Real Estate Sales Exam FREE Real Estate Sales MCQ Question and Answers 2 — Questions and Answers
Question 1: A buyer signs a purchase agreement that is contingent on obtaining financing within 30 days. If the buyer fails to secure a loan within the specified period, what is the most likely outcome?
- The seller must extend the deadline automatically
- The buyer may terminate the contract and receive their earnest money back (Correct answer)
- The seller can sue for specific performance immediately
- The contract becomes void and the property is relisted
Correct answer: The buyer may terminate the contract and receive their earnest money back
A financing contingency protects the buyer by allowing contract termination and return of earnest money if financing cannot be obtained within the stated timeframe.
Question 2: Which of the following best describes the concept of 'commingling' in real estate?
- Mixing client funds with a broker's personal or business funds (Correct answer)
- Combining two adjacent properties into one parcel
- Blending different types of mortgage products
- Merging two real estate brokerages into one entity
Correct answer: Mixing client funds with a broker's personal or business funds
Commingling occurs when a broker illegally mixes client trust funds with their own personal or operating accounts, which violates fiduciary duties.
Question 3: Under the Fair Housing Act, which of the following actions by a landlord would constitute illegal discrimination?
- Requiring all applicants to pass a credit check
- Refusing to rent to a tenant with children under 18 in a non-exempt property (Correct answer)
- Charging a higher security deposit to tenants with pets
- Setting a minimum income requirement for all applicants
Correct answer: Refusing to rent to a tenant with children under 18 in a non-exempt property
The Fair Housing Act prohibits discrimination based on familial status, which includes refusing to rent to families with children under 18, unless the property qualifies as housing for older persons.
Question 4: A property listed at $400,000 sells for $380,000. The listing agreement specifies a 6% commission split equally between the listing and selling brokers. What is the selling broker's commission?
- $12,000
- $11,400 (Correct answer)
- $22,800
- $24,000
Correct answer: $11,400
The commission is calculated on the actual sale price: $380,000 x 6% = $22,800 total, split equally gives the selling broker $11,400.
Question 5: Which type of deed provides the LEAST amount of protection to the buyer?
- General warranty deed
- Special warranty deed
- Bargain and sale deed
- Quitclaim deed (Correct answer)
Correct answer: Quitclaim deed
A quitclaim deed transfers only whatever interest the grantor may have, if any, and provides no warranties or guarantees of title quality.
Question 6: An appraiser is using the sales comparison approach to value a residential property. The subject property lacks a garage, but the comparable sale has a two-car garage valued at $25,000. How should the appraiser adjust?
- Add $25,000 to the subject property's value
- Subtract $25,000 from the comparable sale's price (Correct answer)
- Add $25,000 to the comparable sale's price
- Make no adjustment since garages are personal property
Correct answer: Subtract $25,000 from the comparable sale's price
In the sales comparison approach, adjustments are always made to the comparable property; since the comparable has a feature the subject lacks, its price is adjusted downward.
Real Estate Sales Exam FREE Real Estate Sales MCQ Question and Answers 2
A buyer signs a purchase agreement that is contingent on obtaining financing within 30 days.
If the buyer fails to secure a loan within the specified period, what is the most likely outcome?