A broker agrees to represent the seller in the
sale of a property. The listing contract states
that the broker will receive a fee of $15,000
from the seller at closing, regardless of the sales
price. Is this a valid form of compensation?
Detailed Answer
a. Compensation is negotiated between broker
and seller and may be stated as a percentage
of price, hourly rate, by the transaction, or by
a menu of services.
2
Which of the following are protected classes
under Fair Housing laws?
Detailed Answer
d. The classification of age, marital status, and
source of income are protected classes under
the Equal Credit Opportunity Act.
3
Real estate agents are licensed by
Detailed Answer
b. Each state sets its own requirements for real
estate licensing.
4
Real estate salespersons are most likely to
work as
Detailed Answer
a. Few licensees are hired as employees; in most
cases, they work as independent contractors.
5
The main obligation the principal owes a real
estate agent is
Detailed Answer
b. The principal’s primary obligation in an
agency agreement is usually payment of the
agreed-upon commission.
6
Both buyer and seller must consent to the
agent’s role in the transaction so that they
know
Detailed Answer
d. Confidentiality is one of the fiduciary duties
owed by agents to the client. It is the one
duty that remains even after the agency relationship is terminated.
7
Ken Laughton’s house is “for sale by owner.â€
Robert Hall falls in love with it during an open
house, tells Ken he will pay the full asking price,
and promises to send Ken an earnest money
check for $5,000. Ken accepts the offer. The
contract between them is
Detailed Answer
d. According to the statute of frauds, all contracts for the sale of real estate must be in
writing to be enforceable.
8
The Smiths offer to buy the Browns’s house for
$125,000, with the closing scheduled for June
15. The Browns sign a written acceptance, with
the provision that the closing is to be on June
16. At this point, which of the following can
occur?
Detailed Answer
a. When the Browns made a counteroffer, it
constituted a rejection of the original offer.
The Smiths are now free and may accept or
reject the counteroffer.
9
Consideration to bind a contract may be in the
form of
Detailed Answer
c. If the parties agree, consideration need not
be valuable in order to be considered “goodâ€
enough.
10
A buyer hired an attorney and sued a seller for
specific performance because the seller refused
to close according to the agreement. This
means that the buyer wants
Detailed Answer
b. A suit for specific performance is an action
brought in court to compel a party to specifically perform all the promises and requirements he or she agreed to in a contract.