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QUIZ #3 - CHAPTER 6, Math & License Law

Choose the BEST answer

1. A building sold for $157,000. The broker charged a 6% commission and divided it 
    as follows 10% to the salesperson who took the listing, one-half of the balance to
    the salesperson who made the sale, and the remainder to the broker. What was
    the listing salespersonís commission. 

               a. $239 
               b. $942
               c. $1,570
               d. $4,239 

2. If a seller needs to net $50,000 after the sale, how much must the real estate sell
     for if the selling cost include a 7% commission and $1,200 in other expenses? 

               a. $54,700 
               b. $54,963.44
               c. $55,053.76
               d. $55,633.25 

3. The Lís sold their vacation home for $88,000. If they made a profit of 10%, what
     was the original cost of the property? 

               a. $61,000
               b. $79,000
               c. $79,200
               d. $80,000 

4. The type of listing agreement that provides for the payment of a commission to
     the broker even though the owner makes the sale without the aid of the broker is
     called a(n): 

               a. exclusive-right-to-sell listing 
               b. open listing
               c. exclusive-agency listing
               d. option listing 

5. A broker took a listing and later discovered that the client was previously declared
    legally incompetent. The listing is now: 

              a. binding because the broker was acting as the ownerís agent in good faith 
              b. of no value to the broker because it is now void 
              c. the basis for the recovery of a commission is the broker produces a buyer 
              d. renegotiable 

6. Broker P listed the Kís property for sale under and exclusive-right-to-sell
    agreement. Today one of Pís salespeople, T, obtained an offer to purchase
    the property along with a check for 5% of the purchase price as earnest money.
    What should T do with the earnest check? 

              a. give it to the Kís
              b. hold it until the closing
              c. deposit the money in his trust account
              d. give the money to P for deposit in his trust account 

7. The type of listing agreements that provides the least protection for the
     broker is the: 

              a. exclusive-right-to-sell listing 
              b. exclusive-agency listing
              c. open listing
              d. net listing 

8. All of the following are types of listing contracts EXCEPT a(n): 

              a. open listing
              b. exclusive agency 
              c. exclusive right-to sell
              d. MLS contract 

9. A competitive market analysis: 

              a. is the same as and appraisal 
              b. can help the seller price the property
              c. by law must be completed for each listing taken
              d. should not be retained in the propertyís listing file 

10. Two salespersonís working for the same broker obtain an offer on a property
       listed with their firm. The first offer was obtained early in the day. A second
       offer for a higher purchase price was obtained later in the in the afternoon.
       The broker did not inform the seller about the second offer so that the seller
       could make a decision about the first offer. Which of the following is true? 

              a. the brokerís action are permissible provided the commission is split
                   between the two salespeople. 
              b. after the first offer was received the broker should have told the
                   salespeople that no additional offers would be accepted until the
                   seller decided on the offer. 
               c. the broker has no authority to withhold any offers from the seller 
               d. the broker was smart to protect the seller from getting into a negotiation
                   battle over two offers 

11. A salesperson may advertise a property for sale only if he or she: 

              a. personally listed the property
              b. uses the employing brokerís name in the advertisement
              c. personally pays for the advertisement
              d. is a member of the local real estate board 

12. In a typical agency relationship between the broker and client, the brokerís
      commission is determined by: 

               a. state law
               b. the local real estate board 
               c. mutual agreement 
               d. minimums based on the property type 

13. Under which of the following listing agreements can the owner of the listed
      property sell the property on his or her own without having to pay the listing
      broker a commission? 

             a. exclusive right-to-sell listing 
             b. exclusive agency listing 
             c. open listing 
             d. both b & c 

14. A property owner signed a 90-day agreement with a broker. The owner was killed
      in an accident before the listing expired. Now the listing is: 

             a. still in effect as the ownerís intent was clearly defined. 
             b. binding on the ownerís spouse for the remainder of the 90 days 
             c. binding only if the broker can bring offers to purchase the property 
             d. terminated automatically upon death of the principal 

15. A property owner lists his property for sale with a broker. During the
      negotiations, the owner told the broker that the owner wanted $138,000 from the
      property, and anything above that the broker could keep as his commission.
      The listing with this type of provision is known as the: 

              a. gross listing 
              b. net listing 
              c. open listing 
              d. non-exclusive listing 

16. An owner lists her property for sale with a broker. Another broker, however, finds
      a buyer for the house. The listing broker did not receive a commission from the
      sale. The type of listing contract between the owner and the broker could
      have been a(n): 

               a. exclusive right-to-sell 
               b. exclusive agency 
               c. open listing
               d. multiple listing 

17. When the license of a real estate broker is suspended or revoked, his or her
      salespeople: 

               a. must find a new employing broker 
               b. must obtain their brokerís license 
               c. must stop listing and selling property 
               d. may continue operating as before 

18. The Real Estate Recovery Fund is to be administered by: 

              a. The Attorney General Office
              b. The Circuit Court 
              c. The Real Estate Commission 
              d. The Governorís office 
 
19. If a License is being held by a broker for referral purpose only, that licensee must
     complete the following hours of continuing education: 

               a. 54
               b. 10
               c. 16 
               d. none 

20. All of the following are agency types that are governed by Indiana License Law
      as of 1-1-97 EXCEPT: 

               a. subagent 
               b. seller agent
               c. dual agent
               d. buyer agent 

21. Which of the following is/are true concerning the Real Estate Recovery Fund: 

               a. all accrued interest shall be deposited in the General Fund 
               b. the amount of the actual and direct loss may include court costs as well
                    as attorney fees and punitive damages 
               c. the amount that may be paid form the fund shall not exceed $20,000 per
                    judgment
               d. there is a limit of $100,000 for an aggregate lifetime with respect to any
                   one licensee 

22. A listing broker should tell prospective buyers everything about a property
      EXCEPT that: 

                a. it has structural defects 
                b. zoning makes the present usage non-conforming
                c. the broker has seen evidence of termites
                d. the owner will accept less than the listing price 

23. A list price was established to leave the owner with $90,000 after a 6%
      commission was deducted from the sales Price. What was the list price? 

                a. $95,400
                b. $95,745 
                c. $95,905.66 
                d. $96,000 

24. If a monthly interest payment was $957.52 at 12% annual interest, what was the
      principal due at the time of payment: 

                a. $ 7,979.33
                b. $11,490.24
                c. $76,812.37 
                d. $95,752.00 

25. A house purchased four years ago for $50,000 has increased in value by 10%
      each year since purchase. The house is now worth? 

               a. $66,550 
               b. $70,000 
               c. $73,205
               d. $90,000 

Quiz #3 - Chapter 6, Math & License Law
ANSWERS

1. B 11. B 21. C 31. 41. 51.
2. C 12. C 22. D 32. 42. 52.
3. D 13. D 23. B 33. 43. 53.
4. A 14. D 24. D 34. 44. 54.
5. B 15. B 25. C 35. 45. 55.
6. D 16. C 26. 36. 46. 56.
7. C 17. C 27. 37. 47. 57.
8. D 18. C 28. 38. 48. 58.
9. B 19. D 29. 39. 49. 59.
10. C 20. C 30. 40. 50. 60.
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