Question 1

A seller places a property on the market for sale at a certain price. A buyer sees the property and makes a written offer to purchase that is 90% of the asking price. The seller rejects that offer, but will accept an offer of 95% of the original asking price. The buyer rejects that counteroffer. The original offer is:

Options :

A : rescinded

B : null and void

C : irrevocable

D : binding

Answer: B

Question 2

A client is considering listing an industrially zoned 10-acre site. It has been vacant for several years, and was formerly used as an automobile junkyard. What would a responsible real estate licensee recommend the seller consider obtaining prior to putting the property on the market?

Options :

A : a radon measurement analysis

B : an environmental site assessment

C : an electromagnetic field determination

D : an air quality report from the Environmental Protection Agency

Answer: B

Question 3

A seller has listed a home with a broker for $112,000. The seller is leaving for a 45-day cruise midway through the listing period and authorizes the broker through a limited power of attorney to accept any offer of all cash at a price of $108,000 or more pending his return. The broker receives an offer for $110,000 all cash. The broker

Options :

A : may not accept the offer until the seller returns.

B : must forward the offer to the sellers attorney for consideration.

C : may accept the offer.

D : may sign a deed of conveyance if the seller does not return on time.

Answer: C

Question 4

A broker who charges or collects an advance fee in excess of $25 for services to be rendered MUST:

Options :

A : deduct the amount collected from the commission or settlement

B : give the principal receipts for all expenditures

C : furnish within ninety days of its collection an accounting of how the money was used

D : retain the difference between the amount of money collected and the amount spent

Answer: C

Question 5

According to the Real Estate Licensing Law, a real estate licensee can provide a rebate of the commission to a buyer

Options :

A : if the licensee is the broker.

B : if notated on the contract of sale.

C : provided it does not exceed 50% of the total commission.

D : if a writing confirming the terms of the rebate is provided to the buyer at closing.

Answer: D