DONALDSON FINAL EXAM REAL ESTATE PRINCIPAL EXAM BANK |2024 QUESTIONS AND ANSWERS
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DONALDSON
DONALDSON FINAL EXAM REAL ESTATE PRINCIPAL EXAM BANK |2024 QUESTIONS AND ANSWERS
The amount of commission charged a client is established - In negotiation between broker and seller.
A deposit in a typical Real Estate transaction - Must be maintained by the broker
In the brokers desig...
DONALDSON FINAL EXAM REAL ESTATE
PRINCIPAL EXAM BANK |2024 QUESTIONS
AND ANSWERS
The amount of commission charged a client is established - In negotiation between
broker and seller.
A deposit in a typical Real Estate transaction - Must be maintained by the broker
In the brokers designated escrow
Account.
When the association of an associate broker or salesperson is terminated with their firm
for any reason, the broker must return the license to the LREC: - With in 5 days
If a broker is involved in obtaining deposits in property management, the broker must -
open an account titled "Security Deposit Trust Account".
Sale people cannot accept a commission or valuable consideration for the performance
of any act under the license law from any person except their - Sponsoring broker
According to the license law must be . - In writing
If a broker cannot resolve a dispute over a sales deposit - he must give the money to
the local court and notify commission .
Every license must sign a sworn statement on their application attesting that they shall
not induce any person to sell or rent and dwelling by representation regarding the entry
of any person to the area due to that persons race color religion or national origin this
prohibited is know as - Block busting
A law suite base on lesion by and moiety must be filled within - One year
If two or more person own the same piece of property each as an undivided share , this
is refined to ad a - Undivided interest
you sign lease for one year and took possession of an apartment when the lease
expired you continued to live in the apartment without the owner consent your tendency
would be considered to be - Tenancy at sufferances
A man gave his best friend the right to go hunting on his farm. This would be an
example of a (an): - easement in gross
,Zoning regulations and decision are usually handle by - Town and cities
Ad valorem is Latin for - According to value
A property is sold under a deed restriction ( CCR) that state s the property may not be
use as a bakery under these conditions which of the following is true? - A adjoining
property owner may enforce the restriction by a court injunction
Disclosing a suicide or murder that occurred on the property - not a material fact
Material Facts include - easements.
encroachments.
and
structural issues.
Of the following, which would not be considered a material fact that should be disclosed
to a purchaser if the agent is representing the seller and is aware of the situation? - The
previous owner murdered his wife in the home and committed suicide.
Defects that a seller is required by law to correct include: - none of the above
The current occupancy of the property by someone with HIV is: - illegal to disclose.
A seller has slab problems which have resulted in cracked walls. The seller covers up
the cracks and does not disclose to anyone that there is a problem. Under these
conditions, which of the following is true? - the buyers can sue the seller for concealing
the defect.
A buyer notices that the roof does not seem quite right and asks their agent if the roof
leaks. The agent responds that upon asking the seller about the roof he was told that
there is no seepage and no leaks. However, later it is discovered that there is a
seepage problem with the roof. Which of the following best describes the agent's
position in this situation? - Nothing was done wrong improper in this situation .
An agency is best described as when the: - broker represents the principal.
Under the Law of Agency, the Principal owes the Agent: - assistance in the sale of the
property.
compensation for service.
reimbursement for agreed upon expenses.
All of the above.
,The relationship of the broker to the listing owner who hired him or her is best described
using which term? - Fiduciary
The amount of the commission is determined by: - negotiation of the parties
All of the following are considered agents EXCEPT - personal assistant
Which of the following is an example of a Principal-Agency Contract? - Buyer
Representative Contract
As a licensed real estate salesperson, Mary works as a designated agent for her broker
on a listing for Sally the seller. Mary also likes to work with buyers, and has several
buyers currently working with her in addition to Sally's listing. One of Mary's buyers
attends her open house for Sally seller's property and expresses interest in the home.
The potential buyer asks Mary about the asking price and how much "room for
negotiation" there is, and Mary tells her buyer client that the home is definitely
overpriced. Choose the statement which BEST identifies this situation: - By showing
the listed property to her buyer client, Mary is acting as an undisclosed dual agent since
no disclosure form was used. Furthermore, she has breached her fiduciary duty to her
seller by discussing the property's pricing with her buyer client.
Bob the broker has been contacted by a bank to provide a valuation estimate on a
home going into foreclosure. For an agreed upon fee, Bob prepares a valuation report
and submits it to the bank representative. What would this report MOST likely be
considered? - A Broker Price Opinion (BPO).
The Principle of Substitution states that no one will pay more for a property than: - they
would have to pay for an equivalent substitute property
A four-bedroom house with one bathroom carries a market value of $120,000. The
same house would likely be worth $125,000 if a bathroom could be easily added for a
cost of $10,000. This is an example of: - Incurable functional obsolescence
In the appraisal of a public building, an appraiser would most likely select to apply which
of the common methods of appraisal? - cost approach
In a term loan with an annual payment structure, if the interest rate is 10% and the
amount borrowed is $100,000 what is the annual payment amount during the term of
the loan (other than the final payment)? - $10,000
Lenders help protect themselves from loss by using - Impound accounts
A partial release clause is generally found in a: - Blanket mortgage
, The disadvantage of a balloon loan is which of the following? - The last payment is
larger than the regular payments, and if you cannot pay it the loan may go to
foreclosure.
A man has his property listed with a broker. On June 23, a fire causes considerable
damage to the property. On June 25, the owner revokes the listing. On June 29, the
broker is deemed incompetent. Two days later, on July 1, the listing expires. On what
date was the listing terminated? - June 23
The broker has listed an owner's home. This agreement will be terminated by all of the
following EXCEPT: - Death of the listing salesperson
The responsibilities of a real estate sales agent in a listing agency relationship include
all of the following EXCEPT: - repair of defects
All of the following are considered agents EXCEPT: - personal assistant
The relationship of the broker to the listing owner who hired him or her is best described
using which term? - Fiduciary
A broker that does not represent the seller or the buyer but simply is paid a fee to bring
the two together is called a: - transactional broker
Under the Law of Agency, the Principal owes the Agent: - all of the above
Agent Johnson has been appointed by his broker as the agent of the seller in a listing
agreement. Only Agent Johnson represents the seller, no one else in Agent Johnson's
office. Agent Johnson is best described as: - designated agent
A licensee sees a water stain on the second floor ceiling of a house he is about to list.
What is the licensee required by law to do? - ask the seller about the stain
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