Sales General Exam - Stringham Real
Estate School
A broker found a ready willing and able buyer to purchase seller bonds house at the listing terms before
agreeing to the sale seller bond introduced a new restriction stating that the sale could only be
completed if the buyer agreed not to build a tennis court on the property the buyer refused and
withdrew from the negotiations is the broker entitled to a commission
a. no, because seller bond never accepted the buyers first offer
b. yes, because the seller can change the terms in a listing agreement any time he wants
c. no, because the buyer did not complete the purchase
d. yes, because the broker had fulfilled the listing contract and must be paid - d. yes, because the
broker had fulfilled the listing contract and must be paid
The owner wants to net $40,000 upon selling the property. The commission is 7%, there will be $2,500 in
closing costs, plus a $450 fee to the attorney. What does the property need to sell for to the the owner
$40,000 net?
a) $215,716
b) $50,125.00
c) $200,555
d) $46,182.80 - d) $46,182.80
What term best describes a situation where the lessor collects rents from the tenants and pays expenses
out of those rents?
a) Net Lease
b) Participation Lease
c) License Estate
d) Gross Lease - d) Gross Lease
What is the amount of pre-paid interest to the borrower if her $205,000 loan at 5.5% annual interest
rate closes on November 15?
a) $258.33
,b) $939.58
c) $469.79
d) $370.00 - c) $469.79
Z listed the property. When the buyers expressed interest in seeing it, Z disclosed they would have no
representation and the buyers agreed in writing. When writing the offer, the buyers asked Z what they
should offer. Z responded, "Oh 93% of the listed price would be good." Which most applies?
a) This would be a good suggestion for the agent to make.
b) This is ostensible agency between Z and the buyers
c) Z is properly representing the seller and obtaining an offer.
d) This is limited agency and legal. - b) This is ostensible agency between Z and the buyers.
George smith who owns his property fee simple grants a three year lease to tom green during the
second year of the lease George sells the property to Ned Gray what happens to the lease when the sale
closes
a) property cannot be sold and title transferred to a new owner when a lease is in effect
b) it must be negotiated between gray and Mr Green the leasee
c)the lease remains in effect with Mr gray and Mr green
d) it terminates - c) The lease remains in effect with Mr. Gray and Mr. Green
At the beginning of each month the lessee gives, and the lessor takes the rent. This best describes:
a) Tenancy by the entirety
b) Periodic Tenancy
c) Joint Tenancy
d) Tenancy at will - b) Periodic Tenancy
,A particular parcel was zoned residential, single family and was surrounded by others zoned the same.
That parcel was rezoned commercial so a convenience store could be built. This is an example of:
a) Legal non-conforming use
b) Defeasible fee estate
c) Spot Zoning
d) Variance - c) Spot Zoning
L agreed to carry a 2nd in the sale of the home. It was for $20,000, 9% interest, 30 years, payment of
$160.92 per month. However, it had a five year call when the buyer would pay off the balance of
$19,176. How would you describe this loan arrangement?
a) Fully amortized
b) Discounted
c) Wraparound
d) Partially amortized - d) Partially Amortized
An assessor is trying to determine the square footage of a property. He measures:
a) the outside dimensions.
b) the inside rooms including the closets.
c) inside, usable area.
d) the home, excluding hallways. - a) the outside dimensions
An agent contacted an owner to see if they might want to sell the property. The agent said, "I think I can
get you $250,000," which surprised the owner. The owner said, "Ok, and anything over that can be your
commission." This is:
a) A really good deal for the agent and the agent should jump on it!
b) Only legal if the agent ran comps and can justify the $250,000 number.
c) A perfectly good way for agents to market themselves and get listings.
d) Is a net listing and could be grounds for disciplinary action against the agent. - d) Is a net listing
and could be grounds for disciplinary action against the agent.
, If the interest rate on a straight loan is 8% and the monthly interest payment is $650, what is the amount
of the loan?
a) $75,682
b) $103,250
c) $88,750
d) $97,500 - d) $97,500
Which of the following is NOT part of an appraisal?
a) The date of the appraisal report
b) Appraiser's best estimate value
c) A description of the neighborhood surrounding the property
d) The signature of the appraiser -
The relationship between the lessor and the lessee could be defined as which of the following?
a) Tenants in common
b) Tenancy for years
c) Joint Tenancy
d) Life Estate - b) Tenancy for years
The purpose of a document receipt is to verify that:
a) both the buyer and seller received all appropriate documents at the closing
b) The buyer signed all documents involved with the loan
c) All parties have received fully signed copies of the Real Estate Purchase Contract
d) All involved agents and brokers have signed the purchase agreement - c) All parties have
received fully signed copies of the Real Estate Purchase Contract
Zachary received a warranty deed after purchasing a property. He saw that his name had been
misspelled. Which of the following documents would he execute to correct the title?
a) Special Warranty Deed
