Spring 2012 Exam 2. Jacobus Ch 5-8, and Neb. Agency

Transcription

1 Finance 382 Real Estate Principles and Practice Instructor: Jan E. Beran Student s Name Version A FILL IN YOUR NAME (Lastname, Firstname) WHERE INDICATED, BE SURE TO FILL IN THE CORRESPONDING BUBBLES. Do not put your SSN on your bubble sheet. Mark the version of your test (A) on your bubble sheet in column K, (Fill in Bubbles 1=A, 2=B, 3=C and 4=D). Sheets without a name or without a version code will not be graded, and a ZERO will be recorded as your score. When completed, put your bubble sheet in the corresponding pile. I will not re-sort or hand grade the exam sheets. There are four section tests plus a comprehensive final. In addition you must take 2 of the first 3 tests (I recommend taking all three). If you take all three tests, the two tests with the highest scores will be counted toward your grade. You have 50 minutes to complete the exam. Spring 2012 Exam 2. Jacobus Ch 5-8, and Neb. Agency Multiple Choice Identify the choice that best completes the statement or answers the question. 1. A deed, which is not recorded, is a. void. b. voidable. c. unenforceable. d. valid. 2. A contract created under duress is a. invalid. b. voidable. c. unenforceable. d. void. 3. The phrase time is of the essence means? a. The contract must be performed quickly b. Mutual obligations must be performed mutually and punctually c. The contract must be fully perfomed within strict time deadlines d. Part performance of the agreement is unacceptable 4. An Offer to Purchase which has been executed by both buyer and seller: a. Defines the rights and obligations of the parties b. Is only binding on the Real Estate Agents involved in the transaction c. Is only a statement of intent to negotiate a sale of real estate d. Transfers title to the real estate 5. Traditionally, in residential sales, prior to the emphasis on buyer agency, the broker considers the buyer to be a. a client. b. a customer. c. a principal. d. a fiduciary. 6. When a listing is taken, the seller would be referred to as a. the customer. b. a fiduciary. c. the client. d. the agent. 7. As agent of the seller, a real estate broker is usually authorized to do all of the following EXCEPT: a. advertise the listed property b. place a For Sale sign on the listed property c. cooperate with other brokers to effect a sale d. bind the principal under a sales contract 8. In Nebraska, disclosure to the customer of which of the following would not require the informed consent of the client? a. That the client is willing to pay more than the purchase price offered b. The motivating factors for the sale c. The client s financial inability to perform if the offer is accepted d. That the client will agree to financing terms other than those offered 1

2 Version: A 9. In Nebraska, unless there is a contract specifying to the contrary, real estate agents are assumed to be agents for: a. Transactional agents are neither seller s agent, nor buyer s agent b. The seller c. The buyer d. Dual agent representing both buyer and seller 10. In Nebraska, a buyer contacts a broker who has a listing to sell a parcel of real estate. The broker does not offer any agreement to the buyer. The relationship between the buyer and the broker is most likely a a. COALD b. customer and broker c. client and broker d. fiduciary 11. Title to real property passes to the grantee at the time the deed is a. written. b. delivered and accepted. c. executed. d. notarized. 12. A deed, which is properly completed and delivered but lacks the grantee s signature is a. invalid until the grantee signs. b. invalid until recorded. c. valid if the grantee is identified. d. void. 13. The covenant of seizen warrants that one is a. the lawful owner. b. a lessee. c. a trespasser. d. acquiring ownership by adverse possession. 14. Compared to a warranty deed, the covenants and warranties found in a grant deed are a. fewer in number. b. broader in coverage. c. more restrictive. d. greater in number. 15. Covenants or warranties are found in all of the following EXCEPT a. special warrant deeds. b. quitclaim deeds. c. general warranty deeds. d. grant deeds. 16. The parties to a General Warranty Deed are: a. Grantee giving the deed and Grantor receiving the deed b. Grantor giving the deed and Grantee receiving the deed c. Seller and Buyer d. Vendor and Vendee 17. The recording of an instrument in the proper county provides the public with a. constructive notice. b. final notice. c. bona fide notice. d. after-acquired notice. 18. Which of the following is true of an acknowledgement? a. It may be witnessed by a notary public. b. Many states require that deeds be acknowledged before title passes. c. The notary must attest that the deed is valid. d. It is required by the Statute of Frauds. 19. An abstract of title recites in chronological order: a. who the fee owner is and the condition of the title b. a history of all the lands in the county c. all of the recorded grants and conveyances and other interests affecting title of land d. applications for registration of titles 20. Most title insurance does not insure against a. public records. b. unrecorded liens. c. easements of record. d. encumbrances of record. 2 of 5

3 Version: A 21. Standard owner s title insurance coverage insures against all of the following EXCEPT a. unrecorded encroachments. b. defective deed form. c. claims to title. d. forgery of documents. 22. Which of the following are the same? a. vendor = buyer b. grantor = seller c. grantee = seller d. vendee = seller 23. A contract entered into by a minor is a. illegal. b. voidable. c. valid. d. unenforceable. 24. Which of the following is an essential element of a contract? a. A counter offer b. Acceptance c. Performance d. A fair price 25. The party making an offer is called the a. offeree. b. grantee. c. offeror. d. agent. 26. The requirement that transfers of real property be in writing is known as a. contract law. b. the bill of rights. c. the statute of frauds. d. due process. 28. In a brokered real estate transaction, the amount of earnest money is determined by the a. buyer. b. seller. c. by agreement between the buyer and seller. d. by agreement between the buyer and broker. 29. The seller decided that he didn t want to sell his house a few days before closing. He can a. simply not show up to sign the deed. b. return the earnest money deposit and declare the contract void. c. be sued by the buyer for specific performance and damages. d. can refuse to pay the broker a commission. 30. Money that accompanies an offer to purchase as evidence of good faith: a. Earnest deposit b. Liquidated damages c. Monetary consideration d. Nominal consideration 31. A private seller received an offer from a private buyer for purchase of real estate, the offer failed to include any earnest deposit. The offer is a. Valid b. Void c. Unenforceable d. Voidable 32. Who, of the following would be required to have a real estate license? a. A secretary who answers the phone in a real estate office b. An attorney who specializes in real estate law c. An escrow officer d. A person who solicits buyers and sellers for a broker 27. All of the following are essential to a real estate contract EXCEPT: a. duress b. consideration c. legality of object d. competant parties 3 of 5

4 Version: A 33. A residential real estate salesperson can usually expect from his or her principal broker all of the following EXCEPT a. supervision, training and advice. b. signs, advertising, office space and supplies. c. payment of dues to the local Realtor Association. d. access to multiple listing services. 34. Pat has a license and contractual rights to sell real estate in a typical state. This licensee may be presumed to be all of the following EXCEPT a. an agent or subagent. b. a licensee. c. a broker or salesperson. d. a Realtor. 35. A real estate listing is a contract between a. the owner and the listing broker. b. the owner, the broker, and the listing salesperson. c. the owner and the listing salesperson. d. the broker and the listing salesperson. 36. In Nebraska, all of the following are required to be completed prior to licensing EXCEPT: a. taking 60 classrom hours of approved courses b. sitting for an examination c. a background check d. ownership of real estate 37. Which of the following people must be licensed to transact the business of real estate? a. court appointed guardian b. real estate office secretary c. the executor of an estate d. an owner of income producing property 38. In whose name does a salesperson take a listing? a. His broker s b. His own name c. The seller s d. The Real Estate Commission 39. A listing that does not require the listing agent to show that he or his subagents are the procuring cause in order to earn a commission is a. an exclusive right to sell listing. b. an exclusive agency listing. c. a net listing. d. illegal. 40. From the broker s point of view, one of the least desirable listings is an a. net listing. b. exclusive right to sell. c. open listing. d. exclusive agency listing. 41. A residence was listed at $100,000 and sold for 92% of that amount. The rate of commission was 6%, and was divided equally between the selling and listing brokers. How much did each broker get? a. $5,520 b. $3,360 c. $5,510 d. $2, A real estate listing a. is an employment contract between a property owner and a real estate broker. b. authorizes a real estate broker to sell and convey title to an owner s real property. c. an employment agreement between a broker and an agent d. another name for an offer to purchase 43. A buyer who is ready to buy at the seller s price and terms and has the financial capacity to do so is known as: a. a qualified buyer b. a ready, willing and able buyer c. a pre-qualified buyer d. a hot buyer 4 of 5

5 Version: A 44. The purpose of a trust account is to a. hold money belonging to clients and customers. b. assure that a broker can be trusted. c. to act as a neutral depository. d. convert client s money to broker s account. 45. A dual agency a. is unlawful. b. is legal but unethical. c. must be disclosed to all parties. d. requires a permit from the real estate commissioner. 46. The relationship of a real estate broker to the owner of property listed for sale with the broker is a a. general agency. b. universal agency. c. limited agency. d. special agency. 50. In Nebraska, a real estate broker with a seller as a client having knowledge of adverse material facts about the property: a. may disclose such facts when permitted by the client b. may conceal such facts c. must disclose such facts in all circumstances d. must never disclose such facts in any circumstance 51. A Nebraska real estate agent representing a buyer may not: a. disclose the buyer s motivating factors for purchasing real estate b. disclose a material defect about the property c. disclose facts about the client s ability to pay for the real estate d. disclose adverse material facts about the customer 47. The listing broker owes a fiduciary responsibility to: a. the seller b. the buyer c. both the seller and the buyer d. neither the buyer or the seller 48. In Nebraska, licensees must provide written disclosure of their agency representation to customers and clients: a. Before the buyers sign an offer to purchase the property b. Before the purchase agreement is signed by either party c. During or immediately following the first significant contact d. At closing 49. In Nebraska, an agent need not have a written agreement in order to represent which of the following: a. Seller b. Both parties (dual agency) c. Landlord d. Buyer 5 of 5

6 ID: A Spring 2012 Exam 2. Jacobus Ch 5-8, and Neb. Agency Answer Section MULTIPLE CHOICE 1. D 2. B 3. B 4. A 5. B 6. C 7. D 8. C 9. C 10. B 11. B 12. C 13. A 14. A 15. B 16. B 17. A 18. A 19. C 20. B 21. A 22. B 23. B 24. B 25. C 26. C 27. A 28. C 29. C 30. A 31. A 32. D 33. C 34. D 35. A 36. D 37. B 38. A 39. A 1 of 2

7 ID: A 40. C 41. D 42. A 43. B 44. A 45. C 46. D 47. A 48. C 49. D 50. C 51. A 2 of 2

8 Finance 382 Real Estate Principles and Practice Instructor: Jan E. Beran Student s Name Version B FILL IN YOUR NAME (Lastname, Firstname) WHERE INDICATED, BE SURE TO FILL IN THE CORRESPONDING BUBBLES. Do not put your SSN on your bubble sheet. Mark the version of your test (B) on your bubble sheet in column K, (Fill in Bubbles 1=A, 2=B, 3=C and 4=D). Sheets without a name or without a version code will not be graded, and a ZERO will be recorded as your score. When completed, put your bubble sheet in the corresponding pile. I will not re-sort or hand grade the exam sheets. There are four section tests plus a comprehensive final. In addition you must take 2 of the first 3 tests (I recommend taking all three). If you take all three tests, the two tests with the highest scores will be counted toward your grade. You have 50 minutes to complete the exam. Spring 2012 Exam 2. Jacobus Ch 5-8, and Neb. Agency Multiple Choice Identify the choice that best completes the statement or answers the question. 1. In a brokered real estate transaction, the amount of earnest money is determined by the a. seller. b. by agreement between the buyer and broker. c. by agreement between the buyer and seller. d. buyer. 2. From the broker s point of view, one of the least desirable listings is an a. exclusive right to sell. b. open listing. c. net listing. d. exclusive agency listing. 3. Compared to a warranty deed, the covenants and warranties found in a grant deed are a. fewer in number. b. broader in coverage. c. more restrictive. d. greater in number. 4. Traditionally, in residential sales, prior to the emphasis on buyer agency, the broker considers the buyer to be a. a customer. b. a principal. c. a client. d. a fiduciary. 5. In Nebraska, unless there is a contract specifying to the contrary, real estate agents are assumed to be agents for: a. The seller b. Dual agent representing both buyer and seller c. Transactional agents are neither seller s agent, nor buyer s agent d. The buyer 6. The relationship of a real estate broker to the owner of property listed for sale with the broker is a a. limited agency. b. universal agency. c. special agency. d. general agency. 7. A Nebraska real estate agent representing a buyer may not: a. disclose adverse material facts about the customer b. disclose a material defect about the property c. disclose facts about the client s ability to pay for the real estate d. disclose the buyer s motivating factors for purchasing real estate 8. A contract created under duress is a. voidable. b. unenforceable. c. invalid. d. void. 1

9 Version: B 9. In Nebraska, an agent need not have a written agreement in order to represent which of the following: a. Landlord b. Both parties (dual agency) c. Seller d. Buyer 10. As agent of the seller, a real estate broker is usually authorized to do all of the following EXCEPT: a. bind the principal under a sales contract b. place a For Sale sign on the listed property c. advertise the listed property d. cooperate with other brokers to effect a sale 11. Who, of the following would be required to have a real estate license? a. A secretary who answers the phone in a real estate office b. An escrow officer c. An attorney who specializes in real estate law d. A person who solicits buyers and sellers for a broker 12. An Offer to Purchase which has been executed by both buyer and seller: a. Is only binding on the Real Estate Agents involved in the transaction b. Is only a statement of intent to negotiate a sale of real estate c. Transfers title to the real estate d. Defines the rights and obligations of the parties 13. Title to real property passes to the grantee at the time the deed is a. notarized. b. written. c. delivered and accepted. d. executed. 14. The requirement that transfers of real property be in writing is known as a. the statute of frauds. b. contract law. c. due process. d. the bill of rights. 15. In Nebraska, all of the following are required to be completed prior to licensing EXCEPT: a. sitting for an examination b. ownership of real estate c. a background check d. taking 60 classrom hours of approved courses 16. A deed, which is not recorded, is a. voidable. b. unenforceable. c. void. d. valid. 17. The covenant of seizen warrants that one is a. a lessee. b. acquiring ownership by adverse possession. c. the lawful owner. d. a trespasser. 18. All of the following are essential to a real estate contract EXCEPT: a. legality of object b. consideration c. duress d. competant parties 19. Which of the following is true of an acknowledgement? a. It is required by the Statute of Frauds. b. Many states require that deeds be acknowledged before title passes. c. The notary must attest that the deed is valid. d. It may be witnessed by a notary public. 20. A residential real estate salesperson can usually expect from his or her principal broker all of the following EXCEPT a. signs, advertising, office space and supplies. b. access to multiple listing services. c. supervision, training and advice. d. payment of dues to the local Realtor Association. 2 of 5

10 Version: B 21. In Nebraska, a real estate broker with a seller as a client having knowledge of adverse material facts about the property: a. may disclose such facts when permitted by the client b. may conceal such facts c. must never disclose such facts in any circumstance d. must disclose such facts in all circumstances 22. A listing that does not require the listing agent to show that he or his subagents are the procuring cause in order to earn a commission is a. a net listing. b. an exclusive agency listing. c. an exclusive right to sell listing. d. illegal. 23. A contract entered into by a minor is a. unenforceable. b. voidable. c. illegal. d. valid. 24. An abstract of title recites in chronological order: a. applications for registration of titles b. all of the recorded grants and conveyances and other interests affecting title of land c. who the fee owner is and the condition of the title d. a history of all the lands in the county 25. Pat has a license and contractual rights to sell real estate in a typical state. This licensee may be presumed to be all of the following EXCEPT a. an agent or subagent. b. a broker or salesperson. c. a licensee. d. a Realtor. 26. A real estate listing is a contract between a. the owner and the listing salesperson. b. the owner, the broker, and the listing salesperson. c. the broker and the listing salesperson. d. the owner and the listing broker. 27. Money that accompanies an offer to purchase as evidence of good faith: a. Earnest deposit b. Liquidated damages c. Monetary consideration d. Nominal consideration 28. When a listing is taken, the seller would be referred to as a. a fiduciary. b. the agent. c. the customer. d. the client. 29. Which of the following people must be licensed to transact the business of real estate? a. court appointed guardian b. the executor of an estate c. real estate office secretary d. an owner of income producing property 30. A private seller received an offer from a private buyer for purchase of real estate, the offer failed to include any earnest deposit. The offer is a. Void b. Voidable c. Valid d. Unenforceable 31. The listing broker owes a fiduciary responsibility to: a. the seller b. both the seller and the buyer c. neither the buyer or the seller d. the buyer 32. A buyer who is ready to buy at the seller s price and terms and has the financial capacity to do so is known as: a. a hot buyer b. a qualified buyer c. a ready, willing and able buyer d. a pre-qualified buyer 3 of 5

11 Version: B 33. A residence was listed at $100,000 and sold for 92% of that amount. The rate of commission was 6%, and was divided equally between the selling and listing brokers. How much did each broker get? a. $3,360 b. $5,520 c. $5,510 d. $2, Which of the following is an essential element of a contract? a. A counter offer b. Acceptance c. Performance d. A fair price 35. The purpose of a trust account is to a. to act as a neutral depository. b. hold money belonging to clients and customers. c. assure that a broker can be trusted. d. convert client s money to broker s account. 36. Most title insurance does not insure against a. unrecorded liens. b. encumbrances of record. c. public records. d. easements of record. 37. The parties to a General Warranty Deed are: a. Grantor giving the deed and Grantee receiving the deed b. Seller and Buyer c. Vendor and Vendee d. Grantee giving the deed and Grantor receiving the deed 38. The seller decided that he didn t want to sell his house a few days before closing. He can a. be sued by the buyer for specific performance and damages. b. simply not show up to sign the deed. c. return the earnest money deposit and declare the contract void. d. can refuse to pay the broker a commission. 39. In Nebraska, licensees must provide written disclosure of their agency representation to customers and clients: a. At closing b. Before the buyers sign an offer to purchase the property c. During or immediately following the first significant contact d. Before the purchase agreement is signed by either party 40. A dual agency a. requires a permit from the real estate commissioner. b. must be disclosed to all parties. c. is unlawful. d. is legal but unethical. 41. A real estate listing a. is an employment contract between a property owner and a real estate broker. b. authorizes a real estate broker to sell and convey title to an owner s real property. c. an employment agreement between a broker and an agent d. another name for an offer to purchase 42. Standard owner s title insurance coverage insures against all of the following EXCEPT a. claims to title. b. unrecorded encroachments. c. defective deed form. d. forgery of documents. 43. Covenants or warranties are found in all of the following EXCEPT a. general warranty deeds. b. special warrant deeds. c. quitclaim deeds. d. grant deeds. 44. In whose name does a salesperson take a listing? a. His own name b. His broker s c. The Real Estate Commission d. The seller s 4 of 5

12 Version: B 45. In Nebraska, disclosure to the customer of which of the following would not require the informed consent of the client? a. The client s financial inability to perform if the offer is accepted b. That the client will agree to financing terms other than those offered c. That the client is willing to pay more than the purchase price offered d. The motivating factors for the sale 46. The phrase time is of the essence means? a. Mutual obligations must be performed mutually and punctually b. Part performance of the agreement is unacceptable c. The contract must be performed quickly d. The contract must be fully perfomed within strict time deadlines 50. In Nebraska, a buyer contacts a broker who has a listing to sell a parcel of real estate. The broker does not offer any agreement to the buyer. The relationship between the buyer and the broker is most likely a a. customer and broker b. fiduciary c. COALD d. client and broker 51. The recording of an instrument in the proper county provides the public with a. constructive notice. b. final notice. c. after-acquired notice. d. bona fide notice. 47. Which of the following are the same? a. vendor = buyer b. vendee = seller c. grantee = seller d. grantor = seller 48. The party making an offer is called the a. grantee. b. offeree. c. agent. d. offeror. 49. A deed, which is properly completed and delivered but lacks the grantee s signature is a. valid if the grantee is identified. b. void. c. invalid until the grantee signs. d. invalid until recorded. 5 of 5

13 ID: B Spring 2012 Exam 2. Jacobus Ch 5-8, and Neb. Agency Answer Section MULTIPLE CHOICE 1. C 2. B 3. A 4. A 5. D 6. C 7. D 8. A 9. D 10. A 11. D 12. D 13. C 14. A 15. B 16. D 17. C 18. C 19. D 20. D 21. D 22. C 23. B 24. B 25. D 26. D 27. A 28. D 29. C 30. C 31. A 32. C 33. D 34. B 35. B 36. A 37. A 38. A 39. C 1 of 2

14 ID: B 40. B 41. A 42. B 43. C 44. B 45. A 46. A 47. D 48. D 49. A 50. A 51. A 2 of 2

15 Finance 382 Real Estate Principles and Practice Instructor: Jan E. Beran Student s Name Version C FILL IN YOUR NAME (Lastname, Firstname) WHERE INDICATED, BE SURE TO FILL IN THE CORRESPONDING BUBBLES. Do not put your SSN on your bubble sheet. Mark the version of your test (C) on your bubble sheet in column K, (Fill in Bubbles 1=A, 2=B, 3=C and 4=D). Sheets without a name or without a version code will not be graded, and a ZERO will be recorded as your score. When completed, put your bubble sheet in the corresponding pile. I will not re-sort or hand grade the exam sheets. There are four section tests plus a comprehensive final. In addition you must take 2 of the first 3 tests (I recommend taking all three). If you take all three tests, the two tests with the highest scores will be counted toward your grade. You have 50 minutes to complete the exam. Spring 2012 Exam 2. Jacobus Ch 5-8, and Neb. Agency Multiple Choice Identify the choice that best completes the statement or answers the question. 1. In Nebraska, an agent need not have a written agreement in order to represent which of the following: a. Both parties (dual agency) b. Landlord c. Buyer d. Seller 2. A dual agency a. is unlawful. b. is legal but unethical. c. must be disclosed to all parties. d. requires a permit from the real estate commissioner. 3. The recording of an instrument in the proper county provides the public with a. final notice. b. bona fide notice. c. after-acquired notice. d. constructive notice. 4. In Nebraska, unless there is a contract specifying to the contrary, real estate agents are assumed to be agents for: a. The seller b. Dual agent representing both buyer and seller c. The buyer d. Transactional agents are neither seller s agent, nor buyer s agent 5. In a brokered real estate transaction, the amount of earnest money is determined by the a. seller. b. by agreement between the buyer and seller. c. buyer. d. by agreement between the buyer and broker. 6. In Nebraska, licensees must provide written disclosure of their agency representation to customers and clients: a. During or immediately following the first significant contact b. Before the purchase agreement is signed by either party c. Before the buyers sign an offer to purchase the property d. At closing 7. Who, of the following would be required to have a real estate license? a. A person who solicits buyers and sellers for a broker b. An attorney who specializes in real estate law c. A secretary who answers the phone in a real estate office d. An escrow officer 1

16 Version: C 8. Covenants or warranties are found in all of the following EXCEPT a. grant deeds. b. special warrant deeds. c. quitclaim deeds. d. general warranty deeds. 9. Which of the following people must be licensed to transact the business of real estate? a. the executor of an estate b. an owner of income producing property c. real estate office secretary d. court appointed guardian 10. From the broker s point of view, one of the least desirable listings is an a. net listing. b. exclusive agency listing. c. exclusive right to sell. d. open listing. 11. A listing that does not require the listing agent to show that he or his subagents are the procuring cause in order to earn a commission is a. an exclusive agency listing. b. illegal. c. a net listing. d. an exclusive right to sell listing. 12. Standard owner s title insurance coverage insures against all of the following EXCEPT a. claims to title. b. forgery of documents. c. defective deed form. d. unrecorded encroachments. 13. Pat has a license and contractual rights to sell real estate in a typical state. This licensee may be presumed to be all of the following EXCEPT a. a Realtor. b. a licensee. c. a broker or salesperson. d. an agent or subagent. 14. A real estate listing is a contract between a. the owner and the listing broker. b. the owner and the listing salesperson. c. the owner, the broker, and the listing salesperson. d. the broker and the listing salesperson. 15. In Nebraska, a buyer contacts a broker who has a listing to sell a parcel of real estate. The broker does not offer any agreement to the buyer. The relationship between the buyer and the broker is most likely a a. fiduciary b. COALD c. client and broker d. customer and broker 16. All of the following are essential to a real estate contract EXCEPT: a. duress b. consideration c. competant parties d. legality of object 17. A Nebraska real estate agent representing a buyer may not: a. disclose adverse material facts about the customer b. disclose the buyer s motivating factors for purchasing real estate c. disclose a material defect about the property d. disclose facts about the client s ability to pay for the real estate 18. Title to real property passes to the grantee at the time the deed is a. executed. b. written. c. notarized. d. delivered and accepted. 19. A deed, which is not recorded, is a. voidable. b. valid. c. unenforceable. d. void. 2 of 5

17 Version: C 20. Traditionally, in residential sales, prior to the emphasis on buyer agency, the broker considers the buyer to be a. a principal. b. a client. c. a fiduciary. d. a customer. 21. The requirement that transfers of real property be in writing is known as a. due process. b. contract law. c. the statute of frauds. d. the bill of rights. 22. Most title insurance does not insure against a. public records. b. encumbrances of record. c. easements of record. d. unrecorded liens. 23. When a listing is taken, the seller would be referred to as a. the client. b. the customer. c. a fiduciary. d. the agent. 24. The seller decided that he didn t want to sell his house a few days before closing. He can a. can refuse to pay the broker a commission. b. return the earnest money deposit and declare the contract void. c. be sued by the buyer for specific performance and damages. d. simply not show up to sign the deed. 25. In whose name does a salesperson take a listing? a. His own name b. The seller s c. His broker s d. The Real Estate Commission 26. In Nebraska, all of the following are required to be completed prior to licensing EXCEPT: a. sitting for an examination b. taking 60 classrom hours of approved courses c. ownership of real estate d. a background check 27. The party making an offer is called the a. agent. b. offeror. c. offeree. d. grantee. 28. Money that accompanies an offer to purchase as evidence of good faith: a. Liquidated damages b. Earnest deposit c. Monetary consideration d. Nominal consideration 29. A contract created under duress is a. voidable. b. invalid. c. void. d. unenforceable. 30. The purpose of a trust account is to a. to act as a neutral depository. b. hold money belonging to clients and customers. c. assure that a broker can be trusted. d. convert client s money to broker s account. 31. An Offer to Purchase which has been executed by both buyer and seller: a. Is only a statement of intent to negotiate a sale of real estate b. Is only binding on the Real Estate Agents involved in the transaction c. Defines the rights and obligations of the parties d. Transfers title to the real estate 3 of 5

18 Version: C 32. The parties to a General Warranty Deed are: a. Vendor and Vendee b. Seller and Buyer c. Grantor giving the deed and Grantee receiving the deed d. Grantee giving the deed and Grantor receiving the deed 33. The covenant of seizen warrants that one is a. a lessee. b. the lawful owner. c. a trespasser. d. acquiring ownership by adverse possession. 34. A residence was listed at $100,000 and sold for 92% of that amount. The rate of commission was 6%, and was divided equally between the selling and listing brokers. How much did each broker get? a. $5,510 b. $5,520 c. $2,760 d. $3, A real estate listing a. authorizes a real estate broker to sell and convey title to an owner s real property. b. is an employment contract between a property owner and a real estate broker. c. an employment agreement between a broker and an agent d. another name for an offer to purchase 36. A private seller received an offer from a private buyer for purchase of real estate, the offer failed to include any earnest deposit. The offer is a. Voidable b. Valid c. Void d. Unenforceable 37. The listing broker owes a fiduciary responsibility to: a. the seller b. both the seller and the buyer c. the buyer d. neither the buyer or the seller 38. The relationship of a real estate broker to the owner of property listed for sale with the broker is a a. limited agency. b. general agency. c. universal agency. d. special agency. 39. As agent of the seller, a real estate broker is usually authorized to do all of the following EXCEPT: a. cooperate with other brokers to effect a sale b. bind the principal under a sales contract c. advertise the listed property d. place a For Sale sign on the listed property 40. Which of the following is true of an acknowledgement? a. The notary must attest that the deed is valid. b. It may be witnessed by a notary public. c. It is required by the Statute of Frauds. d. Many states require that deeds be acknowledged before title passes. 41. A residential real estate salesperson can usually expect from his or her principal broker all of the following EXCEPT a. signs, advertising, office space and supplies. b. access to multiple listing services. c. supervision, training and advice. d. payment of dues to the local Realtor Association. 42. The phrase time is of the essence means? a. The contract must be fully perfomed within strict time deadlines b. Mutual obligations must be performed mutually and punctually c. Part performance of the agreement is unacceptable d. The contract must be performed quickly 4 of 5

19 Version: C 43. Which of the following is an essential element of a contract? a. A fair price b. Acceptance c. A counter offer d. Performance 44. In Nebraska, disclosure to the customer of which of the following would not require the informed consent of the client? a. The motivating factors for the sale b. That the client will agree to financing terms other than those offered c. That the client is willing to pay more than the purchase price offered d. The client s financial inability to perform if the offer is accepted 45. A deed, which is properly completed and delivered but lacks the grantee s signature is a. valid if the grantee is identified. b. invalid until recorded. c. void. d. invalid until the grantee signs. 49. Compared to a warranty deed, the covenants and warranties found in a grant deed are a. fewer in number. b. greater in number. c. more restrictive. d. broader in coverage. 50. A buyer who is ready to buy at the seller s price and terms and has the financial capacity to do so is known as: a. a pre-qualified buyer b. a qualified buyer c. a ready, willing and able buyer d. a hot buyer 51. An abstract of title recites in chronological order: a. a history of all the lands in the county b. applications for registration of titles c. all of the recorded grants and conveyances and other interests affecting title of land d. who the fee owner is and the condition of the title 46. Which of the following are the same? a. grantor = seller b. vendee = seller c. grantee = seller d. vendor = buyer 47. In Nebraska, a real estate broker with a seller as a client having knowledge of adverse material facts about the property: a. may conceal such facts b. must never disclose such facts in any circumstance c. may disclose such facts when permitted by the client d. must disclose such facts in all circumstances 48. A contract entered into by a minor is a. unenforceable. b. valid. c. voidable. d. illegal. 5 of 5

20 ID: C Spring 2012 Exam 2. Jacobus Ch 5-8, and Neb. Agency Answer Section MULTIPLE CHOICE 1. C 2. C 3. D 4. C 5. B 6. A 7. A 8. C 9. C 10. D 11. D 12. D 13. A 14. A 15. D 16. A 17. B 18. D 19. B 20. D 21. C 22. D 23. A 24. C 25. C 26. C 27. B 28. B 29. A 30. B 31. C 32. C 33. B 34. C 35. B 36. B 37. A 38. D 39. B 1 of 2

21 ID: C 40. B 41. D 42. B 43. B 44. D 45. A 46. A 47. D 48. C 49. A 50. C 51. C 2 of 2

22 Spring 2012 Exam 2. Jacobus Ch 5-8, and Neb. Agency [Version Map] A B C MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC MC A B C MC MC