Real Estate Sales Exam Real Estate Sales MCQ 1

Question 1

A seller receives two offers simultaneously: Offer A for $350,000 with a 60-day closing and no contingencies, and Offer B for $360,000 contingent on the sale of the buyer's current home.
Which statement best describes the seller's situation?

Accepted Answer

The seller should evaluate net proceeds, risk, and timeline, as the higher offer carries more uncertainty

Answer

The seller must accept Offer B because it is the higher price

Answer

The seller may negotiate with both buyers simultaneously without disclosing this to either party

Answer

The seller is legally required to accept the first offer received

Question 2

An agent represents a seller and discovers that the property has a cracked foundation that was patched and painted over by the seller before listing. What is the agent's legal and ethical obligation?

Accepted Answer

Disclose the known defect to prospective buyers

Answer

Keep the information confidential to protect the seller's interest

Answer

Advise the seller to lower the price to compensate for the defect

Answer

Refer the buyer to a home inspector and take no further action

Question 3

A licensee earns a salary and benefits from a real estate company and works set hours determined by the broker. How is this worker most likely classified for tax purposes?

Accepted Answer

Employee

Answer

Independent contractor

Answer

Statutory employee

Answer

Associate broker

Question 4

A property is purchased for $250,000. The buyer makes a 20% down payment and obtains a mortgage for the remainder. After two years, the outstanding loan balance is $192,000 and the property appraises at $275,000. What is the buyer's current equity?

Accepted Answer

$83,000

Answer

$50,000

Answer

$75,000

Answer

$25,000

Question 5

Which of the following is the primary purpose of an earnest money deposit in a real estate transaction?

Accepted Answer

To demonstrate the buyer's good faith and secure the offer

Answer

To pay the real estate agent's commission upfront

Answer

To cover the seller's closing costs if the deal falls through

Answer

To serve as the buyer's full down payment

Question 6

A real estate broker receives an offer on a listed property on a Friday afternoon. The seller is traveling and unreachable until Monday. What should the broker do?

Accepted Answer

Make all reasonable efforts to present the offer to the seller as soon as possible

Answer

Reject the offer and ask the buyer to resubmit on Monday

Answer

Accept the offer on the seller's behalf to avoid losing it

Answer

Hold the offer until the next business day without notifying the seller