Real Estate Broker Practice Test
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All states require real estate brokers to take an exam to get licensed. Such subjects as operation of a brokerage, contract law and agency concepts will be tested. Karen is a testsieger online brokerage real estate broker and certified real estate instructor.
She has worked in real estate sales for over 20 years. She teaches real estate sales and contract law for a real estate sales education company that specializes in testsieger online brokerage licensing of real estate sales agents and brokers across the country.
Choose "Test Mode" to see answers after your test is scored. Choose "Study Mode" to show answers as you go. The law of agency will inevitably require that the agent educate the client about material facts and about the art of negotiating to ensure a strong negotiating position.
The idea that an agent can avoid discovery for fear that discovering facts will increase the burden of disclosure, and increase the agent's obligation to educate the client is not correct. The duty of agency requires discovery; and the duty of disclosure requires that the agent educate the client about all known facts; or all facts the agent should have discovered. Incorrect answer, please choose another answer.
Like all businesses, brokerages need income and cash flow. Many people believe brokerages encounter financial problems only when interest rates rise or when there is increased competition. This is not the case. Brokerages are not profit centers. A brokerage is nothing more than a funnel--the medium through which commissions are paid to the salespersons and brokers affiliated with the brokerage. A brokerage that is poorly run will encounter financial difficulty even in the friendliest real estate climate.
To say that the broker should take advantage of all products designed to promote real estate sales is not correct. A brokerage should use such products only after the brokerage has evaluated its financial position, and planned for the advertising costs.
A person authorized by his principal to execute a particular deed, or to sign a testsieger online brokerage contract, or to procure a purchaser for certain real estate, is a special agent. Listing agents are special agents. If an agent has several listings with one seller, that agent is a special agent several times.
Several listings with one client do not constitute a general agency. Specific agency or special agency testsieger online brokerage that a licensee may act on a principal's behalf only in limited ways for a limited time; generally for only one transaction. General agency is an agency whereby the agent is given authorization to act as agent for a range of activities. Universal agency is unlimited rights to act on the principal's behalf.
A limited power of attorney grants authority testsieger online brokerage act on the principal's behalf, but limits the authorization to only those acts that are named. An enforceable contract testsieger online brokerage a voluntary agreement between competent parties to do something legal. Any party bringing an action for breach of contract must provide evidence that an offer was made, that it was accepted and that both parties offered consideration.
The terms "mutuality", or testsieger online brokerage consent" are synonymous with offer and acceptance. Although signatures are required on all contracts for the sale and purchase of real estate according to the statute of frauds, they testsieger online brokerage not required on all real estate contracts.
An exception to the statute of frauds requirement is leases for a period of one year or less. If the scope of authority of a real estate broker is limited to just producing a buyer, the broker testsieger online brokerage not have the authority to collect an earnest deposit on behalf of the seller.
When an agent does collect a deposit in this case, the agent is acting as agent for the buyer offeror and not the seller. A deed is personal property, even though it is proof of ownership of real property. Personal property is movable property.
Since testsieger online brokerage deed is movable, it testsieger online brokerage considered personal property. Severance is the act of removing or cutting off a part of testsieger online brokerage real property that is attached to the land. Since the lender is foreclosing on the real property, and the fixtures are considered real property, the lender is entitled to receive the home with all of the fixtures intact.
Removal of the fixtures from the home in the manner described in the scenario is a tort violation against the lender, testsieger online brokerage is subject to civil action, although in most cases it is not financially prudent for the lender to pursue such action because the litigation costs can be greater testsieger online brokerage the lenders financial loss from the damages.
A waterfront owner does not own the water, and does not own the land under the water. The landowner simply owns a right to access to the water.
In states where water is scarce, testsieger online brokerage form of prior appropriation applies. Also known as first in time is first in right, the doctrine grants water rights to divert a specific amount of water from a specific source to irrigate a specific piece of property.
Those rights are then assigned a priority based on when the right was first used or applied for. In periods of peak testsieger online brokerage, the person or entity whose claim is the oldest is given the first right to the water. Although the living arrangements and the structure of the buildings might look similar, the only thing a lessee of an apartment and the owner of a condominium have in common is that they each have an estate in real property.
A condo owner has a fee interest which is a freehold estate. The lessee has a less-than-freehold estate. Depending on how the condo owner holds title, his estate might also be an estate of inheritance. Estates that can be "defeated" are called fee simple defeasible estates. Evan and Camelia's agent acted correctly when she warned them about the consequences of non-compliance before they signed the contract.
Severalty ownership is ownership by a single person. There is only one person or entity's name on the deed. There is no right of survivorship with a severalty ownership, because a person with right of survivorship must be named on the deed. For a survivor of a severalty owner to obtain title upon the death of the severalty owner, the severalty owner must devise the property to the survivor in a will.
A conveyance to two or more persons is presumed to create a tenancy in common unless a contrary intention is shown. The prospective purchase of the property by a person related to the licensee by blood or marriage must be disclosed to all parties to the transaction.
In this case, the listing broker and the listing salesperson are not parties to the lease option transaction. Failure to make this disclosure would be considered a violation of the agent's duty to disclose all material facts.
Abatement of a nuisance means the elimination, whether by the party testsieger online brokerage, or through suit instituted by him, of that which endangers life or health, or interferes with the use and enjoyment of the property. The law allows an injured party to remove or destroy the nuisance personally, providing he does testsieger online brokerage without unnecessary destruction or breach of the peace.
Although abatement must be done in an environmentally friendly manner, no special court order is necessary before abatement can ensue. The testsieger online brokerage and bounds method of legal description is the primary method of legal description in many states. In states where it is testsieger online brokerage the primary system, it is used to supplement the prevailing description method.
Typically the metes and bounds system uses physical features of the property called monumentsto identify aspects of the topography; and it uses directions and distances, to define the boundaries of the parcel. The description is written in a running prose style, and works around the parcel in testsieger online brokerage from a point of beginning. It may include references to other adjoining parcels and their ownersand it, in turn, could also be referred to in later surveys.
At the time the description is compiled, it may have been marked on the ground with man-made monuments placed where there were no suitable natural monuments. The baseline is the starting point of latitude for all sectioned land within a given survey area. It divides the survey area into the north half and the south half. The baseline is perpendicular to testsieger online brokerage principal meridian; and the point at which the two lines intersect is called the initial point.
Many communities in the United States have roads testsieger online brokerage run along survey baselines; these roads not coincidentally are named "Baseline Road". The concentric ring model basically consists of zoning classifications in circles, with the central business district in the center. The next circle is the transition zone of mixed residential and commercial uses.
Testsieger online brokerage is the inner city zone or inner suburbs. The better quality middle class homes surround the inner city; and the outermost circle is called the commuter zone. The multiple nuclei model of land development creates other nodes or nuclei in the city in addition to the CBD; thus the name multiple nuclei model. The model testsieger online brokerage from the idea that people have greater movement due to increased car ownership.
This increase of movement allows for the specialization of regional centers or zoning classifications. The exemption requires that the property must be the seller's primary residence for two of the last five years. Depreciation cannot be taken on a personal residence. It can be taken only for investment property. The adjusted basis would be cost plus capital improvements.
However, for investment property, the adjusted basis would be cost plus improvements minus depreciation. The Sherman Anti-Trust Act prohibits testsieger online brokerage fixing.
Therefore, a state real estate law that sets the maximum commission that a broker may charge for the sale of residential property would be against public policy. All real estate listing commissions must be negotiable between seller and the listing broker, so the commission rate is determined by the broker's contract with his principal.
The essence of the anti-trust laws is that businesses cannot agree to restrain trade. Any statement or agreement that limits consumer choice could be construed as an anti-trust violation. If testsieger online brokerage separate brokerages agree to divide a market along geographic lines, this is a violation.
However, within a brokerage, it is acceptable for a brokerage to assign specific agents to certain geographic areas. This is legal, because the agents within a brokerage are testsieger online brokerage competitors. They are working on testsieger online brokerage of the brokerage.
An estate for years is an estate with a definite commencement date and a definite termination date. An estate for years does not have to be literally for years; it can be of a duration that is less than one year, such as a six-month lease.
Estates for years with a duration of one year or more must be in writing to be enforceable; but estates for years with a duration of less than one year do not need to be in writing to be enforceable. A periodic tenancy has no testsieger online brokerage termination date. It continues from period to period until one of the parties gives notice of termination; and automatically renews at the end of the lease term for the same lease term.