Real Estate License Practice Test – Contracts

Question 1

Mr. and Mrs. Collins make an offer on their home to Mr. and Mrs. Gray, but they have yet to hear whether or not the offer has been
 accepted. In the meanwhile, they have spotted another house that they would want to buy. What is the best course of action for them?

Accepted Answer

Withdraw their offer without incurring any penalties.

Answer

Cancel their offer with penalty.

Answer

Wait for a response from Mr. and Mrs. Gray. If they accept the offer, pay the contract's withdrawal fee.

Answer

Change their offer to one that Mr. and Mrs. Gray are unlikely to accept.

Question 2

In order to be enforceable, which of the following contracts must be in writing?

Accepted Answer

A buyer's agreement to take over an existing loan secured by a deed of trust.

Answer

A one-year lease listing for real estate.

Answer

A contract that does not have to be fulfilled within a year of its signing.

Question 3

The _, also known as the words of conveyance, contains the phrases that describe the grantee's rights.

Accepted Answer

Clause of grant

Answer

Clause of transfer

Answer

Rights of the grantee

Answer

Rights of the guarantor

Question 4

When is it not necessary for a broker to propose an offer to acquire real estate to their principal?

Accepted Answer

When the offer is clearly frivolous or the broker is acting on the principal's written instructions.

Answer

When the broker has written to the seller to explain why the offer was not presented.

Answer

When none of the contingencies have been removed.

Answer

If it's a commercial property that's being offered.

Question 5

What is the closest definition of "delivery in escrow" in terms of deeds?

Accepted Answer

The grantor hands over the deed to a trustee, who keeps it until the grantee has completed all of the necessary steps.

Answer

A deed is finished but not delivered, such as when the grantor dies and the deed is discovered at his or her home.

Answer

A deed isn't regarded valid until the grantor signs it.

Answer

From the grantor, the grantee receives physical possession of the completed deed.

Question 6

Each of the brokers, Jenny and Sam, has an open listing on the same property. The property was shown to a potential buyer by 
broker Jenny, but the buyer opted not to purchase it. Broker Sam called the same buyer two weeks later and arranged a sale of
 the property. The vendor is required to pay the following commission:

Accepted Answer

The full amount to Sam

Answer

Each broker will receive 50%

Answer

To be worked out.

Answer

The full amount to Jenny

Question 7

Broker Tim accepted a listing on a commercial office complex and was given a one-month option to buy the property. 
Broker Tim decides to purchase the property on the 25th day of the listing. Broker Tim must ____ before purchasing the house.

Accepted Answer

All of the above.

Answer

Any outstanding offers on the property should be disclosed to the seller.

Answer

Obtain the seller's written approval, acknowledging any profit or projected profit.

Answer

To the seller, you must disclose all relevant information.

Question 8

The ____ has the right of possession and equitable title.

Accepted Answer

Vendee.

Answer

Trustee.

Answer

Trustor.

Answer

Vendor

Question 9

A typical listing contract gives a broker the authority to ____

Accepted Answer

Find a buyer and accept a deposit with a purchase offer.

Answer

Assure a third party that their principal will accept an offer that meets the listing's terms.

Answer

The real estate that is the subject of the listing must be transferred.

Answer

Find a buyer and bind their principal to a sale contract

Question 10

____ is referred to as "index," "triple net," and "flat."

Accepted Answer

Leases

Answer

Freehold estates.

Answer

Linkages

Answer

Rural land use.

Mr. and Mrs.Collins make an offer on their home to Mr. and Mrs.Gray, but they have yet to hear whether or not the offer has been accepted.In the meanwhile, they have spotted another house that they would want to buy.What is the best course of action for them?

Mr. and Mrs.
Collins make an offer on their home to Mr. and Mrs.
Gray, but they have yet to hear whether or not the offer has been
accepted.
In the meanwhile, they have spotted another house that they would want to buy.
What is the best course of action for them?