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 salesperson’s 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 L’s 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 owner’s 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 K’s property for sale under and exclusive-right-to-sell
agreement. Today one of P’s 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 K’s
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 property’s listing file
10. Two salesperson’s 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 broker’s 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 broker’s 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 broker’s
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 owner’s intent was clearly defined.
b. binding on the owner’s 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 broker’s 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 Governor’s 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
|