to the class are illegal, even if he speaks to the group after the class session has ended for the evening

299. Which brokerage office expense category typically varies in direct proportion to the income?

Commissions paid to salespersons

300. An example of a fixed cost includes: rent301. Businesses often fail because The brokers

devote 100 percent of their time to sales.

302. The document that provides a company’s mission statement and serves as the long-range blueprint for the company’s operation is the:

business plan

303. What is the FTC's competition mission? To enforce the rules of the competitive marketplace

304. Which of the following is not on the business startup checklist?

Taxes

305. The federal income tax is a pay-as-you-go tax.


EIN number

307. New businesses are usually required by the lender to furnish a projected balance sheet with their loan application.

True

308. Before you start applying for loans, you should get some basic documentation together.

True

309. While every loan program has specific forms you need to fill out and documents you need to submit, you will likely need to submit much of the same information for different loan packages.

True

310. According to Truth in Lending, your bank must disclose which of the following?

APR

311. Truth in lending is a disclosure of the true cost of a loan and contains?

Trigger terms

312. If you have employees, you will need to obtain workers compensation insurance.

True

313. A retired Air Force officer purchased a home using his VA loan. Several years later he sold the property and with the lender’s approval the buyer assumed the loan. The buyer defaulted on the loan 6 months later. What is the responsibility of the retired Air Force officer?

No longer responsible for anything regarding the property or the loan.

314. Hypothecation means? Retaining possession of the property while making payments.



Module Four

316. MATCH: Earnings A spending or consuming; disbursement, expenditure.

317. An idea or opinion someone gives you to help you make a decision.

advice

318. Can be calculated as the difference between assets and liabilities.

Equity

319. MATCH: Mission Statement expresses the specific aspirations of a company and the major goals it will try to reach

320. The process of gathering, analyzing and presenting data relevant to marketing.

Marketing Research

321. The operating expenses that a business must pay regardless of how many sales are made.

Fixed Operating Expenses

322. The definition of Competition Rival businesses competing for the dollars your target market spends.

323. What is the definition of a Business Opportunity? A consumer need or want that can be potentially met by a new

business.324. When a business's expenses and sales equal zero

because the business has sold exactly enough units to cover its fixed expenses.

Break-Even Point

325. What is the work of keeping something in good condition?

maintenance

326. People who start businesses? entrepreneurs327. A business entity consisting of one or more general

partners and one or more limited partners.Limited partnership

328. MATCH: Franchisor The person/company that grants the franchisee the right to do business under their trademark or trade name

329. An association of two or more persons for the purpose of jointly conducting a business, each being responsible for all the debts incurred in the conducting of that business, each having the power to bind the other(s) in transactions, and each being entitled to receive a share of the profits in the amount agreed upon by the parties.

General partnership

330. Can one person be the only stockholder, only member of the board of directors, and fill all of the officer positions in a corporation for profit?

YES

331. MATCH: Franchising A method of business expansion characterized by a trademark license, payment of fees, and significant assistance and/or control

332. The _________________ elect the members of the board of directors.

Stockholders

333. MATCH: Franchise A license that describes the relationship between the franchisor and franchisee

including use of trademarks, fees, support, and control

334. ___________________ manages the corporation. (Corporation for profit)

Board of Directors

335. __________________ own the corporation. (In corporation for profit)

Stockholders

336. What are the 3 components of a corporation for profit?

board of directorsStockholdersofficers

337. MATCH: Franchise Disclosure Document (FDD) The format for the disclosure document which provides information about the franchisor and franchise system to the franchisee

338. In a Corporation for Profit, the ___________________ can protect the individual within the business from personal liability for the debts and obligations of the corporation.

Corporate Veil

339. A ___________ consists of one or more adult persons and is considered by law to be an artificial person.

Corporation

340. MATCH: Royalty The regular payment made by the franchisee to the franchisor, usually based on a percentage of the franchisee's gross sales.

341. This identifies the name, life, and powers of the corporation for profit.

Charter

342. What is the name of this type of business? Separate and distinct legal entity. This type of company can get a tax ID number, open a bank account, and do business all under this company name. One of the benefits is the owners/members under most circumstances are not personally liable for the debts and liabilities of the company. For example, if this type of company is forced into bankruptcy, then the members will not be required to pay the

Limited Liability Company (LLC)

company's debts with their own money. If the assets of the company are not enough to cover the debts and liabilities, creditors cannot look to the owners for payment. The debt is with the company, not the owners or members.

343. MATCH: Franchisee The format for the disclosure document which provides information about the franchisor and franchise system to the franchisee

344. Can a sole proprietorship buy and sell real estate, hold title in his or her name, and have a broker real estate license?

Yes

345. MATCH: Trademark The marks/brand name and logo that identify a franchise which is licensed to the franchisee

346. It is most important to follow the accounting procedures for escrow accounts that are established by

The state’s licensing law.

347. One of the broker’s most challenging tasks is is recruiting good salespersons.

348. Independence means lower overhead.349. When starting a business, you should look for a

CPA (Certified Public Accountant) that specializes in small businesses.

True

350. An example of a fixed cost includes: rent351. The document that provides a company’s mission

statement and serves as the long-range blueprint for the company’s operation is the:

business plan

352. Why You Should Establish a Web Presence? More people than ever search the internet for real estate.

353. Lock box prices increase as the security technology is

enhanced.


355. An ___________ is needed by any business that EIN number

retains employees356. Which of these is NOT a way to get business? Solicit your

strengths357. Which of the following is not on the business

startup checklist?Taxes

358. Broker Arthur was interviewing Sandi Rodriguez about a position with the firm. He may ask which of the following questions?


359. Broker Jane needed to staff his five offices in Hattiesburg, so he opened a proprietary real estate school to generate new recruits. ON the first and last nights of every course, just before the second break, he spoke to the students about his company’s growth and the benefits of associating with Juna Realty. In this situation, which of the following statements is true?

Jane’s visits to the class are illegal, even if he speaks to the group after the class session has ended for the evening

360. Broker Sigrid has three employees and five independent contractors. What is the significance of January 31 regarding required reporting?

She must give each employee a W-2 form or each independent contractor a 1099-Misc. form, and she must file the annual federal unemployment tax return

361. Broker Jackson wants to make sure 12 salespersons stay with his firm. Because other brokers are trying to recruit them, he is considering offering the salespersons a hospitalization insurance plan for which he will contribute half the premium. None of the other firms offers such a plan, and he believes this will eliminate the competition. Based on this information, which of the following statements is true?

The IRS probably will classify his salespersons as employees

362. Which brokerage office expense category typically varies in direct proportion to the income?

Commissions paid to salespersons

Module Five363. A decision, which you have carefully considered

the outcome of each choice.Good decision

364. To accept how your decision will affect yourself and other people.

Personal responsibility

365. Beliefs that you consider to be of great importance. Values

366. The way people think, feel, and act. Character367. A force that affects your choices when you have a

decision to make.Influence

368. The result of an action that you take. Consequence369. An action to avoid negative consequences. Precaution370. Something that you want and are willing to work

for.Goal

371. How you feel about yourself as a person and how much you value yourself.

Self-esteem

372. The achievement of your goal. Success373. A map that outlines the steps for reaching your

goal.Action plan

374. The commitment to keep working toward your goal even when things happen that make you want to quit.

Persistence

375. Methods for expressing your thoughts and listening to what others say.

Communication skills

376. Not only hearing what someone says but also showing that you understand what that person is communicating.

Active listening

377. The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities

Strategic planning

378. The process of evaluating each market segment's attractiveness and selecting one or more segments to enter;

Market targeting

379. When a company pays be associated with a specific event

Public Relations

380. One-on-one interaction between a representative of a company and a customer

Personal Selling

381. MATCH: Marketing The process of creating, promoting, and presenting a product to meet the needs and wants of consumers.

382. Involves Advertising, Public Relations, Publicity, Sales Promotion, and Personal Selling

Promotion

383. Broker Dean employs Martha as his bookkeeper. Martha is responsible for maintaining the brokerage’s accounting ledgers. She also prepares and signs all checks disbursed from Dean’s escrow

Dean does not need to sign the checks; however, he must be an

and operating accounts. Which of the following statements is true of this situation?

authorized signatory on the account.

384. Investor Teresa made an offer on one of salesperson Rebecca’s listings. The Contract to Purchase and Sell Real Estate indicated that Teresa was depositing $5,000 as an earnest money deposit, payable to Bob Wilson, Attorney Trust Account. Which of the following statements is true of this situation?





a license.



three years.



390. “Disclosed Dual Agent” is when An agent representing both parties to a real estate transaction with the informed consent of both parties, with written understanding of specific duties and representation to be afforded each party.

391. Brokers who practice disclosed dual agency should do so with

the utmost caution to protect consumers and themselves from inadvertent violation of demanding common law standards of disclosed dual agency.


The salesperson who is negotiating with the client.

393. Which of the following is not a function of the antitrust laws?

Regulate trust accounts

394. The Sherman Act outlaws “unfair methods of competition” and “unfair or deceptive acts or practices.”mergers and interlocking directorates

395. What is the FTC's competition mission? To enforce the rules of the competitive marketplace

396. At their regular monthly meeting, a group of local brokers agree that the introduction of “discount brokerages” in their area would be bad for business. Thus, they informally agree to charge commission rates no lower than 6 percent for the coming year; there was, however, no limit placed on the amount of commission above that figure the brokers could charge. This type of “friendly” agreement is:

against the law.

397. the _______________ require that each company establish prices and other terms on its own, without agreeing with a competitor.

antitrust laws



399. Title companies derive directions for closing from The purchase

which of the following documents? contractThe closing instructions Amendments to the purchase and sale contractThe sale contract

400. Often considered the most effective way to advertise homes and your brokerage to the public on a daily or weekly basis.

RadioTelevisionNewspapers/ Internet


A method based around asking for and being given referrals



403. Which of these is NOT a way to get business? Solicit your strengths


EIN number

405. Why You Should Establish a Web Presence People search the internet for real estate.

Module Six406. Which of these is NOT a way to get business? Approach

Someone407. When a client or customer asks that we

recommend a service provider, always;Recommend three and let them follow up



409. Potential clients received through the agent's good will and treatment of current clients

Referrals

410. Why are holding open houses beneficial to you as an agent?

All of these

411. ________ advertising is illegal Blind412. Who is not subject to the truth in lending act? Lenders that

aren't advertising413. The broker makes the rules by first establishing a

philosophy for doing business.True

414. Which of these in NOT the best advertising policy give away

to stimulate the most interest? minimal amounts of information initially


blockbusting


sexual orientation

417. If the manager has a problem with something a salesperson has done, the manager should

address the problem with the salesperson and agree on a solution.

418. Who does not have to display an Equal Opportunity Housing sign?

An owner selling his own property



420. Which of the following is true about using praise as an incentive?

Praise is effective because it enhances self-esteem.

421. Antitrust Laws prohibit all except dual representation.

422. An important ingredient in professional development today is technology training.

True


the broker obtains the prior written consent of both parties.

424. A plan can be a great motivator, but only as long as the goals are

attainable.

425. Some salespeople are fast learners and become highly productive in a relatively short time.

True

426. Just as an architect could not build a structure successfully without a plan, the operations manual must have a

plan.

427. Salespeople can be a high-strung, competitive group of human beings, which means there’s bound to be conflict.

True

428. Earnest money deposits should be deposited into a trust account by

the end of the next business day.

429. When a salesperson walks into your office and announces that she or he is leaving, it’s usually too late to convince that person to do otherwise.

True


Statute of Frauds

431. The work culture or environment that you create to recruit salespeople is the same environment you expect will retain them.

True

432. If a sales agent leaves a real estate brokerage. What happens to the listings of that agent?

The listings remain with the broker.

433. The purpose of a performance interview is for you and the salesperson to discuss the person’s progress.

True

434. One of the most interesting ways to conduct performance reviews is to ask people to do self-evaluations.

True

435. Before you can conduct a review you need to identify the criteria by which each person will be evaluated.

True

436. Today is April 1. Salesperson Rebecca has just received investor Teresa’s earnest money check dated April 7th. Furthermore, the check is made payable to Bob Wilson, Attorney Trust Account. Which of the following is the best wording to include in the Contract to Purchase and Sell Real Estate?

Receipt is hereby acknowledged of the sum of $5,000 dated April 7 payable to Bob Wilson, Attorney Trust Account (by check) as an earnest money deposit.

437. Broker Dean employs Martha as his bookkeeper. Martha is responsible for maintaining the brokerage’s accounting ledgers. She also prepares and signs all checks disbursed from Dean’s escrow and operating accounts. Which of the following statements is true of this situation?

Dean does not need to sign the checks; however, he must be an authorized signatory on the account.

438. Performance reviews not only help people know where they stand, but they also tell management what it needs to be doing.

True


The salesperson who is negotiating with

the client.440. Negative incentives can do more harm than good. True441. Special situations, where unusual facts exist or

where one or more parties involved are especially vulnerable, could require additional disclosures not contemplated. In such cases, brokers




443. Parental- or dictatorial-style managers may see fear, embarrassment, punishment, reprimand and criticism as incentives for people to change their behavior.

True

444. Graduated commission programs are the most common, tangible incentives.

True




three years.

447. Each person is in charge of his or her own behavior, and everyone else is a bystander.

True

448. A manager who coaches performance empowers salespeople to direct their activities in constructive ways to satisfy the company’s goals.

True

449. The responsible broker must hang in the office all licenses of the licensees he is responsible for.


except to a licensee through the licensee’s responsible broker.

451. The contemporary view of a manager’s job is to energize and empower people, rather than dominate them.

True

452. An “Unlicensed Personal Assistant” who works exclusively for a licensee will ordinarily be an employee rather than an independent contractor

True

under Mississippi and Federal tax, unemployment and workers’ compensation law.


the name of the Mississippi broker must be listed.

454. Brokers may give legal advice Never.455. Generally, assistants will be considered employees

if the broker or salesperson hiring them retains the right to control what the assistants do and how it is done.

True

456. A broker has established the following office policy: “All listings taken by any salesperson associated with this real estate brokerage must include compensation based on a 7 percent commission. No lower commission rate is acceptable.” If the broker attempts to impose this uniform commission requirement, which of the following statements is true?

The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm.

457. A state has recently updated its Rules and Regulations for the Real Estate Profession. Assuming this state is like all other states and provinces, which of the following statements is true regarding this publication?

The rules and regulations are state laws enacted by the legislature.

Module Seven

458. The__________________ prosecutes cases of identity theft and fraud under a variety of federal statutes.

The__________________ prosecutes cases of identity theft and fraud under a variety of federal statutes.

459. Protecting personal information not only makes good business sense, it can also

help you avoid legal problems.

460. Which of the following is not an example of identifying information?

Hair Color

461. What should you do if you are unsure if something is confidential or not?

Do not reveal any information.

462. Why is confidentiality important? To protect the privacy of the individual.To prevent unauthorized access to records.To ensure safety

and confidentiality of records.

463. ________about the principal’s personal affairs is a key element of loyalty.

Confidentiality

464. William Alberts and his daughter Jane Alberts buy a tract of land for cash, and the property is deeded to them with rights of survivorship. William and Jane are:

William Alberts and his daughter Jane Alberts buy a tract of land for cash, and the property is deeded to them with rights of survivorship. William and Jane are:

465. A broker may execute a contract on behalf of his principal when he is a(an):

attorney-in-fact


a special agency


a fiduciary.


the broker obtains the prior written consent of both parties.


A copy of the deed

Module Eight

470. If no other formal training is given by the broker, the manual at least serves to give new salespeople the orientation they need.

471. In training new salespeople, the operations manual is an essential tool.

The most important essential tool.

472. Many brokers practice management by crisis and not the wiser method of management by objectives.

It is always the preferred method.

473. A broker cannot exercise certain controls over salespersons who are employees.

False

474. A licensee who is paid in a lump sum and who is personally responsible for paying his or her own taxes is probably a(n):

independent contractor

475. Acting as an employee rather than an independent contractor, a salesperson is obligated to:



a special agency.


a fiduciary.

478. Some salespeople are fast learners and become highly productive in a relatively short time.

True

479. Generally, assistants will be considered employees if the broker or salesperson hiring them retains the right to control what

the assistants do and how it is done.

480. When you know you are competing with another Agent for a listing;

Never make a disparaging comment about your competition



All of these

483. All of the following are characteristics of an independent contractor relationship with a broker EXCEPT :

you do not need a license

484. For federal tax purposes the form a broker will give an agent to file their taxes is

1099misc

485. A real estate salesperson? Is responsible primarily to their responsible broker.




independent contractor

488. A broker would have the right to dictate which of Commission rate

the following to an independent contractor? the person would receive



490. For federal tax purposes the form a broker will give an agent to file their taxes is

1099 misc

491. When supervising independent contractors, you can

expect that they comply with laws that affect your business.

492. Peggy, a salesperson for broker Bob listed and sold a property. Before being paid for that executed transaction, Peggy changed responsible brokers. Broker Bob

can pay Peggy her commission directly.

493. What is a requirement of a universal agent? An executed power of attorney agreement

494. What is a Real Estate Independent Contractor Agreement?

An Agreement between the licensee and the broker putting any agreements they may have made in writing.

495. When changing responsible brokers The Commission shall issue a new license for a period of one year and when the agent completes the mandatory hours of continuing education will issue a license for 4 more years.



497. When within 3 days a salesperson notifies the Commission of a change of broker.

The salesperson must give the name of his responsible

broker and the name of the principal broker into whose agency the salesperson is about to enter.


Number of hours the person would have to work

499. Notice in writing shall be given to the Commission by any real estate salesperson with a change of responsible broker within

3 days

500. All licenses issued to a real estate salesperson or broker salesperson

shall designate the responsible broker of such salesperson or broker salesperson.




independent contractor.

503. Broker Arthur was interviewing Sandi Rodriguez about a position with the firm. He may ask which of the following questions?


504. MATCH: Subagent The agent of an agent; associated salesperson or cooperating broker in relation to the principal.

505. Match: Special agent An agent who is authorized to represent the principal in one specific transaction or business activity only.

506. MATCH: Independent contractor Someone who is retained to

perform a certain act but who is subject to the control and direction of another only as to the end result and not to the way in which the act is performed. Unlike an employee, an independent contractor usually pays for his or her own expenses and the employer does not withhold social security payments and income taxes.

507. Implied agreement A contract that is inferred by the actions and conduct of the parties

508. General agent An agent who is authorized to represent the principal in a specified range of matters.

509. MATCH: Express agreement An oral or written contract in which the parties state the contract’s terms and express their intentions in words.

510. MATCH: Employee Someone who works under the direct control of an employer. The employer is

obligated by federal law to withhold income taxes and social security taxes from the compensation of employees. Compare with independent contractor.

511. When a salesperson walks into your office and announces that he or she is leaving the company, you should

inquire about the reason for leaving.





514. The primary purpose of a performance interview is to

discuss a person’s progress.







518. When changing responsible brokers A new license shall thereupon be issued by the Commission to such salesperson for the unexpired term of the original license upon the return to the

Commission of the license previously issued.


The salesperson must give the name of his responsible broker and the name of the principal broker into whose agency the salesperson is about to enter.


3 days



522. One of the major challenges for a manager when evaluating people’s performance is to

be fair and objective with each person.




525. M is a licensed real estate salesperson. M’s written contract with broker G specifies that M is not an employee. In the last year, just less than half of M’s income from real estate transactions came from sales commissions. The remainder was based on an hourly wage paid by G. Using these facts, it is likely that the IRS would classify M as which of the following for federal income tax purposes?

Independent contractor


Independent contractor.

Module Nine

527. Contracting out business functions involving the use of third-party specialist businesses.

MATCH: Outsourcing

528. Is a worker under an employer's control. MATCH: Employee

529. Exercises control over employees, has responsibility for payment of wages and holds the power to dismiss employees

MATCH: Employer

530. The management of the total relationship between an employer and employee

MATCH: Human Resource Management

531. One element in the total work process that can be performed separately from other work elements in the process.

MATCH: Task

532. A workplace where sexual innuendo jokes are tolerated and/or permitted. If only one person is uncomfortable in the situation and everyone else is ok with the situation; this is still a hostile work environment.

MATCH: Hostile Work Environment

533. Are designed to reveal information about a potential employees' honesty.

MATCH: Honesty Test

534. Checks personality traits and qualities. They are used for customer relations and sales positions.

MATCH: Personality Test

535. To check to see if the candidate has necessary skills for the position.

MATCH: Skill Tests

536. Going outside the organization to attract people to apply for a job position.

MATCH: External Recruiting

537. The process of attracting qualified applicants to job positions within an organization.

MATCH: Recruitment

538. Indirect compensation plans are usually at least 25% more of the employee's salary.

MATCH: Fringe Benefits

539. Based on work performed for a specific number of hours. Wages do not change as productivity changes.

MATCH: Straight Salary

540. To ensure that a real estate salesperson is an independent contractor, the federal tax laws require that the salesperson must

Have a written agreement.

541. When conducting a formal employment interview, it is important to

Sell the company to the candidate.

542. The primary purpose of preliminary interviews and application forms is to

Gather basic information to decide whether to pursue applicants.

543. One of the reasons that some education institutions do not permit brokers or managers to solicit their students for recruiting purposes is

students expect to be educated and not recruited.

544. One of the most effective ways for managers to recruit is by concentrating on

Increasing their visibility in the industry.

545. Which of the following is not a primary consideration when salespeople are selecting a brokerage firm?

Whether they will be an employee

546. When salespeople “shop” the competition, interviewing with several firms, before selecting a firm with whom to work, the firms should

Encourage people to be satisfied with their decisions.

547. One of the most pressing questions prospective salespeople ask is

“How do I select the right broker?”

548. Treating people differently because of characteristics that have nothing to do with their ability to perform..

Discrimination

549. Which of the following is NOT part of Organizational demands?

Labor force trends

550. Ensuring Employees have the necessary knowledge, skills, abilities and other talents to achieve work objectives falls under which of the following categories?

Managing Employee Competencies

551. Howard is a division manager at Here Comes the Sun, where you are the HR representative. Howard is extremely frustrated with the new performance appraisal system in which all employees are ranked in comparison to each other, some employees must be rated low, even if their performance is objectively good. What type of performance appraisal system are you using at Here Comes the Sun?

Forced comparison

552. Managing change is an ongoing process whose objectives are all but:

create time schedules for employees

553. Total Quality Management as a part of the group problem-solving focus is concerned with:

employee empowerment

554. The information revolution will change everything; this will include:

technology.



556. Which of the following best describes Providing

Empowerment? employees with the skills and authority to make decisions that would traditionally be made by managers.




559. Investor Carol made an offer on one of salesperson Rebecca’s listings. The Contract to Purchase and Sell Real Estate indicated that Teresa was depositing $5,000 as an earnest money deposit, payable to Bob Wilson, Attorney Trust Account. Which of the following statements is true of this situation?


560. The law that requires accessibility to employment, goods, and services for individuals with disabilities:

ADA

561. A broker may execute a contract on behalf of his principal when he is a(an):

attorney-in-fact

562. All of the following are defined and protected under familial status according to the 1988 amendment of the federal Fair Housing Law of 1968 EXCEPT :

an eighteen year old domiciled with her mother

563. Plain agreements among competitors to divide sales territories or assign customers are almost always

Illegal

564. Our company monitors competitors’ ads, and we sometimes offer to match special discounts or sales incentives for consumers. Is this a problem?

No. Matching competitors’ pricing may be good business.

565. Which of the following fees are addressed under Antitrust laws

All of them

566. When competitors agree to restrict competition, the result is often

higher prices.

567. Government Regulation aimed at improving health Social Regulations

and safety568. Which of the following defines the Sherman Act? the Federal

antitrust law of 1890 that makes monopoly and conspiracies to restrain trade criminal offenses





571. This federal act that prohibits discrimination against persons with disabilities, where "disability" is defined as "a physical or mental impairment that substantially limits a major life activity."

Americans with Disabilities Act

572. When structuring the commission program for your salespeople, considering parity with the competition is important because

The salespeople evaluate your program for fairness in comparison with other brokers.

Module Ten573. The company’s top producer has violated a

company policy. You have had several discussions with the person about this and the salesperson agreed to ways to prevent this from happening again. When you find the problem has reoccurred, your next step is to

consider whether it’s appropriate to terminate the salesperson.


inquire about the reason for leaving


ignore the problem if the salesperson is an independent contractor.

576. The primary purpose of a performance interview discuss a person’s

is to progress.577. One of the major challenges for a manager when

evaluating people’s performance is tobe fair and objective with each person

578. Which of the following incentives is most likely to be favored by a dictatorial manager?

Negative

579. Which of the following is true about using contests and award programs as incentives?

They can be harmful unless everyone has a chance to win or be recognized.




582. The increasing rate of change in the business environment is a major factor in this new emphasis on leadership

True

583. Leaders that focus on task and organizing groups Autocratic584. Able to recover from misfortune; able to withstand

adversityResilient

585. Type of management in which the leader assigns the task and the follower does it with no further instructions.

Delegating

586. The avoidance of providing for one's own comfort and personal advancement at the expense of others.

Selflessness

587. Weighing the facts and possible solutions on which to base a sound decision.

Judgment

588. A quality of seeing what has to be done and taking the necessary action in the absence of clearly defined orders.

Initiative

589. The display of sincere interest exuberance in the performance of duties.

Enthusiasm

590. Being able to perform one's duties in an appropriate manner

Dependability

591. Where can the definition of spirituality be found for a particular person?

Only within that person.

592. Effective leadership is exemplified by values, confidence in employees, and a sense of security in

self-awareness

the face of uncertainty. This aspect of leadership is known as:

593. Leadership is founded on what concept? Trust594. What is the term used to describe a

combo of task and relationship behaviors used to influence people to accomplish goals?

Leadership styles

595. What is the term for interpersonal process of participation?

Followership

596. What is the term that means giving people authority, responsibility and freedom to act on their knowledge and skills?

Empowerment

597. The ability to gain the trust and influence of one's followers

Personal Power

598. Dictating or asserting authority to one's followers Autocratic599. Reaching decisions by way of consensus in the

groupDemocratic

600. Openness to Experience, Conscientiousness, Extraversion, Agreeableness

Good Traits of a Follower

601. Self-Confidence, Ambition, Realism, Good Example, Bearing, Courage, Integrity

Good Traits of a Leader

602. A person who influences the behavior of individuals or groups

Leader

603. The art of influencing people to progress toward accomplishing a specific goal

Leadership



605. When you know you are competing with another Agent for a listing;

Never make a disparaging comment about your competition



607. What would be a good first marketing activity to 'touch' your Circle of Influence?

Mail them a personal note telling them about your new career choice


609. Which of the following would most buyers and sellers consider important in selecting a real estate

Trust

professional?610. Potential clients received through the agent's good

will and treatment of current clientsReferrals

611. Why are holding open houses beneficial to you as an agent?

All of these

612. Which groups should be included in your "sphere of influence?"

All of these

613. A time-tested step-by-step method used in writing ads; this formula gets the job done

AIDA - Attention, Interest, Desire, and Action


The purchase contract,The closing instructions Amendments to the purchase and sale contract,The sale contract

615. __________ is the preferred business. referral business616. ________ advertising is illegal Blind617. Which of these in NOT the best advertising policy

to stimulate the most interest?give away minimal amounts of information initially


blockbusting


sexual orientation.

620. Actions that are illegal by federal and state fair housing laws include:

refusing to show certain residential property to non-English speaking home seekers

621. A person seeking intervention, who believes that they have been subject to discriminatory housing practice, must:

file a written complaint with HUD within 1 year

622. The provisions of the 1968 Federal Fair Housing Act apply:

in all states

623. In compliance with the ADA, all architectural if removal is

barriers in existing facilities must be removed: "readily achievable"

624. Blockbusting is an acceptable practice: under no circumstance

625. Many people think of on-the-job training when we mention one-on-one training.

one-on-one training.

626. The law that requires accessibility to employment, goods, and services for individuals with disabilities:

ADA

627. Who does not have to display an Equal Opportunity Housing sign?

An owner selling his own property

628. All of the following are defined and protected under familial status according to the 1988 amendment of the federal Fair Housing Law of 1968 EXCEPT :

an eighteen year old domiciled with her mother

629. Plain agreements among competitors to divide sales territories or assign customers are almost always

Illegal

630. Our company monitors competitors’ ads, and we sometimes offer to match special discounts or sales incentives for consumers. Is this a problem?

No. Matching competitors’ pricing may be good business.

631. Training is intended to cause people to behave in certain ways

632. Which of the following fees are addressed under Antitrust laws

Present or future prices,Pricing policies,Promotions

633. A basic sales training program is a prime opportunity to foster a demeanor that will advance the professional image the industry desires.

is a prime opportunity to foster a demeanor that will advance the professional image the industry desires.

634. When competitors agree to restrict competition, the result is often

higher prices.

635. The _______________ require that each company establish prices and other terms on its own, without agreeing with a competitor.

antitrust laws

636. A specific area with definite boundaries that is being worked by an agent is also known as a __________farm.

Geographic

637. _______________is an agreement (written, verbal, or Plain agreement

inferred from conduct) among competitors that raises, lowers, or stabilizes prices or competitive terms.

638. Working or prospect in an area of interest is also known as ______?

Farming

639. A referral is also known as_______chain? Endless640. Prospecting from home to home is also known as

________canvassing?Door to Door

641. Price-fixing is an ___________ unreasonable restraint of trade.

per se

642. Centers of influence are called _________. Bird Dogs643. Sales managers also should attend the sales

training program.sales training program.

644. Which of the following defines the Sherman Act? the Federal antitrust law of 1890 that makes monopoly and conspiracies to restrain trade criminal offenses

645. Some companies don’t give much thought to management training because their primary focus is

sales training.

646. The federal antitrust laws are enforced by the Department of Justice.

647. Predatory pricing occurs when: a firm prices products below cost to drive out competitors.

648. What is the last step in the selling process? sale649. What is a benefit of direct-mail prospecting? Inexpensive

method for reaching many prospects

650. Call reluctance: is experienced by all salespeople at some point.

651. The first step in the selling process is: prospecting.652. An offer from Fred has been accepted by seller

Tom. Fred decided to put his work tools into the garage before the transaction closed. What should Fred's agent tell him?

Remove the tools.

653. Agent Carol just received her third low offer on one of her listings this morning. She believes the Seller will not accept any of them. What should

Present all offers as soon as practicable.

Agent carol do?654. Buyer Tom's offer has been accepted by the seller.

Buyer Tom has requested entry to the property so that he can paint it before his family moves in. What should his agent tell Tom?

He cannot have access to the property before it closes and is recorded.

655. A buyer withdraws his offer to purchase a property before it was accepted. His agent should

return the earnest money deposit check back to the buyer.

656. When is a broker relieved of presenting an offer? When the offer is obviously frivolous and the agent is acting on instructions from the seller.

657. The seller's broker can fill out the property condition disclosure

never.

658. What is a client level duty relating to account of earnest money, actions, etc.

Accounting

659. Blockbusting is an acceptable practice: under no circumstances.

660. The duty owned from the agent to his/her client is fiduciary duties.661. The law that requires contracts in real estate to be

in writing isStatute of Frauds

662. It is not a good practice to let a buyer take possession of the property

before closing.

663. Twice each year, the manager announces a meeting for the sales staff to discuss ways the company can improve its marketing and advertising program. This is an example of a which type of a meeting.

Brainstorming.

664. It is most appropriate to hold a sales meeting when there is a clear objective for having one.

665. Good, professional trainers are effective at training because they

help people transfer learning into application.

666. When teaching adults, it is important to remember that

they are likely to have physical changes that should be considered.

667. When deciding how to deliver training, you can send people to programs conducted by

are not normally tailored to your

professional associations, franchises or local educational institutions. One of the major drawbacks to these modes of delivery is they

company’s philosophies and procedures.

668. One of the problems with the modeling approach to sales training is

it teaches a script rather than preparing people to think.

669. Before designing in-house training programs, it is necessary to determine

if the managers have the skills to do training.

670. The primary purpose of training programs is to develop skills people need to do their jobs.

671. The difference between education and training is that training

develops skill and education builds knowledge.


he broker obtains the prior written consent of both parties.

673. Not all brokers agree on the value of sales contests.674. The way to manage independent contractors is to encourage them

and show how they will benefit from your suggestions.

675. Earnest money deposits should be deposited into a trust account by the end of the next business day.

676. A buyer wants to make an offer based on complex financing. The agent should

suggest the buyer consult an attorney to furnish the wording.





679. e Buyer has the legal right to demand the return of his

earnest money deposit back before the offer is accepted.

680. A dual agency is in effect when both the buyer and seller accept dual agency and acknowledge the dual agency agreement in writing.

681. Antitrust Laws prohibit all except dual representation


Open Listing.

683. An agent had an exclusive right to sell listing agreement with a client on a home listed for $100,000. The agent knew that the seller would actually take $92,000 for the house due to the seller being under duress. During an open house, a buyer came to view the property. The potential buyer loved the house but could not afford more than $90,000. The agent encouraged the buyer to submit an offer. The agent also informed the buyer to offer $90k because she knew the seller would accept $92,000. Did the agent violate her agency relationship with the seller?

Yes, regardless of intent, an agent can never reveal the lowest amount a seller will take for a property.


The seller


Statute of Frauds


Accounting


Louise may receive compensation only from her broker.

688. The company’s top producer has violated a company policy. You have had several discussions with the person about this and the salesperson agreed to ways to prevent this from happening again. When you find the problem has reoccurred, your next step is to

consider whether it’s appropriate to terminate the salesperson.

689. The number one job of a salesperson is to? prospect

690. What is the preferred business? referral business691. When supervising independent contractors, you

canexpect that they comply with laws that affect your business.


A copy of the deed



694. Failure to renew your license on time will result in a penalty of double fee. 30 days late, will result

in the license being cancelled.

695. The responsible broker must report any licensee for whom that broker is responsible to the commission if

he/she believes that a licensee has violated laws rules or regulations.

696. he/she believes that a licensee has violated laws rules or regulations.


697. vent the agency relationship changes between the parties to a real estate transaction


698. In dual agency the buyer shall give his/her consent by signing the MREC Dual Agency Confirmation Form which shall be attached to the

offer to purchase699. “Fiduciary Responsibility” are those duties due the

principal (client) in a real estate transaction areLoyalty, Obedience, Disclosure, Confidentiality, Reasonable Skill, Care and Diligence and Full Accounting.

700. Brokers who practice disclosed dual agency should do so with the utmost caution to protect consumers and themselves from inadvertent violation of demanding common law standards of disclosed dual agency.

701. Dual Agency is not practiced by some brokers because

There may be situations where disclosed dual agency presents conflicts of interest that cannot be resolved without breach of duty to one party or another.

702. Special situations, where unusual facts exist or where one or more parties involved are especially vulnerable, could require additional disclosures not contemplated. In such cases, brokers


703. If a Broker as escrow agent, accepts a check and later finds that such check has not been honored by the bank on which it was drawn, the broker shall






706. When a licensee is advertising their own property for sale, purchase or exchange which is not listed with a broker, the licensee must

The licensee must indicate he or she is licensed.

707. A salesperson wants to advertise on an internet web page.

All advertising must be under the direct supervision and in the name of the responsible broker or in the name of the real estate firm.

708. The use of any copyrighted term or insignia on stationary, office signs, or in advertisement by any licensee not authorized to do so, will be considered

as “substantial misrepresentation” and cause for refusal, suspension, or revocation of the license.




711. The MLS was created in the 60s712. A broker would have the right to dictate which of

the following to an independent contractor?Commissio

n rate the person would receive

713. An important ingredient in professional development today is technology training.

True

714. The goal of planning is to ensure that the right things happen in the organization.

This statement is true.


nquire about the reason for leaving.

716. If a buyer asks for early occupancy, which of the following statements describe(s) the best way to

The best protection is to

protect the seller? avoid the early occupancy, if possible.

Module Eleven717. Which of the following costs of homeownership

may be deducted on Federal Income Taxes?Mortgage loan origination fees, mortgage loan interest and local property taxes

718. Section 1031 of the IRS code allows for? The seller to defer their capital gains tax


720. Is interest on a home equity line of credit deductible as a second mortgage?

Yes

721. I have a mortgage for land that I intend to build a home on. Can I deduct the interest for the mortgage?

No

Module Twelve722. A borrower with a very high credit rating likely

will:Get the best credit terms and the fastest loan processing.

723. What is (are) the benefit(s) to a retail chain store in a sale-leaseback transaction?

It can deduct the full lease payment for federal income tax purposes.

724. A partially amortized mortgage ends with a(n): Balloon payment.725. William stopped making payments on his

mortgage six months ago when his business began experiencing financial problems. What clause in the mortgage allows the bank to call the entire amount due to prepare for foreclosure?

Acceleration

726. Magnolia Bank makes a loan to John Smith. John signs a note for the bank, thanks the loan officer and leaves. The bank has made a/an?

Unsecured loan.

727. The documented evidence that a person or organization has ownership of real property.

Title

728. The process in which a mortgage company works with a delinquent homeowner to sell the house by a real estate agent prior to the foreclosure sale.

Short Sale

729. A homeowner promises to pay down past-due amounts on a mortgage over a specified time period while still making regular monthly payments.

Repayment Plan

730. The transfer of title from a homeowner to the mortgage company to satisfy the mortgage debt and avoid foreclosure, also called a Deed-in-Lieu of Foreclosure or a voluntary conveyance.

Refinance

731. The transfer of title from a homeowner to the mortgage company to satisfy the mortgage debt and avoid foreclosure.

Deed-in-Lieu of Foreclosure

732. Typically is required if the homeowner's down payment is less than 20% of the purchase price.

Mortgage Insurance

733. Which of the following is the lender who originated your mortgage may or may not service your loan.

Mortgage Company

734. A legal document that pledges property to the mortgage company as security for the repayment of the loan. The term is also used to refer to the loan itself.

Mortgage

735. Loan to value is a calculation frequently used by mortgage companies when qualifying borrowers for a mortgage. It is calculated by dividing the mortgage balance by the home’s current market value.

Modification

736. It is calculated by dividing the mortgage balance by the home’s current market value.

Loan-to-Value

737. The owner of the loan on a property. Investor738. A property not considered to be a primary

residence that is purchased by an investor in order to generate income, gain profit from reselling or to gain tax benefits.

Investment Property

739. A mortgage where the homeowner pays only the interest on the loan for a specified amount of time.

Interest-Only Mortgage

740. A way of borrowing money against the equity or assets that the homeowner has in the home to pay for things such as home repairs, college education, or other personal uses.

Home Equity Line of Credit

741. Insurance coverage that pays for the loss or damage on a person's home or property.

Hazard Insurance

742. Steps by which the mortgage company works with the homeowner to find a permanent solution to resolve an existing or impending loan delinquency.

Foreclosure Prevention

743. The legal process by which a property may be sold and the proceeds of the sale applied to the

Foreclosure

mortgage debt744. An agreement to temporarily suspend or reduce

monthly mortgage payments for a specific period of time. The mortgage company will then postpone legal action when a homeowner is delinquent

Forbearance

745. A mortgage loan in which the interest rate remains the same for the life of the loan.

Fixed-Rate Mortgage

746. Ownership interest in a property. This is the difference between the home's market value and the outstanding balance of the mortgage loan (as well as any other liens on the property).

Equity

747. Failure to make a payment when it is due. Delinquency748. Payments that are authorized to be postponed as

part of a workout process to avoid foreclosure.Deferred Payments

749. A legal document under which ownership of a property is conveyed.

Deed

750. A calculation frequently used by mortgage companies when qualifying borrowers for a mortgage or a workout solution to resolve delinquency. It is calculated by comparing how much you pay on your mortgage(s) to your gross monthly income.

Debt-to-Income (DTI)

751. An Adjustable-Rate Mortgage loan that can be converted into a fixed-rate mortgage during a certain time period.

Convertible ARM

752. A mortgage loan in which one party pays an initial lump sum in order to reduce the homeowner’s monthly payments.

Buy-down Mortgage

753. Which of the following best describes a mortgage loan with initially low interest payments, but that requires one large payment due upon maturity (for example, at the end of five or seven years).

Balloon Mortgage

754. Which best describes a mortgage loan with an interest rate that can change at any time, usually in response to the market or Treasury Bill rates. These types of loans usually start off with a lower interest rate comparable to a fixed-rate mortgage.

Adjustable-Rate Mortgage

755. Paying off a debt by making regular installment payments over a set period of time, at the end of which the loan balance is zero.

Amortize

756. How long does a foreclosure stay on a person's credit report?

7 to 10 years

757. I have an adjustable-rate mortgage (ARM) that's about to reset. Can I refinance through Fannie Mae?

No. Fannie Mae does not offer loans directly to

consumers.758. We work with mortgage companies (i.e., mortgage

lenders and servicers) and housing counselors to help homeowners who may be experiencing hardships.

Fannie Mae

759. Which of the following best describes the sale of one mortgage note to more than one investor?

The sale of one mortgage note to more than one investor.

760. A loan to a straw or non-existent buyer, on a non-existent property would be which of the following?

An air loan

761. All of the following are red flags for mortgage fraud, except;

A first time homebuyer secured an FHA loan.

762. A loan to an individual, company, or government. Debt763. An asset that represents a promise to distribute

cash flows at some future time.Financial asset

764. A physical observable, or touchable item. Real asset765. The concept that we should improve the quality of

life of all stakeholders for all generations, current and future.

Sustainability

766. The worth of the future cash flows, stated in current dollars, that an asset is expected to generate during its lifetime.

Value

767. The closing date is determined by: the mutual agreement of the buyer and the seller on the contract to buy and sell real estate

768. The discipline that deals with decisions concerning how money is raised and used by businesses, governments, and individuals.

Finance

769. A loan program that allows older homeowners to use part of the equity in their property as tax free income without having to sell is known as?

Reverse mortgage

770. In the typical mortgage transaction, there is contract between the parties. The debtor gives two things to the creditor. A promise to repay the debt and a lien on property to secure the debt. The creditor gives money or credit to the debtor. Because there is a contract, all of the traditional contracts issues are relevant.

contract law in mortgages

771. A buyer wants to make an offer based on complex financing. The agent should

suggest the buyer consult an attorney to furnish the wording.

772. Theory whereby the borrower pledges the property without giving up ownership or possession of the property.

hypothecation

773. Additional time allowed to perform an act or make a payment before default occurs

grace period

774. Denial of a mortgage would be allowed if the denial was based on?

Lack of income

775. A debt that is completely paid off at the end of a specific number of even payments, each containing interest and a portion toward reducing the principal

fully amortized loan

776. After an accepted offer, the buyer was unable to obtain a mortgage. Both parties agreed to cancel the contract. Who does the earnest money deposit belong to?


777. Of the following, which allows for payments of interest only with a balloon payment of principal at maturity?

Straight

778. The interest or value that an owner has in property over and above any mortgage indebtedness and other liens.

equity

779. A personal judgment levied against the mortgagor when a foreclosure sale does not produce sufficient funds to pay the mortgage debt in full.

deficiency judgment

780. With a conventional loan, all of the following are correct except?

It is never insured by a private agency.

781. The nonperformance of a duty, whether arising under a contract or otherwise; failure to meet an obligation when due

default

782. Which of the following is not true of the FHA (Federal Housing Administration)?

The FHA provides the money for the mortgage

783. In foreclosure, a borrower who retains possession but is still responsible for all junior liens to the property as well as liable to the IRS for tax on the debt that is forgiven; in this situation, a debtor in possession will seek a workout with a lender whenever possible

debtor in possession

784. What is not true of a VA loan? The loan is insured.

785. Hypothecation means? Retaining possession of the property while making payments

786. Regarding FHA loans, which of the following is false?

FHA mortgages are not assumable

787. The evidence of a personal debt that is secured by a mortgage or other lien on real estate

bond

788. A loan that is paid in 26 half (biweekly) payments each year, resulting in an earlier payoff and lower interest costs over the life of the loan.

biweekly mortgage

789. Which of the following may not be a requirement of an FHA loan?

Make a 15% down payment

790. Complete disclosure of the total cost of credit on a loan is required by?

Regulation Z

791. The final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.

balloon payment

792. Funds for a VA loan are provided by which of the following?

Approved lenders

793. Rate of interest charged on a loan, calculated to take into account up-front loan fees and points. Usually higher than the contract interest rate.

annual percentage rate

794. A loan in which the principal as well as the interest is payable in monthly or other periodic installments over the term of the loan.

amortized loan

795. Usury laws prohibit which of the following? Charging interest rates higher than allowed by law


No longer responsible for anything regarding the property or the loan

797. the clause in a mortgage stating that the balance of the secured debt becomes immediately due and payable at the mortgagee's option if the property is sold

alienation clause

798. A mortgage loan in which the interest rate may increase or decrease at specific intervals, following

adjustable-rate mortgage

an economic indicator.799. Truth in lending is a disclosure of the true cost of a

loan and contains?Trigger terms


According to Truth in Lending, your bank must disclose which of the following?

801. The clause in a note or mortgage that can be enforced to make the entire debt due immediately if the mortgagor defaults

acceleration clause

802. As a cost of obtaining a real estate loan, one point equals 1 percent of the

Loan amount.

803. The annual rate that is charged for borrowing, expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan

NPA

804. A loan taken out on a valuable item, usually a property with the property being used as security

Mortgage

805. GNMA are the initials for: ______________________ Government National Mortgage Association

806. An interest rate that moves up and down based on the changes of an underlying interest rate index

Variable interest rate

807. FHLMC are the initials for: _____________________ Federal Home Loan Mortgage Corporation

808. An interest rate that is set and does not change over a specific period

Fixed interest rate

809. FNMA are the initials for: ______________________ Federal National Mortgage Association

810. One who owes money; a borrower Debtor811. Usury Law is defines as the maximum

amount of interest which can be charged on a security instrument

812. Any item of economic value owned by an individual or corporation, especially that which could be converted to cash

Asset

813. The difference between the value of the assets/interest and the cost of something owned

Equity

814. A professional opinion of the market value of a property, such as a home, business or other asset

Appraisal

815. The final transaction between a buyer and seller of real estate property.

The closing

816. An entity (person or institution) that extends credit by giving another entity permission to borrow money if it is paid back at a later date

Creditor

817. The part of the purchase price paid in cash up front, reducing the amount of the loan or mortgage.

Equity

818. A situation in which a homeowner is unable to make full principal and interest payments on his/her mortgage, which allows the lender to seize the property, evict the homeowner and sell the home.

Foreclosure

819. The charge for the privilege of borrowing money, usually expressed as annual percentage rate.

Interest

820. Denial of a mortgage would be allowed if the denial was based on?

Lack of income

821. When a property is not worth the amount of mortgage owed on it, the mortgage on that property is referred to as being a/an?

Underwater mortgage

822. A loan program that allows older homeowners to use part of the equity in their property as tax free income without having to sell is known as?

Reverse mortgage

823. A down payment for an FHA loan can go as low as? 20%824. When a buyer has a poor credit history the bank

will charge a higher interest rate due to the risk of the loan not being paid back. This is an example of a?

Subprime loan


APR

826. Truth in lending is a disclosure of the true cost of a loan and contains?

Trigger terms


No longer responsible for anything regarding the property or the loan.

828. Usury laws prohibit which of the following? Charging interest rates higher than allowed by law

829. Charging interest rates higher than allowed by law Approved lenders830. Complete disclosure of the total cost of credit on a Regulation Z

loan is required by?831. Which of the following may not be a requirement

of an FHA loan?Make a 15% down payment

832. Regarding FHA loans, which of the following is false?

FHA mortgages are not assumable.

833. What is not true of a VA loan? The loan is insured.

834. Which of the following is not true of the FHA (Federal Housing Administration)?

The FHA provides the money for the mortgage

835. The secondary money market has the following participants except?

FDIC

836. Of the following, which allows for payments of interest only with a balloon payment of principal at maturity?

Straight

837. All of the following about a promissory notes are true except?

It is evidence of title to the property

838. Which of the following statements regarding real estate financing is false?

A promissory note is security for the mortgage

839. If a mortgage lender discriminates against a loan applicant on the basis of marital status, it violates what law?

ECOA

840. A lender’s refusal to lend money to potential homeowners attempting to purchase properties located in predominantly African American neighborhoods is known as:

Redlining.

841. As a cost of obtaining a real estate loan, one point equals 1 percent of the

Loan amount.

Module Thirteen842. Failure to renew your license on time will result in

a penalty of double fee. 30 days late, will resultin the license being cancelled.

843. The extent of cooperation of reciprocity with other states.

varies.

844. Every applicant for a resident license as a real estate salesperson shall be

8 years of age or older and be a bona fide resident of the state of Mississippi prior to filing his application.

845. The responsible broker must report any licensee he/she believes

for whom that broker is responsible to the commission if

that a licensee has violated laws rules or regulations.

846. A person who offers a timeshare plan located outside of Mississippi in a national publication or by electronic media, which is not directed to or targeted to any individual located in Mississippi and contains appropriate disclaimers

is exempt from the registration requirements.

847. Any seller of a timeshare plan with the state of Mississippi must be a licensed Real Estate Broker or Real Estate Salesperson except

the developer and his regular employees.

848. The expiration, suspension or revocation of a responsible broker’s license shall automatically suspend the license of every real estate licensee currently under the supervision of that broker. In such cases


849. Every licensee shall notify the Real Estate Commission of any adverse court decisions in which the licensee appeared as a defendant

within 10 days

850. The Commission mandated disclosure form may be duplicated in content and size but not altered.

851. In the event one or more parties are not available to sign one or more disclosures forms, the disclosure will be accomplished orally. The applicable form will be so noted by the broker and said forms will be forwarded for signatures as soon as possible.

written electronic transmission will fulfill this requirement.

852. In the event the agency relationship changes between the parties to a real estate transaction


853. In dual agency the buyer shall give his/her consent by signing the MREC Dual Agency Confirmation Form which shall be attached to the offer to purchase

854. “Fiduciary Responsibility” are those duties due the Loyalty,

principal (client) in a real estate transaction are Obedience, Disclosure, Confidentiality, Reasonable Skill, Care and Diligence and Full Accounting.

855. Brokers who practice disclosed dual agency should do so with the utmost caution to protect consumers and themselves from inadvertent violation of demanding common law standards of disclosed dual agency.

856. Dual Agency is not practiced by some brokers because

There may be situations where disclosed dual agency presents conflicts of interest that cannot be resolved without breach of duty to one party or another.

857. “Disclosed Dual Agent” is when an agent representing both parties to a real estate transaction with the informed consent of both parties, with written understanding of specific duties and representation to be afforded each party.

858. Special situations, where unusual facts exist or should seek legal

where one or more parties involved are especially vulnerable, could require additional disclosures not contemplated. In such cases, brokers

advice prior to entering into an agency relationship.

859. If a broker, as escrow agent, accepts a check and later finds that such check has not been honored by the bank on which it was drawn, the broker shall




861. When the broker is agent for the seller and for any reason the seller fails or is unable to consummate the transaction, the broker has no right to any portion of the money deposited by the purchaser, even if the commission has been earned. The money must be returned to the purchaser and the broker

should look to the seller for compensation.

862. When a broker is agent for the seller and for any reason the seller fails or is unable to consummate the transaction, the broker has no right to any portion of the money deposited by the purchaser

even if the commission was earned.

863. Earnest money accepted by the broker or any licensee for which the broker is responsible and upon acceptance of a mutually agreeable contract is required to deposit the money

into a trust account prior to the close of business of the next banking day.





866. When a licensee is advertising their own property for sale, purchase or exchange which is not listed with a broker, the licensee must

The licensee must indicate he or she is licensed.

867. A salesperson wants to advertise on an internet web page.

All advertising must be under the direct supervision and

in the name of the responsible broker or in the name of the real estate firm.

868. The use of any copyrighted term or insignia on stationary, office signs, or in advertisement by any licensee not authorized to do so, will be considered

as “substantial misrepresentation” and cause for refusal, suspension, or revocation of the license.


three years.



871. Broker Bob received an offer this morning for a property he has listed. Bob promptly called his client and then faxed the offer to his client. Later that day Bob received a second offer that was lower and had bad credit terms for financing. What should Broker Bob do?

Present the second offer because the seller has not accepted the first offer and any other written offer received by the broker in a sale shall be presented to the owner.

872. All exclusive buyer representation agreements shall be in writing and properly identify the terms and conditions under which the buyer will rely on the broker for the purchase of real estate including the sales price, the considerations to be paid, the nature of all parties to the agreement and a definite date of expiration.

The buyer may terminate the agreement upon fifteen (15) calendar days written notice to the buyer’s exclusive agent.

873. All exclusive listing agreements shall be in writing, properly identify the property to be sold and contain all of the terms and conditions under which the transaction is to be consummated including the sales price, the considerations to be paid, the signatures of all parties to the agreement and

a definite date of expiration.

874. A real estate licensee shall deliver a true and correct copy of any instrument to any party or parties executing the same

Immediately (at the time of signing).

875. When an offer is made on a property owned by a party with whom the broker has entered into a listing agreement, such broker shall document and date an acceptance or rejection of the offer and

upon written request, shall provide a copy of such document to the person making the offer.

876. A real estate broker or salesperson in the ordinary course of his business may give an opinion as to the price of real estate for the purpose of a prospective listing or sale, however this opinion as to the listing price or sale price

must not refer to this as an appraisal.

877. Any licensee who fails in a timely manner to respond to official Mississippi Real Estate Commission written communication or who fails or neglects to abide by Mississippi Real Estate Commission Rules and Regulations shall be deemed

prima facie, to be guilty of improper dealing.

878. Peggy, a salesperson for broker Bob listed and sold a property. Before being paid for that executed transaction, Peggy changed responsible brokers. Broker Bob

can pay Peggy her commission directly.



No licensee shall pay any part of a fee, commission or other compensation received by such licensee in buying, selling, exchanging, leasing, auctioning or renting any real estate

881. A responsible broker must maintain an office and display the license therein. If the broker has more than one office

A responsible broker must maintain an office and display the

license therein. If the broker has more than one office


the name of the Mississippi broker must be listed.

883. The non resident broker can not place any sign on real property located in Mississippi without the written consent of the cooperating Mississippi broker. When both brokers place signs on the property.

They should be placed side by side in a prominent place and in close proximity

884. How many copies of a cooperative agreement must a Mississippi broker file with the Mississippi Real Estate Commission?

two

885. When there is a cooperative agreement with a non resident broker, the listing or property management agreement for the Mississippi property

must remain in the name of the Mississippi broker.

886. A separate cooperating agreement must be filed for each property, prospective user or transaction with said writing

reflecting the compensation to be paid to the Mississippi licensed broker.

887. A licensed Mississippi broker may cooperate with a broker licensed in another state who does not hold a Mississippi license

through the use of a cooperative agreement.

888. When an agent transfers to a new broker and within 3 days gives written notice to the Commission the name of the principal broker into whose agency he is about to enter

mails his license to the Commission and a new license will be issued for the unexpired term of the original license.

889. A change of responsible broker requires the salesperson

to within 3 days give written notice to the Commission.

890. Applicants for a real estate license may take the exam but has ten days to find a responsible

broker.891. An affiliated broker can not act independently of

his employing brokerwithout the full consent and knowledge of his employing broker

892. It is not the duty of the responsible broker to make sure each agent has completed their post licensing education and kept their license current.

893. A salesperson has a listing with his responsible broker, Broker A. The salesperson decided to transfer to a new broker before the listing expires. When the agent moves to the new broker, who owns the listing?

Broker A

894. A nonmaterial fact which need not be disclosed is A felony committed on the property.

895. Real Estate Transfer Disclosures are needed for residential stock cooperatives of one to four units when a real estate professional is involved.

896. Any person who willfully and negligently does not deliver the needed disclosures shall be liable

in the amount of actual damages suffered by a transferee

897. Delivery to a spouse of a transferee Shall be deemed delivery to the transferee unless provided otherwise in the contracts.

898. An agent without personal knowledge will not be held responsible for an error when the error was by a

Any and or all of these.

899. if the error, inaccuracy or omission was not within their personal knowledge.

900. If any disclosure, or any material amendment of any disclosure, required to be made is delivered after the execution of an offer to purchase

the transferee shall have three (3) days after delivery in person or five (5) days after delivery by deposit in mail to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferor’s agent.

901. Real Estate Transfer Disclosures are needed for residential stock cooperatives of one to four units when a real estate professional is involved.

902. An agent without personal knowledge will not be held responsible for an error when the error was by a

Any and or all of these.

903. Neither the transferor nor any listing or selling agent shall be liable for an error, inaccuracy or omission of information delivered

If the error, inaccuracy or omission was not within their personal knowledge.

904. Delivery of the Real Estate Transfer Disclosure is mandatory in all of the following cases except

a transfer to a government entity.

905. The transferor shall indicate delivery of the Property Disclosure Statement on

either or both.

906. In the case of transfer by a real property sales contract, or by a lease together with an option to purchase, or a ground lease coupled with improvements, delivery of the Transfer Disclosure Statement is delivered

as soon as practicable before the execution of the contract.

907. The transferor of a duplex shall deliver to the prospective transferee the written property disclosure statement

as soon as practicable before the transfer of title.

908. Transfer Disclosures are mandatory for all of the following except

A transfer from one co owner to one or more other co owners.

909. Participation in IREBEA is accomplished by broker written notice to an authorized financial institute.

910. The interest in a IREBEA account for nominal or short term deposits shall be made quarterly to

the Mississippi Housing Opportunity Fund.

911. The determination of whether a client’s funds are nominal in amount or to be held for a short period of time

est in the sound judgment of each broker, and no charge of ethical impropriety or other breach of professional conduct shall attend a broker’s exercise of judgment in that regard.

912. IREBEA (Interest on Real Estate Broker’s Escrow Accounts) is

voluntary

913. A broker wants to pay his neighbor a referral fee for sending the broker the neighbor’s sister who purchased a home through that broker.

The broker can not pay his neighbor a fee unless the neighbor is a licensed real estate agent and then the broker would need to pay his broker.

914. No fee, commission or other valuable consideration may be paid to a person for real estate brokerage activities unless the person provides evidence of

a license or a cooperating agreement.

915. Monies from the “real estate license fund” are used for

to the “real estate license fund”.

916. Licensees who do not show proof of E and O Insurance have 30 days to correct the deficiency. If the deficiency is not corrected within the 30 days

the licensees licenses will be placed on inactive

status.917. the licensees licenses will be placed on inactive

status.fund Mississippi Real Estate Commission operations.

918. Any person taking appeal shall post a satisfactory bond in the amount of _________dollars for the payment of any costs which may be adjudged against him.

$500

919. Any person charged with a violation shall be given____________days notice of the hearing upon the charges filed, together with a copy of the complaint.

Fifteen days

920. Any applicant or licensee or person aggrieved shall have the right of appeal from any adverse or order or decision the Commission to the circuit court of the county of the residence of the applicant, licensee or person or of the First Judicial District of Hinds County within ___________days from the service of notice of the action of the Commission.

thirty

921. Real Estate Commissioners are from each congressional district and one at large.

922. All license fee funds must be submitted to the State Treasury with detailed explanation

on a weekly basis.

923. Commissioners are vested with power of court to issue and enforce subpoenas, levy fines and

levy jail terms.

924. All (5) five commissioners appointed by the Governor with advise and consent of the Senate

Must be a resident for 6 years and a managing broker for 5 years.

925. Licensees may obtain errors and omissions coverage independently if the coverage contained in the policy follows the minimum requirement of

a per claim limit is not less than $100,000.

926. Brokers may give legal advice Never.927. When changing responsible brokers The Commission

shall issue a new license for a period of one year and when the agent completes the mandatory hours

of continuing education will issue a license for 4 more years.


The salesperson must give the name of his responsible broker and the name of the principal broker into whose agency the salesperson is about to enter.


3 days

930. All licenses issued to a real estate salesperson or broker salesperson

shall designate the responsible broker of such salesperson or broker salesperson.



932. When both the non resident broker and the Mississippi broker have their company signs on a property listed together, the signs

should have equal prominence and be placed side by side.

933. When a broker has an agreement with a non resident broker, involving a property located in Mississippi all advertising must have the name and telephone number of the Mississippi broker.

and the Mississippi broker shall be given equal prominence.

934. Whenever a Mississippi broker enters into a cooperating agreement with a non resident broker, the Mississippi broker

must file two copies of the cooperating

agreement within 10 days with the Mississippi Real Estate Commission.

935. Licensee following notification of action resulting from a Commissioner hearing

has 30 days to appeal any ruling and post a required $500 bond for any costs which may be adjudged against him.

936. Licensee following notification of action resulting from a Commissioner hearing

has 30 days to appeal any ruling and post a required $500 bond for any costs which may be adjudged against him.

937. The following may be exempt from having a license

All of these


a license.

939. A non resident may apply for a nonresident’s license in Mississippi

All of these

940. A broker applicant who has not held a salesperson license for a period of 12 months immediately prior to submitting an application, must

have successfully completed 150 classroom hours in real estate courses, which courses are acceptable for credit toward a degree at a college or university as approved by the Southern Association of Colleges and Schools.

941. Who are exempt from having a real estate license? A Public Official holding an

auction.942. Who does not have to display an Equal

Opportunity Housing sign?An owner selling his own property

943. A dual agency is in effect when both the buyer and seller accept dual agency and acknowledge the dual agency agreement in writing.


The seller


Not represented in a transaction.

946. As a disclosed dual agent, the licensee shall not represent the interests of one party to the exclusion or detriment of the interests of the other party.

True

947. A seller can enter into a “listing agreement” with a real estate firm authorizing the firm and its agent(s) to represent the seller in finding a buyer for his property.

True

948.949.950.951.952.953.954.955.956.957.958.959.960.961.962.963.964.965.966.967.968.969.

970.971.972.973.

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