The Ultimate Real Estate Knowledge Test

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  • 1/123 Questions

    Which of the following types of agency is not allowed in NY

    • Broker's agency
    • Buyer's agency
    • Subagency
    • Undisclosed dual agency
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Real Estate Quizzes & Trivia
About This Quiz

Welcome to the ultimate Real Estate kowledge test. Real estate is the term given to any property consisting of land and the buildings within it, including any of its resources such as crops, minerals, or water – it is also the term given to the business of this property.

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  • 2. 

    What is the highest form of ownership interest one can acquire in real estate

    • Dower and curtesy

    • Conventional life estate

    • Defeasible fee simple estate

    • Absolute fee simple estate

    Correct Answer
    A. Absolute fee simple estate
    Explanation
    An absolute fee simple estate is the highest form of ownership interest one can acquire in real estate. It grants the owner complete and unrestricted ownership rights over the property, including the right to sell, lease, or transfer the property to others. This type of ownership is not subject to any conditions, limitations, or restrictions, providing the owner with the most extensive control and rights over the property.

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  • 3. 

    An owner's agent is showing a buyer an apartment building.  The buyer notices water stains on the ceiling and informs the agent.  What is the agent's best course of action?

    • Immediately contract to paint the ceiling

    • Immediately contract to repair the roof

    • Suggest the buyer make a lower-price offer

    • Inform the seller

    Correct Answer
    A. Inform the seller
    Explanation
    The agent's best course of action is to inform the seller. This is because the buyer has noticed water stains on the ceiling, indicating a potential issue with the roof or plumbing. It is the agent's responsibility to communicate any concerns or issues raised by the buyer to the seller, allowing them to address the problem appropriately. The agent should not immediately contract to paint the ceiling or repair the roof without consulting the seller first. Additionally, suggesting a lower-price offer may not be necessary at this stage, as the issue can be resolved by the seller.

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  • 4. 

    Which of the following is not a fiduciary duty an agent owes to his or her principal?

    • Loyalty

    • Confidentiality

    • Accountability

    • Blind obedience

    Correct Answer
    A. Blind obedience
    Explanation
    Blind obedience is not a fiduciary duty because it implies unquestioningly following the principal's instructions without considering their legality or ethical implications. Fiduciary duties, on the other hand, require agents to act in the best interests of their principals, which may involve questioning or refusing to carry out instructions that are unlawful or unethical. Therefore, blind obedience does not align with the concept of fiduciary duty.

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  • 5. 

    Agent is bound to inform his client of all facts that might affect the client's interests -- both what Paul knows and what he should have known.  Which of these situations would not be something that agent should know

    • There is a crack in the basement wall

    • The air conditioner doesn't work

    • The owner of the property is HIV positive

    • The casement windows have broken seals

    Correct Answer
    A. The owner of the property is HIV positive
    Explanation
    The agent is not required to know the personal health information of the owner of the property, such as their HIV status. This information does not directly affect the client's interests in relation to the property transaction.

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  • 6. 

    Sally is a subagent working for Seller Pat.  What does Sally owe to Buyer Brad?

    • Honest and fair dealing

    • Confidentiality

    • Advice on negotiations

    • Info about Pat's motivation to sell

    Correct Answer
    A. Honest and fair dealing
    Explanation
    As a subagent working for Seller Pat, Sally owes honest and fair dealing to Buyer Brad. This means that Sally must act in good faith, provide accurate information, and not engage in any deceptive or unfair practices during the transaction. Sally should ensure that all negotiations are conducted with integrity and transparency, prioritizing the best interests of both the buyer and seller.

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  • 7. 

    For how long must the broker maintain records of all his or her sales transactions

    • 1 year

    • 2 years

    • 3 years

    • 5 years

    Correct Answer
    A. 3 years
    Explanation
    Brokers are required to maintain records of all their sales transactions for a period of 3 years. This is important for regulatory and compliance purposes. By keeping records for this duration, brokers can ensure transparency and accountability in their business operations. It also allows for proper auditing and investigation if any issues or disputes arise in the future.

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  • 8. 

    If a person dies with no legal heirs or relations and has left no valid will, what happens to real property owned by that person?

    • It is reconveyed to the previous owner in the chain of title

    • It is taken by the state according to the process called escheat

    • It is taken by the title insurance company according to the process called involuntary alientation

    • It is conveyed to the highest bidder at a public auction

    Correct Answer
    A. It is taken by the state according to the process called escheat
    Explanation
    If a person dies with no legal heirs or relations and has left no valid will, the real property owned by that person is taken by the state according to the process called escheat. Escheat is a legal principle that allows the state to claim ownership of property when there are no rightful heirs or beneficiaries. This ensures that the property does not remain ownerless and can be used for public benefit or sold by the state.

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  • 9. 

    A broker must keep records of transactions on file for how long

    • 1 year

    • 2 years

    • 3 years

    • Until the Department of State audits the records

    Correct Answer
    A. 3 years
    Explanation
    A broker is required to keep records of transactions on file for a period of 3 years. This is important for several reasons. Firstly, it ensures that there is a record of all transactions conducted by the broker, which can be useful for reference or in case of any disputes or legal issues that may arise. Additionally, it helps to maintain transparency and accountability in the broker's business operations. Keeping records for this duration also ensures compliance with regulatory requirements and allows for proper auditing and review of the broker's activities if necessary.

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  • 10. 

    From whom can a salesperson receive compensation

    • From any broker he or she works for

    • From a broker or client

    • From his or her sponsoring broker only

    • From the broker or another licensee in the same firm

    Correct Answer
    A. From his or her sponsoring broker only
    Explanation
    A salesperson can receive compensation only from their sponsoring broker. This means that they are not allowed to receive compensation from any other broker they may work for or from a client. Additionally, they cannot receive compensation from another licensee in the same firm. The sponsoring broker is responsible for overseeing and managing the salesperson's activities, including their compensation.

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  • 11. 

    Which statement is true about pocket cards

    • The broker is responsible for distributing them to his or her licensees

    • They must be prominently displayed on broker's wall

    • They are a kind of miniature license that licensees must carry and show on demand

    • They must be shown to any potential customer before the licensee can schedule any showings

    Correct Answer
    A. They are a kind of miniature license that licensees must carry and show on demand
    Explanation
    Pocket cards are a type of miniature license that licensees are required to carry with them and show upon request. These cards serve as proof of licensure and are an important form of identification for real estate professionals. By carrying and presenting their pocket cards, licensees can demonstrate their legitimacy and compliance with licensing requirements to potential clients, colleagues, and regulatory authorities.

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  • 12. 

    Which of the following terms refers to the rights of a property that abuts a stream or river

    • Allodial

    • Alluvial

    • Littoral

    • Riparian

    Correct Answer
    A. Riparian
    Explanation
    The term "riparian" refers to the rights of a property that abuts a stream or river. Riparian rights include the legal privileges and responsibilities that landowners have in relation to the watercourse, such as the right to access and use the water for domestic and agricultural purposes. These rights also encompass the responsibility to protect the water quality and ecosystem of the stream or river.

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  • 13. 

    A certain property has the following liens recorded against it:  a mortgage lien dating from three years ago; a mechanic's lien dating from 2 years ago; a real estate tax lien for the current year and a second mortgage lien dating from the current year.  In case of a foreclosure, which of these liens will be paid first

    • First mortgage lien

    • Mechanic's lien

    • Real estate tax lien

    • Second mortgage lien

    Correct Answer
    A. Real estate tax lien
    Explanation
    The real estate tax lien will be paid first in case of foreclosure. This is because real estate tax liens are typically given priority over other liens. The government has the authority to seize and sell the property to satisfy unpaid taxes, making it a higher priority lien.

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  • 14. 

    Where must the broker place his sign at his place of business

    • Inside the office door

    • Above the broker's desk

    • On the mailbox

    • Outside the building and visible from sidewalk

    Correct Answer
    A. Outside the building and visible from sidewalk
    Explanation
    The broker must place his sign outside the building and visible from the sidewalk in order to attract potential clients and advertise his business. Placing the sign outside ensures that it can be easily seen by people passing by, increasing the visibility and reach of the broker's services. This location also allows the sign to be visible to a larger audience, potentially attracting more customers and generating more business for the broker.

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  • 15. 

    What type of listing is least attractive to a broker

    • Exclusive right to sell

    • Open

    • Exclusive agency

    • MLS listing

    Correct Answer
    A. Open
    Explanation
    An open listing is least attractive to a broker because it means that multiple brokers can represent the property and compete with each other to find a buyer. This reduces the broker's chances of earning a commission since they are not guaranteed exclusive rights to sell the property. Additionally, with an open listing, the broker may have to invest time and resources into marketing the property without the guarantee of earning a commission in return.

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  • 16. 

    What type of listing provides the most incentive for a broker to market a property

    • Exclusive Agency

    • Open

    • Net

    • Exclusive right to sell

    Correct Answer
    A. Exclusive right to sell
    Explanation
    The exclusive right to sell listing provides the most incentive for a broker to market a property because it gives the broker the exclusive right to earn a commission on the sale of the property, regardless of who sells it. This means that the broker has a strong motivation to invest time and resources into marketing the property and finding a buyer, as they are guaranteed to be compensated for their efforts.

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  • 17. 

    If a licensee joins a company as an independent contractor which of these will he probably have to pay for on his own

    • Health insurance

    • Office space

    • For sale signs

    • Errors and omissions insurance

    Correct Answer
    A. Health insurance
    Explanation
    When a licensee joins a company as an independent contractor, they are typically responsible for paying for their own health insurance. This is because independent contractors are not considered employees of the company and therefore do not receive the same benefits. Health insurance is an important expense that individuals need to cover on their own to ensure they have access to medical care and protect themselves financially in case of any health-related issues.

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  • 18. 

    How often must a licensee renew his or her license

    • Every year

    • Every 2 years

    • Every 3 years

    • Every four years

    Correct Answer
    A. Every 2 years
    Explanation
    A licensee must renew his or her license every 2 years. This ensures that the licensee's knowledge and skills are up to date and that they are meeting the necessary requirements to continue practicing their profession. By renewing their license every 2 years, the licensee can demonstrate their commitment to maintaining their professional competence and staying current with any changes or advancements in their field.

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  • 19. 

    When must the agency disclosure form be presented, explained, and signed?

    • When a purchaser makes an offer

    • When a seller accepts an offer

    • At first substantive contact

    • When the buyer and seller meet

    Correct Answer
    A. At first substantive contact
    Explanation
    The agency disclosure form must be presented, explained, and signed at first substantive contact. This means that it should be provided to the buyer or seller as soon as they have a meaningful conversation or interaction with the real estate agent. This ensures that the parties are informed about the agency relationship and any potential conflicts of interest from the very beginning of their interaction.

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  • 20. 

    What is the type of statuory deed that contains the most complete protection for the grantee?

    • Guardian's deed

    • Special warranty deed

    • Full convenant and warranty deed

    • Quitclaim deed

    Correct Answer
    A. Full convenant and warranty deed
    Explanation
    A full covenant and warranty deed provides the most complete protection for the grantee. This type of statutory deed guarantees that the grantor has clear title to the property and will defend the grantee against any claims or encumbrances on the property. It includes both present and future covenants, ensuring that the grantee is protected from any defects in the title. This deed offers the highest level of protection for the grantee compared to other types of deeds such as a quitclaim deed, special warranty deed, or guardian's deed.

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  • 21. 

    A property survey reveals that a new driveway extends one foot onto a neighbor's property.  What is this an example of?

    • An easement appurtenant

    • An encroachment

    • An easement by perscription

    • A party wall easement

    Correct Answer
    A. An encroachment
    Explanation
    This is an example of an encroachment because the new driveway extends one foot onto the neighbor's property without permission or legal right.

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  • 22. 

    How many hours of continuing education are required for license renewal

    • 21.5

    • 22.5

    • 23.5

    • 24.5

    Correct Answer
    A. 22.5
    Explanation
    The correct answer is 22.5. This means that for license renewal, a person is required to complete 22.5 hours of continuing education.

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  • 23. 

    Gladys sells another broker's $300,000 listing for $290,000 at a commission rate of 6%.  She has a 60% commission split with her broker.  If there is also a 50% brokerage split, what commission will Gladys receive

    • $5220

    • $8700

    • $17400

    • $3480

    Correct Answer
    A. $5220
    Explanation
    Gladys sells another broker's $300,000 listing for $290,000 at a commission rate of 6%. She has a 60% commission split with her broker. If there is also a 50% brokerage split, Gladys will receive a commission of $5220. This can be calculated by first finding Gladys' commission on the sale, which is 6% of $290,000, equal to $17,400. Then, taking into account the 60% commission split with her broker, Gladys will receive 60% of $17,400, which is $10,440. Finally, considering the 50% brokerage split, Gladys will receive 50% of $10,440, which is $5,220.

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  • 24. 

    A property seller empowers an agent to market and sell a property on his behalf.  What is this an example of

    • General agency

    • Universal agency

    • No agency

    • Special agency

    Correct Answer
    A. Special agency
    Explanation
    This scenario is an example of a special agency. In a special agency, the principal (property seller) grants limited authority to the agent to perform specific tasks on their behalf, such as marketing and selling the property. The agent's authority is restricted to these specific tasks and does not extend to other areas.

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  • 25. 

    What can a broker require of his independent contractors

    • They must work at the office

    • They must receive a salary

    • They must attend weekly sales meeting

    • They must sign a written agreement

    Correct Answer
    A. They must sign a written agreement
    Explanation
    A broker can require his independent contractors to sign a written agreement. This agreement would outline the terms and conditions of their working relationship, including their roles, responsibilities, and any specific requirements or expectations. Signing a written agreement helps to establish a clear understanding between the broker and the independent contractors, ensuring that both parties are aware of their obligations and rights. It also serves as a legal document that can be referred to in case of any disputes or disagreements in the future.

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  • 26. 

    When a licensee terminates his or her association with a firm which statement is true?

    • The licensee may take his or her listings to the new firm

    • The licensee must turn over any listings provided by the broker but can take those listings he or she acquired

    • The licensee must turn over any and all listing information she obtained during the association

    • The new sponsoring broker can take over any listings acquired by the newly employed licensee

    Correct Answer
    A. The licensee must turn over any and all listing information she obtained during the association
    Explanation
    When a licensee terminates their association with a firm, they are required to turn over any and all listing information that they obtained during their association. This means that they must provide the information to their previous broker and cannot take it with them to a new firm. This is important to ensure that the broker retains control over the listing information and can continue to represent the clients properly.

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  • 27. 

    What is the penalty for conviction of a misdemeanor

    • 1000 fine only

    • One year in prison only

    • Either fine, imprisonment, or both

    • $5,000 fine

    Correct Answer
    A. Either fine, imprisonment, or both
    Explanation
    The penalty for conviction of a misdemeanor can vary and is not limited to a specific punishment. It can include either a fine, imprisonment, or both, depending on the severity of the offense and the discretion of the court. The court may impose a monetary penalty, a period of incarceration, or a combination of both, based on the circumstances of the case and the applicable laws.

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  • 28. 

    Which of these activities could an unlicensed assistant perform?

    • Solicit business for the broker

    • Collect info for an appraisal

    • Hold an open house

    • Discuss a specific property with a client

    Correct Answer
    A. Collect info for an appraisal
    Explanation
    An unlicensed assistant could collect information for an appraisal because this task does not require a real estate license. Appraisals involve gathering data and conducting research on properties, which can be done by an assistant without the need for a license. However, soliciting business for the broker, holding an open house, and discussing specific properties with clients all require a real estate license as they involve actively participating in real estate transactions and providing advice or information to clients.

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  • 29. 

    Which of the following courses would not be acceptable to meet the continuing ed requirement

    • Residential mortgages

    • Property management

    • Exchanging techniques

    • Basic computer skills

    Correct Answer
    A. Basic computer skills
    Explanation
    Basic computer skills would not be acceptable to meet the continuing education requirement because it is not directly related to the field of real estate. The other courses listed, such as residential mortgages, property management, and exchanging techniques, are all relevant and applicable to the real estate industry. Basic computer skills may be important for general professional development, but they do not specifically contribute to the knowledge and skills needed for real estate professionals.

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  • 30. 

    Which part of the NY License Law requires agency disclosure

    • Article 12-A, Section 443

    • Article 9, Section 333

    • Article 14, Section 462

    • Article 8, Section 242

    Correct Answer
    A. Article 12-A, Section 443
  • 31. 

    Mary has a listing agreement with Broker Tom.  Mary tells Tom she wants him to to help sell her property.  Tom gets Larry, Gail and Bill, who all work for other firms to help find a buyer for Mary's property.  Who would be liable for Bill's actions

    • Broker Tom and Mary

    • Broker Tom, Larry, and Gail

    • Broker Tom

    • Mary

    Correct Answer
    A. Broker Tom
    Explanation
    Broker Tom would be liable for Bill's actions. Since Tom is the broker and has enlisted the help of Larry, Gail, and Bill, he is responsible for their actions while working on the sale of Mary's property.

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  • 32. 

    Which of the following types of listing agreements can a real estate licensee NOT enter into

    • MLS

    • Exclusive

    • Single

    • Net

    Correct Answer
    A. Net
    Explanation
    A real estate licensee cannot enter into a Net listing agreement. A Net listing agreement is a type of listing agreement where the seller sets a minimum price they are willing to accept for their property, and any amount above that minimum price becomes the commission for the real estate licensee. This type of agreement is considered illegal or unethical in some states because it can create a conflict of interest for the licensee, as they may be motivated to sell the property for less in order to increase their commission.

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  • 33. 

    Which of the following licenses is $50?

    • Salesperson

    • Associate broker

    • Broker

    • Branch office

    Correct Answer
    A. Salesperson
    Explanation
    The correct answer is "salesperson." This is because the question asks for the license that costs $50, and out of the given options, only the salesperson license fits this criteria.

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  • 34. 

    When is commission considered earned?

    • When the broker produces a ready willing and able buyer

    • When an offer from a qualified buyer has been submitted and accepted and both parties have received signed copies of the agreement

    • When the seller has accepted the offer

    • When the transaction has totally completed

    Correct Answer
    A. When an offer from a qualified buyer has been submitted and accepted and both parties have received signed copies of the agreement
    Explanation
    Commission is considered earned when an offer from a qualified buyer has been submitted and accepted, and both parties have received signed copies of the agreement. This means that the broker has successfully brought together a buyer and seller, and all necessary paperwork has been completed and signed. At this point, the broker has fulfilled their role in facilitating the transaction and is entitled to receive their commission.

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  • 35. 

    Broker Dan is representing Mandy as a buyer's agent.  He wants to show Many one of his lsited properties.  Which statement is true?

    • There is no reason why Dan should not show Mandy the property

    • Dan must disclose to the seller that he is also representing the buyer

    • Dan needs to get the informed written consent of both Many and the seller to act as dual agent

    • Dan must notify the Dep of State that he wants to represent both parties

    Correct Answer
    A. Dan needs to get the informed written consent of both Many and the seller to act as dual agent
    Explanation
    As a buyer's agent representing Mandy, Dan would need to obtain the informed written consent of both Mandy (the buyer) and the seller to act as a dual agent. This is because acting as a dual agent means representing both the buyer and the seller in the same transaction, which can create potential conflicts of interest. Therefore, it is necessary for Dan to disclose this and obtain consent from both parties to proceed as a dual agent.

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  • 36. 

    What must an agent do if a buyer or seller refuses to sign the required NY disclosure form

    • Fill out a declaration form that describes what happened

    • Refuse to enter into listing agreement

    • Tell the buyer or seller that the form must be signed before the agent can legally show a property

    • Refuse to negotiate for the seller or buyer

    Correct Answer
    A. Fill out a declaration form that describes what happened
    Explanation
    If a buyer or seller refuses to sign the required NY disclosure form, the agent must fill out a declaration form that describes what happened. This is necessary to document the refusal and provide a record of the situation. By filling out the declaration form, the agent can demonstrate that they made an effort to obtain the required signature and followed proper procedures. This documentation can be important in case of any legal disputes or issues that may arise from the refusal to sign the disclosure form.

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  • 37. 

    What is one important difference between a sublease and a lease assignment?

    • In an assignment, responsbility for the original lease is transferred completely to the assignee

    • In a sublease, the original tenant retains primary responsibility for performance of the original lease contract

    • A sublease does not convey any of the leasehold interest

    • A sublease conveys the entire leasehold interest

    Correct Answer
    A. In a sublease, the original tenant retains primary responsibility for performance of the original lease contract
    Explanation
    In a sublease, the original tenant still maintains the primary responsibility for fulfilling the obligations outlined in the original lease agreement. This means that while they may sublet the property to another party, they are still ultimately responsible for ensuring that the terms of the lease are met. On the other hand, in a lease assignment, the responsibility for the original lease is completely transferred to the assignee, relieving the original tenant of any further obligations.

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  • 38. 

    What is "chain of title"

    • The list of all parties who have ever owned real estate

    • The bundle of rights linked to the recorded title to a parcel

    • A chronology of successive owners of record of a parcel of real estate

    • Involuntary conveyance of title by statutory rules of descent

    Correct Answer
    A. A chronology of successive owners of record of a parcel of real estate
    Explanation
    "Chain of title" refers to the chronological list of all the individuals or entities who have owned a particular piece of real estate over time. It is a record that shows the transfer of ownership from one owner to the next, establishing a clear and complete history of ownership. This information is important in real estate transactions as it helps to ensure that the current owner has a valid and marketable title to the property.

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  • 39. 

    Which of the following would not be a condition you would find in an independent contractor agreement?

    • The broker will withhold taxes from the licensee's commission

    • The licensee can work from home

    • The broker and the licensee will follow NY real property law

    • The licensee may hold an outside job

    Correct Answer
    A. The broker will withhold taxes from the licensee's commission
    Explanation
    The correct answer is "The broker will withhold taxes from the licensee's commission." This would not typically be a condition found in an independent contractor agreement because independent contractors are responsible for paying their own taxes. Withholding taxes from their commission would indicate an employer-employee relationship rather than an independent contractor arrangement.

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  • 40. 

    What type of organization provides the liability advantages of a corporation, without the regulations corporations must deal with?  

    • Partnership

    • Joint venture

    • LLC

    • REIT

    Correct Answer
    A. LLC
    Explanation
    An LLC, or Limited Liability Company, provides the liability advantages of a corporation without the regulations that corporations must deal with. This means that the owners of an LLC, known as members, are not personally liable for the company's debts or legal obligations. Additionally, an LLC offers flexibility in terms of management and taxation, making it an attractive option for many small businesses and startups.

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  • 41. 

    A brick fence straddles the property line of two neighbors.  The neighbors agree not to damage it in any way.  This is an example of what?

    • A party wall

    • An encroachment

    • A trade fixture

    • A deed restriction

    Correct Answer
    A. A party wall
    Explanation
    A party wall refers to a wall that is built on the property line between two neighboring properties and is jointly owned and maintained by both parties. In this scenario, the brick fence is straddling the property line, indicating that it serves as a party wall. The fact that the neighbors have agreed not to damage it further supports the idea that it is a party wall, as both parties have a shared responsibility to protect and maintain it.

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  • 42. 

    Sellers employ a broker to sell their home through the use of which of these documents

    • Buyer Agency agreement

    • Listing contract

    • Purchase contract

    • Seller agency agreement

    Correct Answer
    A. Listing contract
    Explanation
    A listing contract is a document that sellers use to hire a real estate broker to sell their home. It outlines the terms and conditions of the agreement between the seller and the broker, including the listing price, the duration of the contract, and the broker's commission. This contract grants the broker the exclusive right to market and sell the property on behalf of the seller. Therefore, the correct answer is the listing contract.

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  • 43. 

    Which of the following statements is false?

    • A real estate broker means any person, firm, limited liability company or corporation who performs real estate activities for a fee, commission or other consideration

    • An associate broker may not maintain a separate real estate brokers license

    • A broker is responsible for managing and supervising all affiliated licensees

    • An associate broker has a responsibility to be fair and competent when dealing with the public

    Correct Answer
    A. An associate broker may not maintain a separate real estate brokers license
    Explanation
    An associate broker may maintain a separate real estate broker's license. This means that the statement is false. Associate brokers have the option to obtain their own broker's license, which allows them to operate independently and have their own brokerage.

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  • 44. 

    What form of limited agency is a good alternative to dual agency

    • Non-agency

    • Undisclosed dual agency

    • Designated agency

    • Buyer brokerage

    Correct Answer
    A. Designated agency
    Explanation
    Designated agency is a good alternative to dual agency because it allows for the appointment of separate agents to represent the buyer and seller in a real estate transaction. This ensures that each party has their own dedicated agent who can provide unbiased advice and representation. Designated agency helps to avoid conflicts of interest that may arise in dual agency, where one agent represents both parties simultaneously. By having separate agents, designated agency promotes transparency and ensures that each party's best interests are prioritized.

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  • 45. 

    A property owner has an easement appurtenant on her property.  When the property is sold to another party, what will happen to the easement?

    • It will terminate

    • It transfers with the property

    • It transfers with the owner to a new property

    • It becomes a lien on the property

    Correct Answer
    A. It transfers with the property
    Explanation
    When the property owner sells the property, the easement will transfer to the new owner along with the property. This means that the new owner will have the same rights and obligations associated with the easement as the previous owner. The easement does not terminate or become a lien on the property, nor does it transfer with the owner to a new property.

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  • 46. 

    How many sections are there in a township

    • 1

    • 6

    • 12

    • 36

    Correct Answer
    A. 36
    Explanation
    A township typically consists of 36 sections. Each section is a square with a side length of one mile, resulting in a total of 36 square miles in a township. This division is commonly used in land surveying and is a standard unit of measurement in many countries.

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  • 47. 

    Grant moves into his new office space while he awaits the completion of the negotiations of the lease terms.  During this interim period, Grant makes monthly rent payments and the owner accepts them.  How would Grant's lease at this time be classified?

    • Estate for years

    • Estate from period to period

    • Estate at will

    • Estate at sufferance

    Correct Answer
    A. Estate from period to period
    Explanation
    During the interim period while Grant awaits the completion of the lease negotiations, he is making monthly rent payments and the owner is accepting them. This indicates that Grant has a lease agreement that allows him to occupy the office space for a specific period of time, with the lease being extended on a periodic basis. Therefore, Grant's lease at this time would be classified as an "estate from period to period."

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  • 48. 

    Which of these is not a law violation?

    • Failing to deliver duplicate documents for a real estate transaction to all the appropriate parties

    • Offering a property for sale or lease without the owner's permission

    • Accepting compensation for more than one party in a transaction without the knowledge and written consent of all parties

    • Placing a sign on a property with the owner's permission

    Correct Answer
    A. Placing a sign on a property with the owner's permission
    Explanation
    Placing a sign on a property with the owner's permission is not a law violation because it is a lawful act that does not infringe upon any legal rights or regulations. It is important to have the owner's permission before placing a sign on their property to avoid any potential legal issues.

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  • 49. 

    Which of the following terminations of an agency relationship could result in legal or financial ramifications

    • Contract performance

    • Contract expiration

    • Mutual agreement between broker and client

    • Renunciation by the client

    Correct Answer
    A. Renunciation by the client
    Explanation
    Renunciation by the client refers to the client voluntarily terminating the agency relationship without the agreement or consent of the broker. This termination could result in legal or financial ramifications because it may breach the terms of the agency agreement or contract. The broker may have invested time, effort, and resources into representing the client, and the sudden termination could lead to financial losses for the broker. Additionally, if the termination is not done in accordance with any contractual obligations or legal requirements, the client may be held liable for any damages or losses incurred by the broker.

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Quiz Review Timeline (Updated): Mar 21, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Sep 18, 2011
    Quiz Created by
    Hbabitt91

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